Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Market Price, Dividends and Related Matters
The Company’s Common Stock is listed for trading on the New York Stock Exchange under the symbol “RHI”. On January 31, 2021, there were 1,225 holders of record of the Common Stock.
Issuer Purchases of Equity Securities
Total
Number of
Shares
Purchased Average
Price Paid
Per Share Total
Number of
Shares
Purchased
as Part of
Publicly
Announced
Plans Maximum
Number of
Shares that May
Yet Be
Purchased
Under Publicly
Announced
Plans (b)
October 1, 2020 to October 31, 2020 248,680 $ 49.79 248,680 10,773,102
November 1, 2020 to November 30, 2020 250,000 $ 58.02 250,000 10,523,102
December 1, 2020 to December 31, 2020 657,183 (a) $ 63.51 575,146 9,947,956
Total October 1, 2020 to December 31, 2020 1,155,863 1,073,826
(a) Includes 82,073 shares repurchased in connection with employee stock plans, whereby Company shares were tendered by employees for the payment of applicable withholding taxes.
(b) Commencing in October 1997, the Company’s Board of Directors has, at various times, authorized the repurchase, from time to time, of the Company’s common stock on the open market or in privately negotiated transactions depending on market conditions. Since plan inception, a total of 128,000,000 shares have been authorized for repurchase of which 118,052,044 shares have been repurchased as of December 31, 2020.
Equity Compensation Plan Information
Plan Category Number of securities
to be issued upon
exercise of
outstanding options,
warrants and rights
A Weighted average
exercise price of
outstanding options,
warrants and rights
B Number of securities
remaining available for
future issuance under
equity compensation plans
(excluding securities
reflected in column A)
C
Equity compensation plans approved by security holders
— — 4,297,266
Equity compensation plans not approved by security holders
— — —
Total — — 4,297,266
Since May 2005, all grants have been made pursuant to the Stock Incentive Plan, which was approved by stockholders in May 2005 and re-approved in May 2008, May 2011, May 2013, May 2014 and May 2019. Such plan authorizes the issuance of stock options, restricted stock, stock units and stock appreciation rights to directors, executive officers and employees.
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Stock Performance Graph
The following graph compares, through December 31, 2020, the cumulative total return of the Company’s Common Stock, an index of certain publicly traded employment services companies, and the S&P 500. The graph assumes the investment of $100 at the beginning of the period depicted in the chart and reinvestment of all dividends. The peer companies are weighted by their respective market caps at the beginning of each period. The information presented in the graph was obtained by the Company from outside sources it considers to be reliable but has not been independently verified by the Company.
(a) This index represents the cumulative total return of the Company and the following corporations providing temporary or permanent employment services: Kelly Services, Inc.; Kforce Inc.; ManpowerGroup; and Resources Connection Inc.
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Item 6. Selected Financial Data
The selected five-year financial data presented below should be read in conjunction with the information contained in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and the Company’s Consolidated Financial Statements and the Notes thereto contained in Item 8. Financial Statements and Supplementary Data.
Year Ended December 31,
2020 2019 2018 2017 2016
(in thousands)
Income Statement Data:
Service revenues $ 5,109,000 $ 6,074,432 $ 5,800,271 $ 5,266,789 $ 5,250,399
Costs of services (a) 3,096,389 3,549,303 3,389,259 3,105,144 3,090,385
Gross margin (a) 2,012,611 2,525,129 2,411,012 2,161,645 2,160,014
Selling, general and administrative
expenses (a) 1,666,041 1,958,295 1,810,601 1,674,112 1,615,408
(Income) loss from investments held in
employee deferred compensation trusts (a)
(75,188) (54,917) 11,486 (29,747) (9,853)
Amortization of intangible assets 1,219 1,361 1,705 1,563 1,237
Interest income, net (1,343) (5,125) (4,382) (1,799) (888)
Income before income taxes 421,882 625,515 591,602 517,516 554,110
Provision for income taxes 115,606 171,082 157,314 226,932 210,721
Net income $ 306,276 $ 454,433 $ 434,288 $ 290,584 $ 343,389
Year Ended December 31,
2020 2019 2018 2017 2016
(in thousands, except per share amounts)
Net Income Per Share:
Basic $ 2.72 $ 3.93 $ 3.60 $ 2.34 $ 2.68
Diluted $ 2.70 $ 3.90 $ 3.57 $ 2.33 $ 2.67
Shares:
Basic 112,729 115,656 120,513 124,152 127,991
Diluted 113,318 116,411 121,602 124,892 128,766
Dividends Declared Per Share $ 1.36 $ 1.24 $ 1.12 $ .96 $ .88
December 31,
2020 2019 2018 2017 2016
(in thousands)
Balance Sheet Data:
Total assets $ 2,557,424 $ 2,311,408 $ 1,903,097 $ 1,867,454 $ 1,777,971
Notes payable, less current portion
$ — $ 239 $ 457 $ 657 $ 840
Stockholders’ equity $ 1,205,289 $ 1,143,683 $ 1,063,198 $ 1,105,265 $ 1,086,599
(a) Change in Presentation. The Company has changed its Consolidated Statements of Operations to separately present (income) loss from investments held in employee deferred compensation trusts. Under the Company’s employee deferred compensation plans, employees direct the investment of their account balances, and the Company invests amounts held in the associated investment trusts consistent with these directions. As realized and unrealized investment gains and losses occur, the Company’s deferred compensation obligation to employees changes accordingly. However, the value of the related investment trust assets also changes by an equal and offsetting amount, leaving no net cost to the Company. Under the new presentation, changes in the Company’s employee deferred compensation obligations remain in selling, general and administrative expenses or, in the case of risk consulting and internal audit services, costs of services. However, the offsetting changes in the investment trust assets will be presented separately below selling, general and administrative expenses. This does not change the previously reported levels of pre-tax or after-tax income or cash flow.
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