Resources Connection, Inc. Reports Financial Results for Third Quarter Fiscal 2021
Resources Connection, Inc. (Nasdaq: RGP), a multinational business consulting firm operating as RGP (the “Company”), today announced financial results for its fiscal third quarter ended February 27, 2021.
Third Quarter Fiscal 2021 Highlights:
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Revenue up
2.2% sequentially to$156.6 million compared to$153.2 million in the second quarter and as compared to$168.1 million in the prior year quarter -
Same day constant currency revenue up
3.4% sequentially and off10.4% from the prior year quarter -
SG&A improved
4.5% to$52.8 million compared to$55.3 million in the prior year quarter -
Net income of
$0.7 million , or$0.02 diluted earnings per common share, compared to$6.9 million in the prior year quarter, or$0.21 diluted earnings per common share, which included a discrete tax benefit of$6.6 million or$0.18 per diluted share -
Adjusted diluted earnings per common share of
$0.14 compared to$0.25 in the prior year quarter -
Adjusted EBITDA margin of
6.0% , up 200 basis points compared to4.0% in the prior year quarter -
Available financial liquidity of
$149.7 million as of February 27, 2021, up from$126.3 million as of May 30, 2020 -
Cash dividends declared of
$0.14 per share, consistent with the prior year quarter
Management Commentary
“We again delivered sequential growth despite the typical holiday impact during our fiscal third quarter,” said Kate W. Duchene, chief executive officer. “I am especially proud of our progress expanding Adjusted EBITDA margin by 200 basis points year over year. As we look forward, we are rapidly strengthening our business reach especially in digital transformation, healthcare and financial advisory services. As the macro environment continues to evolve, we are experiencing increased interest from both new and existing clients around implementing an agile workforce strategy, and we are well-positioned to capture the multitude of opportunities as clients seek more cost flexibility in their human capital requirements and as talent demands more radical flexibility. RGP is truly built for the Now of Work.”
Third Quarter Fiscal 2021 Results
Revenue increased
Gross margin was
SG&A of
Net income of
SUMMARY OF CONSOLIDATED FINANCIAL RESULTS (Amounts in thousands, except per share amounts) |
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Three Months Ended |
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Nine Months Ended |
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February 27, |
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November 28, |
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February 22, |
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February 27, |
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February 22, |
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2021 |
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2020 |
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2020 |
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2021 |
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2020 |
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(Unaudited) |
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(Unaudited) |
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(Unaudited) |
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(Unaudited) |
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(Unaudited) |
Revenue |
$ |
156,631 |
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$ |
153,222 |
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$ |
168,052 |
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$ |
457,199 |
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$ |
524,784 |
Direct cost of services |
|
99,584 |
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$ |
95,044 |
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$ |
106,632 |
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$ |
284,078 |
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$ |
321,484 |
Gross profit |
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57,047 |
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58,178 |
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61,420 |
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173,121 |
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203,300 |
Selling, general and administrative expenses |
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52,838 |
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54,552 |
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55,299 |
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158,544 |
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166,032 |
Amortization of intangible assets |
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1,202 |
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1,393 |
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1,549 |
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4,125 |
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4,153 |
Depreciation expense |
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963 |
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984 |
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1,120 |
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2,954 |
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3,913 |
Operating income |
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2,044 |
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1,249 |
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3,452 |
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7,498 |
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29,202 |
Interest expense, net |
|
361 |
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460 |
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493 |
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1,316 |
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1,526 |
Other income (1) |
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(64) |
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(475) |
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- |
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(1,069) |
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(537) |
Income before income tax expense (benefit) |
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1,747 |
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1,264 |
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2,959 |
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7,251 |
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28,213 |
Income tax expense (benefit) (2) |
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1,057 |
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2,256 |
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(3,983) |
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5,270 |
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3,995 |
Net income (loss) |
$ |
690 |
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$ |
(992) |
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$ |
6,942 |
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$ |
1,981 |
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$ |
24,218 |
Net income (loss) per common share: |
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Basic |
$ |
0.02 |
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$ |
(0.03) |
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$ |
0.22 |
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$ |
0.06 |
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$ |
0.76 |
Diluted |
$ |
0.02 |
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$ |
(0.03) |
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$ |
0.21 |
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$ |
0.06 |
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$ |
0.75 |
Weighted average common shares outstanding: |
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Basic |
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32,520 |
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32,356 |
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32,159 |
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32,353 |
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31,954 |
Diluted |
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32,659 |
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32,356 |
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32,498 |
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32,422 |
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32,350 |
Cash dividends declared per common share |
$ |
0.14 |
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$ |
0.14 |
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$ |
0.14 |
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$ |
0.42 |
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$ |
0.42 |
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Revenue by Geography |
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Revenue |
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North America |
$ |
127,913 |
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$ |
122,732 |
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$ |
138,819 |
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$ |
371,259 |
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$ |
431,617 |
Europe |
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17,751 |
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19,082 |
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18,031 |
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53,125 |
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56,163 |
Asia Pacific |
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10,967 |
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11,408 |
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11,202 |
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32,815 |
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37,004 |
Total revenue |
$ |
156,631 |
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$ |
153,222 |
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$ |
168,052 |
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$ |
457,199 |
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$ |
524,784 |
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