Resources Connection, Inc. (Nasdaq: RGP) (the “Company”), a
professional service firm, today announced its financial results
for its first quarter of fiscal 2025 ended August 24, 2024.
First Quarter Fiscal 2025 Highlights
Compared to Prior Year Quarter:
- Revenue of $136.9 million compared to $170.2 million, a decline
of 19.5%
- Same-day constant currency revenue, a non-GAAP measure,
declined by 19.1%
- Gross margin of 36.5% compared to 39.4%
- Selling, general and administrative expenses (“SG&A”) of
$48.9 million, net of $3.4 million gain on sale of the Irvine
office building, improved 18.4% from $59.9 million
- Net loss of $5.7 million (net loss margin of 4.2%), including
goodwill impairment charge of $3.9 million related to the Europe
and Asia Pacific segment, compared to net income of $3.1 million
(net income margin of 1.8%)
- Diluted (loss) earnings per common share of $(0.17) compared to
$0.09
- Adjusted EBITDA, a non-GAAP measure, of $2.3 million (Adjusted
EBITDA margin of 1.7%) compared to $11.5 million (Adjusted EBITDA
margin of 6.8%)
- Cash dividends declared of $0.14 per share consistent with the
prior year quarter
- Cash and cash equivalents plus borrowings available under
senior secured revolving loan facility of $263.2 million compared
to $283.1 million, and zero debt, consistent with prior year
quarter
Management Commentary
“This quarter, our teams have continued to push hard to gain
momentum on topline revenue, while also working diligently to lay
the foundation for our diversification strategy to broaden RGP's
addressable market,” said Kate W. Duchene, Chief Executive Officer.
“The combination of technology transformation, operating model
evolution and brand refresh initiatives enables us to further
improve speed to market, extend buying centers, and strengthen
brand recognition. Our business now serves clients in three ways:
On-Demand, Consulting and Outsourced Services. By organizing
ourselves with greater focus and clarity, our clients and prospects
have an improved understanding of when to call us and for what
capabilities. We are seeing early signs of our efforts paying off,
including notable pipeline improvement and more sizable deal closes
involving our service brands delivering together seamlessly. We
believe the refreshed brand positioning we launched today will
reinforce our strategy to cross sell as a trusted partner in our
exceptional client base, enabling us to deliver on growth and
profitability goals for our shareholders over the long term.”
First Quarter Fiscal 2025 Results
Revenue was $136.9 million (or $137.7 million on a constant
currency basis), declining 19.5% (or 19.1% on a constant currency
basis) compared to $170.2 million in the first quarter of fiscal
2024. These declines reflected a persistently choppy demand
environment driven by broader economic trends. Clients continue to
be in a holding pattern, restrained in their decision to move
forward with transformation projects which has resulted in extended
timelines for opportunities to close in the pipeline. Compared to
the prior year quarter, billable hours decreased by 15.3% and the
average bill rate declined by 5.0% (or 4.7% on a constant currency
basis). The decline in average bill rate reflects a more
competitive pricing environment as well as a shift in revenue mix
to the Asia Pacific region which typically carries a lower average
bill rate. The United States (U.S.) and Europe average bill rates
increased by 2.3% and 4.6% (or 2.3% and 4.5% on a constant currency
basis) compared to the prior year, respectively, as a result of
Company initiatives focused on value-based pricing, while average
bill rates in the Asia Pacific region declined by 3.2% (although
increased by 0.2% on a constant currency basis), also largely
attributable to a shift in revenue mix across the countries within
this region.
Gross margin was 36.5% compared to 39.4% in the prior year
quarter primarily due to less favorable leverage on indirect cost
of services as a result of lower revenue, lower salaried consultant
utilization, and a 60 basis point increase in the pay/bill
ratio.
SG&A for the first quarter of fiscal 2025 was $48.9 million,
or 35.7% of revenue, compared to $59.9 million, or 35.2% of revenue
in the prior year quarter. The year over year improvement in
SG&A was primarily due to a lower management compensation
expense of $5.1 million largely attributable to the cost reduction
plan (the "U.S. Restructuring Plan") initiated in October 2023, a
$3.4 million gain on sale of the Irvine office building, a $1.3
million decrease in bonuses and commissions as a result of lower
revenue and profitability, and a $1.0 million decrease in stock
compensation expense primarily associated with performance based
equity awards. These improvements in SG&A were partially offset
by $1.3 million of costs related to the acquisition of Reference
Point LLC (“Reference Point”), which closed on July 1, 2024.
During the first quarter of fiscal 2025, the Company completed a
goodwill impairment analysis as part of its business segment's
reorganization. As a result of that analysis, a non-cash impairment
charge of $3.9 million was recorded in the Europe and Asia Pacific
segment in the first quarter of fiscal 2025.
Income tax expense for the first quarter of fiscal 2025 was $1.1
million, or an effective tax rate of (22.7%), compared to $2.1
million, or an effective tax rate of 40.0%, for the first quarter
of fiscal 2024. The income tax expense in the first quarter of
fiscal 2025 measured against a pretax loss resulted in the negative
effective tax rate. Despite the consolidated pretax loss in the
first quarter of fiscal 2025, the Company recorded an income tax
expense related to foreign income tax expense on international
profits, along with rate impacting non-deductible items including
tax adjustments associated with goodwill impairment, changes in
valuation allowance and stock-based compensation.
Net loss was $5.7 million (net loss margin of 4.2%), compared to
net income of $3.1 million (net income margin of 1.8%) in the prior
year quarter, primarily due to lower revenue, a decline in gross
profit, and the goodwill impairment charge related to Europe and
Asia Pacific segment, partially offset by improved SG&A for the
current year first quarter due to the Company's continued focus on
cost discipline as well as the $3.4 million gain on sale of the
Irvine office building. The Company delivered an Adjusted EBITDA
margin of 1.7% in the first quarter of fiscal 2025 compared to 6.8%
in the prior year quarter.
First Quarter Fiscal 2025 Segment Results
During the first quarter of fiscal 2025, the Company reorganized
its business segments to better align with changes in its internal
management framework and reporting of financial information which
is used for performance assessment and resource allocation. Below
are the first quarter results of the operating segments following
the restructuring:
On-Demand Talent – Revenue in the On-Demand segment
declined by $25.5 million or 32.7%, to $52.5 million compared to
$78.0 million in the prior year quarter. The decline in revenue was
primarily due to a 30.2% decrease in billable hours and a 3.2%
decline in average bill rate (also 3.2% on a constant currency
basis).
Consulting – Revenue in the Consulting segment decreased
by $1.8 million or 3.2%, to $55.0 million compared to $56.8 million
in the prior year quarter. The decline was primarily due to a 3.4%
reduction in billable hours, with the average bill rate declining
by 1.5% (or 1.9% on a constant currency basis).
Europe and Asia Pacific – Revenue in the Europe and Asia
Pacific segment declined by $5.3 million or 22.7%, to $18.0 million
in the quarter compared to $23.3 million in the prior year quarter.
Billable hours decreased by 8.8% and the average bill rate declined
by 15.5% (or 12.5% on a constant currency basis).
Outsourced Services – Revenue in the Outsourced services
segment of $9.5 million remained flat compared to the prior year
quarter.
All Other – Revenue in the All Other segment declined by
$0.7 million or 26.3%, to $2.0 million compared to $2.7 million in
the prior year quarter. The decline in revenues was primarily due
to a 33.5% decrease in billable hours, partially offset by a 14.8%
increase in average bill rate.
RESOURCES CONNECTION,
INC.
SUMMARY OF CONSOLIDATED
FINANCIAL RESULTS
(In thousands, except per
share amounts)
Three Months Ended
August 24,
August 26,
2024
2023
(Unaudited)
(Unaudited)
Revenue
$
136,935
$
170,169
Direct cost of services
86,948
103,168
Gross profit
49,987
67,001
Selling, general and administrative
expenses
48,910
59,932
Goodwill impairment
3,855
—
Amortization expense
1,485
1,314
Depreciation expense
540
877
(Loss) income from operations
(4,803
)
4,878
Interest income, net
(148
)
(312
)
Other income
(2
)
(2
)
(Loss) income before income tax
expense
(4,653
)
5,192
Income tax expense
1,054
2,075
Net (loss) income
$
(5,707
)
$
3,117
Net (loss) income per common
share:
Basic
$
(0.17
)
$
0.09
Diluted
$
(0.17
)
$
0.09
Weighted-average number of common and
common equivalent shares outstanding:
Basic
33,407
33,412
Diluted
33,407
34,010
Revenue by
Segment
On-Demand Talent
$
52,473
$
77,974
Consulting
55,025
56,845
Europe & Asia Pacific
17,983
23,267
Outsourced Services
9,491
9,418
All Other
1,963
2,665
Total consolidated revenue
$
136,935
$
170,169
Cash
dividend
Cash dividends declared per common
share
$
0.14
$
0.14
Total cash dividends paid
$
4,695
$
4,681
Conference Call Information
RGP will hold a conference call for analysts and investors at
5:00 p.m., ET, today, October 1, 2024. A live webcast of the call
will be available on the Events section of the Company’s Investor
Relations website. To access the call by phone, please go to this
link (registration link), and you will be provided with dial in
details. To avoid delays, we encourage participants to dial into
the conference call fifteen minutes ahead of the scheduled start
time. A replay of the webcast will also be available for a limited
time by visiting the Company's Investor Relations website at
https://rgp.com/ir/investor-relations-events/.
About RGP
RGP is a professional services firm that powers the operational
needs and change initiatives of its client base utilizing a
combination of three distinct engagement brands:
- On-Demand by RGPTM: Our on-demand talent solutions, providing
businesses with a go-to source for bringing in experts when they
need them;
- Veracity by RGPTM: Our consulting arm, driving transformation
across people, processes & technology; and
- Countsy by RGPTM: Our outsourced services for accounting, human
resources and equity, helping startups, scaleups and spinouts focus
on their growth.
Regardless of engagement model, we Dare to Work Differently® by
leveraging human connection and collaboration to deliver practical
solutions and impactful results. We offer a more effective way to
work that favors flexibility and agility as businesses confront
change and transformation pressures amid skilled labor
shortages.
Based in Irvine, CA, with offices worldwide, we annually engage
with over 1,700 clients around the world from 43 physical practice
offices, multiple virtual offices and approximately 3,300
professionals. RGP is proud to have served 88% of the Fortune 100
as of August 2024 and has been recognized by U.S. News & World
Report (2024-2025 Best Companies to Work for) and Forbes (America’s
Best Management Consulting Firms 2024, America’s Best Midsize
Employers 2024, World's Best Management Consulting Firms 2024).
The Company is listed on the Nasdaq Global Select Market, the
exchange’s highest tier by listing standards. To learn more about
RGP, visit: http://www.rgp.com. (RGP-F)
Forward-Looking Statements
Certain statements in this press release are “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933 as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. These statements relate to expectations
concerning matters that are not historical facts. Such
forward-looking statements may be identified by words such as
“anticipates,” “believes,” “can,” “continue,” “could,” “estimates,”
“expects,” “intends,” “may,” “plans,” “potential,” “predicts,”
“remain,” “should” or “will” or the negative of these terms or
other comparable terminology. In this press release, such
statements include statements regarding our expected recovery and
growth, the expected benefits of our refreshed brand positioning
and our operational plans. Such statements and all phases of the
Company’s operations are subject to known and unknown risks,
uncertainties and other factors that could cause our actual
results, levels of activity, performance or achievements and those
of our industry to differ materially from those expressed or
implied by these forward-looking statements. Risks and
uncertainties include, but are not limited to, the following: risks
related to an economic downturn or deterioration of general and
ongoing macroeconomic conditions, potential adverse effects to our
and our clients’ liquidity and financial performances from bank
failures or other events affecting financial institutions, risks
arising from epidemic diseases or pandemics, the highly competitive
nature of the market for professional services, risks related to
the loss of a significant number of our consultants, or an
inability to attract and retain new consultants, the possible
impact on our business from the loss of the services of one or more
key members of our senior management, risks related to potential
significant increases in wages or payroll-related costs, our
ability to secure new projects from clients, our inability to adapt
to a changing competitive landscape including for technological
advancements, our ability to achieve or maintain a suitable
pay/bill ratio, our ability to compete effectively in the
competitive bidding process, risks related to unfavorable
provisions in our contracts which may permit our clients to, among
other things, terminate the contracts partially or completely at
any time prior to completion, our ability to realize the level of
benefit that we expect from our restructuring and reorganization
initiatives, risks that our digital expansion and technology
transformation efforts may not be successful, our ability to build
an efficient support structure as our business continues to grow
and transform, our ability to grow our business, manage our growth
or sustain our current business, our ability to serve clients
internationally, additional operational challenges from our
international activities possible disruption of our business from
our past and future acquisitions, the possibility that our recent
rebranding efforts may not be successful, our potential inability
to adequately protect our intellectual property rights, risks that
our computer hardware and software and telecommunications systems
are damaged, breached or interrupted, risks related to the failure
to comply with data privacy laws and regulations and the adverse
effect it may have on our reputation, results of operations or
financial condition, our ability to comply with governmental,
regulatory and legal requirements and company policies, the
possible legal liability for damages resulting from the performance
of projects by our consultants or for our clients’ mistreatment of
our personnel, risks arising from changes in applicable tax laws or
adverse results in tax audits or interpretations, the possible
adverse effect on our business model from the reclassification of
our independent contractors by foreign tax and regulatory
authorities, the possible difficulty for a third party to acquire
us and resulting depression of our stock price, the operating and
financial restrictions from our credit facility, risks related to
the variable rate of interest in our credit facility, the
possibility that we are unable to or elect not to pay our quarterly
dividend payment, and other factors and uncertainties as are
identified in our most recent Annual Report on Form 10-K for the
year ended May 25, 2024, and our other public filings made with the
Securities and Exchange Commission (File No. 0-32113). Additional
risks and uncertainties not presently known to us or that we
currently deem immaterial may also affect our business or operating
results. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof.
The Company does not intend, and undertakes no obligation, to
update the forward-looking statements in this press release to
reflect events or circumstances after the date hereof or to reflect
the occurrence of unanticipated events, unless required by law to
do so.
Non-GAAP Financial Measures
The Company uses certain non-GAAP financial measures to assess
our financial and operating performance that are not defined by or
calculated in accordance with accounting principles generally
accepted in the U.S. (“GAAP”) to assess our financial and operating
performance. A non-GAAP financial measure is defined as a numerical
measure of a company’s financial performance that (i) excludes
amounts, or is subject to adjustments that have the effect of
excluding amounts, that are included in the comparable measure
calculated and presented in accordance with GAAP in the
Consolidated Statements of Operations; or (ii) includes amounts, or
is subject to adjustments that have the effect of including
amounts, that are excluded from the comparable GAAP measure so
calculated and presented. The following non-GAAP measures are
presented in this press release:
- Same-day constant currency revenue is adjusted for the
following items:
- Currency impact. In order to remove the impact of fluctuations
in foreign currency exchange rates, the Company calculates same-day
constant currency revenue, which represents the outcome that would
have resulted had exchange rates in the current period been the
same as those in effect in the comparable prior period.
- Business days impact. In order to remove the fluctuations
caused by comparable periods having a different number of business
days, the Company calculates same-day revenue as current period
revenue (adjusted for currency impact) divided by the number of
business days in the current period, multiplied by the number of
business days in the comparable prior period. The number of
business days in each respective period is provided in the “Number
of Business Days” section of the “Reconciliation of GAAP to
Non-GAAP Financial Measures” table below.
- EBITDA is calculated as net (loss) income before amortization
expense, depreciation expense, interest and income taxes.
- Adjusted EBITDA is calculated as EBITDA plus or minus
stock-based compensation expense, technology transformation costs,
acquisition costs, goodwill impairment, gain on sale of assets, and
restructuring costs. We also present herein Adjusted EBITDA at the
segment level as a measure used to assess the performance of our
segments. Segment Adjusted EBITDA excludes certain shared corporate
administrative costs that are not practical to allocate.
- Adjusted EBITDA Margin is calculated by dividing Adjusted
EBITDA by revenue.
- Adjusted diluted earnings (loss) per common share is calculated
as diluted earnings (loss) per common share, plus or minus the per
share impact of stock-based compensation expense, technology
transformation costs, acquisition costs, goodwill impairment, gain
on sale of assets, restructuring costs, and adjusted for the
related tax effects of these adjustments.
We believe the above-mentioned non-GAAP financial measures,
which are used by management to assess the core performance of our
Company, provide useful information and additional clarity of our
operating results to our investors in their own evaluation of the
core performance of our Company and facilitate a comparison of such
performance from period to period. These are not measurements of
financial performance or liquidity under GAAP and should not be
considered in isolation or construed as substitutes for revenue,
net income or other cash flow data prepared in accordance with GAAP
for purposes of analyzing our revenue, profitability or liquidity.
These measures should be considered in addition to, and not as a
substitute for, revenue, net income, earnings per share, cash flows
or other measures of financial performance prepared in accordance
with GAAP. In addition, these non-GAAP financial measures may not
provide information that is directly comparable to that provided by
other companies, as other companies may calculate such financial
results differently.
RESOURCES CONNECTION,
INC.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(In thousands, except number
of business days)
Adjusted Revenue
by Segment
Three Months Ended
August 24, 2024
August 26, 2023
(Unaudited)
(Unaudited)
As reported (GAAP)
Currency impact
Business days impact
Same-day constant currency
revenue
As reported (GAAP)
On-Demand Talent
$
52,473
$
154
$
-
$
52,627
$
77,974
Consulting
55,025
160
(18
)
55,167
56,845
Europe and Asia Pacific
17,983
440
12
18,435
23,267
Outsourced Services
9,491
-
-
9,491
9,418
All Other
1,963
-
-
1,963
2,665
Total Consolidated
$
136,935
$
754
$
(6
)
$
137,683
$
170,169
Three Months Ended
Number of Business Days
August 24, 2024
August 26, 2023
(Unaudited)
(Unaudited)
On-Demand Talent (1)
63
63
Consulting (1)
63
63
Europe & Asia (2)
64
64
Outsourced Services (1)
63
63
All Other (1)
63
63
(1) This represents the number of business days in the U.S.
(2) The business days in international regions represent the
weighted average number of business days.
RESOURCES CONNECTION,
INC.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(In thousands, except per
share amounts and percentages)
Three Months Ended
August 24,
% of
August 26,
% of
Adjusted
EBITDA
2024
Revenue
2023
Revenue
(Unaudited)
(Unaudited)
Net (loss) income
$
(5,707
)
(4.2
%)
$
3,117
1.8
%
Adjustments:
Amortization expense
1,485
1.1
%
1,314
0.8
%
Depreciation expense
540
0.4
%
877
0.5
%
Interest income, net
(148
)
(0.1
%)
(312
)
(0.2
%)
Income tax expense
1,054
0.8
%
2,075
1.3
%
EBITDA
(2,776
)
(2.0
%)
7,071
4.2
%
Stock-based compensation expense
1,561
1.1
%
2,552
1.5
%
Technology transformation costs (1)
1,858
1.4
%
1,923
1.1
%
Acquisition costs (2)
1,289
0.9
%
—
—
Goodwill impairment (3)
3,855
2.8
%
—
—
Gain on sale of assets (4)
(3,420
)
(2.5
%)
—
—
Restructuring adjustments
(47
)
—
—
—
Adjusted EBITDA
$
2,320
1.7
%
$
11,546
6.8
%
Adjusted Diluted
Earnings (Loss) per Common Share
Diluted earnings (loss) per common share,
as reported
$
(0.17
)
$
0.09
Stock-based compensation expense
0.05
0.08
Technology transformation costs (1)
0.06
0.06
Acquisition costs (2)
0.04
—
Goodwill impairment (3)
0.12
—
Gain on sale of assets (4)
(0.10
)
—
Restructuring adjustments
—
—
Income tax impact of adjustments
—
(0.03
)
Adjusted diluted earnings (loss) per
common share
$
—
$
0.20
(1) Technology transformation costs represent costs included in
net income related to the Company’s initiative to upgrade its
technology platform globally, including a cloud-based enterprise
resource planning system and talent acquisition and management
systems. Such costs primarily include hosting and certain other
software licensing costs, third-party consulting fees and costs
associated with dedicated internal resources that are not
capitalized.
(2) Acquisition costs primarily represent costs included in net
income related to the Company’s business acquisition. These costs
include transaction bonuses, retention bonus accruals, and fees
paid to the Company's broker, legal counsel, and other professional
services firms.
(3) Goodwill impairment charge recognized during the three
months ended August 24, 2024 was related to the Europe Asia Pacific
segment.
(4) The Company completed the sale of its Irvine office building
on August 15, 2024.
Segment Results
During the first quarter of fiscal 2025, the Company identified
the following newly defined operating segments:
- On-Demand Talent – operating under the On-Demand by RGPTM
brand, this segment provides businesses with a go-to source for
bringing in experts when they need them.
- Consulting – operating under the Veracity by RGPTM brand, this
segment drives transformation process across people, processes and
technology across domain areas including finance, technology and
digital, risk and compliance and supply chain transformation.
- Europe & Asia Pacific – is a geographically defined segment
that offers both on-demand and consulting services (excluding the
digital consulting business, which is included in our Consulting
segment) to clients throughout Europe and Asia Pacific.
- Outsourced Services – operating under the Countsy by RGPTM
brand, this segment offers finance, accounting and HR services
provided to startups, spinouts and scaleups enterprises, utilizing
a technology platform and fractional team.
- Sitrick – a crisis communications and public relations firm
which operates under the Sitrick brand, providing corporate,
financial, transactional and crisis communication and management
services.
The Company's reportable segments are comprised of On-Demand,
Consulting, Outsourced Services, and Europe & Asia Pacific.
Sitrick does not individually meet the quantitative thresholds to
qualify as a reportable segment. Therefore, Sitrick is disclosed
under the “All Other” Segment. On July 1, 2024, the Company
acquired Reference Point, which is reported within the Consulting
segment from the date of acquisition.
RESOURCES CONNECTION,
INC.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(In thousands, except for
percentage)
Three Months Ended
August 24, 2024
% of Revenue (1)
August 26, 2023
% of Revenue (1)
Adjusted EBITDA:
(Unaudited)
(Unaudited)
On-Demand Talent
$
2,559
4.9
%
$
8,557
11.0
%
Consulting
7,753
14.1
%
8,529
15.0
%
Europe & Asia Pacific
227
1.3
%
1,704
7.3
%
Outsourced Services
1,394
14.7
%
1,548
16.4
%
All Other
(467
)
(23.8
%)
71
2.7
%
Unallocated items (2)
(9,146
)
(8,863
)
Consolidated Adjusted EBITDA
$
2,320
1.7
%
$
11,546
6.8
%
Adjustments:
Stock-based compensation expense
(1,561
)
(2,552
)
Technology transformation costs (3)
(1,858
)
(1,923
)
Acquisition costs (4)
(1,289
)
—
Goodwill impairment (5)
(3,855
)
—
Gain on sale of assets (6)
3,420
—
Restructuring adjustments
47
—
Amortization expense
(1,485
)
(1,314
)
Depreciation expense
(540
)
(877
)
Interest income, net
148
312
(Loss) income before income tax
expense
(4,653
)
5,192
Income tax expense
(1,054
)
(2,075
)
Net (loss) income
$
(5,707
)
$
3,117
(1) Segment Adjusted EBITDA Margin is calculated by dividing
segment Adjusted EBITDA by segment revenue.
(2) Unallocated items are generally comprised of unallocated
corporate administrative costs, including management and board
compensation, corporate support function costs and other general
corporate costs that are not allocated to segments.
(3) Technology transformation costs represent costs included in
net income related to the Company’s initiative to upgrade its
technology platform globally, including a cloud-based enterprise
resource planning system and talent acquisition and management
systems. Such costs primarily include hosting and certain other
software licensing costs, third-party consulting fees and costs
associated with dedicated internal resources that are not
capitalized.
(4) Acquisition costs primarily represent costs included in net
income related to the Company’s business acquisition. These costs
include transaction bonuses, retention bonus accruals, and fees
paid to the Company's broker, legal counsel, and other professional
services firms.
(5) Goodwill impairment charge recognized during the three
months ended August 24, 2024 was related to the Europe Asia Pacific
segment.
(6) The Company completed the sale of its Irvine office building
on August 15, 2024.
The following table discloses the Company’s average bill rate by
segment for the last four quarters:
August 24, 2024
May 25, 2024
February 24,
2024
November 25,
2024
August 26, 2023
Average bill rate (1):
(Unaudited)
Consolidated bill rate
$
118
$
120
$
119
$
122
$
125
On-Demand Talent
$
140
$
142
$
143
$
144
$
144
Consulting
$
145
$
142
$
141
$
145
$
147
Europe & Asia Pacific
$
56
$
58
$
58
$
61
$
66
Outsourced Services
$
139
$
142
$
139
$
137
$
140
(1) Average bill rates are calculated by dividing total revenue
by the total number of billable hours.
RESOURCES CONNECTION,
INC.
SELECTED BALANCE SHEET, CASH
FLOW AND OTHER INFORMATION
(In thousands, except
consultant headcount and average rates)
August 24,
May 25,
SELECTED BALANCE SHEET INFORMATION:
2024
2024
(Unaudited)
Cash and cash equivalents
$
89,625
$
108,892
Trade accounts receivable, net of
allowance for credit losses
$
106,469
$
108,515
Total assets
$
512,869
$
510,914
Current liabilities
$
74,589
$
72,433
Long-term debt
$
—
$
—
Total liabilities
$
105,654
$
92,151
Total stockholders’ equity
$
407,215
$
418,763
Three Months Ended
August 24,
August 26,
SELECTED CASH FLOW INFORMATION:
2024
2023
(Unaudited)
(Unaudited)
Cash flow -- operating activities
$
(309
)
$
(2,214
)
Cash flow -- investing activities
$
(10,924
)
$
(548
)
Cash flow -- financing activities
$
(7,685
)
$
(1,557
)
Three Months Ended
August 24,
August 26,
SELECTED OTHER INFORMATION:
2024
2023
(Unaudited)
(Unaudited)
Consultant headcount, end of period
2,570
2,885
Average bill rate (1)
$
118
$
125
Average pay rate (1)
$
57
$
60
Common shares outstanding, end of
period
33,472
33,697
(1) Rates represent the weighted average bill rates and pay
rates across the countries in which we operate. Such weighted
average rates are impacted by the mix of our business across the
geographies as well as fluctuations in currency rates. Constant
currency average bill and pay rates using the same exchange rates
in the first quarter of fiscal 2024 were $119 and $58,
respectively.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241001163459/en/
Analyst Contact: Jennifer Ryu Chief Financial Officer
(US+) 1-714-430-6500 jennifer.ryu@rgp.com
Media Contact: Pat Burek Financial Profiles (US+)
1-310-622-8244 pburek@finprofiles.com
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