Company Performance - Resources Connection reported quarterly earnings of $0.28 per share, exceeding the Zacks Consensus Estimate of $0.10 per share, but down from $0.44 per share a year ago [8] - The company posted revenues of $148.2 million for the quarter ended May 2024, surpassing the Zacks Consensus Estimate by 5.61%, but down from $184.45 million year-over-year [2] - Over the last four quarters, Resources Connection has surpassed consensus EPS estimates four times [9] Stock Performance - Resources Connection shares have declined approximately 22.6% since the beginning of the year, while the S&P 500 has gained 17.2% [3] - The current consensus EPS estimate for the upcoming quarter is $0.22 on revenues of $153.24 million, and for the current fiscal year, it is $1.01 on revenues of $659.69 million [5] Industry Outlook - The Staffing Firms industry, to which Resources Connection belongs, is currently ranked in the top 33% of over 250 Zacks industries, indicating a favorable outlook [13] - The estimate revisions trend for Resources Connection is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [12][11]

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) [Fourth Quarter Fiscal 2024 Performance](index=1&type=section&id=Fourth%20Quarter%20Fiscal%202024%20Performance) In the fourth quarter of fiscal 2024, the company's revenue declined 19.7% year-over-year to $148.2 million, primarily due to a challenging macroeconomic environment leading to reduced client spending and lower bill rates. Q4 FY2024 Key Financial Metrics (vs. Q4 FY2023) | Metric | Q4 FY2024 | Q4 FY2023 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $148.2M | $184.4M | -19.7% | | **Gross Margin** | 40.2% | 41.1% | -90 bps | | **SG&A** | $46.4M | $56.5M | -18.0% | | **Net Income** | $10.5M | $11.8M | -11.1% | | **Net Income Margin** | 7.1% | 6.4% | +70 bps | | **Diluted EPS** | $0.31 | $0.35 | -11.4% | | **Adjusted EBITDA** | $13.1M | $23.2M | -43.6% | | **Adjusted EBITDA Margin** | 8.8% | 12.6% | -380 bps | - The revenue decline was driven by a **13.0% decrease in billable hours** and a **7.0% decline in the average bill rate**, reflecting a tepid demand environment, cautious client spending, and a competitive pricing landscape[23](index=23&type=chunk) - SG&A expenses improved primarily due to a **$4.4 million favorable non-cash contingent consideration adjustment** related to the CloudGo acquisition and lower management compensation, bonuses, and commissions[24](index=24&type=chunk) - The effective tax rate for Q4 FY2024 was significantly lower at **9.0%** compared to **31.4%** in the prior year, mainly due to nontaxable income from the contingent consideration adjustment and other tax benefits[14](index=14&type=chunk) [Full Fiscal Year 2024 Performance](index=1&type=section&id=Full%20Fiscal%20Year%202024%20Performance) For the full fiscal year 2024, revenue decreased by 18.4% to $632.8 million compared to the prior year, leading to a significant drop in profitability with net income falling to $21.0 million and diluted EPS decreasing to $0.62. Full Fiscal Year 2024 Key Financial Metrics (vs. FY2023) | Metric | FY 2024 | FY 2023 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $632.8M | $775.6M | -18.4% | | **Gross Margin** | 38.9% | 40.4% | -150 bps | | **SG&A** | $208.9M | $228.8M | -8.7% | | **Net Income** | $21.0M | $54.4M | -61.4% | | **Net Income Margin** | 3.3% | 7.0% | -370 bps | | **Diluted EPS** | $0.62 | $1.59 | -61.0% | | **Adjusted EBITDA** | $51.5M | $100.2M | -48.6% | | **Adjusted EBITDA Margin** | 8.1% | 12.9% | -480 bps | - The annual revenue decline was attributed to a **13.8% decrease in billable hours** and a **4.7% decline in the average bill rate**, caused by reduced client spending and a competitive pricing environment[26](index=26&type=chunk) - SG&A reduction was driven by a **$17.1 million decrease in bonuses and commissions**, a **$4.4 million favorable contingent consideration adjustment**, and lower stock and management compensation, partially offset by restructuring and acquisition costs[27](index=27&type=chunk) - The effective tax rate for FY2024 increased to **29.5%** from **25.1%** in FY2023, primarily due to a non-recurring increase in forfeiture of stock options[52](index=52&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) The CEO, Kate W. Duchene, highlighted that the business stabilized in the fourth quarter, with results exceeding the company's outlook, and management is focused on controlling costs while preparing for future growth. - Management reported business stabilization in Q4, delivering results above their outlook ranges despite macroeconomic challenges[11](index=11&type=chunk) - The company is focused on cost control and setting a foundation for growth once broader human capital sector conditions improve[11](index=11&type=chunk) - Strategic priorities for the upcoming year include unlocking cross-sell opportunities in digital transformation and data modernization, and expanding into broader buying centers within the existing A-list client base[11](index=11&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) [Summary of Consolidated Financial Results](index=4&type=section&id=Summary%20of%20Consolidated%20Financial%20Results) The consolidated financial results show a year-over-year decline in key performance indicators for both the fourth quarter and the full fiscal year 2024, with revenue, gross profit, and net income all decreasing compared to fiscal 2023. Consolidated Income Statement Highlights (in thousands) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | FY 2022 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $148,198 | $184,449 | $632,801 | $775,643 | $805,018 | | **Gross Profit** | $59,583 | $75,718 | $246,068 | $313,142 | $316,642 | | **Income from Operations** | $11,285 | $17,049 | $28,776 | $72,788 | $83,438 | | **Net Income** | $10,472 | $11,768 | $21,034 | $54,359 | $67,175 | Diluted Earnings Per Share | Period | FY 2024 | FY 2023 | FY 2022 | | :--- | :--- | :--- | :--- | | **Q4** | $0.31 | $0.35 | N/A | | **Full Year** | $0.62 | $1.59 | $2.00 | - Cash dividends declared per common share remained consistent at **$0.14** for the quarter and **$0.56** for the full fiscal year, unchanged from the prior year[29](index=29&type=chunk) [Selected Balance Sheet and Cash Flow Information](index=16&type=section&id=Selected%20Balance%20Sheet%20and%20Cash%20Flow%20Information) As of May 25, 2024, the company's balance sheet remains healthy with $108.9 million in cash and cash equivalents and no long-term debt, though cash flow from operating activities saw a substantial decrease. Selected Balance Sheet Data (in thousands) | Metric | May 25, 2024 | May 27, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $108,892 | $116,784 | | **Total assets** | $510,914 | $531,999 | | **Total liabilities** | $92,151 | $117,479 | | **Total stockholders' equity** | $418,763 | $414,520 | Selected Cash Flow Data (in thousands) | Metric | FY 2024 | FY 2023 | | :--- | :--- | :--- | | **Cash flow -- operating activities** | $21,919 | $81,636 | | **Cash flow -- investing activities** | $(8,554) | $3,943 | | **Cash flow -- financing activities** | $(20,709) | $(71,914) | Other Operational Information | Metric | May 25, 2024 | May 27, 2023 | | :--- | :--- | :--- | | **Consultant headcount** | 2,585 | 3,145 | | **Average bill rate** | $120 | $129 | | **Average pay rate** | $57 | $62 | [Segment and Geographic Performance](index=4&type=section&id=Segment%20and%20Geographic%20Performance) [Segment Results](index=15&type=section&id=Segment%20Results) The RGP segment dominates the company's operations, constituting the vast majority of revenue and Adjusted EBITDA, both of which declined significantly in fiscal year 2024. - RGP is the company's only operating segment that meets the quantitative threshold to be a reportable segment, with the Sitrick segment disclosed under 'Other Segments'[48](index=48&type=chunk) Segment Revenue (in thousands) | Segment | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | **RGP** | $145,521 | $181,662 | $622,895 | $764,511 | | **Other Segments** | $2,677 | $2,787 | $9,906 | $11,132 | | **Total Revenue** | **$148,198** | **$184,449** | **$632,801** | **$775,643** | Segment Adjusted EBITDA (in thousands) | Segment | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | **RGP** | $20,980 | $31,045 | $84,677 | $132,377 | | **Other Segments** | $32 | $419 | $(676) | $1,179 | | **Reconciling items** | $(7,922) | $(8,227) | $(32,518) | $(33,362) | | **Total Adjusted EBITDA** | **$13,090** | **$23,237** | **$51,483** | **$100,194** | [Revenue by Geography](index=4&type=section&id=Revenue%20by%20Geography) North America remains the company's largest market, accounting for approximately 86% of total revenue in fiscal 2024, though revenue from this region and Europe declined year-over-year. Revenue by Geography (in thousands) | Region | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | **North America** | $126,554 | $160,999 | $543,926 | $680,993 | | **Europe** | $8,518 | $10,757 | $38,383 | $42,509 | | **Asia Pacific** | $13,126 | $12,693 | $50,492 | $52,141 | | **Total Revenue** | **$148,198** | **$184,449** | **$632,801** | **$775,643** | - On a same-day constant currency basis, total consolidated revenue for FY2024 was **$629.6 million**, representing a decline of **18.8%** from the prior year[11](index=11&type=chunk)[65](index=65&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) [Definition of Non-GAAP Measures](index=8&type=section&id=Definition%20of%20Non-GAAP%20Measures) The company utilizes several non-GAAP financial measures, including 'Same-day constant currency revenue,' 'EBITDA,' 'Adjusted EBITDA,' and 'Adjusted diluted earnings per common share,' to evaluate its core operating performance by adjusting for various non-cash and non-recurring items. - Same-day constant currency revenue is a non-GAAP measure that adjusts reported revenue for the impact of differing numbers of business days and fluctuations in foreign currency exchange rates between periods[35](index=35&type=chunk)[60](index=60&type=chunk) - Adjusted EBITDA is defined as net income before interest, taxes, depreciation, and amortization, further adjusted for items such as stock-based compensation, technology transformation costs, goodwill impairment, acquisition costs, restructuring costs, and contingent consideration adjustments[36](index=36&type=chunk)[61](index=61&type=chunk) - Adjusted diluted earnings per common share adjusts GAAP diluted EPS for the per-share impact of the same items excluded from Adjusted EBITDA, along with their related tax effects[63](index=63&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) The company provides detailed reconciliations of its GAAP results to non-GAAP measures for both quarterly and annual periods, primarily accounting for non-cash expenses and special items like restructuring and technology transformation costs. [Quarterly Reconciliations (Q4 FY2024)](index=10&type=section&id=Quarterly%20Reconciliations%20%28Q4%20FY2024%29) Q4 Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Description | Q4 2024 | Q4 2023 | | :--- | :--- | :--- | | **Net income (GAAP)** | **$10,472** | **$11,768** | | Amortization & Depreciation | $1,948 | $2,162 | | Interest & Tax | $796 | $5,282 | | **EBITDA** | **$13,216** | **$19,212** | | Stock-based compensation | $1,483 | $2,146 | | Technology transformation costs | $1,914 | $1,879 | | Acquisition & Restructuring costs | $877 | $0 | | Contingent consideration adj. | $(4,400) | $0 | | **Adjusted EBITDA (Non-GAAP)** | **$13,090** | **$23,237** | Q4 Reconciliation of Diluted EPS to Adjusted Diluted EPS | Description | Q4 2024 | Q4 2023 | | :--- | :--- | :--- | | **Diluted EPS (GAAP)** | **$0.31** | **$0.35** | | Non-GAAP Adjustments (net of tax) | $(0.03) | $0.09 | | **Adjusted Diluted EPS (Non-GAAP)** | **$0.28** | **$0.44** | [Annual Reconciliations (FY 2024)](index=13&type=section&id=Annual%20Reconciliations%20%28FY%202024%29) Annual Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Description | FY 2024 | FY 2023 | | :--- | :--- | :--- | | **Net income (GAAP)** | **$21,034** | **$54,359** | | Amortization & Depreciation | $8,428 | $8,557 | | Interest & Tax | $7,731 | $18,811 | | **EBITDA** | **$37,193** | **$81,727** | | Stock-based compensation | $5,732 | $9,521 | | Technology transformation costs | $6,901 | $6,355 | | Other adjustments | $1,651 | $2,591 | | **Adjusted EBITDA (Non-GAAP)** | **$51,483** | **$100,194** | Annual Reconciliation of Diluted EPS to Adjusted Diluted EPS | Description | FY 2024 | FY 2023 | | :--- | :--- | :--- | | **Diluted EPS (GAAP)** | **$0.62** | **$1.59** | | Non-GAAP Adjustments (net of tax) | $0.31 | $0.41 | | **Adjusted Diluted EPS (Non-GAAP)** | **$0.93** | **$2.00** | [Corporate Information](index=6&type=section&id=Corporate%20Information) [About RGP](index=6&type=section&id=About%20RGP) RGP is a global consulting firm that provides project execution services to assist clients with business transformations, strategic transactions, and regulatory changes, utilizing a flexible talent model with approximately 3,400 professionals. - RGP is a global consulting firm focused on co-delivering enterprise initiatives precipitated by business transformation, strategic transactions, or regulatory change[55](index=55&type=chunk) - The company employs approximately **3,400 professionals** and serves over **1,800 clients** globally, including **88% of the Fortune 100** as of May 2024[56](index=56&type=chunk) - RGP's business model is positioned to help clients manage transformation pressures and skilled labor shortages by offering a flexible workforce for executing projects[31](index=31&type=chunk) [Conference Call Information](index=6&type=section&id=Conference%20Call%20Information) The company scheduled a conference call for analysts and investors at 5:00 p.m. ET on July 18, 2024, to discuss the financial results, with a live webcast and replay available on the Investor Relations section of the company's website. - A conference call was held on **July 18, 2024, at 5:00 p.m. ET** to discuss the financial results[30](index=30&type=chunk) - A live webcast and a 30-day replay of the call are accessible through the Events section of the company's Investor Relations website[30](index=30&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This section provides a standard legal disclaimer regarding forward-looking statements, cautioning readers that these statements are subject to various known and unknown risks and uncertainties that could cause actual results to differ materially from those projected. - The press release contains forward-looking statements concerning matters that are not historical facts, which are subject to significant risks and uncertainties[57](index=57&type=chunk) - Key risks include economic downturns, the competitive nature of the professional services market, ability to retain consultants, and potential impacts from restructuring and technology transformation efforts[57](index=57&type=chunk)[58](index=58&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended February 24, 2024 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to______ Commission File Number: 0-32113 RESOURCES CONNECTION, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 33-0832424 (State or O ...

Resources Connection, Inc. (NASDAQ:RGP) Q3 2024 Results Conference Call April 3, 2024 5:00 PM ET Company Participants Kate Duchene - CEO Jenn Ryu - CFO Conference Call Participants Mark Marcon - Baird Andrew Steinerman - JPMorgan Marc Riddick - Sidoti Operator Good afternoon, ladies and gentlemen, and welcome to Resources Connections, Inc. Conference Call. Currently, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. As ...

Third Quarter Fiscal 2024 Highlights Compared to the Prior Year Quarter: Resources Connection, Inc. Reports Financial Results for Third Quarter Fiscal 2024 IRVINE, Calif., April 3, 2024 – Resources Connection, Inc. (Nasdaq: RGP) (the "Company"), a global consulting firm, today announced financial results for its fiscal third quarter ended February 24, 2024. Management Commentary "We delivered solid Adjusted EBITDA and free cash flow conversion in the third quarter. Revenue performance was consistent with ex ...

OR UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 25, 2023 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to______ Commission File Number: 0-32113 RESOURCES CONNECTION, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 33-0832424 (State or O ...

Financial Data and Key Metrics Changes - The company achieved revenue of $163.1 million, which was in the upper half of the guidance range provided in October [68] - On a same-day constant currency basis, revenue declined by 19% year-over-year due to cautious client spending amid macroeconomic uncertainty [69] - Adjusted EBITDA was $16.1 million, representing a margin of 9.8% [68] - The company generated $54 million of free cash flow over the last 12 months [68] Business Line Data and Key Metrics Changes - The Veracity segment delivered sequential revenue growth, driven by demand for digital transformation services [46] - The Northern California market showed positive growth, while other major markets remained cautious [47] - The pricing initiative in the U.S. resulted in a 1.3% increase in bill rates year-over-year [48] Market Data and Key Metrics Changes - Europe and Asia-Pacific regions performed better with modest declines of 9% and 10% year-over-year, respectively [70] - Markets such as Switzerland, India, and the Philippines grew both year-over-year and sequentially, attributed to project opportunities with large strategic clients [70] - The company experienced an uptick in in-person client meetings across all geographies, indicating increased client engagement [51] Company Strategy and Development Direction - The company is focused on diversifying its business to follow higher-margin and higher-growth opportunities, particularly in consulting [26] - The acquisition of CloudGo is part of the strategy to enhance capabilities in digital transformation [76] - The company aims to build talent pools globally to quickly assemble blended delivery teams, enhancing competitiveness [58] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment remains sluggish, with clients seeking more clarity around economic conditions [4] - There is cautious optimism regarding revenue conversion in 2024, particularly in healthcare and digital transformation sectors [53] - The company is prepared to capitalize on opportunities as macro conditions improve [85] Other Important Information - The company ended the fiscal quarter with $95.8 million in cash and cash equivalents and zero outstanding debt [78] - The technology transformation project is progressing, with plans to launch new systems in North America [79] - The company has a disciplined capital allocation strategy, focusing on impactful areas of the business [78] Q&A Session Summary Question: What are the expectations for headcount and adjustments needed? - The consultant headcount at the end of the quarter did not decrease significantly, with an average decrease of 300 to 400 year-over-year [24] Question: Can you discuss the acquisition pipeline and cash uses? - The company is building diversification in its business and looking at additional consulting assets to drive strategy forward [26] Question: What are the expectations for client budgets in 2024? - There is still opportunity around digital transformation and cloud ERP, with ongoing discussions about divestiture strategies in Europe [32]

Resources Connection, Inc. (NASDAQ:RGP) Q1 2024 Earnings Conference Call October 4, 2023 5:00 PM ET Company Participants Kate Duchene - CEO Jenn Ryu - CFO Conference Call Participants Andrew Steinerman - JPMorgan Marc Riddick - Sidoti Operator Good afternoon, ladies and gentlemen, and welcome to the Resources Connection, Inc. Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. At this time, I would like to remind everyone that management will be commenting on resu ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 26, 2023 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to______ Commission File Number: 0-32113 RESOURCES CONNECTION, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 33-0832424 (State or Oth ...

Table of Contents OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 0-32113 ________________________ Form 10-K (Mark One) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended May 27, 2023 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 ________________________ RESOURCES CONNECTION, INC. (Exact Name of Registrant as Specified in It ...