Part I [Item 1. Business](index=4&type=section&id=ITEM%201.%20BUSINESS) RGP is a global consulting firm specializing in business transformation, risk, and technology, serving over 2,400 clients with 3,800+ professionals, and growing through client expansion and strategic acquisitions - RGP is a global consulting firm focused on business transformation, risk, and technology, serving over **2,400 clients**, including **86 of the Fortune 100**, with a network of over **3,800 professionals**[14](index=14&type=chunk)[16](index=16&type=chunk) - The company's business strategy is built on hiring and retaining high-caliber consultants, maintaining a unique culture (LIFE AT RGP), building long-term consultative client relationships, and strengthening the RGP brand[25](index=25&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) - Key growth strategies include expanding services within the existing client base, attracting new clients, expanding geographically, and pursuing strategic acquisitions. In **fiscal 2018**, RGP acquired taskforce in Germany and Accretive in the United States[32](index=32&type=chunk)[33](index=33&type=chunk)[35](index=35&type=chunk) - As of **May 25, 2019**, the company had **3,896 employees**, consisting of **2,965 consultants** and **931 management and administrative staff**. None are covered by collective bargaining agreements[54](index=54&type=chunk) - In **fiscal 2019**, no single client accounted for more than **10% of revenue**, and the top **10 clients** represented approximately **15% of total revenues**[41](index=41&type=chunk) [Item 1A. Risk Factors](index=9&type=page&id=ITEM%201A.%20RISK%20FACTORS) The company faces multiple risks in economic downturns, intense competition, talent retention, IT systems, and regulatory compliance - An economic downturn could reduce demand for the company's services, and a significant downturn in the stock's market value could lead to goodwill impairment[58](index=58&type=chunk)[60](index=60&type=chunk) - The professional services market is highly competitive and fragmented. Many competitors have greater financial resources, revenue, and name recognition[62](index=62&type=chunk) - The business depends on attracting and retaining highly qualified consultants. The loss of a significant number of consultants could adversely affect operating results[77](index=77&type=chunk) - IT systems are vulnerable to security breaches, including cyber-attacks. Unauthorized access could lead to disclosure of confidential information, legal liability, and reputational harm[78](index=78&type=chunk) - The company's credit facility imposes operating and financial restrictions, including covenants on debt, interest coverage, and leverage ratios. Failure to comply could result in the acceleration of debt[85](index=85&type=chunk) - Compliance with evolving and stringent data privacy laws, such as the GDPR, may result in additional costs, require changes to business practices, and increase potential exposure to significant fines for non-compliance[88](index=88&type=chunk)[89](index=89&type=chunk) [Item 1B. Unresolved Staff Comments](index=15&type=section&id=ITEM%201B.%20UNRESOLVED%20STAFF%20COMMENTS) Not applicable - Not applicable[92](index=92&type=chunk) [Item 2. Properties](index=15&type=section&id=ITEM%202.%20PROPERTIES) As of May 25, 2019, RGP maintained 48 domestic offices and 25 international offices, all under operating leases except for its corporate headquarters - As of **May 25, 2019**, the company maintained **48 domestic offices** and **25 international offices**, primarily under operating lease agreements[93](index=93&type=chunk) - The company owns its corporate office building in Irvine, California, which is approximately **57,000 square feet**. It occupies about **44,000 square feet** and leases the remaining **13,000 square feet** to third parties[93](index=93&type=chunk) [Item 3. Legal Proceedings](index=15&type=section&id=ITEM%203.%20LEGAL%20PROCEEDINGS) The company is not currently subject to any material legal proceedings - The company is not currently subject to any material legal proceedings[94](index=94&type=chunk) [Item 4. Mine Safety Disclosures](index=15&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) Not applicable - Not applicable[95](index=95&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=16&type=section&id=ITEM%205.%20MARKET%20FOR%20REGISTRANT%27S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) The company's common stock trades on Nasdaq, featuring a $0.13 quarterly dividend and an active stock repurchase program - The company's common stock trades on the Nasdaq Global Select Market under the symbol 'RECN'[98](index=98&type=chunk) Quarterly Dividend per Common Share | Fiscal Year | Quarterly Dividend per Share | | :--- | :--- | | 2019 | $0.13 | | 2018 | $0.12 | Issuer Purchases of Equity Securities (Q4 Fiscal 2019) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Approximate Dollar Value of Shares that May Yet be Purchased Under Announced Program | | :--- | :--- | :--- | :--- | | Feb 24 - Mar 23, 2019 | - | - | $97,736,690 | | Mar 24 - Apr 20, 2019 | 352,629 | $15.70 | $92,199,776 | | Apr 21 - May 25, 2019 | 131,034 | $16.05 | $90,096,548 | | **Total Q4 2019** | **483,663** | **$15.80** | **$90,096,548** | [Item 6. Selected Financial Data](index=18&type=section&id=ITEM%206.%20SELECTED%20FINANCIAL%20DATA) This section summarizes five years of financial data, showing revenue growth, fluctuating net income, and consistent dividend increases Selected Financial Data (2015-2019) | (In thousands, except per share data) | May 25, 2019 | May 26, 2018 | May 27, 2017 | May 28, 2016 | May 30, 2015 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $728,999 | $654,129 | $583,411 | $598,521 | $590,589 | | **Income from operations** | $50,159 | $30,624 | $34,402 | $53,803 | $50,258 | | **Net income** | $31,470 | $18,826 | $18,651 | $30,443 | $27,508 | | **Diluted Net income per common share** | $0.98 | $0.60 | $0.56 | $0.81 | $0.72 | | **Cash dividends declared per common share** | $0.52 | $0.48 | $0.44 | $0.40 | $0.32 | | **Total assets** | $428,370 | $432,674 | $364,128 | $417,255 | $416,981 | | **Long-term debt** | $43,000 | $63,000 | $48,000 | - | - | [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=ITEM%207.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Fiscal 2019 saw revenue grow 11.5% to $729.0 million, with improved profitability and positive operating cash flow [Results of Operations](index=21&type=section&id=Results%20of%20Operations) Fiscal 2019 revenue grew 11.5% to $729.0 million, driven by acquisitions and improved profitability metrics Fiscal 2019 vs. 2018 Performance | Metric | Fiscal 2019 | Fiscal 2018 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $729.0M | $654.1M | 11.5% | | Gross Margin | 38.7% | 37.6% | +1.1 p.p. | | Income from Operations | $50.2M | $30.6M | 63.8% | | Net Income | $31.5M | $18.8M | 67.2% | | Adjusted EBITDA | $64.6M | $43.0M | 50.1% | Revenue by Geography (FY 2019 vs. FY 2018) | Geography | FY 2019 Revenue (in millions) | % of Total | FY 2018 Revenue (in millions) | % of Total | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | | North America | $593.8M | 81.5% | $524.9M | 80.3% | 13.1% | | Europe | $86.4M | 11.8% | $84.7M | 12.9% | 1.9% | | Asia Pacific | $48.8M | 6.7% | $44.6M | 6.8% | 9.6% | | **Total** | **$729.0M** | **100.0%** | **$654.1M** | **100.0%** | **11.4%** | - Direct cost of services as a percentage of revenue improved to **61.3%** in **fiscal 2019** from **62.4%** in **fiscal 2018**, primarily due to an improved bill/pay ratio and lower self-insured medical program costs[140](index=140&type=chunk) - SG&A expenses increased by **$14.8 million**, mainly due to higher payroll from acquisitions and new hires (**$12.9 million**), increased commissions and bonuses (**$5.5 million**), and higher marketing costs (**$1.8 million**), offset by lower acquisition and integration costs (**$7.2 million**)[142](index=142&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is primarily from operating cash flow and a $120 million credit facility, with cash used for share repurchases and debt repayment - Primary sources of liquidity are cash from operations and a **$120 million** secured revolving credit facility. As of **May 25, 2019**, the company had **$43.0 million** in cash and equivalents and **$43.0 million** in borrowings under the facility[160](index=160&type=chunk)[162](index=162&type=chunk) Cash Flow Summary (Fiscal 2019 vs. 2018) | (In millions) | Fiscal 2019 | Fiscal 2018 | | :--- | :--- | :--- | | Net cash provided by operating activities | $43.6 | $15.4 | | Net cash used in investing activities | ($12.9) | ($25.7) | | Net cash (used in)/provided by financing activities | ($43.6) | $3.5 | - Financing activities in **fiscal 2019** included **$29.9 million** for share repurchases, **$16.2 million** for dividend payments, and a **$20.0 million** repayment on the revolving credit facility[166](index=166&type=chunk)[167](index=167&type=chunk) Contractual Obligations as of May 25, 2019 | (In thousands) | Total | Fiscal 2020 | Fiscal 2021-2022 | Fiscal 2023-2024 | Thereafter | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating lease obligations | $54,705 | $12,828 | $21,548 | $14,286 | $6,043 | | Purchase obligations | $1,959 | $1,784 | $175 | - | - | | Long-term debt | $43,000 | - | $43,000 | - | - | [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=ITEM%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company faces market risks from interest rate and foreign currency fluctuations, with no current hedging strategies - The company is exposed to interest rate risk on its **$43.0 million** of variable-rate borrowings under its credit facility. A **10% change** in interest rates would result in an approximate **$0.2 million** change in annual interest expense[177](index=177&type=chunk) - Approximately **21.0%** of the company's revenues for **fiscal 2019** were generated outside the United States, exposing the company to foreign currency exchange rate risk[179](index=179&type=chunk) - The company does not currently use financial hedging techniques to mitigate risks associated with foreign currency fluctuations[181](index=181&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=30&type=section&id=ITEM%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This section presents the company's audited consolidated financial statements for fiscal year ended May 25, 2019, including key statements and notes [Consolidated Balance Sheets](index=32&type=section&id=Consolidated%20Balance%20Sheets) As of May 25, 2019, total assets were $428.4 million, with decreased liabilities and increased stockholders' equity Consolidated Balance Sheet Highlights (in thousands) | Account | May 25, 2019 | May 26, 2018 | | :--- | :--- | :--- | | **Total Current Assets** | $191,657 | $194,881 | | Goodwill | $190,815 | $191,950 | | **Total Assets** | **$428,370** | **$432,674** | | **Total Current Liabilities** | $91,416 | $94,524 | | Long-term debt | $43,000 | $63,000 | | **Total Liabilities** | **$145,974** | **$163,849** | | **Total Stockholders' Equity** | **$282,396** | **$268,825** | [Consolidated Statements of Operations](index=33&type=section&id=Consolidated%20Statements%20of%20Operations) For fiscal year ended May 25, 2019, revenues increased to $729.0 million, leading to higher operating and net income Consolidated Statements of Operations (in thousands, except per share data) | Metric | FY 2019 | FY 2018 | FY 2017 | | :--- | :--- | :--- | :--- | | Revenue | $728,999 | $654,129 | $583,411 | | Gross margin | $282,439 | $246,055 | $221,325 | | Income from operations | $50,159 | $30,624 | $34,402 | | Net income | $31,470 | $18,826 | $18,651 | | Diluted net income per share | $0.98 | $0.60 | $0.56 | [Consolidated Statements of Cash Flows](index=36&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For fiscal year ended May 25, 2019, operating activities provided $43.6 million in cash, leading to a $13.4 million net decrease in cash and equivalents Consolidated Statements of Cash Flows (in thousands) | Activity | FY 2019 | FY 2018 | FY 2017 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $43,621 | $15,370 | $28,265 | | Net cash (used in) provided by investing activities | ($12,877) | ($25,666) | $20,409 | | Net cash (used in) provided by financing activities | ($43,601) | $3,474 | ($76,876) | | **Net decrease in cash** | **($13,425)** | **($5,859)** | **($28,760)** | | Cash and cash equivalents at end of period | $43,045 | $56,470 | $62,329 | [Notes to Consolidated Financial Statements](index=37&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, acquisitions, credit facility, income taxes, stock repurchases, and compensation plans - The company adopted ASC 606 (Revenue from Contracts with Customers) in **fiscal 2019** using the modified retrospective method, which did not have a significant impact on revenue recognition[207](index=207&type=chunk) - In **fiscal 2018**, the company acquired taskforce for initial consideration of approximately **$6.9 million** plus contingent consideration, and Accretive for **$20.0 million** in cash and **1,072,000 shares** of common stock[241](index=241&type=chunk)[244](index=244&type=chunk) - The company has a **$120 million** secured revolving credit facility expiring in **October 2021**. As of **May 25, 2019**, borrowings were **$43.0 million**[250](index=250&type=chunk)[253](index=253&type=chunk) - The effective tax rate for **fiscal 2019** was **34.4%**, compared to **34.8%** in **2018** and **44.8%** in **2017**. The company has foreign net operating loss carryforwards of **$63.5 million**[256](index=256&type=chunk)[260](index=260&type=chunk) - Under its stock repurchase program, the company bought back **1.8 million shares** for **$29.9 million** in **fiscal 2019**. Approximately **$90.1 million** remains available for future repurchases[272](index=272&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=54&type=section&id=ITEM%209.%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE) None reported - None[298](index=298&type=chunk) [Item 9A. Controls and Procedures](index=54&type=section&id=ITEM%209A.%20CONTROLS%20AND%20PROCEDURES) As of May 25, 2019, the company's disclosure and internal controls over financial reporting were deemed effective - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of **May 25, 2019**[299](index=299&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of **May 25, 2019**. The independent auditor, RSM US LLP, also issued an unqualified opinion on its effectiveness[302](index=302&type=chunk)[303](index=303&type=chunk) - There were no changes in the company's internal control over financial reporting during the **fourth quarter of fiscal 2019** that materially affected, or are reasonably likely to materially affect, these controls[303](index=303&type=chunk) [Item 9B. Other Information](index=56&type=section&id=ITEM%209B.%20OTHER%20INFORMATION) None reported - None[312](index=312&type=chunk) Part III [Item 10. Directors, Executive Officers and Corporate Governance](index=56&type=section&id=ITEM%2010.%20DIRECTORS%2C%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE) This section incorporates by reference information from the company's definitive proxy statement for its 2019 Annual Meeting of Stockholders - Information regarding directors, executive officers, and corporate governance is incorporated by reference from the company's 2019 Annual Meeting of Stockholders proxy statement[314](index=314&type=chunk) [Item 11. Executive Compensation](index=56&type=section&id=ITEM%2011.%20EXECUTIVE%20COMPENSATION) This section incorporates by reference information from the company's 2019 proxy statement - Information regarding executive compensation is incorporated by reference from the company's 2019 Annual Meeting of Stockholders proxy statement[315](index=315&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=56&type=section&id=ITEM%2012.%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%20AND%20RELATED%20STOCKHOLDER%20MATTERS) Security ownership information is incorporated from the 2019 proxy statement, detailing equity compensation plan issuances and remaining availability - Information regarding security ownership is incorporated by reference from the company's 2019 Annual Meeting of Stockholders proxy statement[316](index=316&type=chunk) Equity Compensation Plan Information as of May 25, 2019 | Plan Category | Number of Securities to Be Issued Upon Exercise (a) | Weighted-Average Exercise Price of Outstanding Options (b) | Number of Securities Remaining Available for Future Issuance (c) | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 6,028,841 | $15.95 | 1,816,514 | | Equity compensation plans not approved by security holders | - | - | - | | **Total** | **6,028,841** | **$15.95** | **1,816,514** | [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=57&type=section&id=ITEM%2013.%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS%2C%20AND%20DIRECTOR%20INDEPENDENCE) This section incorporates by reference information from the company's 2019 proxy statement concerning director independence and the company's policy on related party transactions - Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the company's 2019 Annual Meeting of Stockholders proxy statement[322](index=322&type=chunk) [Item 14. Principal Accounting Fees and Services](index=57&type=section&id=ITEM%2014.%20PRINCIPAL%20ACCOUNTING%20FEES%20AND%20SERVICES) This section incorporates by reference information from the company's 2019 proxy statement regarding principal accounting fees and services - Information regarding principal accounting fees and services is incorporated by reference from the company's 2019 Annual Meeting of Stockholders proxy statement[323](index=323&type=chunk) Part IV [Item 15. Exhibits, Financial Statement Schedules](index=58&type=section&id=ITEM%2015.%20EXHIBITS%2C%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists the financial statements, financial statement schedules, and exhibits filed as part of the Form 10-K report - This item lists the consolidated financial statements of the company included in Item 8[325](index=325&type=chunk) - Financial Statement Schedule II (Valuation and Qualifying Accounts) is included within the Notes to Consolidated Financial Statements[326](index=326&type=chunk) - An index of all exhibits filed with the Form 10-K is provided, including corporate governance documents, material contracts, and certifications[328](index=328&type=chunk)[329](index=329&type=chunk) [Item 16. Form 10-K Summary](index=60&type=section&id=ITEM%2016.%20FORM%2010-K%20SUMMARY) Not applicable - Not applicable[331](index=331&type=chunk)

Financial Data and Key Metrics Changes - The total revenue for Q4 2019 was $182.1 million, a 0.9% decrease year-over-year but a 1.5% increase sequentially [42] - Gross margin for Q4 was 40.1%, up 180 basis points from the prior year, primarily due to improvements in the pay rate to bill rate ratio [43] - Net income improved to $9.4 million or $0.29 per diluted share compared to $4 million or $0.12 per diluted share in the prior year quarter [44] Business Line Data and Key Metrics Changes - Global revenue increased 11.4% to $729 million on an annual basis, with North America showing improvements in sales productivity [31] - SG&A expenses for Q4 were $56.9 million or 31.2% of revenue, down from $58.9 million or 32% of revenue in the previous year [55] - Adjusted EBITDA for Q4 was $17.5 million or 9.6% of revenue, compared to $13.1 million or 7.1% of revenue in the year-ago quarter [44][58] Market Data and Key Metrics Changes - U.S. revenue decreased 0.6% year-over-year but increased 0.5% sequentially, with significant improvements in the Southeast, Chicago, and Northwest [45] - International revenues for Q4 were $39 million, a decrease of 1.8% year-over-year, but increased 5.3% sequentially [46] - Europe’s revenue decreased 7.9% year-over-year but increased 3.3% sequentially [47] Company Strategy and Development Direction - The company aims to become a more digital business, focusing on building a digital engagement platform and enhancing consulting capabilities [10][11] - A refreshed brand was launched to emphasize the human aspect of their services, reflecting a shift towards project-based talent engagement [25][27] - The company is committed to operational improvements in sales productivity, cost containment, and delivery efficiency [31][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future prospects despite short-term uncertainties, particularly in Europe [49] - The company is adapting to changes in client buying patterns, particularly among millennials who prefer efficient engagement methods [78] - There is a recognition of the need for ongoing transformation to meet client demands in the digital space [88] Other Important Information - The company is transitioning to an open office footprint to enhance collaboration among teams [62] - Cash and short-term investments at the end of Q4 were $49 million, with receivables at approximately $133.3 million [61] - The company repurchased $7.6 million in stock during Q4 and $29.9 million for the fiscal year [63] Q&A Session Summary Question: Revenue opportunity from digital initiatives - The marketplace for the human cloud platform is estimated to be about $63 billion, with a significant opportunity for professional services [75] Question: Client demand for self-service options - There is a notable demand from clients for self-service options, particularly among millennials who prefer efficient engagement [78] Question: Changes in client decision-making - There is cautious purchasing behavior, but clients are beginning to push through critical initiatives despite macroeconomic uncertainties [82] Question: Internal reception of digital transformation strategy - The company is undergoing a purposeful cultural transformation to enhance capabilities in technology and digital space [88] Question: Timeline for digital initiatives - The transformation is expected to take three to five years, with some products anticipated to launch by the end of the fiscal year [92] Question: Impact of Brexit and labor regulations in Europe - Changes in labor and tax regulations are negatively impacting the business, particularly regarding independent contractors [103] Question: Prospects in specific U.S. markets - There is a renewed focus on leadership in key markets like Tri-State and Southern California to improve performance [112]

Table of Contents 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 23, 2019 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 (S ...

Resources Connection, Inc. (RECN) Q3 2019 Results Conference Call April 3, 2019 5:00 PM ET Company Participants Alice Washington - General Counsel Kate Duchene - Chief Executive Officer Herb Mueller - Chief Financial Officer Tim Brackney - Chief Operating Officer Conference Call Participants Andrew Steinerman - JPMorgan Mark Marcon - Baird Operator Good day, ladies and gentlemen. And welcome to the Resources Global Professionals' Q3 Fiscal Year 2019 Earnings Conference Call. At this time, all participants a ...

Financial Data and Key Metrics Changes - Total revenues for Q2 2019 were $188.8 million, a 20.5% increase year-over-year and a 5.7% sequential increase [7][34] - Adjusted EBITDA was $20 million, or 10.6% of revenue, compared to $13.4 million, or 8.5% of revenue in the prior year [9][35] - Net income improved to $10.6 million, or $0.33 per diluted share, compared to $8.1 million, or $0.27 per diluted share in the prior year [35] Business Line Data and Key Metrics Changes - Solutions practices, particularly transaction services and technical accounting, grew 36% year-over-year [15][16] - The technical accounting practice is a leading driver, helping clients comply with new accounting standards [16] - The standalone business from the Accretive acquisition, Countsy, continues to grow positively [14] Market Data and Key Metrics Changes - North America revenue increased approximately 25% year-over-year, reflecting the Accretive acquisition and organic growth [7][36] - Europe’s revenue increased 1% year-over-year, with a sequential increase of 12% [38] - Asia Pacific growth was driven by China, with positive trends noted [41][79] Company Strategy and Development Direction - The company is focused on improving gross margins by expanding its mix of higher-value work and implementing institutional pricing [23][25] - There is a strategic emphasis on project management services for large companies, with a shift towards more agile workforce strategies [19][73] - The company aims to differentiate itself from the Big Four by enhancing its capabilities and client service [29][74] Management's Comments on Operating Environment and Future Outlook - Management noted macro challenges such as slower growth in China and uncertainties due to trade tensions and Brexit [27][76] - Despite these challenges, the company believes it is well-positioned for growth due to a stronger sales foundation and a focus on agile models [28][74] - The company is optimistic about growth opportunities in China and has made leadership changes to enhance its presence in the region [79] Other Important Information - SG&A expenses were $55 million, or 29.1% of revenue, down from 30.3% in the prior year [35][48] - The average hourly bill rate was approximately $124, consistent with the previous quarter [46] - The company repurchased $5.5 million in stock during the quarter, with $107 million remaining in the stock buyback program [56][57] Q&A Session Summary Question: Expectations on bill rates and wage rates - Management is committed to bill rate improvement and believes it will continue through the calendar year, while wage rates are holding steady [66][68] Question: Insights on macroeconomic conditions and client feedback - Clients are focusing on bottom-line initiatives, and there is a shift towards more agile workforce strategies, providing opportunities for the company [72][73] Question: Impact of Brexit and growth in China - Clients in the UK do not anticipate significant operational migration due to Brexit, while growth in China remains strong with new leadership in place [76][79] Question: Performance of lease accounting services - Lease accounting services are growing and opening new client opportunities, although they may replace some fundamental finance work [84][86] Question: Progress in specific regional offices - Leadership changes in the Tri-State area are stabilizing, while Chicago and Southern California are showing positive growth trends [90][95]

Table of Contents 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 24, 2018 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 (S ...