Resources nection(US:RGP)2020-07-23 04:23Financial Data and Key Metrics Changes - Total revenue for Q4 was $178.6 million, a decrease of 2% year-over-year and a 6.3% sequential increase [40] - Adjusted EBITDA increased to $18.6 million, representing 10.4% of revenue, up from 9.6% in the prior year quarter [10][43] - Net income for Q4 was $4.1 million, or $0.13 per diluted share, compared to $9.4 million, or $0.29 per diluted share in the prior year [42] Business Line Data and Key Metrics Changes - Organic revenue decreased by $18 million, or 10%, compared to Q4 of fiscal '19, with a constant currency decline of 9.5% [45] - Revenue from the largest clients increased by 9.1% year-over-year and 10.1% sequentially [47] - North American professional staffing revenue increased by 5.3% compared to Q4 last year [47] Market Data and Key Metrics Changes - Organic same-day revenue declined by 8.8% in North America, 12.7% in Europe, and 19.5% in Asia Pacific compared to Q4 fiscal '19 [46] - The average hourly bill rate for the quarter was approximately $127, up from $124 in the prior year quarter [50] Company Strategy and Development Direction - The company is focusing on cost control, building core client relationships, and digital expansion, including the launch of the HuGo platform [18][23] - The company anticipates a shift towards agile and contingent workers, with a predicted 5% increase in the use of contingent labor over the next two years [15] - The company aims to expand its presence in the healthcare industry, which is seen as a robust opportunity [22] Management's Comments on Operating Environment and Future Outlook - Management noted a slight uptick in the buying environment in June but indicated that new project signings remain soft [11] - The company expects continued challenges in revenue until greater clarity exists in the macro environment [11] - Management expressed optimism about the long-term sustainability of virtual delivery and borderless talent [29] Other Important Information - The company ended the fiscal year with cash and cash equivalents of $95.6 million, compared to $35.9 million at the end of Q3 [57] - The effective tax rate for the fourth quarter was 42%, impacted by lower pre-tax income and an increase in valuation allowance [56] Q&A Session Summary Question: How much of the business will remain virtual long-term? - Management estimates that about 50% of knowledge workers will remain virtual post-pandemic, finding it efficient and cost-effective [65][66] Question: Can you provide details on the real estate footprint? - The company plans to continue its real estate contraction strategy, having exited or sublet approximately half of its North American locations [71] Question: How has Veracity performed relative to expectations? - Management is pleased with Veracity's performance, expecting growth in the fiscal year despite some impact from COVID [76][78] Question: What are the trends in international operations, particularly in Asia Pacific? - Asia Pacific has shown stabilization, with consistent velocity and pipeline activity throughout the quarter [86] Question: What is the current headcount status and productivity? - The company has reduced headcount by approximately 8% in North America, with ongoing evaluations to ensure productivity [87][88]