Business
Resources Connection, Inc. Reports Financial Results for First Quarter Fiscal 2021
Delivered Positive Operating Cash Flow in an August Quarter IRVINE, Calif.--(BUSINESS WIRE)-- Resources Connection, Inc. (Nasdaq: RGP), a multinational
About this update from Resources Connection, Inc.
[{"type":"text","content":"\nDelivered Positive Operating Cash Flow in an August Quarter\n\n IRVINE, Calif.--(BUSINESS WIRE)--\nResources Connection, Inc. (Nasdaq: RGP), a multinational business consulting firm operating as Resources Global Professionals (the “Company” or “RGP”), today announced financial results for its fiscal first quarter ended August 29, 2020.\n\nFirst Quarter Fiscal 2021 Highlights Compared to Prior Fiscal Year First Quarter:\n\n\nRevenue of $147.3 million compared to $172.2 million, or down 14.4%\n\n\nGross profit of $57.9 million compared to $67.5 million\n\n\nGross margin improved 10 basis points to 39.3%\n\n\nSG&A of $51.2 million, an improvement of $5.8 million compared to $57.0 million\n\n\nNet income of $2.3 million compared to $4.9 million\n\n\nDiluted earnings per common share of $0.07 compared to $0.15\n\n\nAdjusted diluted earnings per common share of $0.14 compared to $0.18\n\n\nAdjusted EBITDA margin of 6.9%, consistent with prior year quarter\n\n\nCash provided by operating activities of $18.6 million compared to cash used in operating activities of $3.0 million\n\n\nAvailable financial liquidity of $145.2 million as of August 29, 2020, up from $126.3 million as of May 30, 2020\n\n\nCash dividend declared of $0.14 per share, consistent with prior year quarter\n\n\nManagement Commentary\n\n“While revenue was impacted by the global pandemic, we delivered positive operating cash flow in what is normally a cash outflow quarter by improving our cost structure and sustaining gross margins through effective pricing discipline,” said Kate W. Duchene, Chief Executive Officer. “As announced in early September, we are also well underway with our European restructuring plan which will enhance account and revenue focus, streamline operations and accelerate virtual delivery. Looking ahead, we are encouraged by early signs of stabilization, including pipeline pick up and revenue trend improvement.”\n\n\n\n\nSUMMARY OF CONSOLIDATED FINANCIAL RESULTS\n\n\n(Amounts in thousands, except percentages and per share amounts)\n\n\n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n\n\n \n\n\n\n \n\n\n\nThree Months Ended (Note)\n\n\n\n\n\n \n\n\n\n \n\n\n\nAugust 29,\n\n\n\n \n\n\n\n \n\n\n\nMay 30,\n\n\n\n \n\n\n\n \n\n\n\nAugust 24,\n\n\n\n\n\n \n\n\n\n \n\n\n\n2020\n\n\n\n \n\n\n\n \n\n\n\n2020\n\n\n\n \n...