Business
Resources Connection, Inc. Reports Financial Results for Fourth Quarter and Full Fiscal Year 2023
– Fourth Quarter Revenue Beats High End of Outlook Range – – Significant Pay/Bill Spread Improvement Drives Highest Full Year Gross Margin in Over a Decade –
About this update from Resources Connection, Inc.
[{"type":"text","content":"\n– Fourth Quarter Revenue Beats High End of Outlook Range –\n\n\n– Significant Pay/Bill Spread Improvement Drives Highest Full Year Gross Margin in Over a Decade –\n\n\n IRVINE, Calif.--(BUSINESS WIRE)--\nResources Connection, Inc. (Nasdaq: RGP) (the “Company”), a global consulting firm, today announced its financial results for its fourth quarter and full fiscal year ended May 27, 2023.\n\n\nFourth Quarter Fiscal 2023 Highlights Compared to Prior Year Quarter:\n\n\n\nRevenue of $184.4 million declined 15.0% compared to $217.0 million, which included $7.7 million of revenue attributed to taskforce, divested at the beginning of fiscal 2023\n\n\n\nSame-day constant currency revenue, a non-GAAP measure, declined 11.5% excluding taskforce\n\n\n\nGross margin remained strong at 41.1% compared to 41.3%\n\n\n\nSelling, general and administrative expenses (“SG&A”) of $56.5 million, including $1.9 million of technology transformation costs, or 30.6% of revenue, up 330 basis points\n\n\n\nNet income of $11.8 million (net income margin of 6.4%) compared to $20.5 million (net income margin of 9.5%)\n\n\n\nDiluted earnings per common share of $0.35 compared to $0.61\n\n\n\nAdjusted EBITDA, a non-GAAP measure, was $23.2 million, or 12.6% Adjusted EBITDA margin compared to 15.4%\n\n\n\nCash dividends declared of $0.14 per share consistent with the prior year quarter\n\n\n\nAvailable financial liquidity of $291.0 million, up from $224.0 million at fiscal year-end 2022\n\n\n\nFull Fiscal Year 2023 Highlights Compared to Prior Year:\n\n\n\nRevenue of $775.6 million declined 3.6% compared to $805.0 million, which included $27.6 million of revenue attributed to taskforce\n\n\n\nSame-day constant currency revenue, a non-GAAP measure, was up 1.1% excluding taskforce\n\n\n\nGross margin of 40.4%, an improvement of 110 basis points\n\n\n\nSG&A of $228.8 million, including $6.4 million of technology transformation costs, or 29.5% of revenue, compared to 27.9%\n\n\n\nNet income of $54.4 million (net income margin of 7.0%), including goodwill impairment charge of $3.0 million related to Sitrick, compared to $67.2 million (net income margin of 8.3%)\n\n\n\nDiluted earnings per common share of $1.59 compared to $2.00\n\n\n\nAdjusted EBITDA, a non-GAAP measure, of $100.2 million, or 12.9% Adjusted EBITDA margin, up 10 basis points\n\n\n\nManagement Commenta...