Business
Resources Connection, Inc. Reports Financial Results for Fourth Quarter and Full Fiscal Year 2024
– Fourth Quarter Beats High End of Outlook Range for Revenue, Gross Margin – – Continued Cost Discipline Drives Improved SG&A, Beating Favorable End of
About this update from Resources Connection, Inc.
[{"type":"text","content":"\n– Fourth Quarter Beats High End of Outlook Range for Revenue, Gross Margin –\n\n\n– Continued Cost Discipline Drives Improved SG&A, Beating Favorable End of Outlook Range –\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 25, 2024.\n\n\nFourth Quarter Fiscal 2024 Highlights Compared to Prior Year Quarter:\n\n\n\nRevenue of $148.2 million compared to $184.4 million, a decline of 19.7%\n\n\n\nSame-day constant currency revenue, a non-GAAP measure, a decline of 19.6%\n\n\n\nGross margin remained strong at 40.2% compared to 41.1%\n\n\n\nSelling, general and administrative expenses (“SG&A”) of $46.4 million, net of $(4.4) million of non-cash contingent consideration adjustment, compared to $56.5 million, an improvement of 18.0%\n\n\n\nNet income of $10.5 million (net income margin of 7.1%) compared to $11.8 million (net income margin of 6.4%)\n\n\n\nDiluted earnings per common share of $0.31 compared to $0.35\n\n\n\nAdjusted EBITDA, a non-GAAP measure, of $13.1 million (Adjusted EBITDA margin of 8.8%) compared to $23.2 million (Adjusted EBITDA margin of 12.6%)\n\n\n\nCash dividends declared of $0.14 per share consistent with the prior year quarter\n\n\n\nCash and cash equivalents plus borrowings available under senior secured revolving loan facility of $282.5 million compared to $291.0 million at fiscal year-end 2023\n\n\n\nFull Fiscal Year 2024 Highlights Compared to Prior Year:\n\n\n\nRevenue of $632.8 million compared to $775.6 million, a decline of 18.4%\n\n\n\nSame-day constant currency revenue, a non-GAAP measure, declined 18.8%\n\n\n\nGross margin of 38.9% compared to 40.4%\n\n\n\nSG&A of $208.9 million, net of $(4.4) million of non-cash contingent consideration adjustment, compared to $228.8 million, an improvement of 8.7%\n\n\n\nNet income of $21.0 million (net income margin of 3.3%), compared to $54.4 million (net income margin of 7.0%)\n\n\n\nDiluted earnings per common share of $0.62 compared to $1.59\n\n\n\nAdjusted EBITDA, a non-GAAP measure, of $51.5 million (Adjusted EBITDA margin of 8.1%) compared to $100.2 million (Adjusted EBITDA margin of 12.9%)\n\n\n\nManagement Commentary\n\n\n“We are pleased to see stabilization in the business in the fourth qu...