Business
Resources Connection, Inc. Reports Financial Results for Second Quarter Fiscal 2021
Sequential Revenue Improvement with Significant Cost Efficiencies IRVINE, Calif.--(BUSINESS WIRE)-- Resources Connection, Inc. (Nasdaq: RGP), a multinational
About this update from Resources Connection, Inc.
[{"type":"text","content":"\nSequential Revenue Improvement with Significant Cost Efficiencies\n\n IRVINE, Calif.--(BUSINESS WIRE)--\nResources Connection, Inc. (Nasdaq: RGP), a multinational business consulting firm operating as Resources Global Professionals (the “Company”), today announced financial results for its fiscal second quarter ended November 28, 2020.\n\nSecond Quarter Fiscal 2021 Highlights Compared to First Quarter Fiscal 2021:\n\n\nRevenue of $153.2 million compared to $147.3 million, an increase of 4.0%, or 6.4% on the same day constant currency basis\n\n\nSG&A of $54.6 million, including $6.8 million of restructuring costs, compared to $51.2 million, including $1.0 million of restructuring costs\n\n\nNet loss of $1.0 million compared to net income of $2.3 million, after the impact of increased restructuring costs\n\n\nDiluted loss per common share of $0.03 compared to diluted earnings per share of $0.07\n\n\nAdjusted diluted earnings per common share of $0.21 compared to $0.14\n\n\nAdjusted EBITDA margin of 8.1% compared to 6.9%\n\n\nAvailable financial liquidity of $147.9 million as of November 28, 2020, up from $126.3 million as of May 30, 2020\n\n\nCash dividends declared of $0.14 per share, consistent with prior year quarter\n\n\nSecond Quarter Fiscal 2021 Highlights Compared to Prior Fiscal Year Second Quarter:\n\n\nRevenue of $153.2 million compared to $184.5 million, a decline of 17.0%, or 15.6% on the same day constant currency basis\n\n\nSG&A of $54.6 million, including $6.8 million of restructuring costs, compared to $53.8 million\n\n\nNet loss of $1.0 million, after the impact of restructuring costs, compared to net income of $12.3 million\n\n\nDiluted loss per common share of $0.03 compared to diluted earnings per share of $0.38\n\n\nAdjusted diluted earnings per common share of $0.21 compared to $0.42\n\n\nAdjusted EBITDA margin of 8.1% compared to 12.3%\n\n\nManagement Commentary\n\n“We are pleased by the revenue improvement throughout Q2, especially in our most significant client accounts, our health care client base, as well as our core markets including Tri-state, California and Dallas,” said Kate W. Duchene, Chief Executive Officer. “We also experienced a meaningful decline in SG&A costs from the prior year quarter as a result of the restructuring accomplished during the past eight months and a disciplined approach to e...