Business
Resources Connection, Inc. Reports Financial Results for Third Quarter Fiscal 2023
– Revenue Exceeds High End of Outlook Range – – Nearly 200 Basis Point Pay/Bill Spread Improvement Drives Gross Margin to 10-Year Third Quarter High –
About this update from Resources Connection, Inc.
[{"type":"text","content":"\n– Revenue Exceeds High End of Outlook Range –\n\n\n– Nearly 200 Basis Point Pay/Bill Spread Improvement Drives Gross Margin to 10-Year Third Quarter High –\n\n\n IRVINE, Calif.--(BUSINESS WIRE)--\nResources Connection, Inc. (Nasdaq: RGP) (the “Company”), a global consulting firm, today announced financial results for its fiscal third quarter ended February 25, 2023.\n\n\nThird Quarter Fiscal 2023 Highlights Compared to the Prior Year Quarter:\n\n\n\nRevenue of $186.8 million compared to $204.6 million, which included $6.7 million of revenue attributed to taskforce, which was divested at the beginning of fiscal 2023\n\n\n\nSame-day constant currency revenue, a non-GAAP measure, declined 4.1% excluding taskforce\n\n\n\nGross margin improved by 80 basis points to 38.3%\n\n\n\nSelling, general and administrative expenses (“SG&A”) of $59.4 million, including $1.7 million of technology transformation costs, or 31.8% of revenue, up 390 basis points\n\n\n\nNet income of $7.0 million (net income margin of 3.8%), including goodwill impairment charge of $3.0 million related to Sitrick, compared to $19.4 million (net income margin of 9.5%)\n\n\n\nDiluted earnings per common share of $0.21 compared to $0.58\n\n\n\nAdjusted EBITDA, a non-GAAP measure, was $16.6 million, or an 8.9% Adjusted EBITDA margin, compared to 11.0% previously\n\n\n\nCash dividends declared of $0.14 per share consistent with prior year quarter\n\n\n\nPaid down $20.0 million of remaining outstanding debt\n\n\n\nAvailable financial liquidity was $278.1 million, up from $224.0 million at fiscal year-end 2022\n\n\n\nManagement Commentary\n\n\n“We delivered solid financial results while continuing to invest in the future, especially in light of the challenging macroeconomic conditions. We are particularly pleased with our progress related to value-based pricing, enabling us to achieve our highest third quarter gross margin performance in over 10 years,” said Kate W. Duchene, chief executive officer. “While clients are taking longer with buying decisions related to new projects, we have seen the number of extensions on existing engagements increase significantly and our overall pipeline remains healthy. This is an indication that our consultants are providing exceptional value, and RGP is a trusted partner to help our clients execute their most important initiatives especia...