Business
Resources Connection, Inc. Reports Fourth Quarter and Full Fiscal Year 2020 Financial Results
IRVINE, Calif.--(BUSINESS WIRE)-- Resources Connection, Inc. (Nasdaq: RGP), a multinational business consulting firm, operating as Resources Global
About this update from Resources Connection, Inc.
[{"type":"text","content":" 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 its financial results for the fourth quarter and year ended May 30, 2020.\n\n\nFourth Quarter Fiscal 2020 Highlights:\n\n\n\nRevenue of $178.6 million compared to $182.1 million in prior year quarter, or down 2.0%\n\n\nGross profit of $72.2 million compared to $73.0 million in prior year quarter\n\n\nGross margin improved 30 basis points to 40.4% compared to prior year quarter\n\n\nSG&A of $62.0 million including $5 million of restructuring costs, compared to $56.9 million in the prior year quarter\n\n\nNet income of $4.1 million compared to $9.4 million in prior year quarter\n\n\nDiluted earnings per common share of $0.13 compared to $0.29 in prior year quarter, reflecting an $0.11 per diluted share impact from the restructuring costs\n\n\nAdjusted EBITDA increased to $18.6 million from $17.5 million in prior year quarter\n\n\nOperating cash flow of $28.0 million compared to $30.1 million in prior year quarter\n\n\nAvailable financial liquidity of $126.3 million as of May 30, 2020\n\n\nCash dividend declared of $0.14 per share\n\n\n\nFull Fiscal Year 2020 Highlights\n\n\n\nRevenue of $703.4 million compared to $729 million in prior year, or down 3.5%\n\n\nGross profit of $275.5 million compared to $282.4 million in prior year\n\n\nGross margin percentage expanded 50 basis points over prior year to 39.2%\n\n\nSG&A of $228.1 million including $5 million of restructuring costs, compared to $223.8 million in the prior year\n\n\nNet income of $28.3 million compared to $31.5 million in prior year\n\n\nDiluted earnings per common share of $0.88 compared to $0.98 in prior year, reflecting an $0.11 per diluted share impact from the restructuring costs\n\n\nAdjusted EBITDA of $59.9 million compared to $64.6 million in prior year\n\n\n\nManagement Commentary\n\n\n“Despite the global pandemic, we held fairly steady in Q4 – expanding our Adjusted EBITDA margin to above 10% – and I am very proud of the resilience and tenacity shown by our people,” said Kate Duchene, chief executive officer. “This pandemic is accelerating changes in how work will get done and by whom – changes we have anticipated and built our business around. Virtual deliv...