Business
Resources Connection, Inc. Reports Second Quarter Results for Fiscal 2020
Second Quarter Fiscal 2020 Highlights: Revenue $184.5 million, down 2.3% from prior year quarter, up 7.1% sequentially Gross margin percentage of 40.3%, an
About this update from Resources Connection, Inc.
[{"type":"text","content":"\nSecond Quarter Fiscal 2020 Highlights:\n\n\n\nRevenue $184.5 million, down 2.3% from prior year quarter, up 7.1% sequentially\n\n\nGross margin percentage of 40.3%, an improvement of 140 basis points from prior year quarter\n\n\nSG&A as a percent of revenue improves 400 basis points sequentially\n\n\nNet income of $12.3 million, up 16.8% from $10.6 million in prior year quarter\n\n\nDiluted earnings per common share of $0.38, up 15.2% from $0.33 in prior year quarter\n\n\nAdjusted EBITDA increases to $22.7 million compared to $20.0 million in prior year quarter\n\n\nAdjusted EBITDA margin improves by 170 basis points to 12.3% compared to prior year quarter\n\n\nCash dividends declared of $0.14 per share\n\n\n IRVINE, Calif.--(BUSINESS WIRE)--\nResources Connection, Inc. (Nasdaq: RECN), a multinational business consulting firm, operating as Resources Global Professionals (the “Company” or “RGP”), today announced its financial results for the second quarter ended November 23, 2019.\n\n\nManagement Commentary\n\n\n“We experienced an improvement in revenue in North America this quarter and modest strengthening in Europe – both good developments since the previous quarter,” said Kate W. Duchene, chief executive officer. “Despite the slight revenue dip year-over-year, we are actively managing the business to deliver more profit through gross margin improvement and lower SG&A. The pipeline is stronger heading into Q3 than it has been in 12 months and while year-over-year revenue is a tough comparable because of the peak of lease accounting project revenue in Q2 and Q3 last year, we are replacing that revenue stream with other opportunities, particularly in our Strategic Client Program with program and project management.”\n\n\n\n\n\n\nRESOURCES CONNECTION, INC.\n\n\nSUMMARY OF CONSOLIDATED FINANCIAL RESULTS\n\n\n(Amounts in thousands, except percentages and per share amounts)\n\n\n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n\n\n \n\n\n\n \n\n\n\nThree Months Ended\n\n\n\n \n\n\n\n \n\n\n\nSix Months Ended\n\n\n\n\n\n \n\n\n\n \n\n\n\nNovember 23,\n\n\n\n \n\n\n\n \n\n\n\nAugust 24,\n\n\n\n \n\n\n\n \n\n\n\nNovember 24,\n\n\n\n \n\n\n\n \n\n\n\nNovember 23,\n\n\n\n \n\n\n\n \n\n\n\nNovember 24,\n\n\n\n\n\n \n\n\n\n \n\n\n\n2019\n\n\n\n \n\...