Slide 1: Investor Presentation April 2024
Investor Presentation April 2024
Slide 2: Forward-looking statements
Within this presentation, we make “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to expectations concerning matters that are not historical facts. Suc
Slide 3: RGP in a Nutshell
RGP in a Nutshell. Nasdaq Ticker: RGP Global footprint across Big Four heritage, brought North America, Europe, agility to professional services and Asia Pacific in the late 90s Modern professional services Compelling destination for Labor trends strongly favor firm powering clients’ seasoned knowle
Slide 4: © 2024 Resources Connection, Inc
© 2024 Resources Connection, Inc 4
Slide 5: Investment Highlights
Investment Highlights. ▪ Emerging leader in a rapidly shifting employment paradigm driven by changing employee preferences and adoption of new workforce strategies given unprecedented pace of change ▪ Secular macro trends driving both supply and demand curves favor RGP’s business model and position
Slide 6: By the Numbers
By the Numbers. 1,800 1,700 3,600 clients MSAs globally $669M borderless employees (Billable consultants* and management personnel) * Not all are full-time equivalents LTM Q3 FY24 Revenue 88% 77% 5-Year average of Fortune 100 of Fortune 500 consultant tenure 39.2% LTM Q3 FY24 78% retention rate of G
Slide 7: Our Business Model is Organically Diverse and Inclusive
Our Business Model is Organically Diverse and Inclusive. Racially/Ethnically Diverse or Women 68% 100% 40% of our US of our of our employees* executive directors *As of May 31, 2023 leadership team Paradigm for Parity Coalition Company © 2024 Resources Connection, Inc 7
Slide 8: Our Time is Now
Our Time is Now. Changing market dynamics serve as robust tailwinds for our business model. 01 Accelerated pace of change is 03 Transformation mandates creating a world-wide skills are driving forward a gap & unprecedented level of Project Economy transformation activity 02 Reduced geographic barrie
Slide 9: Enabling Agility for The Project Economy
Enabling Agility for The Project Economy. We support project needs Run this Place Change this place Operational Needs Transformational Needs • Supporting clients’ operational needs • Leading and supporting complex change initiatives and filling gaps to help clients maintain with a Sleeves Up ethos o
Slide 10: Expert Project Consulting Bolstered by High-End On-Demand Talent
Expert Project Consulting Bolstered by High-End On-Demand Talent. Project Consulting On-Demand Talent 62% of Revenue * 33% of Revenue * We partner with clients to deliver value and impact, Tapping into our agile talent pool, we mobilize the right bringing our depth of experience and “Sleeves Up” res
Slide 11: Our Portfolio of Brands
Our Portfolio of Brands. A global consulting firm focused on project execution with experienced and diverse talent Digitally obsessed, human-centered problem solvers transforming business for the modern world On-demand Backoffice Accounting | HR | CFO | Platform Corporate, financial, transactional a
Slide 12: Enterprise Growth Drivers
Brand Clarity + Bring clarity and focus to our brand architecture and brand positioning to own Amplification the opportunity around project execution Enterprise Digital Expand high-demand digital offerings and improve operating efficiency and scale growth through global technology Growth transformat
Slide 13: Financial Highlights
Financial Highlights. Results of Operations ($ in thousands) FY2021 FY2022 FY2023 LTM Q3 FY2024 Revenue $ 629,516 $ 805,018 $775,643 $ 669,052 Revenue Growth Rate (10.5%) 27.9% (3.6%) (13.7%) Gross Margin 38.3% 39.3% 40.4% 39.2% Adjusted SG&A Percentage (1) 30.2% 26.6% 27.5% 30.0% Adjusted EBITDA (2
Slide 14: Financial Highlights: Balance Sheet
Financial Highlights. Balance Sheet ($ in thousands) FY2021 FY2022 FY2023 Q3 FY2024 Cash $ 74,391 $ 104,224 $116,784 $113,836 Current Assets $ 235,265 $ 308,541 $264,066 $251,341 Total Assets $ 520,644 $ 581,473 $531,999 $523,164 Current Liabilities $ 100,906 $ 124,322 $97,084 $84,147 Long-term Debt
Slide 15: Strong Cash Flow Generation
Strong Cash Flow Generation. LTM Q3 ($ in millions) FY2022 FY2023 $100 180% FY2024 Normalized Free Cash Flow *(in Millions) Cash from $90 160% Normalized Free Cash Flow Conversion* operating activities $ 49.4 $ 81.6 $ 36.5 $77 $80 140% $71 Less: Capital expenditures $ (3.0) $ (2.0) $ (1.6) $70 111%
Slide 16: Capital Allocation Framework
Investment in Growth Strategically allocate capital to organic investments and targeted M&A that drive long- Capital term value for our stockholders. Allocation Framework. Debt Repayment Strong free cash flow supports borrowing capacity RGP generates strong operating cash flow and allocates capital
Slide 17: Focused on Creating and Unlocking Stockholder Value
Focused on Creating and Unlocking Stockholder Value. RGP delivers competitive returns to its stockholders. 4% Industry Leading Dividend Yield $52M Share Repurchases* $91M Dividends* 10 Years Consistent Dividend Return *over the last 5 years Note: share count as of 3/28/2024 is 33,807,459 © 2024 Reso
Slide 18: Thank You
RGP Dare to Work Differently” Thank You
Slide 19: Appendix
| Appendix
Slide 20: Reconciliations of non-GAAP measures
Reconciliations of non-GAAP measures. Reconciliation of net income to Adjusted EBITDA ($ in millions) FY2021 FY2022 FY2023 LTM Q3 FY24 Net income $ 25.2 $ 67.2 $ 54.3 $ 22.4 Adjustments: Amortization expense 5.2 4.9 5.0 5.3 Depreciation expense 3.9 3.6 3.5 3.2 Interest expense, net 1.6 1.0 0.6 (0.9)
Slide 21: Reconciliations of non-GAAP measures
Reconciliations of non-GAAP measures. © 2024 Resources Connection, Inc 21
Slide 22: Reconciliations of non-GAAP measures
Reconciliations of non-GAAP measures. © 2024 Resources Connection, Inc 22