Slide 1: Investor Presentation July 2024
Investor Presentation July 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 3,400 clients MSAs globally $633M borderless employees (Billable consultants* and management personnel) * Not all are full-time equivalents FY24 Revenue 88% 77% 5-Year average of Fortune 100 of Fortune 500 consultant tenure 38.9% FY24 74% retention rate of Gross Margin 32
Slide 7: Our Business Model is Organically Diverse and Inclusive
Our Business Model is Organically Diverse and Inclusive. Racially/Ethnically Diverse or Women 69% 100% 40% of our US of our of our employees* executive directors *As of May 25, 2024 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: 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 11: 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 12: Financial Highlights
Financial Highlights. Results of Operations ($ in thousands) FY2021 FY2022 FY2023 FY2024 Revenue $ 629,516 $ 805,018 $775,643 $ 632,801 Revenue Growth Rate (10.5%) 27.9% (3.6%) (18.4%) Gross Margin 38.3% 39.3% 40.4% 38.9% Adjusted SG&A Percentage (1) 30.2% 26.6% 27.5% 30.7% Adjusted EBITDA (2) $ 52,
Slide 13: Financial Highlights: Balance Sheet
Financial Highlights. Balance Sheet ($ in thousands) FY2021 FY2022 FY2023 FY2024 Cash $ 74,391 $ 104,224 $116,784 $108,892 Current Assets $ 235,265 $ 308,541 $264,066 $240,755 Total Assets $ 520,644 $ 581,473 $531,999 $510,914 Current Liabilities $ 100,906 $ 124,322 $97,084 $72,433 Long-term Debt $
Slide 14: Strong Cash Flow Generation
Strong Cash Flow Generation. ($ in millions) FY2022 FY2023 FY2024 $100 180% Normalized Free Cash Flow *(in Millions) Cash from $90 160% Normalized Free Cash Flow Conversion* operating activities $ 49.4 $ 81.6 $ 21.9 $77 $80 140% $71 Less: Capital expenditures $ (3.0) $ (2.0) $ (1.1) $70 120% (FCF/EB
Slide 15: 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 16: Focused on Creating and Unlocking Stockholder Value
Focused on Creating and Unlocking Stockholder Value. RGP delivers competitive returns to its stockholders. 5% Industry Leading Dividend Yield $48M Share Repurchases* $92M Dividends* 10 Years Consistent Dividend Return *over the last 5 years Note: share count as of 7/12/2024 is 33,560,150 © 2024 Reso
Slide 17: Thank You
RGP Dare to Work Differently~ Thank You
Slide 18: Appendix
| Appendix
Slide 19: Reconciliations of non-GAAP measures
Reconciliations of non-GAAP measures. © 2024 Resources Connection, Inc 19
Slide 20: Reconciliations of non-GAAP measures
Reconciliations of non-GAAP measures. © 2024 Resources Connection, Inc 20
Slide 21: Reconciliations of non-GAAP measures
Reconciliations of non-GAAP measures. © 2024 Resources Connection, Inc 21