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Resources Connection Inc (RECN) SEC Filing 10-Q Quarterly report for the period ending Saturday, August 26, 2017

Resources Connection Inc

CIK: 1084765 Ticker: RECN

Exhibit 99.1

Resources Connection, Inc. Reports First Quarter Results for Fiscal 2018

Revenue of $141.2 million for the quarter
Net income of $2.1 million and adjusted EBITDA* of $7.9 million for the quarter
Diluted earnings per share of $0.07 for the quarter (including $0.05 per share for severance and acquisition related costs)
Company makes progress on strategic initiatives to enhance revenue and profitability

IRVINE, Calif.--(BUSINESS WIRE)--October 4, 2017--Resources 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 first quarter ended August 26, 2017.

Revenue for the first quarter of 2018 was $141.2 million, with net income per diluted share of $0.07, including $0.05 per diluted share related to severance and acquisition costs during the quarter. Revenue in Europe improved for the seventh straight quarter-over-quarter (up 7.4%). Net income for the quarter was $2.1 million (1.5% of revenue), with an adjusted EBITDA* of $7.9 million (5.6% of revenue). The Company also paid a quarterly cash dividend of $0.12 per share, resulting in a total dividend payment of $3.6 million.

“The revenue decline flattened in the last month of the quarter and we are seeing this trend continue,” said Kate Duchene, President and Chief Executive Officer of RGP. “We have started to see real revenue improvement in the North America business in the second quarter, with weekly revenue up year over year the past four weeks. Revenue trends in Europe are also strong, providing a nice platform to welcome our recent acquisition, taskforce – Management on Demand AG in Germany. This acquisition significantly improves our bandwidth in this important global market. We are also pleased that we are starting to see progress with our transformation efforts, and that we have accomplished much of the operating model work. We said that we had heavy lifting ahead and we remain on track to complete our strategic initiatives in the previously outlined timeframe.”

*Adjusted EBITDA is defined as earnings before interest, income taxes, depreciation, amortization and stock-based compensation.

ACQUISITION

On September 1, 2017, the Company announced it had acquired taskforce-Management on Demand AG (“taskforce”) as a part of its effort to expand and grow its European business. taskforce is a German professional services firm founded in 2007 that provides clients with senior interim management and project management expertise. The acquisition of taskforce, an industry leader in the German market with a strong client and consultant base, enhances RGP’s ability to serve its global clients and offer more integrated solutions. The purchase was for initial consideration of €6.0 million (approximately $7.1 million) in a combination of cash and restricted stock, plus an earn-out based on performance in calendar 2017, 2018 and 2019. For the year ended December 31, 2016, taskforce revenue was approximately €12 million (approximately $13.3 million). taskforce’s financial results will be included in RGP’s consolidated financial results beginning with the second quarter ending November 25, 2017.

UPDATE ON STRATEGIC INITIATIVES

With respect to the cost reduction initiative, we finished the reduction in force at the end of fiscal 2017. This initiative reduced our headcount by 57 year over year from the third quarter fiscal 2017 to the first quarter fiscal 2018. The effect of these selling, general and administrative expenses (“SG&A”) reductions are obscured currently by talent change, severance, acquisition and transformation expenses in the first quarter of fiscal 2018. Most of the transformation and inorganic growth costs will tail off towards the end of the second quarter of fiscal 2018 and we expect to see more direct benefit from the headcount reductions we have made. We remain committed to managing our cost structure to achieve the cost reduction targets we discussed in the third quarter fiscal 2017.


The following information was filed by Resources Connection Inc (RECN) on Wednesday, October 4, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Resources Connection Inc's 10-Q Quarterly Report:

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Document And Entity Information
Consolidated Balance Sheets
Consolidated Balance Sheets (parenthetical)
Consolidated Statement Of Stockholders' Equity
Consolidated Statement Of Stockholders' Equity (parenthetical)
Consolidated Statements Of Cash Flows
Consolidated Statements Of Comprehensive Income
Consolidated Statements Of Operations
Description Of The Company And Its Business
Goodwill
Goodwill (summary Of Activity In Goodwill Balance) (details)
Goodwill (tables)
Income Taxes
Income Taxes (narrative) (details)
Legal Proceedings
Long-term Debt
Long-term Debt (narrative) (details)
Recent Accounting Pronouncements
Recent Accounting Pronouncements (narrative) (details)
Segment Information And Enterprise Reporting
Segment Information And Enterprise Reporting (narrative) (details)
Segment Information And Enterprise Reporting (schedule Of Revenue From External Customers And Long-lived Assets, By Geographical Areas) (details)
Segment Information And Enterprise Reporting (tables)
Stock-based Compensation Plans
Stock-based Compensation Plans (narrative) (details)
Stock-based Compensation Plans (schedule Of Stock Option Activity) (details)
Stock-based Compensation Plans (tables)
Stockholders' Equity
Stockholders' Equity (narrative) (details)
Subsequent Event
Subsequent Event (narrative) (details)
Summary Of Significant Accounting Policies
Summary Of Significant Accounting Policies (calculation Of Net Income Per Share) (details)
Summary Of Significant Accounting Policies (narrative) (details)
Summary Of Significant Accounting Policies (policy)
Summary Of Significant Accounting Policies (tables)
Supplemental Disclosure Of Cash Flow Information
Supplemental Disclosure Of Cash Flow Information (schedule Of Additional Information Regarding Cash Flows) (details)
Supplemental Disclosure Of Cash Flow Information (tables)

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Resources Connection Inc provided additional information to their SEC Filing as exhibits

Ticker: RECN
CIK: 1084765
Form Type: 10-Q Quarterly Report
Accession Number: 0001193125-17-304347
Submitted to the SEC: Thu Oct 05 2017 2:06:51 PM EST
Accepted by the SEC: Thu Oct 05 2017
Period: Saturday, August 26, 2017
Industry: Business Services

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