IRVINE, Calif.--(BUSINESS WIRE)--July 28, 2022--Resources Connection, Inc. (Nasdaq:

Fourth Quarter Fiscal 2022 Highlights:

• Revenue increased 25.9% year over year and 6.1% sequentially, to $217.0 million
• Same-day constant currency revenue, a non-GAAP measure, was up 27.5% from the prior year quarter and 1.3% sequentially
• Gross profit improved to $89.7 million, up 31.3% from the prior year quarter
• Gross margin was 41.3%, an improvement of 170 basis points over the prior year quarter
• Selling, general and administrative expenses (“SG&A”) as a percentage of revenue improved 220 basis points from the prior year quarter to 27.3%
• Net income was $20.5 million (net income margin of 9.5%) compared to $23.2 million (net income margin of 13.5%) in the prior year quarter, which included a $7.8 million tax benefit
• Diluted earnings per common share of $0.61 compared to $0.70 in the prior year quarter
• Adjusted EBITDA, a non-GAAP measure, increased to $33.4 million, or 15.4% Adjusted EBITDA margin, a 340 basis point margin improvement compared to the prior year quarter
• Cash dividends declared of $0.14 per share, consistent with the prior year quarter

Full Fiscal Year 2022 Highlights:

• Revenue grew 27.9% to $805.0 million compared to $629.5 million the prior year
• Same-day constant currency revenue was up 28.7% from the prior year
• Gross profit improved to $316.6 million, up 31.2% from the prior year
• Gross margin was 39.3%, an improvement of 100 basis points from the prior year
• SG&A as a percentage of revenue improved 540 basis points from the prior year to 27.9%
• Net income was $67.2 million (net income margin of 8.3%), or $2.00 diluted earnings per common share, more than doubling the $25.2 million (net income margin of 4.0%), or $0.78 diluted earnings per common share in the prior year
• Adjusted EBITDA margin, a non-GAAP measure, was 12.8%, up 440 basis points compared to the prior year
• Available financial liquidity was $224.0 million, up from $150.1 million at fiscal year-end 2021

Management Commentary

“We are very excited to have produced the strongest revenue and Adjusted EBITDA we’ve seen in over ten years for both the fourth quarter and full fiscal year. We accomplished this by successfully executing on our record pipeline of opportunities across all businesses, while remaining disciplined on the cost front,” stated Kate W. Duchene, Chief Executive Officer. “Project size and duration continued to grow as we expanded the depth of our relationships and the breadth of our services within our global client base. As we look ahead, we are greatly encouraged by the solid trajectory of our pipeline supported by reoccurring projects from our strategic clients as they leverage RGP’s experienced talent to help them execute on transformations and fill on-demand talent gaps.”

Ms. Duchene continued, “With our flexible platform, we continue to attract a premier professional workforce that is focused and motivated to outperform client expectations. In a permanently changing world, we are building the ideal professional home for the best talent who wants to work in new ways. Our successful execution, coupled with favorable secular trends including rapid adoption of workforce agility, workforce gaps caused by the tightening labor market, the persistent demand for digital transformation services, and the increase in client spending on significant transformational initiatives, should continue to enable us to deliver increased shareholder value.”