Aug 27, 2022

Resources Connection Q1 2023 Earnings Report

Reported highest first quarter revenue and net income margin in more than a decade and record first quarter adjusted EBITDA margin.

Key Takeaways

Resources Connection, Inc. reported strong year-over-year revenue growth in the first quarter of fiscal 2023 with revenue increasing by 11.4% to $204.1 million. Net income increased to $18.1 million, and the company delivered a record first quarter Adjusted EBITDA margin of 15.0%.

Revenue increased 11.4% year over year to $204.1 million

Gross profit expanded to $83.5 million, up 16.8% from the prior year quarter

Diluted earnings per common share rose to $0.53 from $0.39 in the prior year quarter

Adjusted EBITDA increased to $30.7 million with a 280 basis point margin improvement over the prior year quarter to 15.0%

Total Revenue
$204M
Previous year: $183M
+11.4%
EPS
$0.6
Previous year: $0.43
+39.5%
Consultant Headcount
3.39K
Previous year: 3.14K
+7.8%
Average Bill Rate
$128
Previous year: $126
+1.6%
Average Pay Rate
$61
Previous year: $63
-3.2%
Gross Profit
$83.5M
Previous year: $71.4M
+16.8%
Cash and Equivalents
$72.6M
Previous year: $61.9M
+17.2%
Free Cash Flow
-$6.01M
Previous year: -$557K
+978.1%
Total Assets
$534M
Previous year: $515M
+3.8%

Resources Connection

Resources Connection

Resources Connection Revenue by Geographic Location

Forward Guidance

The company remains optimistic in its ability to compete and win as its business model attracts in-demand talent who desire more choice, transparency and diversity of experience.

Revenue & Expenses

Visualization of income flow from segment revenue to net income