Nov 23, 2019

Resources Connection Q2 2020 Earnings Report

Resources Connection reported results for the second quarter of fiscal year 2020, which saw a revenue decrease of 2.3% year-over-year but a sequential increase of 7.1%, along with a gross margin improvement and a rise in net income.

Key Takeaways

Resources Connection, Inc. reported a slight decrease in revenue compared to the prior year quarter, but experienced sequential growth. The company managed to increase profitability through gross margin improvements and lower SG&A expenses. The pipeline is stronger heading into Q3 than it has been in 12 months.

Revenue was $184.5 million, a decrease of 2.3% from the prior year quarter but an increase of 7.1% sequentially.

Gross margin percentage was 40.3%, an improvement of 140 basis points from the prior year quarter.

Net income was $12.3 million, up 16.8% from $10.6 million in the prior year quarter.

Diluted earnings per common share were $0.38, up 15.2% from $0.33 in the prior year quarter.

Total Revenue
$185M
Previous year: $189M
-2.3%
EPS
$0.39
Previous year: $0.33
+18.2%
Gross Margin %
40.3%
Effective Tax Rate
30%
Consultant Headcount
3.07K
Gross Profit
$74.4M
Previous year: $73.4M
+1.3%
Cash and Equivalents
$43M
Previous year: $40.8M
+5.4%
Free Cash Flow
$19.5M
Previous year: $15.9M
+22.4%
Total Assets
$496M
Previous year: $431M
+15.1%

Resources Connection

Resources Connection

Resources Connection Revenue by Geographic Location

Revenue & Expenses

Visualization of income flow from segment revenue to net income