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Nov 28, 2020
Resources Connection Q2 2021 Earnings Report
Revenue improved sequentially and cost efficiencies were achieved.
Key Takeaways
Resources Connection, Inc. reported a sequential revenue increase of 4.0% compared to the previous quarter, with revenue reaching $153.2 million. However, the company experienced a net loss of $1.0 million due to restructuring costs and a high effective tax rate.
Revenue increased by 4.0% sequentially, reaching $153.2 million.
Net loss was $1.0 million, impacted by restructuring costs.
Adjusted diluted earnings per common share were $0.21.
Adjusted EBITDA margin was 8.1%.
Resources Connection
Resources Connection
Resources Connection Revenue by Geographic Location
Revenue by Geographic Location
Europe & Asia Pacific Revenue
CapyFin.comNorth America Revenue
CapyFin.com Forward Guidance
Company expects to continue to improve financial performance on the top and bottom line through the second half of the year if the economy rebounds.
Positive Outlook
- Company is pleased by the revenue improvement
- Company experienced a meaningful decline in SG&A costs from the prior year quarter
- Company have learned to work more efficiently than ever as a virtual, borderless and flexible enterprise.
- Company look forward to continuing to improve financial performance on the top and bottom line through the second half of the year if the economy rebounds
- The Company’s pipeline has continued to strengthen since the beginning of fiscal 2021, positioning the business to capitalize on a potential economic recovery
Challenges Ahead
- Macro environment is relatively lethargic due to the continued impact from COVID
- Gross margin decreased due to a decrease in bill/pay spread, more holidays and unfavorable healthcare costs
- Net loss was due to overall lower operating results including the impact of the restructuring costs
- Tax provision was primarily associated with pre-tax income from regions outside of Europe
- Significant required valuation allowances on tax benefits related to these net operating losses
Revenue & Expenses
Visualization of income flow from segment revenue to net income