Feb 27, 2021

Resources Connection Q3 2021 Earnings Report

Reported sequential revenue acceleration and margin expansion.

Key Takeaways

Resources Connection, Inc. reported a revenue increase of 2.2% sequentially to $156.6 million and an adjusted diluted earnings per common share of $0.14 for the third quarter of fiscal year 2021.

Revenue up 2.2% sequentially to $156.6 million compared to $153.2 million in the second quarter and as compared to $168.1 million in the prior year quarter

Same day constant currency revenue up 3.4% sequentially and off 10.4% from the prior year quarter

SG&A improved 4.5% to $52.8 million compared to $55.3 million in the prior year quarter

Adjusted diluted earnings per common share of $0.14 compared to $0.25 in the prior year quarter

Total Revenue
$157M
Previous year: $168M
-6.8%
EPS
$0.14
Previous year: $0.21
-33.3%
Consultant Headcount
2.65K
Previous year: 2.89K
-8.3%
Average Bill Rate
$125
Previous year: $123
+1.6%
Average Pay Rate
$64
Previous year: $63
+1.6%
Gross Profit
$57M
Previous year: $61.4M
-7.1%
Cash and Equivalents
$84M
Previous year: $35.9M
+133.7%
Free Cash Flow
$4.75M
Previous year: $3.57M
+33.1%
Total Assets
$502M
Previous year: $486M
+3.2%

Resources Connection

Resources Connection

Resources Connection Revenue by Geographic Location

Forward Guidance

RGP is rapidly strengthening its business reach especially in digital transformation, healthcare and financial advisory services, and is well-positioned to capture the multitude of opportunities as clients seek more cost flexibility in their human capital requirements and as talent demands more radical flexibility.

Positive Outlook

  • Strengthening business reach in digital transformation
  • Strengthening business reach in healthcare
  • Strengthening business reach in financial advisory services
  • Experiencing increased interest from both new and existing clients around implementing an agile workforce strategy
  • Well-positioned to capture the multitude of opportunities as clients seek more cost flexibility in their human capital requirements and as talent demands more radical flexibility

Revenue & Expenses

Visualization of income flow from segment revenue to net income