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May 29, 2021

Resources Connection Q4 2021 Earnings Report

Revenue grew and margin expanded over the prior year quarter.

Key Takeaways

Resources Connection reported Q4 revenue of $172.3 million, a 10.0% increase sequentially. Net income grew to $23.2 million, or $0.70 diluted earnings per common share, which included a discrete tax benefit of $12.8 million, or $0.39 per diluted common share. Adjusted diluted earnings per common share improved to $0.80.

Revenue up 10.0% sequentially to $172.3 million compared to $156.6 million in the third quarter

Same day constant currency revenue up 4.7% sequentially and 1.2% from the prior year quarter

SG&A expense decreased 18.1% to $50.8 million compared to $62.0 million in the prior year quarter

Adjusted diluted earnings per common share improved to $0.80 compared to $0.33 in the prior year quarter

Total Revenue
$172M
Previous year: $179M
-3.5%
EPS
$0.8
Previous year: $0.16
+400.0%
Consultant Headcount
2.9K
Average Bill Rate
$126
Average Pay Rate
$64
Gross Profit
$68.3M
Previous year: $72.2M
-5.4%
Cash and Equivalents
$74.4M
Previous year: $95.6M
-22.2%
Free Cash Flow
$3.58M
Previous year: $27.7M
-87.1%
Total Assets
$521M
Previous year: $529M
-1.6%

Resources Connection

Resources Connection

Resources Connection Revenue by Geographic Location

Forward Guidance

Company is starting off the new fiscal year in a position of strength as our pipeline has grown significantly over the past six months, fueled by our clients’ needs for transformational project work and traditional staffing gaps.

Positive Outlook

  • Strong top line growth
  • Gross margin improvement
  • Disciplined cost control
  • Expanding Adjusted EBITDA margin by 600 basis points sequentially and 160 basis points year over year
  • Starting off the new fiscal year in a position of strength as our pipeline has grown significantly over the past six months

Revenue & Expenses

Visualization of income flow from segment revenue to net income