Resources Connection, Inc. Reports Financial Results for First Quarter Fiscal 2021

Delivered Positive Operating Cash Flow in an August Quarter

Resources Connection, Inc. (Nasdaq: RGP), a multinational business consulting firm operating as Resources Global Professionals (the “Company” or “RGP”), today announced financial results for its fiscal first quarter ended August 29, 2020.

First Quarter Fiscal 2021 Highlights Compared to Prior Fiscal Year First Quarter:

  • Revenue of $147.3 million compared to $172.2 million, or down 14.4%

  • Gross profit of $57.9 million compared to $67.5 million

  • Gross margin improved 10 basis points to 39.3%

  • SG&A of $51.2 million, an improvement of $5.8 million compared to $57.0 million

  • Net income of $2.3 million compared to $4.9 million

  • Diluted earnings per common share of $0.07 compared to $0.15

  • Adjusted diluted earnings per common share of $0.14 compared to $0.18

  • Adjusted EBITDA margin of 6.9%, consistent with prior year quarter

  • Cash provided by operating activities of $18.6 million compared to cash used in operating activities of $3.0 million

  • Available financial liquidity of $145.2 million as of August 29, 2020, up from $126.3 million as of May 30, 2020

  • Cash dividend declared of $0.14 per share, consistent with prior year quarter

Management Commentary

“While revenue was impacted by the global pandemic, we delivered positive operating cash flow in what is normally a cash outflow quarter by improving our cost structure and sustaining gross margins through effective pricing discipline,” said Kate W. Duchene, Chief Executive Officer. “As announced in early September, we are also well underway with our European restructuring plan which will enhance account and revenue focus, streamline operations and accelerate virtual delivery. Looking ahead, we are encouraged by early signs of stabilization, including pipeline pick up and revenue trend improvement.”

SUMMARY OF CONSOLIDATED FINANCIAL RESULTS

(Amounts in thousands, except percentages and per share amounts)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended (Note)

 

 

August 29,

 

 

May 30,

 

 

August 24,

 

 

2020

 

 

2020

Action 1 Restoration New Website Focuses on Being User Friendly and Having More Useful Resources – Press Release

NEW YORK, NY / ACCESSWIRE / October 5, 2020 / Action 1 Restoration is pleased to announce the launch of their newly redesigned website. This is in keeping with their desire to be a company that is always progressive and strives to give their customers the best possible experience when working with them. The main focus of the new website was to make it as user friendly as possible and to provide potential customers with many useful resources. This reputable New York-based restoration company has assembled teams of the best contractors from coast to coast that are ready to respond quickly to any type of water, storm, or fire damage situations.

The company’s CEO, Eduardo Sapp, says, “We are always looking for ways to improve our services and to enhance our customers’ experience with us. A big part of that is having a modern website that’s easy to navigate around and gets people quickly to the exact information on our company that they are interested in. That’s why we made redesigning our website over the last few months a huge priority for us here at Action 1 Restoration. We are extremely pleased with the way that our redesigned website turned out and we believe our customers will be too.”

Sapp went on to say that all of their emergency restoration services are explained in more detail than ever before on the newly redesigned website. He gave as an example their water damage restoration services. There is now an entire webpage dedicated to this aspect of the business that discusses how the contractors that work with Action1Restoration are experts when it comes to water removal & extraction and how they use sophisticated equipment to handle such steps as drying & dehumidification. The company CEO says that this dedicated section also talks