IRVINE, Calif., October 4, 2011 - Resources Connection, Inc. (NASDAQ: RECN), a multinational professional services firm that provides to clients - through its operating subsidiary, Resources Global Professionals ("Resources") - accomplished professionals in accounting, finance, information management, corporate advisory, strategic communications and restructuring, human capital, supply chain management, risk management and internal audit and legal services, today announced financial results for its fiscal first quarter ended August 27, 2011.
Total revenue for the first quarter of fiscal 2012 was $138.0 million, up 11.6% from last year's first quarter revenue of $123.7 million and down 5.3% on a sequential quarter basis as anticipated due to the summer holiday season. Revenues in the U.S. were up 5.0% quarter-over-quarter and down 3.5% sequentially, while international revenues increased 34.0% quarter-over-quarter and were down 9.6% sequentially (up 19.9% quarter-over-quarter and down 10.3% sequentially on a constant dollar basis).
Gross margin was 37.8% in the first quarter of fiscal 2012, down 30 basis points from the fourth quarter of fiscal 2011. Selling, general and administrative expenses for the first quarter of fiscal 2012 were $42.6 million, down $1.1 million from $43.7 million in the fourth quarter of fiscal 2011.
Cash flow from operations and adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, stock based compensation and contingent consideration adjustments) were $1.6 million and $11.5 million (8.3% of revenue), respectively, for the first quarter of fiscal 2012.
"We are pleased to see our revenues grow more than $14.0 million over the comparable period a year ago, giving us six consecutive periods of quarter-over-quarter revenue growth," said Tony Cherbak, chief operating officer. "All of our geographies contributed to our first quarter growth."
The Company's pre-tax income for the first quarter ended August 27, 2011 was $6.9 million. The Company's net income for the first quarter was $2.6 million, or $0.06 per diluted share. This compares with net income for the first quarter ended August 28, 2010 of $1.2 million, or $0.03 per diluted share (the $0.03 per diluted share included $0.01 per diluted share of non-cash charges related to an increase in the estimated fair value of contingent consideration).
During the first quarter of fiscal 2012, the Company purchased 1,461,000 shares of common stock for $16.6 million. On September 22, 2011, the Company paid $2.2 million to shareholders, representing the increased quarterly dividend of $0.05 per share.
"Our talented employees continue to help our clients execute strategies to improve efficiencies," said Don Murray, chief executive officer of Resources. "I am pleased to report we returned over $18 million in capital to our shareholders this quarter. We remain focused on improving our operating margins while positioning ourselves for future growth."
ABOUT RESOURCES GLOBAL PROFESSIONALS
Resources Global Professionals, the operating subsidiary of Resources Connection, Inc. (NASDAQ: RECN), is a multinational professional services firm that helps business leaders execute internal initiatives. Partnering with business leaders, we drive internal change across all parts of a global enterprise - accounting, finance, information management, corporate advisory, strategic communications and restructuring, human capital, supply chain management, risk management and internal audit and legal services.
Resources Global was founded in 1996 within a Big Four accounting firm. Today, we are a publicly traded company with over 3,000 professionals, annually serving over 1,900 clients around the world from 80 practice offices.
Headquartered in Irvine, California, Resources Global has served 86 of the Fortune 100 companies.
The Company is listed on the NASDAQ Global Select Market, the exchange's highest tier by listing standards. More information about Resources Global is available at http://www.resourcesglobal.com.
Resources will hold a conference call for interested analysts and investors at 5:00 p.m., ET today, October 4, 2011. This conference call will be available for listening via a webcast on the Company's website: http://www.resourcesglobal.com.
Certain statements in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by words such as "anticipates," "believes," "can," "continue," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "remain," "should" or "will" or the negative of these terms or other comparable terminology. In this press release, such statements include our plans to focus on improving our operating margins and positioning ourselves for future growth. Such statements and all phases of Resources Connection's operations are subject to known and unknown risks, uncertainties and other factors, including seasonality, overall economic conditions and other factors and uncertainties as are identified in our most recent Annual Report on Form 10-K and our other public filings made with the Securities and Exchange Commission (File No. 0-32113). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Resources Connection's, and its industry's, actual results, levels of activity, performance or achievements may be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. The Company undertakes no obligation to update the forward-looking statements in this press release.