Resources Connection Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended November 29, 2014; Provides Earnings Guidance for the Third Quarter of 2015
January 07, 2015 at 04:03 pm EST
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Resources Connection Inc. announced unaudited consolidated earnings results for the second quarter and six months ended November 29, 2014. For the quarter, the company reported revenue of $151,496,000 compared to $145,969,000 a year ago. Operating income before amortization and depreciation was $15,859,000 compared to $14,284,000 a year ago. Operating income was $14,608,000 compared to $12,954,000 a year ago. Income before provision for income taxes was $14,647,000 compared to $12,997,000 a year ago. Net income was $8,016,000 compared to $7,095,000 a year ago. Basic and diluted net income per share was $0.21 compared to $0.18 a year ago. Adjusted EBITDA was $17,417,000 compared to $15,908,000 a year ago. Capital expenditures were $638,000 during the quarter. The company generated cash flow from operations of $14.3 million.
For the six months, the company reported revenue of $294,943,000 compared to $277,673,000 a year ago. Operating income before amortization and depreciation was $27,805,000 compared to $22,382,000 a year ago. Operating income was $25,276,000 compared to $19,674,000 a year ago. Income before provision for income taxes was $25,353,000 compared to $19,756,000 a year ago. Net income was $13,411,000 compared to $10,748,000 a year ago. Basic and diluted net income per share was $0.35 compared to $0.27 a year ago. Adjusted EBITDA was $30,909,000 compared to $25,660,000 a year ago. Cash flow from operating activities was $5,664,000 compared to $8,421,000 a year ago.
The company provided earnings guidance for the third quarter of 2015. The company expects gross margin in the third quarter of fiscal 2015 to decline approximately 250 basis points from the second quarter's gross margin due to the reset of payroll taxes on January 1 and the impact of holidays during the quarter. The company would expect depreciation and amortization expense for the upcoming quarters to decline to $1 million. For the third quarter of fiscal 2015, the company anticipates a tax rate of approximately 51%.
Resources Connection, Inc. is a global consulting firm. The Companyâs segments include Resources Global Professionals (RGP), and Other Segments. The RGP is a global consulting firm focused on project execution services that power clientsâ operational needs and change initiatives utilizing on-demand, experienced and diverse talent. The RGP also offers advisory offerings in the financial services sector across four areas: strategy and management, risk and regulatory compliance, digital and technology and data and analytics. The Other Segments include Sitrick, which is a crisis communications and public relations firm which operates under the Sitrick brand, providing corporate, financial, transactional and crisis communication and management services. It specializes in co-delivery of enterprise initiatives typically precipitated by business transformation, strategic transactions or regulatory change. The Companyâs principal markets of operations are North America, Europe and Asia Pacific.
Resources Connection Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended November 29, 2014; Provides Earnings Guidance for the Third Quarter of 2015