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 and finance, risk management and internal audit, information management, human capital, supply chain management and legal services, today announced financial results for its fiscal first quarter ended August 30, 2008.
Total revenue for the first quarter of fiscal 2009 improved 6.8% to $207.3 million from $194.1 million for the first quarter in fiscal 2008. Revenues in the U.S. were flat quarter-over-quarter while international revenues increased 26.5% (17.4% on a constant dollar basis).
Gross margin was 39.0% in the first quarter of fiscal 2009 versus 37.9% in the comparable period of fiscal 2008. Selling, general and administrative expenses, which include stock compensation expense, were 27.3% of revenue for the first quarter of fiscal 2009, the same as in the first quarter of fiscal 2008.
Net income determined in accordance with generally accepted accounting principles ("GAAP") improved 7.8% to $12.5 million for the first quarter ended August 30, 2008 compared with $11.6 million for the quarter ended August 25, 2007; earnings per diluted share improved 17.4% to $0.27 per diluted share for the first quarter of fiscal 2009 from $0.23 per diluted share for the first quarter of the prior year. GAAP net income includes non-cash stock based compensation expense of $3.6 million and $4.1 million, net of tax for the quarters ended August 30, 2008 and August 25, 2007, respectively.
Adjusted earnings before interest, taxes, depreciation, amortization and stock compensation expense or "EBITDA" for the first quarter of fiscal 2009 was $29.3 million or 14.1% of revenue versus $26.5 million or 13.7% of revenue for the same quarter of fiscal 2008.
"I am particularly pleased with our gross margin and profitability trends, which will remain a focus of the entire Resources team," said Don Murray, Executive Chairman of Resources. "We continue to demonstrate our ability to adapt to our clients' needs in these volatile times."
"As we look forward, we will continue to face a challenging economic environment and volatility in world financial markets," said Thomas Christopoul, President and CEO of Resources. "We believe the enormous change taking place in the capital markets will present significant opportunities for us in the future; however, the timing of those opportunities will vary as companies work through the difficult business environment. Our business model, which is designed such that 70% of our cash costs are variable, positions Resources extremely well in these uncertain times."
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 -- finance and accounting, information management, internal audit, human capital, legal services and supply chain management.
Resources Global was founded in 1996 within a Big Four accounting firm. Today, we are a publicly traded company with over 4,000 professionals, from more than 80 practice offices, annually serving 2,400 clients around the world.
Headquartered in Irvine, California, Resources Global has served 84 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 www.resourcesglobal.com/.
Resources will hold a conference call for interested analysts and investors at 5:00 p.m., ET today, October 2, 2008. This conference call will be available for listening via a webcast on the Company's website: www.resourcesglobal.com/. |
