Free Research Report as Resources Connection's Revenues Surged 23.7%
LONDON, UK / ACCESSWIRE / July 24, 2018 / If you want access to our free earnings report on Resources Connection, Inc. (NASDAQ: RECN), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=RECN. The Company reported its fourth quarter fiscal 2018 and full fiscal year 2018 operating and financial results on July 18, 2018. The consulting Company surpassed revenue estimates. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Resources Connection most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
For the fourth quarter of the fiscal year 2018, Resources Connection's revenues surged 23.7% to $183.8 million compared to $148.6 million in Q4 FY17. The Company's revenues for the reported quarter included $22.0 million from operations of recent acquisitions of taskforce - Management on Demand (taskforce) and Accretive. Resources Connection's revenue numbers beat analysts' estimates of $3.79 million.
During Q4 FY18, Resources Connection's US revenues increased 5.2% on an organic basis compared to the year ago same period. The Company's European organic revenues advanced 22.1% on a y-o-y basis, reflecting its tenth successive quarter of growth. Resources Connection's Asia/Pacific organic revenues increased 12.8% on a y-o-y basis.
For Q4 FY18, Resources Connection's gross margin was 38.3% compared to 39.1% in Q4 FY17, driven by a lower ratio of bill rate to pay rate. The Company's selling, general, and administrative expenses (SG&A) totaled $58.9 million in the reported quarter versus $48.4 million in the prior year's comparable quarter; and included $3.8 million, or approximately $0.05 per diluted share, of severance, acquisition, transformation, and integration costs and $7.2 million, or approximately $0.10 per diluted share, of Accretive and taskforce G&A.
Resources Connection's tax rate was 55% in Q4 FY18 compared to 47% in Q4 FY17; due to a non-benefit of losses in international operations, expenses related to unexercised stock options expiring, and the impact of withholding taxes on foreign dividend distribution.
Resource Connection's pre-tax income increased to $8.9 million in Q4 FY18 compared to $8.3 million in Q4 FY17. The Company's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) as a percentage of revenues was 7.1% in the reported quarter compared to 7.4% in the prior year's corresponding quarter.
For Q4 FY18, Resources Connection posted a net income of $4.0 million, or $0.12 per diluted share, compared to $4.4 million, or $0.15 per diluted share, in Q4 FY17. The Company's adjusted earnings were $0.27 per share in the reported quarter, and lagged Wall Street's estimates of $0.28 per share.
For the full fiscal year 2018, Resources Connection's revenues jumped 12.1% to $654.1 million compared to $583.4 million in FY17. The Company's revenues for the reported year included $46.9 million from taskforce and Accretive acquisitions.
For FY18, Resources Connection reported a net income of $18.8 million, or $0.60 per diluted share, compared to $18.7 million, or $0.56 per diluted share, in FY17.
Cash Matters
For FY18, Resource Connection's net cash provided by operating activities was $56.47 million compared to $62.33 million in FY17. As of May 26, 2018, the Company's cash and cash equivalents was $56.5 million.
Stock Performance Snapshot
July 23, 2018 - At Monday's closing bell, Resources Connection's stock climbed 5.94%, ending the trading session at $15.15.
Volume traded for the day: 346.50 thousand shares, which was above the 3-month average volume of 143.37 thousand shares.
Stock performance in the past twelve-month period - up 11.40%
After yesterday's close, Resources Connection's market cap was at $572.67 million.
Price to Earnings (P/E) ratio was at 26.17.
The stock has a dividend yield of 3.17%.
The stock is part of the Services sector, categorized under the Staffing & Outsourcing Services industry.
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