Resources Connection Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended November 23, 2013; Provides Earnings Guidance for the Third Quarter of Fiscal 2014 and Revenue Guidance for the Full Year of Fiscal 2014
January 02, 2014 at 09:00 pm
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Resources Connection Inc. announced unaudited consolidated earnings results for the second quarter and six months ended November 23, 2013. For the quarter, the company reported revenue of $145,969,000 compared to $141,197,000 for the same period a year ago. Operating income before amortization and depreciation was $14,284,000 compared to $12,868,000 for the same period a year ago. Operating income was $12,954,000 compared to $11,262,000 for the same period a year ago. Income before provision for income taxes was $12,997,000 compared to $11,312,000 for the same period a year ago. Net income was $7,095,000 or $0.18 per basic and diluted share compared to net income of $5,864,000 or $0.14 per basic and diluted share for the same period a year ago. EBITDA was $14,284,000 compared to $12,868,000 for the same period a year ago. Adjusted EBITDA was $15,908,000 compared to $14,693,000 for the same period a year ago.
For the six months, the company reported revenue of $277,673,000 compared to $278,130,000 for the same period a year ago. Operating income before amortization and depreciation was $22,382,000 compared to $24,197,000 for the same period a year ago. Operating income was $19,674,000 compared to $20,974,000 for the same period a year ago. Income before provision for income taxes was $19,756,000 compared to $21,072,000 for the same period a year ago. Net income was $10,748,000 or $0.27 per basic and diluted share compared to net income of $10,696,000 or $0.26 per basic and diluted share for the same period a year ago. EBITDA was $22,382,000 compared to $24,197,000 for the same period a year ago. Adjusted EBITDA was $25,660,000 compared to $27,835,000 for the same period a year ago. Cash flow from operating activities was $8,421,000 compared to $5,066,000 for the same period a year ago. The improvement in earnings per share was driven primarily by a reduction in the weighted average diluted common shares outstanding in the first six months of fiscal 2014.
The company provided earnings guidance for the third quarter and revenue guidance for the full year of fiscal 2014. For the quarter, the company expects gross margin to decline approximately 270 basis points from the second quarter's gross margin due to the impact of 3 paid holidays during the quarter and the reset of payroll taxes on January 1, 2014. The company expects depreciation and amortization expense to approximate $1.3 million.
The company expects to continue to focus on revenue growth in 2014.
Resources Connection, Inc. is a global consulting company. The Company operates through two segments: Resources Global Professionals (RGP) and Sitrick. RGP segment is a global business consulting firm focused on project execution services that power clientsâ operational needs and change initiatives with experienced and diverse talent. Sitrick segment is a crisis communications and public relations firm, which operates under the Sitrick brand, providing corporate, financial, transactional and crisis communication and management services. The Company serves its clients in support of projects and initiatives in an array of functional areas, including transactions, which includes integration and divestitures, bankruptcy/restructuring, going public readiness and support, financial process optimization, and system implementation; regulations, which includes accounting regulations, internal audit and compliance, and other, and transformations, which include finance transformation and other.
Resources Connection Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended November 23, 2013; Provides Earnings Guidance for the Third Quarter of Fiscal 2014 and Revenue Guidance for the Full Year of Fiscal 2014