Resources Global Professionals Reports Earnings Results for the Second Quarter Fiscal 2018; Provides Gross Margin Guidance for the Third Quarter of Fiscal Year 2018
January 03, 2018 at 10:00 pm
Share
Resources Global Professionals reported earnings results for the second quarter fiscal 2018. For the quarter, the company's total revenues were $156.7 million, which represents an increase of 6.2% compared to the second quarter a year ago, including taskforce. Net income improved to $8.1 million or $0.27 per diluted share compared to $5.7 million or $0.16 per diluted share a year ago. These results were positively impacted by $0.08 per diluted share related to the reversal of valuation allowances on international deferred tax assets, offset by cost of $0.06 per diluted share related to severance, acquisition, integration and transformation expenses during the quarter. On a constant currency basis, revenue increased 5.3% year-over-year and 10.6% sequentially. Adjusted EBITDA was $13.4 million compared to $12.3 million in the year-ago quarter. Pretax income was $10.3 million in the second quarter.
For the third quarter of fiscal year 2018, the company expects gross margin to be in the 35.6% to 35.9% range compared to 36.3% a year ago. The drop sequentially is primarily a result of the higher payroll taxes beginning in January.
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 Global Professionals Reports Earnings Results for the Second Quarter Fiscal 2018; Provides Gross Margin Guidance for the Third Quarter of Fiscal Year 2018