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View All NewsResources Connection revenue up 4%
Resources Connection Inc. (NASD: RECN) reported revenue rose 3.8 percent year over year (4.9 percent on a constant dollar basis) to $151.5 million in its fiscal second quarter ended Nov. 29.
The Thanksgiving holiday fell in the third quarter of the prior fiscal year. The company estimates the holiday reduced revenue in North America approximately $4.0 million in the second fiscal quarter of fiscal 2015; on a pro forma basis, second-quarter revenue would have increased 6.5 percent year over year.
The Irvine, Calif.-based company’s operating subsidiary, Resources Global Professionals, provides professionals specializing in accounting, finance, risk management, internal audit, information management, legal and other areas.
Resources Connection reported $500,000 in severance charges in Europe during the second quarter.
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“We believe that this quarter reflects an improving economy and the value our consultants bring to our clients on a daily basis,” said Executive Chairman Don Murray. “With revenue growth and our consistently strong balance sheet, we can continue to improve our operating leverage, invest in our people and service lines and at the same time, continue our stock repurchase and dividend programs which returned $10.6 million in capital to our shareholders this quarter.”
Revenue
| Q2 2015 ($000s) | Q2 2014 ($000s) | % growth | % growth constant dollar | |
| Revenue | $151,496 | $145,969 | 3.8% | 4.9% |
Revenue by geography
| Growth: Q2 2015 vs. Q2 2014 | |
| U.S. revenue | 8.2% |
| International revenue | -11.5% |
Gross margin
| Q2 2015 | Q2 2014 | |
| Gross margin | 39.2% | 39.3% |
Net income
| Q2 2015 ($000s) | Q2 2014 ($000s) | % growth | |
| Net income | $8,016 | $7,095 | 13.0% |
Share price and market cap
Shares in Resource Connection rose 2.42 percent today in early afternoon trading to $16.97, and Resource Connection has a market cap of approximately $646.27 million, according to Yahoo!