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Resources Connection’s Q4 revenue falls 5%

July 17, 2015

Resources Connection Inc. (NASD: RECN) reported revenue fell 5.1% year over year to $148.8 million in its fiscal fourth quarter ended May 30.

The prior year’s quarter included an additional week. When adjusted for the additional week, the 2015 fourth quarter revenue rose 1.3% from the prior year. Fourth-quarter revenue in the US increased 3.4% on an adjusted quarter-over-quarter basis. International revenue decreased 7.2% on an adjusted year-over-year basis (up 7.9% on a constant currency basis).

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 Global Professionals also yesterday announced Executive Chairman Donald B. Murray will retire at the end of August. Read more here.

(US$ thousands) Q4 2015  Q4 2014 % growth
Revenue $148,814 $156,783 -5.1%
Gross margin $57,861 $60,942 -5.1%
Gross margin percentage 38.9% 38.9%  
Net income $8,108 $6,859 18.2%

Full-year results

  FY 2015 ($000s) FY 2014 ($000s) % growth
Revenue $590,589 $567,181 4.1%
Net income $27,508 $19,886 38.3%

Quote

“I am pleased with our results for fiscal 2015 which show good improvement in revenues, gross margin and adjusted EBITDA,” said Tony Cherbak, president and chief executive officer of RGP. “While we experienced some softness in weekly revenues in the latter part of the fourth quarter, the early weeks of the first quarter of fiscal 2016 have improved, approaching levels experienced early in the fourth quarter.”

Share price and market cap

Shares in Resource Connection fell 5.95% today in early afternoon trading today to $15.33, and Resource Connection has a market cap of approximately $755.99 million, according to Yahoo!