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World – Resources Connection revenue up 26.5%

05 October 2018

Professional staffing provider Resources Connection Inc. (NASD: RECN), which operates as Resources Global Professionals, reported revenue rose 26.5% in its fiscal first quarter 2019 ended 25 August 2018.

The results include revenue from US-based Accretive Solutions Inc., which was acquired by Resources Connection last December; the integration was completed in the first quarter. Revenue also includes last year’s acquisition of German professional services firm called “taskforce - Management on Demand AG.”

(USD thousands) Q1 2019 Q1 2018 % change
Revenue 178,558 141,186 26.5%
Gross margin 68,151 53,698 26.9%
Gross margin percentage 38.2% 38.0% N/A 
Net income 5,741 2,112 171.8%

US revenue rose 24.8% year over year; the company did not report growth excluding the Accretive Solutions acquisition.

European revenue increased 36.5%, or 35.8% constant currency; the increase was 8.6% when excluding the taskforce acquisition.

Asia-Pacific revenue rose 15.9% or 16.1% in constant currency

Shares in Resources Connection were $16.43 on Wednesday, down 0.72% on the day. Based on its current share price the company has a market cap value of $600.26 million.