Resources Connection, Inc. Files 10-Q for Period Ending November 25, 2023

TL;DR

<b>Resources Connection, Inc. (RGP) filed its quarterly report (10-Q) for the period ending November 25, 2023, detailing stock compensation and financial components.</b>

AI Summary

RESOURCES CONNECTION, INC. (RGP) filed a Quarterly Report (10-Q) with the SEC on January 4, 2024. Filing is a 10-Q for Resources Connection, Inc. (RGP) for the period ending November 25, 2023. The filing includes data related to various stock-based compensation plans including Restricted Stock Units (RSUs), Restricted Stock, Performance Shares, and Employee Stock Options. Specific dates for these plans range from August 27, 2023, to November 25, 2023, and also include prior periods like August 28, 2022, to November 26, 2022. The filing also references the Share Repurchase Program 2015 and the Employee Stock Purchase Plan. Key balance sheet components such as Retained Earnings, Additional Paid-In Capital, and Accumulated Other Comprehensive Income are noted for various dates in 2022 and 2023.

Why It Matters

For investors and stakeholders tracking RESOURCES CONNECTION, INC., this filing contains several important signals. This 10-Q filing provides an update on the company's financial position and equity structure, including details on stock-based compensation and share repurchase programs. Investors and analysts can use this information to assess the company's equity management, potential dilution from stock awards, and ongoing capital allocation strategies.

Risk Assessment

Risk Level: low — RESOURCES CONNECTION, INC. shows low risk based on this filing. The filing is a standard 10-Q report, which typically contains routine financial and operational disclosures without immediate significant risk indicators.

Analyst Insight

Review the detailed breakdown of stock-based compensation and share repurchase activities to understand their impact on equity and potential future dilution.

Key Numbers

• 2023-11-25 — Period End Date (Conformed period of report)
• 2024-01-04 — Filing Date (Filed as of date)
• 0525 — Fiscal Year End (Fiscal year end)

Key Players & Entities

• RESOURCES CONNECTION, INC. (company) — Filer name
• RGP (company) — Ticker symbol
• 10-Q (document) — Form type
• 2023-11-25 (date) — Conformed period of report
• 2024-01-04 (date) — Filed as of date
• 7144306400 (phone) — Business phone

Forward-Looking Statements

• The share buyback will likely provide some support to RGP's stock price in the short term. (RESOURCES CONNECTION, INC.) — medium confidence, target: 2024-03-31
• RGP's earnings per share (EPS) will see a slight positive impact due to the reduced share count. (RESOURCES CONNECTION, INC.) — medium confidence, target: 2024-05-25

FAQ

Industry Context

Resources Connection, Inc. operates in the business services sector, providing consulting and staffing solutions.

Regulatory Implications

The filing is made in accordance with the Securities Exchange Act of 1934, requiring public companies to submit regular financial disclosures.

What Investors Should Do

1. Analyze the specific details of stock-based awards granted and vested during the reporting period.
2. Examine the status and activity of the Share Repurchase Program 2015.
3. Review changes in Retained Earnings, Additional Paid-In Capital, and Accumulated Other Comprehensive Income for trends.

Year-Over-Year Comparison

This filing is a 10-Q, a quarterly report, which provides an update on the company's financial status since the last filing.

Key Financial Figures

• $0.01 — ch Registered Common stock, par value $0.01 per share RGP The Nasdaq Stock Mark

Filing Documents

• rgp-20231125x10q.htm (10-Q) — 4079KB
• rgp-20231125xex10_1.htm (EX-10.1) — 115KB
• rgp-20231125xex31_1.htm (EX-31.1) — 14KB
• rgp-20231125xex31_2.htm (EX-31.2) — 15KB
• rgp-20231125xex32_1.htm (EX-32.1) — 10KB
• rgp-20231125xex32_2.htm (EX-32.2) — 15KB
• 0001084765-24-000021.txt (&nbsp;) — 12319KB
• rgp-20231125.xsd (EX-101.SCH) — 40KB
• rgp-20231125_cal.xml (EX-101.CAL) — 76KB
• rgp-20231125_def.xml (EX-101.DEF) — 178KB
• rgp-20231125_lab.xml (EX-101.LAB) — 400KB
• rgp-20231125_pre.xml (EX-101.PRE) — 377KB
• rgp-20231125x10q_htm.xml (XML) — 2521KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION ITEM 1. Consolidated Financial Statements (Unaudited) 3 Consolidated Balance Sheets as of November 25, 2023 and May 27, 2023 3 Consolidated Statements of Operations for the Three and Six Months Ended November 25, 2023 and November 26, 2022 4 Consolidated Statements of Comprehensive Income for the Three and Six Months Ended November 25, 2023 and November 26, 2022 5 Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended November 25, 2023 and November 26, 2022 6 Consolidated Statements of Cash Flows for the Six Months Ended November 25, 2023 and November 26, 2022 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9 ITEM 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 35 ITEM 4.

Controls and Procedures

Controls and Procedures 36

—OTHER INFORMATION

PART II—OTHER INFORMATION ITEM 1A.

Risk Factors

Risk Factors 37 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 37 ITEM 5. Other Information 37 ITEM 6. Exhibits 38

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS. RESOURCES CONNECTION, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except par value per share) November 25, May 27, 2023 2023 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 95,773 $ 116,784 Trade accounts receivable, net of allowance for doubtful accounts of $ 3,142 and $ 3,283 as of November 25, 2023 and May 27, 2023, respectively 129,952 137,356 Prepaid expenses and other current assets 8,225 5,187 Income taxes receivable 8,233 4,739 Total current assets 242,183 264,066 Goodwill 217,034 206,722 Intangible assets, net 12,416 11,521 Property and equipment, net 14,001 15,380 Operating lease right-of-use assets 14,644 15,856 De ferred tax assets 11,095 10,701 Other non-current assets 13,491 7,753 Total assets $ 524,864 $ 531,999 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and other accrued expenses $ 17,518 $ 14,464 Accrued salaries and related obligations 49,533 64,776 Operating lease liabilities, current 6,274 7,460 Contingent consideration liabilities 1,774 - Other current liabilities 11,656 10,384 Total current liabilities 86,755 97,084 Long-term debt - - Operating lease liabilities, non-current 10,275 10,274 Deferred tax liabilities 8,905 7,136 Other non-current liabilities 5,325 2,985 Total liabilities 111,260 117,479 Commitments and contingencies (see Note 12) Stockholders' equity: Preferred stock, $ 0.01 par value, 5,000 shares authorized; zero shares issued and outstanding - - Common stock, $ 0.01 par value, 70,000 shares authorized; 35,929 and 35,545 shares issued, and 33,507 and 33,475 shares outstanding as of November 25, 2023 and May 27, 2023, respectively 360 355 Additional paid-in capital 383,662 378,657 Accumulated other comprehensive loss ( 16,533 ) ( 17,290

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Description of the Company and its Business Resources Connection, Inc. (the "Company"), a Delaware corporation, was incorporated on November 16, 1998. The Company's operating entities provide services primarily under the name Resources Global Professionals ("RGP"). RGP is a global consulting firm focused on project execution services that power clients' operational needs and change initiatives utilizing on-demand, expert and diverse talent. As a next-generation human capital partner for its clients, the Company specializes in co-delivery of enterprise initiatives typically precipitated by business transformation, strategic transactions or regulatory change. The Company's principal markets of operations are North America, Europe and Asia Pacific. The Company's fiscal year consists of 52 or 53 weeks, ending on the Saturday in May closest to May 31 . The second quarters of fiscal 2024 and 2023 each consisted of 13 weeks. The Company's fiscal year 2024 will consist of 52 weeks. 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited financial statements of the Company as of and for the three and six months ended November 25, 2023 and November 26, 2022 have been prepared in conformity with accounting principles generally accepted in the United States ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. These financial statements include all adjustments (consisting only of normal recurring adjustments) the Company's management considers necessary for a fair presentation of its financial position at such dates and the operating results and cash flows for those periods. The financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with GAAP

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