Resources Connection, Inc. Files 10-Q for Period Ending February 24, 2024

TL;DR

<b>Resources Connection, Inc. (RGP) filed its Q3 2024 10-Q, detailing stock compensation and financial balances.</b>

AI Summary

RESOURCES CONNECTION, INC. (RGP) filed a Quarterly Report (10-Q) with the SEC on April 4, 2024. Filing is a 10-Q for Resources Connection, Inc. (RGP) for the period ending February 24, 2024. The filing covers the third quarter of fiscal year 2024. Includes data on various stock-based compensation plans such as RSUs, performance shares, and employee stock options. Details share repurchase programs, including the Share Repurchase Program 2015. Presents balance sheet components including retained earnings, additional paid-in capital, and accumulated other comprehensive income as of February 24, 2024.

Why It Matters

For investors and stakeholders tracking RESOURCES CONNECTION, INC., this filing contains several important signals. This filing provides investors with the latest financial snapshot of RGP, crucial for understanding its current financial health and operational performance. The detailed breakdown of equity and stock-based compensation can inform analyses of executive compensation and potential share dilution.

Risk Assessment

Risk Level: low — RESOURCES CONNECTION, INC. shows low risk based on this filing. The filing is a standard 10-Q, providing routine financial disclosures without immediate red flags.

Analyst Insight

Review the detailed balance sheet and equity disclosures to assess the company's financial position and capital structure.

Key Numbers

• 2024-02-24 — Period End Date (Conformed period of report)
• 2024-04-04 — Filing Date (Filed as of date)
• 0525 — Fiscal Year End (Fiscal year end)
• Q3 2024 — Reporting Quarter (Indicates the quarter being reported)

Key Players & Entities

• RESOURCES CONNECTION, INC. (company) — Filer name
• RGP (company) — Ticker symbol
• 10-Q (filing) — Form type
• 2024-02-24 (date) — Conformed period of report
• 2024-04-04 (date) — Filed as of date
• 7144306400 (phone) — Business phone
• DE (state) — State of incorporation
• 7389 (sic) — Standard Industrial Classification

FAQ

Industry Context

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

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring regular disclosure of financial information.

What Investors Should Do

1. Analyze the equity section for changes in common stock, retained earnings, and additional paid-in capital.
2. Examine disclosures related to stock-based compensation plans for potential impacts on future earnings.
3. Review any notes to the financial statements for further details on accounting policies or significant events.

Key Dates

• 2024-02-24: Period End Date — End of the reporting period for the 10-Q filing.
• 2024-04-04: Filing Date — Date the 10-Q was officially filed with the SEC.

Year-Over-Year Comparison

This is a 10-Q filing, providing a quarterly update. Specific comparative data from the previous filing (e.g., 10-Q for Q2 2024) would be needed for a direct comparison of financial performance trends.

Key Financial Figures

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

Filing Documents

• rgp-20240224x10q.htm (10-Q) — 4101KB
• rgp-20240224xex31_1.htm (EX-31.1) — 14KB
• rgp-20240224xex31_2.htm (EX-31.2) — 15KB
• rgp-20240224xex32_1.htm (EX-32.1) — 10KB
• rgp-20240224xex32_2.htm (EX-32.2) — 15KB
• 0001084765-24-000052.txt (&nbsp;) — 12434KB
• rgp-20240224.xsd (EX-101.SCH) — 42KB
• rgp-20240224_cal.xml (EX-101.CAL) — 81KB
• rgp-20240224_def.xml (EX-101.DEF) — 185KB
• rgp-20240224_lab.xml (EX-101.LAB) — 413KB
• rgp-20240224_pre.xml (EX-101.PRE) — 392KB
• rgp-20240224x10q_htm.xml (XML) — 2580KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION ITEM 1. Consolidated Financial Statements (Unaudited) 3 Consolidated Balance Sheets as of February 24, 2024 and May 27, 2023 3 Consolidated Statements of Operations for the Three and Nine Months Ended February 24, 2024 and February 25, 2023 4 Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended February 24, 2024 and February 25, 2023 5 Consolidated Statements of Stockholders' Equity for the Three and Nine Months Ended February 24, 2024 and February 25, 2023 6 Consolidated Statements of Cash Flows for the Nine Months Ended February 24, 2024 and February 25, 2023 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 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) February 24, May 27, 2024 2023 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 113,836 $ 116,784 Trade accounts receivable, net of allowances of $ 2,976 and $ 3,283 as of February 24, 2024 and May 27, 2023, respectively 112,111 137,356 Prepaid expenses and other current assets 8,405 5,187 Assets held for sale 8,909 - Income taxes receivable 8,080 4,739 Total current assets 251,341 264,066 Goodwill 216,955 206,722 Intangible assets, net 10,902 11,521 Property and equipment, net 4,346 15,380 Operating lease right-of-use assets 13,140 15,856 De ferred tax assets 11,030 10,701 Other non-current assets 15,450 7,753 Total assets $ 523,164 $ 531,999 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and other accrued expenses $ 17,367 $ 14,464 Accrued salaries and related obligations 48,529 64,776 Operating lease liabilities, current 5,538 7,460 Contingent consideration liabilities 1,774 - Other current liabilities 10,939 10,384 Total current liabilities 84,147 97,084 Long-term debt - - Operating lease liabilities, non-current 9,260 10,274 Deferred tax liabilities 9,567 7,136 Other non-current liabilities 5,330 2,985 Total liabilities 108,304 117,479 Commitments and contingencies (see Note 8 and 13) 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; 36,194 and 35,545 shares issued, and 33,808 and 33,475 shares outstanding as of February 24, 2024 and May 27, 2023, respectively 363 355 Additional paid-in capital 387,933 378,657 Accumulated other comprehensive loss

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 third quarters of fiscal 2024 and 2023 each consisted of 13 weeks. The Company's fiscal 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 nine months ended February 24, 2024 and February 25, 2023 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 requ

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