Resources Connection, Inc. Files 10-Q for Q2 FY2025

TL;DR

**RGP files Q2 FY25 10-Q. Financials updated.**

AI Summary

Resources Connection, Inc. filed its 10-Q for the period ending November 23, 2024. The filing covers the second quarter of fiscal year 2025. Key financial data and operational details for this period are presented.

Why It Matters

This 10-Q filing provides investors and stakeholders with an update on Resources Connection's financial performance and operational status for the second quarter of fiscal year 2025.

Risk Assessment

Risk Level: medium — 10-Q filings are standard financial reports, but the specific content can reveal risks related to the company's performance and market conditions.

Key Players & Entities

• Resources Connection, Inc. (company) — Filer of the 10-Q
• 2024-11-23 (date) — End of the reporting period
• 20250102 (date) — Filing date
• Dallas (location) — Company headquarters city

FAQ

Key Financial Figures

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

Filing Documents

• rgp-20241123.htm (10-Q) — 1451KB
• firstamendmenttocreditagre.htm (EX-10.2) — 73KB
• rgp-20241123xexx311.htm (EX-31.1) — 10KB
• rgp-20241123xexx312.htm (EX-31.2) — 10KB
• rgp-20241123xexx321.htm (EX-32.1) — 5KB
• rgp-20241123xexx322.htm (EX-32.2) — 5KB
• 0001084765-25-000009.txt ( ) — 7502KB
• rgp-20241123.xsd (EX-101.SCH) — 43KB
• rgp-20241123_cal.xml (EX-101.CAL) — 82KB
• rgp-20241123_def.xml (EX-101.DEF) — 250KB
• rgp-20241123_lab.xml (EX-101.LAB) — 639KB
• rgp-20241123_pre.xml (EX-101.PRE) — 485KB
• rgp-20241123_htm.xml (XML) — 966KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION ITEM 1. Consolidated Financial Statements (Unaudited) 3 Consolidated Balance Sheets as of Nov ember 2 3 , 2024 and May 25, 2024 3 Consolidated Statements of Operations for the Three an d Six Months Ended Nove m ber 23 , 2024 and November 25 , 2023 4 Consolidated Statements of Comprehensive (Loss) Income for the Three and Six Months Ended November 2 3 , 2024 and November 2 5 , 2023 5 Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended Novem ber 2 3 , 2024 and November 2 5 , 2023 6 Consolidated Statements of Cash Flows for the Six Months Ended November 23 , 2024 and November 2 5 , 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 27 ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 42 ITEM 4.

Controls and Procedures

Controls and Procedures 43

—OTHER INFORMATION

PART II—OTHER INFORMATION ITEM 1A.

Risk Factors

Risk Factors 45 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 45 ITEM 5. Other Information 45 ITEM 6. Exhibits 46

Signatures

Signatures 47 2 Table of Contents

—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 23, 2024 May 25, 2024 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 78,197 $ 108,892 Trade accounts receivable, net of allowances of $ 3,232 and $ 2,755 as of November 23, 2024 and May 25, 2024, respectively 106,894 108,515 Prepaid expenses and other current assets 8,536 6,888 Assets held for sale – 8,909 Income taxes receivable 8,090 7,551 Total current assets 201,717 240,755 Goodwill 139,627 216,579 Intangible assets, net 22,239 9,573 Property and equipment, net 4,743 3,763 Operating lease right-of-use assets 24,725 11,899 Deferred tax assets 11,120 11,312 Other non-current assets 20,702 17,033 Total assets $ 424,873 $ 510,914 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and other accrued expenses $ 13,580 $ 15,223 Accrued salaries and related obligations 45,174 41,999 Operating lease liabilities, current 5,385 4,735 Other current liabilities 9,466 10,476 Total current liabilities 73,605 72,433 Long-term debt – – Operating lease liabilities, non-current 22,371 8,586 Deferred tax liabilities 930 8,680 Other non-current liabilities 2,290 2,452 Total liabilities 99,196 92,151 Commitments and contingencies (see Note 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; 36,757 and 36,194 shares issued, and 33,091 and 33,556 shares outstanding as of November 23, 2024 and May 25, 2024, respectively 368 363 Additional paid-in capital 394,544 389,720 Accumulated other comprehensive loss ( 21,176 ) ( 17,713 ) Retained earnings 4,145 88,595 Treasury stock at cost, 3,666 and 2,638 shares as of November 23, 2024 and May 25, 2024, respectively ( 52,204 ) ( 42,202 ) Total stockholders' equity 325,677 418,763 T

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 professional services firm focused on delivering consulting execution services that power clients' operational needs and change initiatives utilizing a combination of bench and on-demand, expert and diverse talent. As a next-generation human capital partner for its clients, the Company specializes in leadership and 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 2025 and 2024 each consisted of 13 weeks. The Company's fiscal year 2025 will consist of 53 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 23, 2024 and November 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 prepar

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