Resources Connection Files 8-K on Operations and Exit Costs

TL;DR

RGP filed an 8-K detailing financial results and exit costs as of Dec 2, 2024.

AI Summary

Resources Connection, Inc. filed an 8-K on December 6, 2024, reporting on its Results of Operations and Financial Condition, as well as Costs Associated with Exit or Disposal Activities. The filing covers events up to December 2, 2024. The company is incorporated in Delaware and headquartered in Dallas, Texas.

Why It Matters

This filing provides investors with crucial updates on the company's financial performance and any significant restructuring or disposal activities, impacting its future operational and financial outlook.

Risk Assessment

Risk Level: medium — The filing indicates potential restructuring or disposal activities, which can introduce uncertainty and financial risk.

Key Players & Entities

• RESOURCES CONNECTION, INC. (company) — Registrant
• Delaware (jurisdiction) — State of Incorporation
• Dallas, Texas (location) — Principal Executive Offices
• December 2, 2024 (date) — Earliest event reported
• December 6, 2024 (date) — Filing date

FAQ

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share RGP The Nasdaq Stock Market L
• $135 million — l quarter revenue to be in the range of $135 million to $140 million and expects gross margi
• $140 million — e to be in the range of $135 million to $140 million and expects gross margin to be in the r
• $48 million — 2025 is expected to be in the range of $48 million to $50 million. The Company will provid
• $50 million — ed to be in the range of $48 million to $50 million. The Company will provide results of it
• $4 million — n in force to result in cost savings of $4 million to $5 million in the second half of fis
• $5 million — result in cost savings of $4 million to $5 million in the second half of fiscal 2025, or $
• $8 million — n in the second half of fiscal 2025, or $8 million to $10 million annually on a go-forward
• $10 million — d half of fiscal 2025, or $8 million to $10 million annually on a go-forward basis. Restr
• $2.5 million — rward basis. Restructuring charges of $2.5 million to $3.0 million are expected to be reco
• $3.0 million — estructuring charges of $2.5 million to $3.0 million are expected to be recognized in the th

Filing Documents

• rgp-20241202.htm (8-K) — 28KB
• 0001084765-24-000169.txt ( ) — 179KB
• rgp-20241202.xsd (EX-101.SCH) — 2KB
• rgp-20241202_def.xml (EX-101.DEF) — 14KB
• rgp-20241202_lab.xml (EX-101.LAB) — 25KB
• rgp-20241202_pre.xml (EX-101.PRE) — 15KB
• rgp-20241202_htm.xml (XML) — 3KB

02 Results of Operations and Financial Condition

Item 2.02 Results of Operations and Financial Condition. Resources Connection, Inc. (the "Company") re-confirms the guidance for the second quarter of fiscal 2025 (ended November 23, 2024) provided on the Company's earnings call conducted on October 1, 2024. For the second quarter of fiscal 2025, the Company expects full quarter revenue to be in the range of $135 million to $140 million and expects gross margin to be in the range of 36% to 37%. The Company's run rate SG&A for the second quarter of fiscal 2025 is expected to be in the range of $48 million to $50 million. The Company will provide results of its operations for the second quarter of fiscal 2025 on January 2, 2025.

05 Costs Associated with Exit or Disposal Activities

Item 2.05 Costs Associated with Exit or Disposal Activities . On December 2, 2024, the Company authorized a reduction of our global management and administrative workforce intended to enhance efficiencies through reduced costs and streamlined operations. We expect the reduction in force to result in cost savings of $4 million to $5 million in the second half of fiscal 2025, or $8 million to $10 million annually on a go-forward basis. Restructuring charges of $2.5 million to $3.0 million are expected to be recognized in the third quarter of fiscal 2025 and primarily consist of cash charges for one-time employee termination benefits. We expect the workforce reduction to be substantially completed by the end of the third quarter of fiscal 2025 and that substantially all of the charges will be recognized and paid during the third quarter of fiscal 2025.

Forward-Looking Statements

Forward-Looking Statements Certain statements in this Current Report on Form 8-K are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to expectations concerning matters that are not historical facts. Such forward-looking statements may be identified by words such as "anticipates," "believes," "can," "continue," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "remain," "should" or "will" or the negative of these terms or other comparable terminology. In this Form 8-K, such statements include statements regarding the Company's estimates of cash expenditures and expected cost savings as a result of the reduction in force and other cost-reduction efforts, as well as the Company's expectations regarding its SG&A, revenue and gross margin for fiscal 2025. Such statements and all phases of the Company's operations are subject to known and unknown risks, uncertainties and other factors that could cause our actual results, levels of activity, performance or achievements and those of our industry to differ materially from those expressed or implied by these forward-looking statements. Potential risks and uncertainties include, but are not limited to, the ability of the Company to achieve the expected benefits from the workforce reduction and other cost-saving measures, the disruption of ongoing business and other factors and uncertainties as are identified in our most recent Annual Report on Form 10-K for the year ended May 25, 2024, and our other public filings made with the Securities and Exchange Commission (File No. 0-32113). Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also affect our business or operating results. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. RESOURCES CONNECTION, INC . Date: December 6, 2024 By: /s/ KATE W. DUCHENE Kate W. Duchene President and Chief Executive Officer

View Full Filing

View this 8-K filing on SEC EDGAR