Exhibit 99.1
RESOURCES CONNECTION, INC. REPORTS SECOND QUARTER RESULTS
SECOND QUARTER REVENUE SOARS 85% AND EARNINGS PER SHARE TRIPLE QUARTER OVER
QUARTER
COSTA MESA, Calif., Dec. 22 /PRNewswire-FirstCall/ -- Resources
Connection, Inc. (Nasdaq: RECN), an international professional services firm
that provides accounting and finance, human capital, information management,
supply chain management and internal audit/risk management services on a
project basis, today announced financial results for the quarter ended
November 30, 2004.
Total revenue for the second quarter of fiscal 2005 improved 85% to $137.0
million from $74.0 million for the same quarter in fiscal 2004, and 19% from the
previous quarter. Net income for the quarter ended November 30, 2004, was $15.6
million, or $0.62 per diluted share, compared to net income of $4.4 million, or
$0.19 per diluted share, in the November 2003 quarter.
For the first six months of fiscal 2005, revenue grew 89% to $252.4 million
compared to $133.6 million for the six-month period in the prior year. Net
income for the six months ended November 30, 2004 was $27.2 million, or $1.09
per diluted share versus $7.8 million, or $0.33 per diluted share, in the prior
year period.
"We are pleased with our growth and operational performance," said Chairman
and CEO Donald Murray. "We experienced strong demand for our services globally,
particularly within our finance and accounting, Resources Audit Solutions and
information management practices. Our ability to service multi-national clients
on a broad-based, global scale is expanding and contributes to our growing
reputation as a trusted partner to companies responding to changing market
dynamics."
ABOUT RESOURCES CONNECTION
Resources Connection, Inc. is an international professional services firm
that provides accounting and finance, human capital, information management,
supply chain management and internal audit/risk management services on a project
basis. The Company was originated as part of Deloitte in North America. Its
legacy in Europe is from Ernst & Young and in Asia Pacific from Deloitte Touche
Tohmatsu Australia and Deloitte Touche Tohmatsu Taiwan. Resources Connection
today is completely independent, autonomous and publicly traded on NASDAQ. In
addition to its project professional services, Resources Connection has
established itself as a leading business services provider for companies seeking
independent and cost effective assistance for meeting or complying with many of
the complex business and regulatory issues in today's marketplace.
Headquartered in Costa Mesa, California, the company operates from more than
60 worldwide offices. The U.S. client portfolio boasts more than 30 of the
Fortune 50 companies. The company was recently named to Forbes Best 200 Small
Companies list for the third consecutive year. More information about the
company is available at http://www.resourcesconnection.com.
Resources Connection will hold a conference call for interested analysts and
investors at 5:00 pm, EST today, December 22, 2004. This conference call will be
available for listening via a webcast on the Company's Internet web site, at
http://www.resourcesconnection.com/.
Certain statements in this press release are "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. Such forward-looking statements may be
identified by words such as "anticipates," "believes," "can," "continue,"
"could," "estimates," "expects," "intends," "may," "plans," "potential,"
"predicts," "should," or "will" or the negative of these terms or other
comparable terminology. Such statements and all phases of Resources Connection's
operations are subject to known and unknown risks, uncertainties and other
factors, including seasonality, overall economic conditions and other factors
and uncertainties as are identified in Resources Connection's Form 10-K for the
year ended May 31, 2004 and Form 10-Q for the quarter ended August 31, 2004
(File No. 0-32113). Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof. Resources
Connection's, and its industry's, actual results, levels of activity,
performance or achievements may be materially different from any future results,
levels of activity, performance or achievements expressed or implied by these
forward-looking statements. The Company undertakes no obligation to update the
forward-looking statements in this press release.
RESOURCES CONNECTION, INC.
SUMMARY OF OPERATIONS
(in thousands, except per share amounts)
Quarter Ended Six Months Ended
November 30, November 30,
---------------------- ----------------------
2004 2003 2004 2003
--------- --------- --------- ---------
(unaudited) (unaudited)
Revenue $ 137,027 $ 74,016 $ 252,428 $ 133,557
Direct costs of services 81,851 45,420 151,785 81,475
Gross profit 55,176 28,596 100,643 52,082
Selling, general and
administrative expenses 28,170 20,471 53,351 37,700
Operating income 27,006 8,125 47,292 14,382
Amortization of intangible
assets 411 392 822 698
Depreciation expense 567 433 1,110 820
Interest income (411) (103) (715) (275)
Income before provision
for income taxes 26,439 7,403 46,075 13,139
Provision for income taxes 10,840 2,998 18,891 5,321
Net income $ 15,599 $ 4,405 $ 27,184 $ 7,818
Diluted net income per
share $ 0.62 $ 0.19 $ 1.09 $ 0.33
Diluted shares 25,109 23,622 25,044 23,618
RESOURCES CONNECTION, INC.
SELECTED BALANCE SHEET INFORMATION
(in thousands)
November 30, May 31,
2004 2004
------------ ----------
(unaudited)
Cash, cash equivalents and long-term
marketable securities $ 98,460 $ 69,839
Accounts receivable, less allowances $ 71,927 $ 59,766
Total assets $ 270,192 $ 226,263
Current liabilities $ 51,799 $ 41,241
Total stockholders' equity $ 213,756 $ 180,334
SOURCE Resources Connection, Inc.
-0- 12/22/2004
/CONTACT: Stephen Giusto, Chief Financial Officer of Resources
Connection, Inc., +1-714-430-6500, steve.giusto@resources-us.com/
/Web site: http://www.resourcesconnection.com/