Exhibit 99.1
FOR IMMEDIATE RELEASE
- ---------------------
RESOURCES CONNECTION, INC. REPORTS FIRST QUARTER RESULTS
First Quarter Revenue and Earnings Improve 30%
Costa Mesa, Calif., September 28, 2005 -- Resources Connection, Inc. (NASDAQ:
RECN), an international professional services firm that provides, through its
operating subsidiary Resources Global Professionals, experienced accounting and
finance, risk management and internal audit, information management, human
capital, supply chain management and legal professionals to clients on a project
basis, today announced financial results for its first quarter ended August 31,
2005.
Total revenue for the first quarter of fiscal 2006 improved 29.6% to $149.6
million from $115.4 million for the same quarter in fiscal 2005. Net income for
the quarter ended August 31, 2005, was $15.1 million, or $0.29 per diluted
share, compared to net income of $11.6 million, or $0.23 per diluted share, in
the quarter ended August 2004.
"Our expanding client relationships combined with the continuing needs companies
have after initial Sarbanes-Oxley compliance resulted in a very strong start for
Resources in fiscal 2006," said Chairman and CEO of Resources Global
Professionals Donald Murray. "Our established client base, the high-quality
service our associates provide, and the strength of our business model have
allowed us to deliver on our global growth strategy. Our European practices
performed better than expected during the summer quarter due to some large
assignments. We look forward to our continued expansion in Europe and Asia and
to partnering with our multi-national clients around the world."
On February 8, 2005, the Company announced that its board of directors had
declared a 2 for 1 split of its common stock for all stockholders of record as
of February 18, 2005. All prior year information is presented reflecting this
common stock split.
ABOUT RESOURCES GLOBAL PROFESSIONALS
Resources Global Professionals is an international professional services firm
that provides accounting and finance, human capital, information management,
supply chain management, internal audit/risk management and legal services on a
project basis. The Company was originally part of Deloitte & Touche LLP in North
America. Its legacy in Europe is from Ernst & Young and in Asia Pacific from
Deloitte Touche Tohmatsu Australia. Today, the Company is completely
independent, autonomous and publicly traded on NASDAQ under its parent entity's
name, Resources Connection, Inc. In addition to its project professional
services, Resources Global Professionals 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.resourcesglobal.com.
Resources Global Professionals will hold a conference call for interested
analysts and investors at 5:00 pm, EDT today, September 28, 2005. This
conference call will be available for listening via a webcast on the Company's
Internet web site, at http://www.resourcesglobal.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, 2005 (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.
Press Contact:
David Bray
(212) 367-6824
David.Bray@eurorscg.com
RESOURCES CONNECTION, INC.
SUMMARY OF OPERATIONS
(in thousands, except per share amounts)
Quarter
Ended August 31,
---------------------------
2005 2004
------------ ------------
(unaudited)
Revenue $ 149,588 $ 115,401
Direct costs of services 90,650 69,934
------------ ------------
Gross profit 58,938 45,467
Selling, general and administrative
expenses 34,092 25,181
------------ ------------
Operating income before amortization
and depreciation 24,846 20,286
Amortization of
intangible assets 435 411
Depreciation expense 492 543
------------ ------------
Operating income 23,919 19,332
Interest income (972) (304)
------------ ------------
Income before provision for income
taxes 24,891 19,636
Provision for income taxes 9,832 8,051
------------ ------------
Net income $ 15,059 $ 11,585
============ ============
Diluted net income per share $ 0.29 $ 0.23
============ ============
Diluted shares 51,434 49,960
============ ============
RESOURCES CONNECTION, INC.
SELECTED BALANCE SHEET INFORMATION
(in thousands)
August 31, 2005 May 31, 2005
--------------- ---------------
(unaudited)
Cash, cash equivalents, short-term
investments and long-term marketable
securities $ 140,656 $ 134,741
Accounts receivable, less allowances $ 83,356 $ 80,848
Total assets $ 329,523 $ 319,762
Current liabilities $ 50,422 $ 63,298
Total stockholders' equity $ 271,012 $ 248,367