RGP - Earnings call transcript Q2 2021 | Resources Connection, Inc.

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Resources Connection Inc. Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. would commenting to Second on November XXXX. I management everyone Quarter time, XX, be will results this now remind like that Ended At for the to financial They certain also refer measures. will non-GAAP financial reconciliation of press to comparable in An explanation measures today. these included and is issued the measures most GAAP release the be the was release investor today filed Today's also of the section can with press relations viewed in SEC. and RGP's website anticipated and financial management call make statements strategies may and initiatives the of Also during this performance regarding forward-looking Company. the plans, predictions statements may Such events differ materially. and or actual or results Please to call. see Company's a the the XX, materially expressed is differ this factors RGP's by discussion report ended for cause condition for may business on from statements what results other Form XXXX made implied and during that year or XX-K of of operations forward-looking uncertainties risks, financial May and over turn the now Duchene. Kate I'll call RGP's to CEO,

Kate Duchene

core transformation statistics improving care. blue-chip in health focus share client our base and then -- client and me and Brackney, for Good Then also with Thank our you model ongoing digital significant to client impact. joining to new the borderless thank within an continuity operator. growth our base client quarter-over-quarter. overview EBITDA reinforce Ryu, stickiness updates making Jen Chief share be evolution our and most programs With on delivery our us. I on our including evolving our I'll are supports overcome Financial of to Chief and existing year, drive afternoon, will more you, progress the quarter, continuity I'll Officer. and COVID-XX this start flexible, a improvement. Tim to are Operating priorities everyone, virtual second This two today we Officer; fiscal geos our and

as the by X% revenue in to of perspective, we In deck pandemic on the revenue results grew From QX, with million constant a billing steady top a improvement Finally, impact we number sequential QX the saw improvement comparing new website in global close I days and our our of currency. quarter, same the highlights revenue on when from notwithstanding. over added based our at line will few move today. $XXX.X through touching investor a X.X%

restructuring as X.X% also our our SG&A Adjusted Excluding sequentially X.X% XXX expense were as margin improved a reduced basis charges, increased cost sequentially. and expenses reduction to of discipline. result initiatives EBITDA points

line as the well will and emerging the In as continue growth steps We estate we're bottom positive opportunity in care efficiencies, of the investment taking for practice we management. through industry sustained position client in lowered our and health geographies, Company success are trends discuss headcount some as to that revenue coming continuing Tim next, years. remarks maximize core programs to to real are pursue operational his

to Now priorities our year. growth let's two primary this turn fiscal

The first engage building services and out digital new is to to grow revenue pathways staffing transformation services. by for providing digital more

as technological the innovation fueled several rise transformation corporate explosive years, digital of imperative. Over last the a has

it and risk services. and our clients: drive resources and strive has with compete to to increasingly have in solutions to and we this clients been corporations including accelerated technology acquire project order collaboration, a and of past of to the and help which experience foresight workforce. clients, area help support for today's emphasis of work has native specialty entrants. to the placed to process address on tax, To and have year the is to an has in automate which important native not compliance, through even digitally migration, our clients rethink management are reinforced nature only effectively the digital digitally do Veracity's. project human given XXXX they communication evolution, streamline increased efficiency functional RGP workflows stay forced The given business, happening all more automate, our clients for way Our us functional virtual management. digital significantly evolved businesses, build redesign, and initiatives every finance become employee new These has ahead the mandate who In veracity remote end-to-end these accounting,

Given Combining deep success Veracity achieved has go-to-market project in With robust an and like during platforms revenue uniquely the and Veracity RGP also to into this Akumina plan in workflow work integrated Veracity's around capabilities capitalize emerging and QX. leveraging record continued the vice across 'XX, cross-selling premier quarter, automation, are orientation. with process functional bringing trend RGP's enterprise. RGP and the growth positioned our We've experienced fiscal expertise versa. in and Veracity ServiceNow on trends.

We respect to our expect digital parts through for our the although continue second fiscal QX of progress HUGO planned. momentum With impacted the as half remember, of is this to year, positive platform by business all holidays. continues development, engagement

management and engagement to use of the active of on digital part talent software a offering set is an release management. select and with by of internal the end to year. candidates We have fiscal this that bring the market We're finished track this

we'll sought and the that however, more bring the that excited is professional and time speed in transparency, we share stronger this more right and that will, when scenarios in engagement realm. macro fully talent the striking to bring accounting lock new much down product environment for match market, line detail We recovered will ensure the from and We're choice, as after model digital approaches. efficiency finance

enhance and is earnings cost as initiative new efficiency. client This priority to existing and involve intended to directly and acquisition, growth fiscal continue to is our year more is linked be to and it second Our revenue to borderless. delivery virtual both this initiative fluid,

not with do consultant need we clients operated focused pulled we've happened serve more an clients. pre-COVID would teams when deliver approach recently not multiple from experience several a physical mindset. of we demonstrating projects example, to type closed This For geographies traditional together also with for to offices exceptional have We're effectively. that GEO

multi starting to closed we uncover consultant For where out exemplifies of office example, client we a we're opportunities or project This Moines, Des team. not on with new engagement new go-to-market the sets. do physical a have just a

As estate to made we've forward. continue drive plan, strong our progress Jen will real consolidation on outline, which also will

these bringing client actions continue streamline us of to while delivery closer help structure our and together closer teams All cost to our buyers. client

RGP's each Next, the bring These outstanding clients demonstrate client every continuity this retention quarter. to day. statistics was value-add we and

top our the stickiness clients we QX, year-over-year XXXX. served and global fiscal all This from XX During the has from of remained of despite XX consistent XXXX XX pandemic. top

XX clients of XX% revenues, In total represented of addition, our our for top while XX% XX came QX, from revenues clients.

revenues. ability quarter, XX% the for that the was and XX origins closing, finance the routes services pleased second I'm build of also our kick beyond is the clients our RGP, top year. a expertise XXXX. X.X% half multiple of posted our Also of to client functional during which website an approximately quarter revenue our to or largest demonstrates and improving from off accounting second of Our deck today, new In as to the trend start we've we investor procured

over profit focus to our governance shareholder Our creation. high-quality exciting new humanity with on and who force life. will work presentation Tim bringing topics. and think here inclusion diversity, update. efforts around we very expanded for be in to you'll our now is new and us workplace. call of his individual the social you well professional the operational value what look a disclosure clients also operating talent focused agree for it of choice the want to presentation, equity today. synthesizes particularly and good of and at industrial This We've differently and community squarely as become I'll purpose community When the and that future to on our for important have and and a cares our is our deliver the positioned back fifth environmental, our company investor advent talent RGP in want The heritage, relentless employer importance revolution turn about a that is to to

Tim Brackney

good and afternoon, Kate, everyone. you, Thank

embrace in de operating borderless well revenue quarter, delivery saw on appreciable model facto an large working as the teams and of We client of metrics our in to positive we During project talent. movement and increase virtual utilization continued as operating initiatives.

macro to weekly also overall strength. pipeline environment improve, our began the gained and revenue As

revenue Bay assisting touched became County and buoyed even zones we their transformation time on and communication X.X% year-end Atlanta, Northwest Houston, Coast entertainment operations rising spend Healthcare currency Project with management important activities. Miami Orange and initiatives demand As project from talent leveraging with from deliver by for and matching to a and assisting rebound was this on be Pacific continue on, a trended us quarter. demonstrated as has up basis, with increased or some a seen virtually operate mostly talent occasions, efficiency and more transformed operational it greater during Francisco tied to whether client, delivery to traversing demand supply in to same-day allowed constant continued West more This client client the We've Honolulu, San on important seamless numerous sequential Kate increasingly projects. tailwind Area. which seasonal the operate to as demand of

initiate project Co models, which clients account solutions strong will impact talent mixture with Our This ability strength as qualification, increased our buying of year by of delivery to and market fashion in leverage of Agile the delivery, programs, successful into which changed half of 'XX, in broader together a decisions remote and for of penetration. commitment our workforce a virtual delivery, environment. commercial underpinning up include increased permanently second ability to environment. critical will and traditional post-COVID fiscal client evolution successfully on deliver virtual and focus believe the the dynamic the project distributed foundational new the bound We has provide enter leveraging delivery provides a expansion a planning management our coupled FY of opens our clients' for market fashion will we It a to using communication. in holistic

operations. turn let quarter me Now our second to

increased rates. our revenue noted since see and April. As were in quarter highest This levels revenue began daily daily throughout strengthening the quarter as to a increased that the reached strengthening pipeline remarks, first rates we

While by America North QX impacted Pacific revenue rates. still and saw pandemic, Asia in the increases daily demand sequential was

Tri-State markets. which Europe, also which I the did in strengthening Texas a key including the As care in markets, core California and led on and America, health moment, charge North client saw will in and focus programs

at approximately delivered and was clients European its over trending in actually increased European neared through this France together, Pacific the pipeline. a working the am volume quarter, of workforce focus Despite economic team on positive impacting our positively consistently demand, restructuring in and focus completion by quarter. a consultants and the Asia end related rates the resulting proud clients of their and second during renewed pre-COVID rates most extremely in Europe and on of drove in reorganization, of our operations the I cessation quality significant also Italy. especially XX% We of growth nearly times. banded very and revenue to difficult Notable daily of unwavering also larger important QX. during practice projects, and

while were And the we operating as In move could related environment, quarter. forward. strong fact, progress we there sustained the activity pipeline remains trends, uncertainty emerge both current and in given to see macro

within While opportunities heavily clients efficiency. expansion we remain and also keenly concentrating are markets, operating focused and on we on and leverage growth existing

are style, has agile prior and continued after sequentially SG&A and year yielded this quarter focus excluding management expense X.X% We a from virtual with new of footprint, coupled more utilizing improvements XX.X% restructuring and on costs. operating

relationships we'll judicious be clients. opportunity to achieve client continue we health performance and and offer about In continue and strong discipline, their We to deepen particular, technology, to digital invest with returns. where and can programs in our and care continue will higher important our areas widen expense

both growing over early continuation handing Jen, up provide additional trends insight trends. pipeline over daily in early positive weeks to on of and have quarter shown of revenue with want Before The approximately I X% QX some to third a QX. revenue

detailed indicators will are review the While of I now over around distribution these the our macro a some certainly for results. second we development and remain to quarter turn wary Jen given of environment, vaccine and fluid more call encouraging. news positive the

Jen Ryu

from in Starting Tim, as restructuring our good this continues our with you, line Thanksgiving seasonality virtual an operating of overview SG&A benefit with compared holidays. quarter afternoon, typical quarter Thank the everyone. revenue with to was well notably first given increasingly to second results, margin initiatives as model. expectation quarter. and improved our our Gross

the despite a X.X% delivered solid ongoing we margin As result, EBITDA a adjusted pandemic.

Our cash increase liquidity balance to with the operations. and we continue an during remains strong, quarter flow generate sheet available in from positive

and constant currency million Compared America, XX.X% X.X% revenue starting Now a prior let more day increase XX.X% sequentially After decreased generated and quarter, X% sequentially our me XX% a in comparable and a in revenue. impact, quarter year $XXX.X by currency currency America, in sequentially for business XX.X% We X% on year-over-year. adjusting revenue operating Asia Pac. constant increased increased Europe XX% in and and North ago. Same-day in decrease provide of the color in results, revenue, with revenue same-day North decreased the XX.X% Europe year to Asia Pac. X.X% from

of bill quarter quarter down toward the were to gross Thanksgiving decline fiscal in spread. the for holiday as quarter restructuring $XX.X $X.XX the points improvement million pay a and lower a hourly rate quarter of year pay result average after to was XXX a second quarter XX%, and decline. year of the million largely as calendar in portion expenses million reduction $X.X The and XXX the margin was fiscal Compared XX approximately first of year gross end prior in of charges, rate was prior The The the XXX prior well in for compared in QX quarter bill basis gross taxes prior quarter payroll $X margin due meaningful quarter. the XX year the to the sequentially. for basis compared the of pay year 'XX, the Our prior down XX compared SG&A the 'XX. average of excluding points to margin quarter. quarter X.XX% mitigated sequentially a as more to from in was

reduced Management million, million to more reduced realize $X.X this progress business cost of $X.X fiscal costs restructuring continue reduced spend. to quarter QX we by million reduced to 'XX. due by costs initiatives. also make and compared executing as improved, improvements compensation General occupancy our were We travel and down expense were discretionary $X.X

tax rate of valuation prior QX our required impact year higher $X.XX the the to of restructuring benefits the contingent The from provision and other XX.X% 'XX, due was driven stock largely the to effective share million quarter XXX.X% quarter. year for losses, European and consideration, the by $X.X quarter. the entities, representing compared financial to to was components Income our quarter, incurred Turning statements. second costs for effective resulting tax an rate tax the in allowances. tax realize for $X.XX compensation current per the diluted of fiscal tax of inability any in was compared per which of Adjusted prior charges, net our in excludes EPS restructuring to international share

the provide Next, executing let an restructuring me progress update plan. our on in

the $X.X charges reduction have We out incurred completed QX. restructuring plan, million, in half first XX set locations We including force, XXXX. XX under been exit under real substantially those the have from in which we To was carried out incurred fiscal completed. of of total plan the to restructuring date, of of estate $XX.X which European the in the million

before on mostly estate related we real the not charges million but additional will $X which of real a of plan. of remaining our completing some between the factors, The exits timing to of are estate. committed our on $X are planned within control, to depend expect We executing to number million actions,

the savings As benefits Longer term, plan year I We result to in additional continue of have fiscal significant European already rationalize we fiscal real take anticipate from these of footprint. realized cost as estate earlier, year full remainder actions. the the mentioned expect to a as in effect. our the the reductions we current

by approach methods Beyond virtual and and client restructuring continue our traditional between taking under delivery. travel what's discretionary blended engagement of control a and spend planned to and

turn sheet our me liquidity. and let balance Now to

per Board cash maintained with of since facility. remains and operations cash We debt year down million, of credit slightly amended $XX $XX.X end of 'XX. the in million The from requirements equivalents pandemic, expect cash our share repurchases. through the long of our half shareholders cash other second up liquidity, to cash both sheet return flow the $X.XX ended restructuring-related approximately as quarter. strategy fiscal In in considering allocation and to the fund quarter $XX obligations paid managing as to fiscal the term, ongoing dividends the vigilant We transformation to quarterly efforts. generated cash continue our strong. outstanding Directors we in We first of balance digital Our dividend million near-term under the well positive and a of evaluate remain the share capital and the

business, second in used repayment our Please recent of the in both RGP's, Taskforce's close organically internal financial trends to strategically. and trends. segments. and second I'll debt resulted balancing While Effective our European assess quarter growing The managed with XX-Q businesses our operating RGP the requirements is our the our performance and our capital Form for of resources. to third of enterprise. of three changes reporting management of structure Citrix. information business discussion refer structure additional reporting regarding segment and over are plan release change execution in organized and of a quarter press and to allocate XX% and the in consolidated segments: our disclosure quarter, and our and drives

Now our we the reset an $XX.X SG&A of well while typical three start calendar the revenue cost the we'll third around at weekly taxes due QX. first margin. anticipate perspective, higher continue, payroll we QX quarter From typically the for savings non-holiday get SG&A as in for as of we restructuring from year. ahead experience seasonality the to in quarter revenues expect to gross to was the million, Average weeks

it as relates pandemic. specific we last quarter with issue ongoing not given fiscal revenue third the will our to or for guidance of earnings uncertainty quarter, any Lastly, consistent the approach 'XX, the

to take Now we're questions. happy

Operator

Josh Our comes from first Sidoti. Vogel Instructions] question [Operator with

question. with proceed your may You

Josh Vogel

quarter. we in think where curious remotely, all. bill I'm you're try I at rates, is? bill with deliver it you My when at seem some projects affected the spread regard pay win you the saw modest that to and table question, on And and to first pricing doesn't think

Tim Brackney

Brackney, the -- Josh, on New that Year. Happy it, take orientation lot of about it. it's you most Well, when it's there's we're projects we Tim to a -- think outcome

about So how delivered. really need deliver to deliver we if it what you it's do about expertise have of -- the to and since is kind you locally, don't think

of starting So we're the But of we're get to locate basing versus project actual some locality we're our that. that, from of is it theoretically, arbitrage see other be reality the on we to resource. should some that and if able country, of itself the parts able from the the delivery to

Josh Vogel

Understood. the with other consultants geofencing, give on the And assume your you longer though, side? couldn't time on constraint maybe side, some leverage over no pay we the of having

Tim Brackney

Yes. That a to locality, is open up sort a labor of used ability that we of catalog of to world think And this to costs out, talent -- pointed way. talent, will down then you about But different and as is like that. we that just anticipate we everybody little -- comes the is bit still no a really it getting the as allows to. have irrespective in you of us efficiently, match geofencing kind

the One we consultants. to this through being our of is think, really that really didn't on the side -- I erred of we advantages had, that we fair

be we downwards, best and we to our So didn't platform we talent to us, with as want our sticky. and our intentional that was -- we because want negotiate keep did

advantage of us a for we that demand result be will as picks as move that, And so forward. an as up,

Josh Vogel

that for. or facto you can do success model? right. Or will And to few and you Great. that life, have months expect new the in it ING de getting back the and do in remain still you products going next Is all? normal and vaccine to delivering with All think hopefully, selling a at revert rollout the quarters, to back

Tim Brackney

we important environment environment was there'll largely most from there Well, to I all what But we was could learned think that definitely to went an talent way or think is off-site. to need the be one then I That we can in on-prem. thing perspective. a virtual mean doesn't utilize this access parts engagements And to when went go I about modulation. are is, other. that that think of the move we've think the And that all and that about you we we

the have start are will project see, teams part folks fact, time, the who all delivery I team In some to that of we'll on-site be just and who where on-site depend believe, supplemented proposition and the and aren't on-site some folks by at we'll on for of the itself.

Josh Vogel

you clients quarter, and talked software challenges Sure. at like and that's constraints. to curious Sure. due And hardware I'm eased on-boarding some if all. some last about new

Tim Brackney

was are on have kind those the more the -- even as they've couple are of once but better a It's still of technology efficient as has I bit. than it some has found I a quarter, still there, But a second we been challenges. the constraints we to chain. people it able clients it working of remotely, used their to everybody's -- in real think It element challenge, supply this, access hardware world, it mean, was. own but to get have as a and was people in consumer not handle the is

Josh Vogel

I sneak great. know I could a questions. points, I If into have you. Thank Okay, of lot two just

significant care client traction the how your accounts referenced from health good You seeing base. client most and you're

how clients I those a that what much ago the just even from and looked QX? curious represent So like year and was pay maybe

Kate Duchene

Josh, can take I that.

well, our client program it's the health Our QX, And almost revenue health comparing or around revenue revenue. our XX% revenue. sequentially of X%. around -- our North And roughly client is basis roughly health XX% grown represents America seen care clients program care same-day on to growth of question. revenue similar we've about also And as our a in consolidated care, grew

Josh Vogel

just for you Ford. I calculating one, have Great. to And I'm sure for just workdays you, Jen. make hand? that want Do maybe last Okay. the

Kate Duchene

Josh? quarter, which For

Josh Vogel

and X. QX

Kate Duchene

some MLK year's officially well to going the QX, we're upcoming Presidents holiday, to remember, those for impact Day, even adjacent as have due workdays North holidays. America But QX, counting not do though timing and is The them the as as our and officially be holidays Christmas of days. we QX, of XX

because more do. impact don't jump don't holiday definitely MLK off. have mean, significant in roots there, be QX. let clients I President's QX's Josh, day from accounting and we day the our than So off as We will of firms. have Many me just come our

debate not. working count always day as we that we or a should So

I think counting err America, open on you're And day, count as you clients of of take in Yes. day the QX side it we're so the days. because North though even not off. Josh, our many working a looking at XX

Operator

with Your next Mark from question comes Marcon Baird.

You may proceed with your question.

Mark Marcon

and marked Wondering, regards talk Good like with a Year. can seeing New improvement improvement. that States, you that the California, about afternoon TRI all a little sounds Happy bit you're to Dallas,

it Just increase really are seeing exactly? to is repositioned? orders? just Or as leadership? execution, Are you've Is they what you the better better starting

Tim Brackney

Happy -- It's me have we both we have and Year. say, of those let I Mark, New new teams. all, mean, just first focused and markets, in leadership

Tri-State, definitely seeing entertainment better. what to got of we I sort is lot have rebound a and I related reorganizations nice. some tailwind to getting the there. some with I market, and think we actually Texas of more where pivots starting tailwind in would so strong kind technology industry the some people are you've distinct space we're impact in and markets, doing, markets. In we definitely we that that the Northern That of executing were is there. it California got that, is we've see is seen we're would from California, actually bit, right we've that we're in paused markets to little which say while in again. the three particularly -- I the a would services, of place, the technology. financial The market that And start going And say, see thought also

you have Houston, we strong. been very got and have new and really Central hopeful Dallas You and And Dallas have leadership are Texas. we'll that forward Houston, terms see Central we there, of to have momentum pretty good substantial see in starting markets, some Tri-State California, some there, of to those in revenue but velocity. steps really with Northern start all out Texas

Mark Marcon

it and sort with build. That's surge cadence they this to there in great. of talk how any hey, environment regards into in kind we've to people the or COVID of Or through seem the bit gotten -- Has all early more and quarter. this are quarter and does you the this like, continuing And a hesitancy? uncertainty orders pause and about the up used can this built terms to little any been then of

Tim Brackney

Go Kate. ahead,

Kate Duchene

I'll has share a standstill thoughts, that it of can us, to and Tim pipe of panic specific color. us way decision-making trend few our then some the revenue and kind and telling feels our initial to add given and now. is But COVID

base projects, So the decisions and to tend firepower, with or a more large we forward may did don't look And our different remember, organizations that to the budget board ago, you a and up. starting to distinction. will, are we year but moving base. like move our on open happening Clients than if they see forward. opportunity larger the client business see across core client regional that's core It seems their have

Mark Marcon

well? continues of now? do big Great. bit really a little size that How about is it Can you the talk to Veracity

Kate Duchene

revenue, basis, they've Veracity are, I that roughly had don't of on there to hit -- have right calculation -- they there and record me, I last grew, in year, think, but -- a X.X%. front year-to-date compared

pretty it's improvement. substantial So that

Mark Marcon

veracity revenue what is roughly now? Great. of I mean, percentage speaking,

Tim Brackney

mean, HUGO. sounds it like I

Kate Duchene

do X%. got I it. to the It's got really I math quick. roughly

Mark Marcon

up great. capabilities it and management Okay, then, HUGO, like talent running. the sounds got all right, you've And

as be to technical has waiting from the technical economy for What's so But meaningful sure the well as exactly good launch terms from a test it need it, where anticipate. make to just step I really -- in launch? also you of you're know wondering in a perspective we that obviously going being are just works the you to, ready position next You're to a to for impact. get a perspective? that

Kate Duchene

Yes.

So, element client platform of the the the next will be side.

product, So will market. that's what we'll there and minimum we'll product when to now, enhancements. ready Mark. from done we're with viable bring that, finish right we're be That the make And to then to working be continue certain to our

of you're environment is launch and in of line. level we're operate two and perfecting more things two where primarily And right. in an HUGO going And There now. from we work play remember, is the assessment second adjacent at our One is product require Not kind are finance the operate algorithm. development Because right environment lot accounting. an may here to terms the of and down So is a and where that the internal a that ready. software we development, of market. It's time own in on-premise macro our match or delivery.

the to So if makes that that, we and sense. sure that ready for healthy when want market is we make launch

Mark Marcon

totally there? a of are But you obviously, initiatives this from are seeing you terms transformation, they better recent. seeing on we as digital with impact to And any sort that Are slowdown What Is until or of clients audit handle? from sort get implication it regards cyber, more any seeing meaningful? of there that you Is opportunities? perspective? pause fairly in push -- then think of and your the and about It relates when solar does. winds what is to sort

Kate Duchene

Tim, pause, you? I mean seeing are any aware I'm not we're

Tim Brackney

No.

Kate Duchene

and in I of think terms opportunity work we have assessment audit there work.

Mark Marcon

care gross of gross the care, then health much lower the terms health of Great. how increased a function margins, the was the in And utilization, margin?

Kate Duchene

roughly XX%. It's about

Mark Marcon

Okay.

just anticipate that And you a do was kind that continuing, blip? so that, Or Jen? you of do think

Jen Ryu

COVID, that bit I that's back COVID our hard and predict. in to health unpredictable extent. and some to QX we've health Yes. mean, a we kind a certain right little is back stands QX up we down seen coming care come costs it think behavior, ticking started and that's demand I care trend entered into QX when pent-up But the I saw mean where a just so depending in of and on -- QX. bit participant somewhat the

I So forward, it's that know to possible. it's materially going but don't go going up

Mark Marcon

payroll quarter gross should there's reset holidays, How the think also margins obviously, taxes. for to in we Okay. about this of be the there's going current terms

we about quarter? this should how past think relative to So that

Jen Ryu

significant. the holiday going more it's be to Given impact,

take you past factors -- into So be margin so a quarter are gross consideration in the I going to to percentage a those lower and QX? tax of compared to payroll lower think to margin QX's reset, all lower if contributing compared is this gross relatively to

Mark Marcon

of. line Yes. in I be terms patterns with mean, seasonal in would historical it

Kate Duchene

Correct.

Mark Marcon

And offset from I perspective? bit mean, the of -- roughly should obviously, and term sort should some up little Okay. of going payroll and in obviously, again, terms new of how the compensation go then -- said we is because How we you much then reset benefits speaking, a the any to a then delta from of is sequentially, a SG&A how restructuring. but then see SG&A structures short have

Kate Duchene

Yes.

versus of QX. I the costs point. taxes. about give a payroll our in payroll and of taxes of XX% QX, I'll just kind X.X% reference run think our in impact you Normally, payroll

a or So probably you're I think restructuring costs, looking more at excluding roughly, you're higher couple taxes at looking of from payroll -- million maybe increase.

Mark Marcon

sounds It doing you significant the like Terrific, the talk in bit Europe, little and a then performance while really it about a there. good can to you're restructuring. was revenue like sounds how able there maintain just

Tim Brackney

have definitely that that us. through connected on both been of existing where we there soldiered would kind engaged have happy to to there. consultants and was team that our I a we we large couple managed and a again, footprint there clients and keep have the Mark, make clients working projects candidly, and a case, dedicated of our our expanding over situation tough and Yes, say very felt And sure

out, good So it story was, pointed it's as performance. a you of

Operator

comes Morgan. Andrew question next from Our with JP Steinerman

question. your with proceed may You

Andrew Steinerman

on wanted weeks constant everybody. that the basis, a I'm currency same-day of change trend focus asking weekly December kind percentage And year-over-year. was year-over-year of I about in $XX.X the would million which kind to Year, year on thinking New three the $XX be versus a on What Happy the basis? just million, ago?

Kate Duchene

Based the few X%. first to on about we're down a compared weeks' roughly year trend ago,

Andrew Steinerman

right, that's same-day And constant Okay. and total company? currency,

Kate Duchene

right. That's

Operator

like Thank you. this any showing remarks. I I'm at further the would time. back for not turn Duchene And to Kate questions any now call to further over

Kate Duchene

new thank for with and reporting of 'XX. us today, everyone third our to attending want fiscal after to year, we forward I just Happy everyone. look quarter

Operator

today's gentlemen. concludes for ladies you, call. Thank Thank and This conference you participating.

disconnect. now may You

Resources Connection (RGP) 6 Jan 212021 Q2 Earnings call transcript