Resources Connection Inc. (RECN, Financial) filed Quarterly Report for the period ended 2008-11-29.
Resources Connection Inc. is a professional services firm that providesexperienced accounting and finance human resources management and information technology professionals to clients on a project-by-project basis. In accounting and finance they assist clients with discrete projects requiring specialized professional expertise such as mergers and acquisitions due diligence financial analyses and tax-related projects. They also provide human resources management services and information technology services. Resources Connection Inc. has a market cap of $696.46 million; its shares were traded at around $14.91 with a P/E ratio of 13.1 and P/S ratio of 0.83. Resources Connection Inc. had an annual average earning growth of 16.5% over the past 5 years.
Revenue. Revenue decreased $3.3 million, or 0.8%, to $397.5 million for the six months ended November 29, 2008 from $400.8 million for the six months ended November 24, 2007. Although our average bill rate per hour increased year over year and we benefited from incremental revenue from the December 2007 acquisition of Domenica B.V., our revenue was adversely affected by a decline in number of hours worked by our consultants in comparison to the prior year comparable six month period and an unfavorable currency translation impact during the quarter. On a constant currency basis, international revenues would have been lower by approximately $500,000 and $7.8 million in the first half of fiscal 2009 and fiscal 2008, respectively, using the comparable fiscal 2008 and fiscal 2007 conversion rates.
Selling, General and Administrative Expenses. Selling, general and administrative expenses (S, G & A) as a percentage of revenue was 27.9% and 27.1% for the six months ended November 29, 2008 and November 24, 2007, respectively. S, G &A increased $2.4 million, or 2.2%, to $110.9 million for the six months ended November 29, 2008 from $108.5 million for the six months ended November 24, 2007. The change in S, G & A primarily stems from increased personnel and related benefit costs in both our U.S. and international markets. Management and administrative headcount grew slightly from 884 at the end of the second quarter of fiscal 2008 to 887 at the end of the second quarter of fiscal 2009. In addition to the increase in salaries and benefit costs, other significant S, G & A increases in the first half of fiscal 2009 included: an increase of $1.3 million in the Companys allowance for doubtful accounts after an evaluation of the Companys client base receivable balances and the current economic environment; and occupancy and related costs from relocated, expanded or new offices.
Interest Income. Interest income was $896,000 in the first half of fiscal 2009 compared to $4.2 million in the first half of fiscal 2008. The decrease in interest income in the first half of fiscal 2009 is the result of a lower average cash balance available for investment and declining interest rates as compared to the prior years first half. The Company has less cash available for investment in the current fiscal year because during fiscal 2008 it used approximately $102.1 million to purchase its common stock; paid a special dividend of approximately $60.7 million in the first quarter of fiscal 2008; and used approximately $29.8 million to acquire Domenica (December 2007) and Compliance Solutions (June 2007).
Net cash provided by operating activities was $31.1 million for the six months ended November 29, 2008 compared to $19.8 million for the six months ended November 24, 2007. Cash provided by operations in the first six months of fiscal 2009 resulted from net income of $22.0 million, increased by non-cash items of $13.6 million, less net cash used by changes in operating assets and liabilities of $4.5 million. In the first six months of fiscal 2008, cash provided by operations resulted from net income of $24.6 million, increased by non-cash items of $11.0 million, less net cash used by changes in operating assets and liabilities of $15.8 million. The most significant cause of the favorable change in operating assets and liabilities from fiscal 2008 to fiscal 2009 was the decrease in accounts receivable during the first half of fiscal 2009 (more cash collected than revenue generated during the period). Non-cash items include expense for stock-based compensation; these charges do not reflect an actual cash outflow from the Company but are an estimate of the fair value of the services provided by employees and directors in exchange for stock option grants and purchase of stock through the Companys ESPP. As of November 29, 2008, the Company had $118.7 million of cash and cash equivalents and $15.0 million of investments in A1+ rated commercial paper.
Net cash provided by financing activities totaled $2.6 million for the six months ended November 29, 2008, compared to a use of cash of $111.4 million for the six months ended November 24, 2007. The primary cause of the change between the two periods was the payment by the Company in August 2007 of a special cash dividend of $1.25 per share of common stock for an aggregate amount of approximately $60.7 million. No dividend was paid in the first half of fiscal 2009. In addition, the Company also used cash during the six months ended November 24, 2007 to purchase approximately 2.9 million shares of the Companys common stock for approximately $67.4 million while the Company purchased approximately 392,000 shares for approximately $6.3 million in the first half of fiscal 2009. In the first six months of fiscal 2009, the Company received cash from stock option exercises and purchases of common stock through the ESPP of $8.5 million compared to $14.5 million in the corresponding period of fiscal 2008.
Read the The complete ReportMore on RECN:
Gurus buys and sells of RECN
10-year financial history of RECN.
Insider buys/sells of RECN.
Resources Connection Inc. is a professional services firm that providesexperienced accounting and finance human resources management and information technology professionals to clients on a project-by-project basis. In accounting and finance they assist clients with discrete projects requiring specialized professional expertise such as mergers and acquisitions due diligence financial analyses and tax-related projects. They also provide human resources management services and information technology services. Resources Connection Inc. has a market cap of $696.46 million; its shares were traded at around $14.91 with a P/E ratio of 13.1 and P/S ratio of 0.83. Resources Connection Inc. had an annual average earning growth of 16.5% over the past 5 years.
Highlight of Business Operations:
Selling, General and Administrative Expenses. Selling, general and administrative expenses (S, G & A) as a percentage of revenue was 28.6% and 26.9% for the quarters ended November 29, 2008 and November 24, 2007, respectively. S, G &A decreased $1.1 million, or 2.0%, to $54.4 million for the three months ended November 29, 2008 from $55.5 million for the three months ended November 24, 2007. Management and administrative headcount grew slightly from 884 at the end of the second quarter of fiscal 2008 to 887 at the end of the second quarter of fiscal 2009. S, G & A decreases in the second quarter of fiscal 2009 included: a reduction in marketing and related expenses and in salary, benefit and related costs (partly attributable to the change in currency rate conversion of international operations). These decreases were offset by an increase of $628,000 in the Companys allowance for doubtful accounts after an evaluation of the Companys client base, receivable balances and the current economic environment; and occupancy and related costs from relocated, expanded or new offices.Revenue. Revenue decreased $3.3 million, or 0.8%, to $397.5 million for the six months ended November 29, 2008 from $400.8 million for the six months ended November 24, 2007. Although our average bill rate per hour increased year over year and we benefited from incremental revenue from the December 2007 acquisition of Domenica B.V., our revenue was adversely affected by a decline in number of hours worked by our consultants in comparison to the prior year comparable six month period and an unfavorable currency translation impact during the quarter. On a constant currency basis, international revenues would have been lower by approximately $500,000 and $7.8 million in the first half of fiscal 2009 and fiscal 2008, respectively, using the comparable fiscal 2008 and fiscal 2007 conversion rates.
Selling, General and Administrative Expenses. Selling, general and administrative expenses (S, G & A) as a percentage of revenue was 27.9% and 27.1% for the six months ended November 29, 2008 and November 24, 2007, respectively. S, G &A increased $2.4 million, or 2.2%, to $110.9 million for the six months ended November 29, 2008 from $108.5 million for the six months ended November 24, 2007. The change in S, G & A primarily stems from increased personnel and related benefit costs in both our U.S. and international markets. Management and administrative headcount grew slightly from 884 at the end of the second quarter of fiscal 2008 to 887 at the end of the second quarter of fiscal 2009. In addition to the increase in salaries and benefit costs, other significant S, G & A increases in the first half of fiscal 2009 included: an increase of $1.3 million in the Companys allowance for doubtful accounts after an evaluation of the Companys client base receivable balances and the current economic environment; and occupancy and related costs from relocated, expanded or new offices.
Interest Income. Interest income was $896,000 in the first half of fiscal 2009 compared to $4.2 million in the first half of fiscal 2008. The decrease in interest income in the first half of fiscal 2009 is the result of a lower average cash balance available for investment and declining interest rates as compared to the prior years first half. The Company has less cash available for investment in the current fiscal year because during fiscal 2008 it used approximately $102.1 million to purchase its common stock; paid a special dividend of approximately $60.7 million in the first quarter of fiscal 2008; and used approximately $29.8 million to acquire Domenica (December 2007) and Compliance Solutions (June 2007).
Net cash provided by operating activities was $31.1 million for the six months ended November 29, 2008 compared to $19.8 million for the six months ended November 24, 2007. Cash provided by operations in the first six months of fiscal 2009 resulted from net income of $22.0 million, increased by non-cash items of $13.6 million, less net cash used by changes in operating assets and liabilities of $4.5 million. In the first six months of fiscal 2008, cash provided by operations resulted from net income of $24.6 million, increased by non-cash items of $11.0 million, less net cash used by changes in operating assets and liabilities of $15.8 million. The most significant cause of the favorable change in operating assets and liabilities from fiscal 2008 to fiscal 2009 was the decrease in accounts receivable during the first half of fiscal 2009 (more cash collected than revenue generated during the period). Non-cash items include expense for stock-based compensation; these charges do not reflect an actual cash outflow from the Company but are an estimate of the fair value of the services provided by employees and directors in exchange for stock option grants and purchase of stock through the Companys ESPP. As of November 29, 2008, the Company had $118.7 million of cash and cash equivalents and $15.0 million of investments in A1+ rated commercial paper.
Net cash provided by financing activities totaled $2.6 million for the six months ended November 29, 2008, compared to a use of cash of $111.4 million for the six months ended November 24, 2007. The primary cause of the change between the two periods was the payment by the Company in August 2007 of a special cash dividend of $1.25 per share of common stock for an aggregate amount of approximately $60.7 million. No dividend was paid in the first half of fiscal 2009. In addition, the Company also used cash during the six months ended November 24, 2007 to purchase approximately 2.9 million shares of the Companys common stock for approximately $67.4 million while the Company purchased approximately 392,000 shares for approximately $6.3 million in the first half of fiscal 2009. In the first six months of fiscal 2009, the Company received cash from stock option exercises and purchases of common stock through the ESPP of $8.5 million compared to $14.5 million in the corresponding period of fiscal 2008.
Read the The complete ReportMore on RECN:
Gurus buys and sells of RECN
10-year financial history of RECN.
Insider buys/sells of RECN.
