(Source: PRNewswire-FirstCall)
IRVINE, Calif., July 15 /PRNewswire-FirstCall/ -- Resources Connection, Inc. , a multinational professional services firm that provides to clients - through its operating subsidiary, Resources Global Professionals ("Resources") - accomplished professionals in accounting and finance, risk management and internal audit, information management, human capital, supply chain management and legal services, today announced financial results for its fiscal fourth quarter and year ended May 30, 2009.
Total revenue for the fourth quarter of fiscal 2009 was $132.0 million, down 44.2% from $236.7 million for the fiscal 2008 fourth quarter. Revenues in the U.S. were down 42.9% quarter-over-quarter while international revenues decreased 47.4% (37.5% on a constant dollar basis). The Company's results for the fourth quarter of fiscal 2008 (a 14-week quarter) included an extra week of revenue and related expenses as compared to the fourth quarter of fiscal 2009 (a 13-week quarter).
Total revenue for the year ended May 30, 2009 was $685.6 million, down 18.4% from $840.3 million for fiscal 2008. Revenues in the U.S. were down 20.2% for fiscal 2009 and international revenues were down 13.5% (12.4% on a constant dollar basis). The Company's results for fiscal 2008 (a 53-week year) included an extra week of revenue and related expenses as compared to fiscal 2009 (a 52-week year).
Gross margin was 38.2% in the fourth quarter of fiscal 2009 versus 39.4% in the comparable period of fiscal 2008. Selling, general and administrative expenses, which include stock-based compensation expense, were 38.6% of revenue for the fourth quarter of fiscal 2009 compared to 26.1% for the same quarter in fiscal 2008. Selling, general and administrative expenses for the fourth quarter of fiscal 2009 include a restructuring charge of $3.6 million related to severance payments and the consolidation of seven offices during the quarter.
During the fourth quarter, the Company also recorded tax charges aggregating $3.5 million, comprised of a valuation allowance of $2.4 million against deferred tax assets in certain foreign locations and $1.1 million stemming from forgiveness of intercompany debt as part of the Company's capitalization of its French subsidiary. On a per share basis, the restructuring and tax charges impacted the Company's loss per share by $0.05 and $0.08, respectively.
The Company's net loss determined in accordance with generally accepted accounting principles ("GAAP") for the fourth quarter ended May 30, 2009, was $6.3 million, or $0.14 per basic share. This compares with GAAP net income for the fourth quarter ended May 31, 2008, of $15.9 million, or $0.35 per diluted share.
Net income determined in accordance with GAAP for the year ended May 30, 2009, was $17.8 million, or $0.39 per diluted share. This compares with GAAP net income for the year ended May 31, 2008, of $49.2 million, or $1.03 per diluted share.
Adjusted earnings before interest, taxes, depreciation, amortization and stock-based compensation expense or "adjusted EBITDA" for the fourth quarter of fiscal 2009 was $3.4 million or 2.6% of revenue versus $36.5 million or 15.4% of revenue for the same quarter of fiscal 2008. Adjusted EBITDA for the year ended May 30, 2009 was $68.5 million or 10.0% of revenue versus $116.4 million or 13.9% of revenue in fiscal 2008.
"Given the global economic climate, this has been the most challenging year in the history of Resources," said Thomas Christopoul, CEO of Resources. "We continue to focus on the fundamentals of our business; that is helping our clients drive change throughout their organizations. We are beginning to hear more discussion about business transformation projects as companies look to initiatives outside of liquidity and cost reduction efforts. However, the macroeconomic environment is still causing many companies to approach project work cautiously."
Don Murray, executive chairman of Resources added, "Despite the current environment, Resources continues to generate positive operating cash flows and maintain a healthy balance sheet. Our financial strength will position us well as the world economy begins to recover."
During the three months ended May 30, 2009, the company purchased approximately 72,000 shares of its common stock for approximately $1.4 million or $19.48 per share. The Company's current board authorization for stock buybacks has $35.6 million remaining.
ABOUT RESOURCES GLOBAL PROFESSIONALS
Resources Global Professionals, the operating subsidiary of Resources Connection, Inc. , is a multinational professional services firm that helps business leaders execute internal initiatives. Partnering with business leaders, we drive internal change across all parts of a global enterprise - finance and accounting, information management, internal audit, human capital, legal services and supply chain management.
Resources Global was founded in 1996 within a Big Four accounting firm. Today, we are a publicly traded company with over 2,800 professionals, from more than 80 practice offices, annually serving 2,100 clients around the world.
Headquartered in Irvine, California, Resources Global has served 84 of the Fortune 100 companies.
The Company is listed on the NASDAQ Global Select Market, the exchange's highest tier by listing standards. More information about Resources Global is available at http://www.resourcesglobal.com/.
