Resources Connection, Inc. Reports Third Quarter Results
Resources Connection, Inc. Reports Third Quarter Results
Resources Connection, Inc. Reports Third Quarter Results
Costa Mesa, Calif., March 20, 2003 -- Resources Connection, Inc. (NASDAQ: RECN), an international professional services firm that provides accounting and finance, human capital, information technology and internal audit services on a project basis, today announced financial results for its third quarter ended February 28, 2003.
Total revenues improved 14.5% to $49.2 million for the third quarter of fiscal 2003, from $43.0 million for the comparable quarter in fiscal 2002. Net income for the quarter ended February 28, 2003 was $2.7 million, or $0.12 per diluted share, compared to net income of $2.7 million or $0.12 per diluted share in the February 2002 quarter.
For the first nine months of fiscal 2003, revenues were $143.0 million compared to $138.4 million for the nine-month period in the prior year. Net income for the nine months ended February 28, 2003 was $8.5 million, or $0.37 per diluted share versus $10.6 million, or $0.47 per diluted share, in the prior year period.
“We continued to experience positive momentum in growing our revenue this quarter,” said Chairman and CEO Donald Murray. “Revenue was down a bit sequentially from the second quarter because this quarter included the Thanksgiving, Christmas, New Year’s, Martin Luther King, Jr. and Presidents’ holiday periods; if the major holiday weeks are excluded, we averaged a 4% increase over the second quarter for weekly average revenue. Our net income continues to be somewhat impacted by our continued investment in growth initiatives such as Resources Audit Solutions (RAS), a subsidiary delivering internal audit services to our clients. We believe these growth expenditures are important for our future planned growth.
“We anticipate continuing the favorable trend of weekly revenue growth, but the growth depends on a number of factors besides the general economy. Continuing to identify opportunities at current and prospective clients remains of primary importance. We see opportunities at our clients that involve strategic issues arising from the current economic and geopolitical environment. We see opportunities to provide assistance to clients with the implementation of the Sarbanes-Oxley Act and to provide internal audit services. We believe our core team, and the experienced hires we continue to make in our newer service lines such as RAS, position us well to deliver the services our clients need.”
Resources Connection, Inc. is an international professional services firm that provides accounting and finance, human capital, information technology and procurement services on a project basis. The Company also provides internal audit, risk assessment, corporate governance and compensation consulting through its wholly owned subsidiaries. Headquartered in Costa Mesa, California, the company operates from 50 domestic offices and five international offices. More information about the company is available at www.resourcesconnection.com.
Resources Connection was founded in June 1996 by a team from Deloitte & Touche, and became independent in April 1999, following a management buyout. In December 2000, the Company completed its initial public offering and listed on NASDAQ. 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.
Resources Connection will hold a conference call for interested analysts and investors at 5:00 pm, ET today, March 20, 2003. This conference call will be available for listening via a webcast on the Company’s Internet web site, at 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 S-1, as amended (File No. 333-65272), Form 10-K for the year ended May 31, 2002, and Form 10-Q’s for the quarters ended August 31, 2002 and November 30, 2002 (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.
Total revenues improved 14.5% to $49.2 million for the third quarter of fiscal 2003, from $43.0 million for the comparable quarter in fiscal 2002. Net income for the quarter ended February 28, 2003 was $2.7 million, or $0.12 per diluted share, compared to net income of $2.7 million or $0.12 per diluted share in the February 2002 quarter.
For the first nine months of fiscal 2003, revenues were $143.0 million compared to $138.4 million for the nine-month period in the prior year. Net income for the nine months ended February 28, 2003 was $8.5 million, or $0.37 per diluted share versus $10.6 million, or $0.47 per diluted share, in the prior year period.
“We continued to experience positive momentum in growing our revenue this quarter,” said Chairman and CEO Donald Murray. “Revenue was down a bit sequentially from the second quarter because this quarter included the Thanksgiving, Christmas, New Year’s, Martin Luther King, Jr. and Presidents’ holiday periods; if the major holiday weeks are excluded, we averaged a 4% increase over the second quarter for weekly average revenue. Our net income continues to be somewhat impacted by our continued investment in growth initiatives such as Resources Audit Solutions (RAS), a subsidiary delivering internal audit services to our clients. We believe these growth expenditures are important for our future planned growth.
“We anticipate continuing the favorable trend of weekly revenue growth, but the growth depends on a number of factors besides the general economy. Continuing to identify opportunities at current and prospective clients remains of primary importance. We see opportunities at our clients that involve strategic issues arising from the current economic and geopolitical environment. We see opportunities to provide assistance to clients with the implementation of the Sarbanes-Oxley Act and to provide internal audit services. We believe our core team, and the experienced hires we continue to make in our newer service lines such as RAS, position us well to deliver the services our clients need.”
Resources Connection, Inc. is an international professional services firm that provides accounting and finance, human capital, information technology and procurement services on a project basis. The Company also provides internal audit, risk assessment, corporate governance and compensation consulting through its wholly owned subsidiaries. Headquartered in Costa Mesa, California, the company operates from 50 domestic offices and five international offices. More information about the company is available at www.resourcesconnection.com.
Resources Connection was founded in June 1996 by a team from Deloitte & Touche, and became independent in April 1999, following a management buyout. In December 2000, the Company completed its initial public offering and listed on NASDAQ. 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.
Resources Connection will hold a conference call for interested analysts and investors at 5:00 pm, ET today, March 20, 2003. This conference call will be available for listening via a webcast on the Company’s Internet web site, at 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 S-1, as amended (File No. 333-65272), Form 10-K for the year ended May 31, 2002, and Form 10-Q’s for the quarters ended August 31, 2002 and November 30, 2002 (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.