Resources Connection, Inc. Reports First Quarter Results
Resources Connection, Inc. Reports First Quarter Results
Resources Connection, Inc. Reports First Quarter Results
Costa Mesa, Calif., September 25, 2002 -- 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 first quarter ended August 31, 2002.
Total revenues were $43.5 million for the first quarter of fiscal 2003. These revenues are sequentially higher than the previous quarter but are lower than the comparable quarter of the prior year. Revenues in the comparable quarter in fiscal 2002 were $49.3 million. Net income for the quarter ended August 31, 2002 was $2.5 million, or $0.11 per diluted share, compared to net income of $4.3 million or $0.19 per diluted share in the August 2001 quarter.
“Since our last earnings release, we have continued to make progress as our revenues grew sequentially for the second straight quarter and we successfully launched our Resources Audit Solutions practice,” said Chairman and CEO Donald Murray. “The results for the quarter include investments incurred to launch Resources Audit Solutions and the Resources Consulting Group. We also substantially increased amounts spent for new marketing initiatives. Resources Audit Solutions provides risk management and internal audit solutions while Resources Consulting Group provides expert advice on corporate compensation issues and governance. Our client and target base have received these new service lines enthusiastically, particularly the internal audit practice, especially given the new challenges posed by recent government legislation. Our London practice continues to show positive results and we have subsequently opened a second office in England.”
Resources Connection, Inc. is an international professional services firm that provides accounting and finance, human capital, information technology and internal audit services on a project basis. Headquartered in Costa Mesa, California, the company operates from 45 domestic offices and five international offices. More information about the company is available at http://www.resourcesconnection.com/.
Resources Connection will hold a conference call for interested analysts and investors at 5:00 pm, EDT today, September 25, 2002. This conference call will be available for listening via a webcast on the Company’s Internet web site, at http://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 for the quarters ended August 31, 2001, November 30, 2001 and February 28, 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 were $43.5 million for the first quarter of fiscal 2003. These revenues are sequentially higher than the previous quarter but are lower than the comparable quarter of the prior year. Revenues in the comparable quarter in fiscal 2002 were $49.3 million. Net income for the quarter ended August 31, 2002 was $2.5 million, or $0.11 per diluted share, compared to net income of $4.3 million or $0.19 per diluted share in the August 2001 quarter.
“Since our last earnings release, we have continued to make progress as our revenues grew sequentially for the second straight quarter and we successfully launched our Resources Audit Solutions practice,” said Chairman and CEO Donald Murray. “The results for the quarter include investments incurred to launch Resources Audit Solutions and the Resources Consulting Group. We also substantially increased amounts spent for new marketing initiatives. Resources Audit Solutions provides risk management and internal audit solutions while Resources Consulting Group provides expert advice on corporate compensation issues and governance. Our client and target base have received these new service lines enthusiastically, particularly the internal audit practice, especially given the new challenges posed by recent government legislation. Our London practice continues to show positive results and we have subsequently opened a second office in England.”
Resources Connection, Inc. is an international professional services firm that provides accounting and finance, human capital, information technology and internal audit services on a project basis. Headquartered in Costa Mesa, California, the company operates from 45 domestic offices and five international offices. More information about the company is available at http://www.resourcesconnection.com/.
Resources Connection will hold a conference call for interested analysts and investors at 5:00 pm, EDT today, September 25, 2002. This conference call will be available for listening via a webcast on the Company’s Internet web site, at http://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 for the quarters ended August 31, 2001, November 30, 2001 and February 28, 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.