UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 OR 15(d) of
The
Securities Exchange Act of 1934
|
Date
of Report (Date of earliest event
reported)
|
July
11,
2007
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|
|
|
RESOURCES
CONNECTION, INC.
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Delaware
(State
or other jurisdiction
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0-32113
(Commission
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33-0832424
(IRS
Employer
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of
incorporation)
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File
Number)
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Identification
No.)
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695
Town Center Drive, Suite 600, Costa Mesa, California
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92626
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant’s
telephone number, including area code
(714) 430-6400
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Not
applicable
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(Former
name or former address, if changed since last
report.)
|
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
o
Written communications
pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item
2.02 Results of Operations and Financial Condition.
On
July
11, 2007, Resources Connection, Inc. (“Resources” or “the Company”) issued a
press release announcing its financial results for the quarterly period and
fiscal year ended May 31, 2007. A copy of the press release is attached hereto
as Exhibit 99.1.
Within
the attached
press
release, the Company makes reference to certain non-generally accepted
accounting principles (“non-GAAP”) financial measures, including “non-GAAP
operating income”, “non-GAAP net income” and “non-GAAP net income per diluted
share” which have directly comparable generally accepted accounting principles
(“GAAP”) financial measures. The Company believes that these
non-GAAP
measures
represent important internal measures of performance. Accordingly, where these
non-GAAP measures are provided, it is done so that investors have the same
financial data that management uses with the belief that such information will
assist the investment community in assessing the underlying performance of
the
Company on a year over year and sequential basis. Whenever such information
is
presented, the Company has complied with the provisions of the rules under
Regulation G and Item 2.02 of Form 8-K. In addition to the reasons described
above, specific reasons the Company’s management believes that the presentation
of certain non-GAAP financial measures provides useful information to investors
regarding the Company’s financial condition, results of operations and cash
flows are as follows:
The
non-GAAP measures presented
in the attached press release
are not
in accordance with, or an alternative for, GAAP and may be different from
non-GAAP measures used by other companies. In addition, these non-GAAP measures
and the Non-GAAP Income Statement are not based on any comprehensive set of
accounting rules or principles. The Company
believes
that non-GAAP measures have limitations in that they do not reflect all of
the
amounts associated with the Company’s
results of operations as determined in accordance with GAAP and that these
measures should only be used to evaluate the Company’s
results of operations in conjunction with the corresponding GAAP
measures.
The
Company
believes
that the presentation of non-GAAP operating income, non-GAAP net income,
non-GAAP diluted net income per share and non-GAAP shares used in net income
per
share calculation, when shown in conjunction with the corresponding GAAP
measures, provides useful information to investors and management regarding
financial and business trends relating to its financial condition and results
of
operations.
For
its
internal budgeting process, the Company’s
management uses financial statements that do not include stock-based
compensation expense relating
to employee stock option grants
and employee stock purchases, and
the
income tax effects thereof.
The
Company’s
management also uses the foregoing non-GAAP measures, in addition to the
corresponding GAAP measures, in reviewing the financial results of the
Company.
As
described above, the Company
excludes
the following items from one or more of its non-GAAP measures:
Stock-based
compensation.
These
expenses (which
comprise a portion of the selling, general, and administrative expenses line
item in the Income Statement) consist
of expenses for employee stock options and employee stock purchases under
SFAS 123(R).
The Company
excludes
stock-based compensation expenses from its non-GAAP measures primarily because
they are non-cash expenses that the Company
does not
believe are reflective of ongoing operating results. Further, as the
Company
applies
SFAS 123(R), it believes that it is useful to investors to understand the impact
of the application of SFAS 123(R) to its results of operations.
The
Company will incur stock-based compensation expense related to employee stock
options and employee stock purchases in future periods.
Provision
for income taxes.
Excluding the income tax effect of the non-GAAP pre-tax adjustments from
provision for income taxes assists investors in understanding the tax provision
associated with those adjustments. Further, because the Company
has
historically issued incentive stock options, the impact of implementing SFAS
123(R) can result in a tax provision considerably different than the tax
provision calculated before stock based compensation, and the Company
believes
it is useful for investors to understand this impact.
Selling,
general and administrative expenses before stock-based compensation, operating
income before amortization and depreciation and stock-based
compensation, operating income before stock-based compensation, income before
provision for income taxes and stock-based compensation, provision for incomes
taxes before stock-based compensation and net income before stock-based
compensation and diluted earnings per share (before
stock-based compensation) are
presented as supplemental disclosures in order to provide comparable information
versus prior year and prior quarter measures of operating performance. These
measures are also the primary measures of performance used by management to
evaluate the Company’s financial performance and the Compensation Committee of
the Board of Directors to assess portions of management’s
performance.
The
information in Item 2.02 of this current report on Form 8-K, as well as Exhibit
99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the
Securities Exchange Act of 1934, as amended, and shall not be incorporated
by
reference into any registration statement or other document pursuant to the
Securities Act of 1933, as amended.
Item
8.01 Other Events.
On
July
11, 2007, the Company also announced two separate Board approved actions
regarding its capital structure. First, Resources’ Board of Directors approved a
special cash dividend of $1.25 per share of common stock, payable on August
21,
2007, to shareholders of record on August 8, 2007. Second, the Company’s Board
of Directors approved a share buy back program of the Company’s common stock
with an aggregate dollar limit not to exceed $150,000,000.
Item
9.01 Financial Statements and Exhibits.
(c) Exhibits
| Exhibit No. |
Description
|
| Exhibit 99.1 | Press Release issued July 11, 2007 |
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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RESOURCES
CONNECTION, INC.
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Date:
July 11, 2007
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By:
/s/ Donald B. Murray
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Donald
B. Murray
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Chief
Executive Officer
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EXHIBIT
INDEX
| Exhibit No. |
Description
|
| Exhibit 99.1 | Press Release issued July11, 2007 |
For
Immediate Release
Contacts:
Jeff
Bellows, Resources Global Professionals
(US+)
1-617-897-0350 or jeff.bellows@resources-us.com
Sarah
Lazarus, CL-Media
(US+)
1-978-369-4478 or sarah@cl-media.com
Resources
Connection, Inc. Reports Fourth Quarter, Fiscal 2007
Results
Announces
completion of buyback, special cash dividend and additional new buyback
authorization
|
·
|
Record
Quarterly Revenue of $200.5 Million, Up 21% Over Prior Year Fiscal
Fourth
Quarter
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·
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Record
Fiscal 2007 Revenue of $735.9 Million, 16% Increase Over Fiscal
2006
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|
·
|
Record
quarterly net income on a comparable basis - non-GAAP net income
of $20.7
million, (which excludes stock compensation expense and related tax
benefit), up 31% over prior year’s fourth quarter, which did not require
expensing of stock compensation.
|
|
·
|
Record
fiscal 2007 net income on a comparable basis - non-GAAP net income
of
$71.5 million, (which excludes stock compensation expense and related
tax
benefit), up 18% over prior fiscal year, which did not require expensing
of stock compensation.
|
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·
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Record
quarterly GAAP net income of $16.1 million in fourth quarter (which
includes stock compensation expense and related tax
benefit).
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COSTA
MESA, CA. July 11, 2007
-
Resources Connection, Inc. (NASDAQ: RECN), a multinational professional services
firm that provides to clients - through its operating subsidiary, Resources
Global Professionals
- 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 full year ended May 31, 2007.
Total
revenue for the fourth quarter of fiscal 2007 improved 21% to $200.5 million
from $165.9 million for the same quarter in fiscal 2006. For the year ended
May
31, 2007, revenue rose 16% to $735.9 million from $633.8 million for the
comparable period of the prior fiscal year.
Effective
June 1, 2006, the beginning of the Company's just-completed fiscal 2007,
Resources adopted SFAS 123(R), which requires companies to estimate the fair
value of share-based awards to employees on the date of the grant using an
option-pricing model. Because SFAS 123(R) has been adopted prospectively, net
income for the three months and year ended May 31, 2007 is not comparable to
net
income for the three months and year ended May 31, 2006.
Measured
on a comparable basis to prior years but no longer considered to be in
accordance with generally accepted accounting principles (GAAP), non-GAAP net
income for the fourth quarter of fiscal 2007, (which excludes stock-based
compensation expense and the related income tax effect), was $20.7 million,
or
$0.40 per diluted share. Net income (on a GAAP basis) for the quarter ended
May
31, 2006, was $15.7 million, or $0.31 per diluted share.
Net
income on a GAAP basis for the fourth quarter ended May 31, 2007, was $16.1
million, or $0.32 per diluted share, reflecting the inclusion of non-cash
stock-based compensation expense of $5.7 million on a pre-tax basis, and $1.1
million of tax benefits related to stock-based compensation.
Non-GAAP
net income for fiscal 2007, (which excludes stock-based compensation expense
and
the related income tax effect), was $71.5 million, or $1.39 per diluted share.
Net income on a GAAP basis for the year ended May 31, 2006 was $60.6 million,
or
$1.17 per diluted share.
For
the
year ended May 31, 2007, net income on a GAAP basis was $54.8 million, or $1.08
per diluted share, reflecting the inclusion of non-cash stock-based compensation
expense of $20.1 million on a pre-tax basis and $3.4 million of tax benefits
related to stock-based compensation.
After
the
end of the fiscal year, the Company completed the acquisition of Compliance
Solutions (UK) Ltd., a UK-based provider of regulatory compliance services
to
investment advisors, hedge funds, private equity and venture capital firms,
insurance companies and other financial institutions. The Company paid
approximately $8.2 million for the acquisition, consisting of $5.8 million
in
cash and $2.4 million in the Company’s stock.
The
Company also announced two separate board approved initiatives regarding its
capital structure. First, the Company’s Board of Directors has approved a
special cash dividend of $1.25 per share, payable on August 21, 2007 to
shareholders of record on August 8, 2007. Second, the Company has completed
its
previously approved buyback of 3,000,000 shares of the Company’s common stock
during the fourth quarter of fiscal 2007, and its Board of Directors has
approved a share buyback with an aggregate dollar limit of $150
million.
"Our
operating results for the fourth quarter and the entire year demonstrate good
balance between investing for long term growth while generating solid current
income and cash flows. We expect to continue pushing forward on our
international expansion while also investing in complementary professional
services, like regulatory compliance," said Donald B. Murray, Chairman and
CEO
of Resources Global Professionals. "Because our operating model has proved
successful at growing while generating substantial cash flows, we are pleased
to
be able to return significant amounts of capital to our shareholders. We believe
the Company can pursue its relevant strategic objectives, including prudent
acquisitions, while continuing to improve return on equity through a balanced
use of stock buybacks and periodic dividends. After completing our previously
announced buyback and the acquisition of Compliance Solutions and giving effect
to the special dividend, we will continue to have a strong, well-capitalized
balance sheet capable of supporting our growth strategy."
Business
Highlights
|
n
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International
revenue increased 39% in the fourth quarter from the year-earlier
period
and increased 30% over the prior fiscal
year.
|
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n
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In
June 2007, Resources launched its regulatory consulting practice
with the
acquisition of Compliance Solutions (UK) Ltd., a regulatory compliance
specialist firm serving investment advisors, hedge funds, private
equity
and venture capital firms, insurance companies and other financial
institutions.
|
|
n
|
During
the fourth quarter of fiscal 2007, Resources opened international
offices
in Mexico City, Milan, Dusseldorf and Shanghai, raising the total
number
of international offices to 31.
|
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n
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As
of May 31, 2007, the number of associates on assignment rose to 3,276,
up
15% from the prior year end.
|
ABOUT
RESOURCES GLOBAL PROFESSIONALS
Resources
Global Professionals, the operating subsidiary of Resources Connection, Inc.
(NASDAQ: RECN), is a multinational professional services firm that helps
business leaders execute internal initiatives. Working as members of client
teams, we solve problems, execute and transfer knowledge. 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 a market cap of approximately $1.5 billion. Our
4,100 professionals, from more than 80 practice offices, serve 2,200 clients
in
56 countries.
Headquartered
in Costa Mesa, California, Resources Global has served 81 of the Fortune 100
companies.
Resources
was selected #61 on Fortune
magazine’s list of 100 Fastest-Growing Companies for 2006. Also last year,
Resources was chosen #21 on BusinessWeek’s
list
of 100 Hot Growth Companies and the firm has been named to the Forbes
200 Best
Small Companies list for the past five years.
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.
Resources
will hold a conference call for interested analysts and investors at 5:00 p.m.,
ET today, July 11, 2007. This conference call will be available for listening
via a webcast on the Company’s website: http://www.resourcesglobal.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. These forward-looking statements include (i) the
Company’s statement that it expects to continue pushing forward on its
international expansion while also investing in complementary professional
services, like regulatory compliance, and (ii) the Company’s belief that it can
pursue its strategic objectives, including prudent acquisitions, while
continuing to improve return on equity through a balanced use of stock buybacks
and periodic dividends. 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 10-K for the
year ended May 31, 2006 and Form 10-Qs for the quarters ended August 31, 2006,
November 30, 2006 and February 28, 2007 (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.
The
Non-GAAP Income Statement in this release excludes stock-based compensation
expense from the following non-GAAP line items: non-GAAP selling, general and
administrative expenses, non-GAAP operating income before amortization and
depreciation, non-GAAP operating income, non-GAAP income before provision for
income taxes, non-GAAP provision for income taxes, non-GAAP net income, non-GAAP
net income per diluted share, and non-GAAP diluted shares used in net income
per
share calculation.
These
non-GAAP measures are not in accordance with, or an alternative for, generally
accepted accounting principles and may be different from non-GAAP measures
used
by other companies. In addition, these non-GAAP measures and the Non-GAAP Income
Statement are not based on any comprehensive set of accounting rules or
principles. Resources believes that non-GAAP measures have limitations in that
they do not reflect all of the amounts associated with Resources’ results of
operations as determined in accordance with GAAP and that these measures should
only be used to evaluate Resources’ results of operations in conjunction with
the corresponding GAAP measures.
Resources
believes that the presentation of non-GAAP selling, general and administrative
expenses, non-GAAP operating income before amortization and depreciation,
non-GAAP operating income, non-GAAP income before provision for income taxes,
non-GAAP provision for income taxes, non-GAAP net income, non-GAAP net income
per diluted share and non-GAAP diluted shares used in net income per share
calculation, when presented in conjunction with the corresponding GAAP measures,
provides useful information to investors and management regarding financial
and
business trends relating to its financial condition and results of
operations.
For
its
internal budgeting process, Resources’ management uses financial statements that
do not include stock-based compensation expense related to employee stock
options and employee stock purchases, and the income tax effects thereof.
Resources’ management also uses the foregoing non-GAAP measures, in addition to
the corresponding GAAP measures, in reviewing the financial results of
Resources.
For
additional information on the items excluded by Resources Connection, Inc.
from
one or more of its non-GAAP financial measures, and for additional information
regarding these non-GAAP measures, we refer you to the Form 8-K regarding this
release furnished today to the Securities and Exchange Commission.
###
RESOURCES
CONNECTION, INC.
INCOME
STATEMENT
(in
thousands, except per share amounts)
|
Quarter
Ended
May 31,
|
Year
Ended
May 31,
|
||||||||||||
|
2007
|
2006
|
2007
|
2006
|
||||||||||
|
(unaudited)
|
(unaudited)
|
||||||||||||
|
Revenue
|
$
|
200,516
|
$
|
165,862
|
$
|
735,891
|
$
|
633,843
|
|||||
|
Direct
costs of services
|
121,354
|
99,383
|
447,363
|
384,429
|
|||||||||
|
Gross
profit
|
79,162
|
66,479
|
288,528
|
249,414
|
|||||||||
|
Selling,
general and administrative expenses (1)
|
51,557
|
40,426
|
191,590
|
149,736
|
|||||||||
|
Operating
income before amortization and depreciation (1)
|
27,605
|
26,053
|
96,938
|
99,678
|
|||||||||
|
Amortization
of intangible
assets
|
392
|
435
|
1,472
|
1,740
|
|||||||||
|
Depreciation
expense
|
1,759
|
1,034
|
6,122
|
2,958
|
|||||||||
|
Operating
income (1)
|
25,454
|
24,584
|
89,344
|
94,980
|
|||||||||
|
Interest
income
|
(2,616
|
)
|
(1,582
|
)
|
(8,939
|
)
|
(5,015
|
)
|
|||||
|
Income
before provision for income taxes (1)
|
28,070
|
26,166
|
98,283
|
99,995
|
|||||||||
|
Provision
for income taxes (2)
|
12,012
|
10,421
|
43,518
|
39,398
|
|||||||||
|
Net
income (1) (2)
|
$
|
16,058
|
$
|
15,745
|
$
|
54,765
|
$
|
60,597
|
|||||
|
Diluted
net income per share
|
$
|
0.32
|
$
|
0.31
|
$
|
1.08
|
$
|
1.17
|
|||||
|
Diluted
shares
|
50,882
|
51,369
|
50,644
|
51,676
|
|||||||||
RESOURCES
CONNECTION, INC.
INCOME
STATEMENT
(in
thousands, except per share amounts)
|
(1)
|
Includes
$5,726 and $20,107 of expense for the three months and year ended
May 31,
2007, respectively, related to the mandatory requirement to recognize
compensation expense related to employee stock option grants and
employee
stock purchases, effective in the Company’s fiscal year 2007. There was no
corresponding expense in the three months and year ended May 31,
2006.
|
|
(2)
|
The
Company’s effective tax rate, absent the impact of the adoption of the
requirement to recognize compensation expense related to employee
stock
option grants and employee stock purchases, was 38.7% and 39.6% for
the
three months and year ended May 31, 2007, respectively, compared
to 39.8%
and 39.4% for the three months and year ended May 31, 2006, respectively.
The Company’s effective tax rate, including the impact of the adoption of
the requirement to recognize compensation expense related to employee
stock option grants and employee stock purchases, was 42.8% and
44.3%
in the three months and year ended May 31, 2007. The Company cannot
recognize a potential tax benefit for certain stock option grants
until
and unless the holder exercises his or her option and sells the shares.
In
addition, the Company can only recognize a potential tax benefit
for
employees’ acquisition and subsequent sale of shares purchased through the
Company’s Employee Stock Purchase Plan if the sale occurs within a certain
defined period. Further, under SFAS 123(R), certain potential tax
benefits
associated with incentive stock options fully vested at the time
of
adoption of SFAS 123(R) will be recognized as additional paid in
capital
when and if those options are
exercised.
|
RESOURCES
CONNECTION, INC.
NON-GAAP
INCOME STATEMENT
(in
thousands, except per share amounts)
|
Quarter
Ended
May 31,
|
Year
Ended
May 31,
|
||||||||||||
|
2007
|
2006
|
2007
|
2006
|
||||||||||
|
(unaudited)
|
(unaudited)
|
||||||||||||
|
Revenue
|
$
|
200,516
|
$
|
165,862
|
$
|
735,891
|
$
|
633,843
|
|||||
|
Direct
costs of services
|
121,354
|
99,383
|
447,363
|
384,429
|
|||||||||
|
Gross
profit
|
79,162
|
66,479
|
288,528
|
249,414
|
|||||||||
|
Selling,
general and administrative expenses (1)
|
45,831
|
40,426
|
171,483
|
149,736
|
|||||||||
|
Operating
income before amortization and depreciation (1)
|
33,331
|
26,053
|
117,045
|
99,678
|
|||||||||
|
Amortization
of intangible
assets
|
392
|
435
|
1,472
|
1,740
|
|||||||||
|
Depreciation
expense
|
1,759
|
1,034
|
6,122
|
2,958
|
|||||||||
|
Operating
income (1)
|
31,180
|
24,584
|
109,451
|
94,980
|
|||||||||
|
Interest
income
|
(2,616
|
)
|
(1,582
|
)
|
(8,939
|
)
|
(5,015
|
)
|
|||||
|
Income
before provision for income taxes (1)
|
33,796
|
26,166
|
118,390
|
99,995
|
|||||||||
|
Provision
for income taxes (2)
|
13,093
|
10,421
|
46,930
|
39,398
|
|||||||||
|
Net
income (1) (2)
|
$
|
20,703
|
$
|
15,745
|
$
|
71,460
|
$
|
60,597
|
|||||
|
Diluted
net income per share
|
$
|
0.40
|
$
|
0.31
|
$
|
1.39
|
$
|
1.17
|
|||||
|
Diluted
shares (3)
|
51,719
|
51,369
|
51,409
|
51,676
|
|||||||||
RESOURCES
CONNECTION, INC.
NON-GAAP
INCOME STATEMENT
(in
thousands, except per share amounts)
| (1) |
Excludes
$5,726 and $20,107 of expense for the three months and year ended
May 31,
2007, respectively, related to the mandatory requirement to recognize
compensation expense related to employee stock option grants and
employee
stock purchases, effective with the Company’s first quarter of fiscal
2007. There was no corresponding expense for the three months and
year
ended May 31, 2006.
|
| (2) |
Excludes
tax benefits related to stock based compensation of $1,081 and $3,412
for
the three months and year ended May 31, 2007, respectively. Please
refer
to footnote (2) on the GAAP Income Statement for further
detail.
|
| (3) |
Includes
837 and 765 shares presumed to be repurchased in accordance with
the
requirements of SFAS 123(R) and SFAS 128 for GAAP computation of
diluted
number of shares for the three months and year ended May 31, 2007,
respectively.
|
See
table
below for reconciliation of net income on a GAAP basis to non-GAAP net income,
and diluted net income per share on a GAAP basis to non-GAAP diluted net income
per share.
RESOURCES
CONNECTION, INC.
Following
is a reconciliation of net income under GAAP to non-GAAP net income for the
three months and year ended May 31, 2007. There was no corresponding
reconciliation necessary for the three months and year ended May 31, 2006,
as
the Company had not adopted the accounting required under SFAS
123(R).
|
(in
thousands, except per share amounts)
|
|||||||
|
Three
months ended
May
31, 2007
|
Year
ended
May
31, 2007
|
||||||
|
GAAP
net income
|
$
|
16,058
|
$
|
54,765
|
|||
|
Stock-based
compensation included in SG&A
|
5,726
|
20,107
|
|||||
|
Effect
of stock-based compensation on provision for income taxes
|
(1,081
|
)
|
(3,412
|
)
|
|||
|
Net
effect of stock-based compensation
|
4,645
|
16,695
|
|||||
|
Non-GAAP
net income
|
$
|
20,703
|
$
|
71,460
|
|||
Following
is a reconciliation of shares used in the calculation of GAAP to non-GAAP
diluted net income per share:
|
Three
months ended
May
31, 2007
|
Year
ended
May
31, 2007
|
||||||
|
Diluted
number of shares used - GAAP
|
50,882
|
50,644
|
|||||
|
Impact
of SFAS 123R
|
837
|
765
|
|||||
|
Diluted
number of shares used -non-GAAP
|
51,719
|
51,409
|
|||||
Following
is a reconciliation of GAAP diluted net income per share to non-GAAP diluted
net
income per share:
|
Three
months ended
May
31, 2007
|
Year
ended
May
31, 2007
|
||||||
|
GAAP
diluted net income per share
|
$
|
0.32
|
$
|
1.08
|
|||
|
Net
effect of stock-based compensation on diluted net income per
share
|
$
|
0.08
|
$
|
0.31
|
|||
|
Non-GAAP
diluted net income per share
|
$
|
0.40
|
$
|
1.39
|
|||
RESOURCES
CONNECTION, INC.
SELECTED
BALANCE SHEET INFORMATION
(in
thousands)
|
May
31, 2007
|
May
31, 2006
|
||||||
|
(unaudited)
|
|||||||
|
Cash,
cash equivalents, short-term investments and long-term marketable
securities
|
$
|
223,095
|
$
|
185,439
|
|||
|
Accounts
receivable, less allowances
|
$
|
105,146
|
$
|
90,720
|
|||
|
Total
assets
|
$
|
467,250
|
$
|
398,611
|
|||
|
Current
liabilities
|
$
|
87,686
|
$
|
66,614
|
|||
|
Total
stockholders’ equity
|
$
|
363,296
|
$
|
317,436
|
|||