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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) January 7, 2004
RESOURCES CONNECTION, INC.
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(Exact name of registrant as specified in its charter)
Delaware 0-32113 33-0832424
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
695 Town Center Drive, Suite 600, Costa Mesa, California 92626
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(Address of principal executive offices) (Zip Code)
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.)
ITEM 7. EXHIBITS
Reference is made to the Exhibit Index annexed hereto and made a part
hereof.
ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On January 7, 2004, Resources Connection, Inc. issued a press release
announcing its financial results for the quarterly period ended November 30,
2003. A copy of the press release is furnished as Exhibit 99.1 to this report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
Date: January 7, 2004
RESOURCES CONNECTION, INC.
By: /s/ Donald B. Murray
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Donald B. Murray
Chief Executive Officer
EXHIBIT INDEX
Exhibit No. Name of Item
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99.1 Press Release issued on January 7, 2004
Exhibit 99.1
Resources Connection, Inc. Reports Fiscal 2004 Second Quarter Results
Company Reports 47% Year-Over-Year Revenue Growth
COSTA MESA, Calif., Jan. 7 /PRNewswire-FirstCall/ -- Resources Connection,
Inc. (Nasdaq: RECN), an international professional services firm that provides
accounting and finance, human capital, information technology, supply chain
management and internal audit/risk management services on a project basis,
today announced financial results for its second quarter ended November 30,
2003.
Total revenue for the second quarter of fiscal 2004 increased
approximately 47% to $74.0 million compared to $50.2 million for the same
quarter in fiscal 2003, and more than 24% from the previous quarter. Revenue
includes a full quarter of activity for the Netherlands and Australian
practices acquired in the first quarter of fiscal 2004. Excluding the impact
of these acquisitions, revenue grew 21% year over year. Net income for the
quarter ended November 30, 2003 was $4.4 million, or $0.19 per diluted share,
compared to net income of $3.3 million or $0.15 per diluted share in the
November 2002 quarter.
"We had another quarter of revenue growth. There has been demand in
accounting and finance, information technology and, in particular, risk
management, heading into the third quarter," said Chairman and CEO Donald
Murray.
For the first six months of fiscal 2004, revenue grew 43% to
$133.6 million compared to $93.7 million for the six-month period in the prior
year. Net income for the six months ended November 30, 2003 was $7.8 million,
or $0.33 per diluted share versus $5.8 million, or $0.25 per diluted share, in
the prior year period.
"Due to the nature of our services, a broad improvement in the market for
Resources Connection's services can be an indication of trends in today's
changing business landscape," continued Mr. Murray. "As such, we hope our
growth in the second quarter is an indication of continued business momentum
in 2004."
"In particular, we are seeing companies begin to invest in key areas, such
as information technology and finance and accounting, that were delayed during
the recession. In addition, Sarbanes-Oxley compliance continues to be
top-of-mind for public companies, especially as they prepare to meet the
requirements of Section 404 of the Act that will become effective later this
year."
Mr. Murray concluded, "The landscape has clearly changed from just five
years ago when unprecedented financial growth was met with more jobs and new
hires. Companies now must find alternative solutions to managing growth and
controlling costs, while complying with more stringent regulatory issues.
With the expertise and specific skill sets of our project professionals,
Resources Connection is well-positioned to help solve these corporate
challenges."
ABOUT RESOURCES CONNECTION
Resources Connection, Inc. is an international professional services firm
that provides accounting and finance, human capital, information technology,
internal audit and supply chain services on a project basis. The Company was
originated as part of Deloitte in North America. Its legacy in Europe is from
Ernst & Young and in Asia Pacific from Deloitte. Resources Connection today
is completely independent, autonomous and publicly traded on NASDAQ. In
addition to its project professional services, Resources Connection has
established itself as a leading business services provider for companies
seeking independent and cost effective assistance for meeting or complying
with many of the complex business and regulatory issues in today's
marketplace.
Headquartered in Costa Mesa, California, the company operates from more
than 60 domestic and international offices. The U.S. client portfolio boasts
30 of the Fortune 50 companies. The company was recently named to Forbes Best
200 Small Companies list for the second consecutive year. 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, EST today, January 7, 2004. 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 10-K for the year ended May 31, 2003 and Form 10-Q for the quarter ended
August 31, 2003 (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.
For further information, please contact Stephen Giusto, Chief Financial
Officer of Resources Connection, Inc., +1-714-430-6500,
steve.giusto@resources-us.com.
RESOURCES CONNECTION, INC.
SUMMARY OF OPERATIONS
(in thousands, except per share amounts)
Quarter Six Months
Ended November 30, Ended November 30,
2003 2002 2003 2002
(unaudited) (unaudited)
Revenue $74,016 $50,209 $133,557 $93,737
Direct costs of
services 45,420 29,909 81,475 56,210
Gross profit 28,596 20,300 52,082 37,527
Selling, general and
administrative
expenses 20,471 14,526 37,700 27,544
Amortization of
intangible assets 392 126 698 157
Depreciation expense 433 312 820 627
Interest income (103) (270) (275) (608)
Income before provision
for income taxes 7,403 5,606 13,139 9,807
Provision for income
taxes 2,998 2,298 5,321 4,020
Net income $4,405 $3,308 $7,818 $5,787
Diluted net income
per share $0.19 $0.15 $0.33 $0.25
Diluted shares 23,622 22,651 23,618 22,728
RESOURCES CONNECTION, INC.
SELECTED BALANCE SHEET INFORMATION
(in thousands)
November 30, 2003 May 31, 2003
(unaudited)
Cash, cash equivalents and
long-term marketable securities $45,952 $68,078
Accounts receivable, less allowances $42,543 $26,635
Total assets $179,362 $155,937
Current liabilities $31,655 $20,941
Total stockholders' equity $146,242 $133,531
SOURCE Resources Connection, Inc.
-0- 01/07/2004
/CONTACT: Stephen Giusto, Chief Financial Officer of Resources
Connection, Inc., +1-714-430-6500, steve.giusto@resources-us.com/
/Web site: http://www.resourcesconnection.com /
(RECN)
CO: Resources Connection, Inc.
ST: California
IN: FIN CPR ITE
SU: ERN CCA