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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) March 25, 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 March 25, 2004, Resources Connection, Inc. issued a press release
announcing its financial results for the quarterly period ended February 29,
2004. 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: March 25, 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 March 25, 2004
Exhibit 99.1
Resources Connection, Inc. Reports Fiscal 2004 Third Quarter Results
Company Reports 78% Year-Over-Year Revenue Growth and Profits More Than Double
COSTA MESA, Calif., March 25 /PRNewswire-FirstCall/ -- Resources
Connection, Inc. (Nasdaq: RECN), an international professional services firm
that provides accounting and finance, human capital, information management,
supply chain management and internal audit/risk management services on a
project basis, today announced financial results for its third quarter ended
February 29, 2004.
Total revenue for the third quarter of fiscal 2004 increased 78% to $87.8
million compared to $49.2 million for the same quarter in fiscal 2003, and 19%
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 49%
year over year. Net income for the quarter ended February 29, 2004, was $5.8
million, or $0.24 per diluted share, compared to net income of $2.7 million or
$0.12 per diluted share in the February 2003 quarter.
"We had a quarter of continued revenue growth. We have experienced demand
across all of our service lines, but in particular, risk management. The
environment for our services has strengthened considerably. Assisting
companies in complying with Section 404 of Sarbanes-Oxley has fueled the
growth in Resources Audit Solutions, our risk management subsidiary," said
Chairman and CEO Donald Murray.
For the first nine months of fiscal 2004, revenue grew 55% to $221.3
million compared to $143.0 million for the nine-month period in the prior
year. Net income for the nine months ended February 29, 2004 was $13.6
million, or $0.57 per diluted share versus $8.5 million, or $0.37 per diluted
share, in the prior year period.
"During the latter part of our third quarter and continuing into the early
weeks of the final quarter of the year, we have seen a broad improvement in
the market for our services in assisting clients with solving their problems
internally," continued Mr. Murray.
"During the past quarter our growing capabilities to serve multinational
clients' needs throughout the world has made us more relevant to larger
companies and has helped us win opportunities that previously might have been
served by one of the Big 4 international accounting firms. I believe this is
an important step in our evolution as a global service provider."
ABOUT RESOURCES CONNECTION
Resources Connection, Inc. is an international professional services firm
that provides accounting and finance, human capital, information management,
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
more than 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, March 25, 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-Qs for the quarters
ended August 31, 2003 and November 30, 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.
Press Contact:
Stephen Giusto
Chief Financial Officer
(714) 430-6500
steve.giusto@resources-us.com
RESOURCES CONNECTION, INC.
SUMMARY OF OPERATIONS
(in thousands, except per share amounts)
Quarter Nine Months
Ended February 29, Ended February 29,
2004 2003 2004 2003
(unaudited) (unaudited)
Revenue $87,758 $49,237 $221,315 $142,974
Direct costs of services 54,353 30,153 135,828 86,363
Gross profit 33,405 19,084 85,487 56,611
Selling, general and
administrative expenses 22,724 14,170 60,424 41,714
Amortization of intangible
assets 514 298 1,212 455
Depreciation expense 507 328 1,327 955
Interest income (147) (231) (422) (839)
Income before provision for
income taxes 9,807 4,519 22,946 14,326
Provision for income taxes 4,021 1,853 9,342 5,873
Net income $5,786 $2,666 $13,604 $8,453
Diluted net income per share $0.24 $0.12 $0.57 $0.37
Diluted shares 24,140 22,969 23,850 22,808
RESOURCES CONNECTION, INC.
SELECTED BALANCE SHEET INFORMATION
(in thousands)
February 29, 2004 May 31, 2003
(unaudited)
Cash, cash equivalents and
long-term marketable securities $47,769 $68,078
Accounts receivable, less allowances $55,705 $26,635
Total assets $194,077 $155,937
Current liabilities $34,169 $20,941
Total stockholders' equity $158,443 $133,531
SOURCE Resources Connection, Inc.
-0- 03/25/2004
/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
SU: ERN CCA