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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 12, 2005
RESOURCES CONNECTION, INC.
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
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (714) 430-6400
Not applicable
(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:
[ ] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On July 12, 2005, Resources Connection, Inc. issued a press release
announcing its financial results for the quarterly period and fiscal year ended
May 31, 2005. A copy of the press release is attached hereto as Exhibit 99.1.
The information in this current report on Form 8-K, including 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 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(c) EXHIBITS
EXHIBIT NO. DESCRIPTION
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Exhibit 99.1 Press Release issued July 12, 2005
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.
RESOURCES CONNECTION, INC.
Date: July 12, 2005
By: /s/ Donald B. Murray
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Donald B. Murray
Chief Executive Officer
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
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Exhibit 99.1 Press Release issued July 12, 2005
Exhibit 99.1
RESOURCES CONNECTION, INC. REPORTS YEAR-END RESULTS
FOURTH QUARTER REVENUE IMPROVES 40% AND EARNINGS IMPROVE 45%
COSTA MESA, Calif., July 12 /PRNewswire-FirstCall/ -- Resources Connection,
Inc. (Nasdaq: RECN), an international professional services firm that provides,
through its operating subsidiary Resources Global Professionals, experienced
accounting and finance, risk management and internal audit, information
management, human capital, supply chain management and legal professionals to
clients on a project basis, today announced financial results for its fourth
quarter and year ended May 31, 2005.
Total revenue for the fourth quarter of fiscal 2005 improved 40.2% to $150.0
million from $107.0 million for the same quarter in fiscal 2004. Net income for
the quarter ended May 31, 2005, was $15.7 million, or $0.31 per diluted share,
compared to net income of $10.7 million, or $0.22 per diluted share, in the May
2004 quarter.
For the year ended May 31, 2005, revenue grew 63.7% to $537.6 million
compared to $328.3 million for the fiscal year ended May 31, 2004. Net income
for fiscal year 2005 was $56.1 million, or $1.11 per diluted share versus $24.3
million, or $0.50 per diluted share, in the prior year period.
"Our excellent financial results this year reflect our continuing ability to
deliver high-quality service to our clients with tremendous flexibility and a
true global reach," said Chairman and CEO of Resources Global Professionals
Donald Murray. "We are particularly pleased that fiscal 2005 saw the expansion
of many client relationships with companies who initially became familiar with
Resources for Sarbanes-Oxley compliance efforts, but have extended their work
with us into other core business areas. Our outstanding client relationships
remain the foundation for our future growth."
On February 8, 2005, the Company announced that its board of directors had
declared a 2 for 1 split of its common stock for all stockholders of record as
of February 18, 2005. All prior year information is presented reflecting this
common stock split.
ABOUT RESOURCES GLOBAL PROFESSIONALS
Resources Global Professionals is an international professional services
firm that provides accounting and finance, human capital, information
management, supply chain management, internal audit/risk management and legal
services on a project basis. The Company was originally part of Deloitte &
Touche LLP in North America. Its legacy in Europe is from Ernst & Young and in
Asia Pacific from Deloitte Touche Tohmatsu Australia. Today, the Company is
completely independent, autonomous and publicly traded on NASDAQ under its
parent entity's name, Resources Connection, Inc. In addition to its project
professional services, Resources Global Professionals 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 worldwide 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 third consecutive year. More information about the
company is available at http://www.resourcesglobal.com.
Resources Global Professionals will hold a conference call for interested
analysts and investors at 5:00 pm, EDT today, July 12, 2005. This conference
call will be available for listening via a webcast on the Company's Internet web
site, at 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. 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, 2004 and Form 10-Q for the quarters ended August 31, 2004,
November 30, 2004 and February 28, 2005 (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.
RESOURCES CONNECTION, INC.
SUMMARY OF OPERATIONS
(in thousands, except per share amounts)
Quarter Ended May 31, Year Ended May 31,
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2005 2004 2005 2004
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(unaudited) (unaudited)
Revenue $ 150,009 $ 107,018 $ 537,636 $ 328,333
Direct costs
of services 89,983 64,042 324,642 199,870
Gross profit 60,026 42,976 212,994 128,463
Selling, general and
administrative
expenses 33,451 23,877 116,402 84,301
Operating income
before amortization
and depreciation 26,575 19,099 96,592 44,162
Amortization of
intangible assets 444 504 1,743 1,716
Depreciation expense 552 580 2,191 1,907
Operating income 25,579 18,015 92,658 40,539
Interest income (827) (171) (2,128) (593)
Income before
provision for
income taxes 26,406 18,186 94,786 41,132
Provision for
income taxes 10,694 7,456 38,730 16,798
Net income $ 15,712 $ 10,730 $ 56,056 $ 24,334
Diluted net income
per share $ 0.31 $ 0.22 $ 1.11 $ 0.50
Diluted shares 50,533 49,944 50,484 48,780
RESOURCES CONNECTION, INC.
SELECTED BALANCE SHEET INFORMATION
(in thousands)
May 31, 2005 May 31, 2004
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(unaudited)
Cash, cash equivalents, short-term
investments and long-term
marketable securities $ 134,741 $ 68,126
Accounts receivable, less allowances $ 80,848 $ 59,766
Total assets $ 319,563 $ 226,263
Current liabilities $ 63,338 $ 41,241
Total stockholders' equity $ 248,266 $ 180,334
/CONTACT: David Bray, +1-212-367-6824, David.Bray@eurorscg.com, for
Resources Connection, Inc./Web site: http://www.resourcesglobal.com /