10-Q 1 rgp-20220226x10q.htm 10-Q rgp-20220226x10q
false--05-28Q320220001084765YesYesP3Y6MP4YP3YP3Y0001084765us-gaap:TreasuryStockMember2021-11-282022-02-260001084765rgp:ShareRepurchaseProgram2015Member2015-07-310001084765rgp:EmployeeStockPurchasePlanMember2020-05-312021-02-270001084765us-gaap:RetainedEarningsMember2022-02-260001084765us-gaap:AdditionalPaidInCapitalMember2022-02-260001084765us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-02-260001084765us-gaap:RetainedEarningsMember2021-11-270001084765us-gaap:AdditionalPaidInCapitalMember2021-11-270001084765us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-11-2700010847652021-11-270001084765us-gaap:RetainedEarningsMember2021-05-290001084765us-gaap:AdditionalPaidInCapitalMember2021-05-290001084765us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-05-290001084765us-gaap:RetainedEarningsMember2021-02-270001084765us-gaap:AdditionalPaidInCapitalMember2021-02-270001084765us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-02-270001084765us-gaap:RetainedEarningsMember2020-11-280001084765us-gaap:AdditionalPaidInCapitalMember2020-11-280001084765us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-11-2800010847652020-11-280001084765us-gaap:RetainedEarningsMember2020-05-300001084765us-gaap:AdditionalPaidInCapitalMember2020-05-300001084765us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-05-300001084765rgp:ShareRepurchaseProgram2015Member2021-12-080001084765rgp:EmployeeStockPurchasePlanMember2021-05-302022-02-260001084765rgp:PerformanceIncentivePlan2020Member2022-02-260001084765rgp:EmployeeStockPurchasePlanMember2022-02-260001084765rgp:PerformanceIncentivePlan2020Member2021-05-302022-02-260001084765us-gaap:RestrictedStockUnitsRSUMember2021-05-290001084765us-gaap:RestrictedStockMember2021-05-290001084765us-gaap:PerformanceSharesMember2021-05-290001084765rgp:LiabilityClassifiedStockUnitsMember2021-05-290001084765rgp:EquityClassifiedRestrictedStockUnitsMember2021-05-290001084765us-gaap:RestrictedStockUnitsRSUMember2021-05-302022-02-260001084765srt:MinimumMemberus-gaap:PerformanceSharesMemberrgp:BaseNumberOfSharesMember2021-05-302022-02-260001084765srt:MaximumMemberus-gaap:PerformanceSharesMemberrgp:BaseNumberOfSharesMember2021-05-302022-02-260001084765srt:MinimumMemberus-gaap:PerformanceSharesMember2021-05-302022-02-260001084765srt:MaximumMemberus-gaap:PerformanceSharesMember2021-05-302022-02-260001084765srt:MinimumMemberus-gaap:RestrictedStockUnitsRSUMember2021-05-302022-02-260001084765srt:MinimumMemberus-gaap:RestrictedStockMember2021-05-302022-02-260001084765srt:MaximumMemberus-gaap:RestrictedStockUnitsRSUMember2021-05-302022-02-260001084765srt:MaximumMemberus-gaap:RestrictedStockMember2021-05-302022-02-260001084765us-gaap:EmployeeSeveranceMember2022-02-260001084765us-gaap:EmployeeSeveranceMember2021-11-270001084765us-gaap:EmployeeSeveranceMember2021-05-290001084765us-gaap:EmployeeSeveranceMember2021-02-270001084765us-gaap:EmployeeSeveranceMember2020-11-280001084765us-gaap:EmployeeSeveranceMember2020-05-300001084765us-gaap:OtherRestructuringMemberrgp:EuropeanPlanMember2021-11-282022-02-260001084765us-gaap:OneTimeTerminationBenefitsMemberrgp:NorthAmericaAndAsiaPacificPlanMember2021-11-282022-02-260001084765us-gaap:OneTimeTerminationBenefitsMemberrgp:EuropeanPlanMember2021-11-282022-02-260001084765us-gaap:FacilityClosingMemberrgp:NorthAmericaAndAsiaPacificPlanMember2021-11-282022-02-260001084765us-gaap:FacilityClosingMemberrgp:EuropeanPlanMember2021-11-282022-02-260001084765us-gaap:OtherRestructuringMember2021-11-282022-02-260001084765us-gaap:OneTimeTerminationBenefitsMember2021-11-282022-02-260001084765us-gaap:FacilityClosingMember2021-11-282022-02-260001084765us-gaap:EmployeeSeveranceMember2021-11-282022-02-260001084765rgp:NorthAmericaAndAsiaPacificPlanMember2021-11-282022-02-260001084765rgp:EuropeanPlanMember2021-11-282022-02-260001084765us-gaap:OtherRestructuringMemberrgp:EuropeanPlanMember2021-05-302022-02-260001084765us-gaap:OneTimeTerminationBenefitsMemberrgp:NorthAmericaAndAsiaPacificPlanMember2021-05-302022-02-260001084765us-gaap:OneTimeTerminationBenefitsMemberrgp:EuropeanPlanMember2021-05-302022-02-260001084765us-gaap:FacilityClosingMemberrgp:NorthAmericaAndAsiaPacificPlanMember2021-05-302022-02-260001084765us-gaap:FacilityClosingMemberrgp:EuropeanPlanMember2021-05-302022-02-260001084765rgp:LossOnDisposalOfFixedAssetsMemberrgp:NorthAmericaAndAsiaPacificPlanMember2021-05-302022-02-260001084765rgp:ImpairmentOfOperatingRightOfUseAssetsMemberrgp:NorthAmericaAndAsiaPacificPlanMember2021-05-302022-02-260001084765us-gaap:OtherRestructuringMember2021-05-302022-02-260001084765us-gaap:OneTimeTerminationBenefitsMember2021-05-302022-02-260001084765us-gaap:FacilityClosingMember2021-05-302022-02-260001084765rgp:NorthAmericaAndAsiaPacificPlanMember2021-05-302022-02-260001084765rgp:EuropeanPlanMember2021-05-302022-02-260001084765us-gaap:OtherRestructuringMemberrgp:EuropeanPlanMember2020-11-292021-02-270001084765us-gaap:OneTimeTerminationBenefitsMemberrgp:NorthAmericaAndAsiaPacificPlanMember2020-11-292021-02-270001084765us-gaap:OneTimeTerminationBenefitsMemberrgp:EuropeanPlanMember2020-11-292021-02-270001084765us-gaap:FacilityClosingMemberrgp:NorthAmericaAndAsiaPacificPlanMember2020-11-292021-02-270001084765us-gaap:FacilityClosingMemberrgp:EuropeanPlanMember2020-11-292021-02-270001084765us-gaap:OtherRestructuringMember2020-11-292021-02-270001084765us-gaap:OneTimeTerminationBenefitsMember2020-11-292021-02-270001084765us-gaap:FacilityClosingMember2020-11-292021-02-270001084765rgp:NorthAmericaAndAsiaPacificPlanMember2020-11-292021-02-270001084765rgp:EuropeanPlanMember2020-11-292021-02-270001084765us-gaap:OtherRestructuringMemberrgp:EuropeanPlanMember2020-05-312021-02-270001084765us-gaap:OneTimeTerminationBenefitsMemberrgp:NorthAmericaAndAsiaPacificPlanMember2020-05-312021-02-270001084765us-gaap:OneTimeTerminationBenefitsMemberrgp:EuropeanPlanMember2020-05-312021-02-270001084765us-gaap:FacilityClosingMemberrgp:NorthAmericaAndAsiaPacificPlanMember2020-05-312021-02-270001084765us-gaap:FacilityClosingMemberrgp:EuropeanPlanMember2020-05-312021-02-270001084765us-gaap:OtherRestructuringMember2020-05-312021-02-270001084765us-gaap:OneTimeTerminationBenefitsMember2020-05-312021-02-270001084765us-gaap:FacilityClosingMember2020-05-312021-02-270001084765rgp:NorthAmericaAndAsiaPacificPlanMember2020-05-312021-02-270001084765rgp:EuropeanPlanMember2020-05-312021-02-270001084765us-gaap:OtherRestructuringMemberrgp:EuropeanPlanMember2022-02-260001084765us-gaap:OneTimeTerminationBenefitsMemberrgp:NorthAmericaAndAsiaPacificPlanMember2022-02-260001084765us-gaap:OneTimeTerminationBenefitsMemberrgp:EuropeanPlanMember2022-02-260001084765us-gaap:FacilityClosingMemberrgp:NorthAmericaAndAsiaPacificPlanMember2022-02-260001084765us-gaap:FacilityClosingMemberrgp:EuropeanPlanMember2022-02-260001084765us-gaap:OtherRestructuringMember2022-02-260001084765us-gaap:OneTimeTerminationBenefitsMember2022-02-260001084765us-gaap:FacilityClosingMember2022-02-260001084765rgp:NorthAmericaAndAsiaPacificPlanMember2022-02-260001084765rgp:EuropeanPlanMember2022-02-260001084765us-gaap:CommonStockMember2021-11-282022-02-260001084765us-gaap:CommonStockMember2021-05-302022-02-260001084765us-gaap:CommonStockMember2020-11-292021-02-270001084765us-gaap:CommonStockMember2020-05-312021-02-270001084765us-gaap:RevolvingCreditFacilityMemberrgp:NewCreditFacilityMember2021-05-302022-02-260001084765us-gaap:SubsequentEventMember2022-03-172022-03-170001084765us-gaap:EmployeeSeveranceMember2021-05-302022-02-260001084765us-gaap:EmployeeSeveranceMember2020-11-292021-02-270001084765us-gaap:EmployeeSeveranceMember2020-05-312021-02-2700010847652021-08-292021-11-270001084765us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-11-282022-02-260001084765us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-05-302022-02-260001084765us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-11-292021-02-270001084765us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-05-312021-02-2700010847652020-05-312020-08-290001084765rgp:NewCreditFacilityMember2022-02-260001084765us-gaap:RevolvingCreditFacilityMemberrgp:NewCreditFacilityMember2021-11-120001084765us-gaap:LetterOfCreditMemberrgp:NewCreditFacilityMember2021-11-120001084765rgp:SwinglineMemberrgp:NewCreditFacilityMember2021-11-120001084765rgp:CreditFacilityMember2021-11-110001084765srt:MinimumMemberrgp:NewCreditFacilityMember2021-11-122021-11-120001084765srt:MaximumMemberrgp:NewCreditFacilityMember2021-11-122021-11-120001084765us-gaap:LetterOfCreditMemberrgp:NewCreditFacilityMember2022-02-260001084765us-gaap:AllOtherSegmentsMember2021-05-302022-02-260001084765rgp:RgpCoreSegmentMember2021-05-302022-02-260001084765us-gaap:AllOtherSegmentsMember2022-02-260001084765rgp:RgpCoreSegmentMember2022-02-260001084765us-gaap:AllOtherSegmentsMember2021-05-290001084765rgp:RgpCoreSegmentMember2021-05-290001084765us-gaap:ScenarioPlanMember2021-05-302022-05-280001084765srt:MinimumMember2021-05-302022-02-260001084765srt:MaximumMember2021-05-302022-02-260001084765srt:MinimumMemberus-gaap:TradeNamesMember2021-05-302022-02-260001084765srt:MinimumMemberus-gaap:ComputerSoftwareIntangibleAssetMember2021-05-302022-02-260001084765srt:MinimumMemberrgp:CustomerContractsAndRelationshipsMember2021-05-302022-02-260001084765srt:MaximumMemberus-gaap:TradeNamesMember2021-05-302022-02-260001084765srt:MaximumMemberus-gaap:ComputerSoftwareIntangibleAssetMember2021-05-302022-02-260001084765srt:MaximumMemberrgp:CustomerContractsAndRelationshipsMember2021-05-302022-02-260001084765us-gaap:NoncompeteAgreementsMember2021-05-302022-02-260001084765rgp:ConsultantListMember2021-05-302022-02-260001084765rgp:BacklogMember2021-05-302022-02-260001084765us-gaap:TradeNamesMember2022-02-260001084765us-gaap:NoncompeteAgreementsMember2022-02-260001084765us-gaap:ComputerSoftwareIntangibleAssetMember2022-02-260001084765rgp:CustomerContractsAndRelationshipsMember2022-02-260001084765rgp:ConsultantListMember2022-02-260001084765rgp:BacklogMember2022-02-260001084765us-gaap:TradeNamesMember2021-05-290001084765us-gaap:NoncompeteAgreementsMember2021-05-290001084765us-gaap:ComputerSoftwareIntangibleAssetMember2021-05-290001084765rgp:CustomerContractsAndRelationshipsMember2021-05-290001084765rgp:ConsultantListMember2021-05-290001084765rgp:BacklogMember2021-05-290001084765us-gaap:RestrictedStockMember2021-05-302022-02-260001084765us-gaap:PerformanceSharesMember2021-05-302022-02-260001084765us-gaap:EmployeeStockOptionMember2021-05-302022-02-260001084765rgp:LiabilityClassifiedStockUnitsMember2021-05-302022-02-260001084765rgp:EquityClassifiedRestrictedStockUnitsMember2021-05-302022-02-260001084765us-gaap:EmployeeStockOptionMember2022-02-2600010847652022-01-200001084765rgp:NewCreditFacilityMember2021-11-120001084765srt:MinimumMemberrgp:NewCreditFacilityMemberus-gaap:BaseRateMember2021-11-122021-11-120001084765srt:MaximumMemberrgp:NewCreditFacilityMemberus-gaap:BaseRateMember2021-11-122021-11-120001084765srt:MinimumMemberrgp:NewCreditFacilityMemberrgp:SecuredOvernightFinancingRateMember2021-05-302022-02-260001084765srt:MaximumMemberrgp:NewCreditFacilityMemberrgp:SecuredOvernightFinancingRateMember2021-05-302022-02-260001084765us-gaap:TreasuryStockMember2022-02-260001084765us-gaap:CommonStockMember2022-02-260001084765us-gaap:CommonStockMember2021-11-270001084765us-gaap:TreasuryStockMember2021-05-290001084765us-gaap:CommonStockMember2021-05-290001084765us-gaap:TreasuryStockMember2021-02-270001084765us-gaap:CommonStockMember2021-02-270001084765us-gaap:TreasuryStockMember2020-11-280001084765us-gaap:CommonStockMember2020-11-280001084765us-gaap:TreasuryStockMember2020-05-300001084765us-gaap:CommonStockMember2020-05-3000010847652021-02-2700010847652020-05-300001084765us-gaap:PropertySubjectToOperatingLeaseMember2022-02-2600010847652021-05-290001084765us-gaap:RetainedEarningsMember2021-11-082021-11-080001084765us-gaap:CommonStockMember2021-11-082021-11-080001084765us-gaap:AdditionalPaidInCapitalMember2021-11-082021-11-0800010847652021-11-082021-11-080001084765us-gaap:RestrictedStockUnitsRSUMember2022-02-260001084765us-gaap:RestrictedStockMember2022-02-260001084765us-gaap:PerformanceSharesMember2022-02-260001084765rgp:LiabilityClassifiedStockUnitsMember2022-02-260001084765rgp:EquityClassifiedRestrictedStockUnitsMember2022-02-260001084765rgp:ShareRepurchaseProgram2015Member2021-12-082021-12-080001084765us-gaap:RevolvingCreditFacilityMemberrgp:NewCreditFacilityMember2021-11-122021-11-1200010847652022-02-260001084765us-gaap:RetainedEarningsMember2021-11-282022-02-260001084765us-gaap:AdditionalPaidInCapitalMember2021-11-282022-02-260001084765us-gaap:TreasuryStockMember2021-05-302022-02-260001084765us-gaap:RetainedEarningsMember2021-05-302022-02-260001084765us-gaap:AdditionalPaidInCapitalMember2021-05-302022-02-260001084765us-gaap:TreasuryStockMember2020-11-292021-02-270001084765us-gaap:RetainedEarningsMember2020-11-292021-02-270001084765us-gaap:AdditionalPaidInCapitalMember2020-11-292021-02-270001084765us-gaap:TreasuryStockMember2020-05-312021-02-270001084765us-gaap:RetainedEarningsMember2020-05-312021-02-270001084765us-gaap:AdditionalPaidInCapitalMember2020-05-312021-02-270001084765us-gaap:OperatingSegmentsMemberus-gaap:AllOtherSegmentsMember2021-11-282022-02-260001084765us-gaap:OperatingSegmentsMemberrgp:RgpCoreSegmentMember2021-11-282022-02-260001084765us-gaap:MaterialReconcilingItemsMember2021-11-282022-02-2600010847652021-11-282022-02-260001084765us-gaap:OperatingSegmentsMemberus-gaap:AllOtherSegmentsMember2021-05-302022-02-260001084765us-gaap:OperatingSegmentsMemberrgp:RgpCoreSegmentMember2021-05-302022-02-260001084765us-gaap:MaterialReconcilingItemsMember2021-05-302022-02-260001084765us-gaap:OperatingSegmentsMemberus-gaap:AllOtherSegmentsMember2020-11-292021-02-270001084765us-gaap:OperatingSegmentsMemberrgp:RgpCoreSegmentMember2020-11-292021-02-270001084765us-gaap:MaterialReconcilingItemsMember2020-11-292021-02-2700010847652020-11-292021-02-270001084765us-gaap:OperatingSegmentsMemberus-gaap:AllOtherSegmentsMember2020-05-312021-02-270001084765us-gaap:OperatingSegmentsMemberrgp:RgpCoreSegmentMember2020-05-312021-02-270001084765us-gaap:MaterialReconcilingItemsMember2020-05-312021-02-2700010847652020-05-312021-02-2700010847652022-03-3100010847652021-05-302022-02-26rgp:segmentxbrli:pureutr:sqftiso4217:USDxbrli:sharesrgp:entityiso4217:USDxbrli:shares

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended February 26, 2022

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to______ 

Commission File Number: 0-32113

 

RESOURCES CONNECTION, INC.

(Exact Name of Registrant as Specified in Its Charter)

 

 

Delaware

33-0832424

(State or Other Jurisdiction of

Incorporation or Organization)

(I.R.S. Employer

Identification No.)

17101 Armstrong Avenue, Irvine, California 92614

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (714430-6400

 

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol(s)

Name of Exchange on Which Registered

Common stock, par value $0.01 per share

RGP

The Nasdaq Stock Market LLC (Nasdaq Global Select Market)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

  

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

As of March 31, 2022, there were approximately 33,104,806 shares of the registrant’s common stock, $0.01 par value per share, outstanding.

  

1


 

RESOURCES CONNECTION, INC.

INDEX

Page

No.

PART I—FINANCIAL INFORMATION

ITEM 1.

Consolidated Financial Statements (Unaudited)

3

Consolidated Balance Sheets as of February 26, 2022 and May 29, 2021

3

Consolidated Statements of Operations for the Three and Nine Months Ended February 26, 2022 and February 27, 2021

4

Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended February 26, 2022 and February 27, 2021

5

Consolidated Statements of Stockholders’ Equity for the Three and Nine Months Ended February 26, 2022 and February 27, 2021

6

Consolidated Statements of Cash Flows for the Nine Months Ended February 26, 2022 and February 27, 2021

8

Notes to Consolidated Financial Statements

9

ITEM 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

22

ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

35

ITEM 4.

Controls and Procedures

36

PART II—OTHER INFORMATION

ITEM 1A.

Risk Factors

36

ITEM 6.

Exhibits

36

Signatures.

38


2


PART I—FINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS.

RESOURCES CONNECTION, INC.

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except par value per share)

February 26,

May 29,

2022

2021

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

82,189

$

74,391

Trade accounts receivable, net of allowance for doubtful accounts of $2,064 and $2,032 as of February 26, 2022 and May 29, 2021, respectively

150,524

116,455

Prepaid expenses and other current assets

7,840

7,235

Income taxes receivable

37,207

37,184

Total current assets

277,760

235,265

Goodwill

214,801

216,758

Intangible assets, net

18,047

20,240

Property and equipment, net

18,505

20,543

Operating right-of-use assets

19,632

24,655

Deferred income taxes

8,771

1,691

Other assets

2,222

1,492

Total assets

$

559,738

$

520,644

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable and accrued expenses

$

17,768

$

15,987

Accrued salaries and related obligations

78,246

55,513

Operating lease liabilities, current

8,788

10,206

Contingent consideration liabilities

-

7,129

Other liabilities

10,836

12,071

Total current liabilities

115,638

100,906

Long-term debt

54,000

43,000

Operating lease liabilities, noncurrent

15,390

20,740

Deferred income taxes

14,959

18,382

Other long-term liabilities

2,723

8,070

Total liabilities

202,710

191,098

Commitments and contingencies

 

 

Stockholders’ equity:

Preferred stock, $0.01 par value, 5,000 shares authorized; zero shares issued and outstanding

-

-

Common stock, $0.01 par value, 70,000 shares authorized; 34,260 and 64,626 shares issued, and 33,105 and 32,885 shares outstanding as of February 26, 2022 and May 29, 2021, respectively

342

646

Additional paid-in capital

352,128

489,864

Accumulated other comprehensive loss

(12,712)

(7,393)

Retained earnings

36,921

367,229

Treasury stock at cost, 1,155 and 31,741 shares as of February 26, 2022 and May 29, 2021, respectively

(19,651)

(520,800)

Total stockholders’ equity

357,028

329,546

Total liabilities and stockholders’ equity

$

559,738

$

520,644

The accompanying notes are an integral part of these consolidated financial statements

3


RESOURCES CONNECTION, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Amounts in thousands, except per share amounts)

Three Months Ended

Nine Months Ended

February 26,

February 27,

February 26,

February 27,

2022

2021

2022

2021

Revenue

$

204,609

$

156,631

$

587,987

$

457,199

Direct cost of services

127,815

99,584

361,020

284,078

Gross profit

76,794

57,047

226,967

173,121

Selling, general and administrative expenses

57,090

52,838

165,365

158,544

Amortization of intangible assets

1,321

1,202

3,608

4,125

Depreciation expense

882

963

2,694

2,954

Income from operations

17,501

2,044

55,300

7,498

Interest expense, net

307

361

744

1,316

Other income

(35)

(64)

(653)

(1,069)

Income before (benefit) provision for income taxes

17,229

1,747

55,209

7,251

(Benefit) provision for income taxes

(2,192)

1,057

8,561

5,270

Net income

$

19,421

$

690

$

46,648

$

1,981

Net income per common share:

Basic

$

0.59

$

0.02

$

1.42

$

0.06

Diluted

$

0.58

$

0.02

$

1.39

$

0.06

Weighted average common shares outstanding:

Basic

32,738

32,520

32,951

32,353

Diluted

33,375

32,659

33,556

32,422

Cash dividends declared per common share

$

0.14

$

0.14

$

0.42

$

0.42

The accompanying notes are an integral part of these consolidated financial statements


4


RESOURCES CONNECTION, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(Amounts in thousands)

Three Months Ended

Nine Months Ended

February 26,

February 27,

February 26,

February 27,

2022

2021

2022

2021

COMPREHENSIVE INCOME:

Net income

$

19,421

$

690

$

46,648

$

1,981

Foreign currency translation adjustment, net of tax

(963)

390

(5,319)

5,646

Total comprehensive income

$

18,458

$

1,080

$

41,329

$

7,627

The accompanying notes are an integral part of these consolidated financial statements


5


RESOURCES CONNECTION, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

(Amounts in thousands)

For the Three Months Ended February 26, 2022

Accumulated

Additional

Other

Total

Common Stock

Paid-in

Treasury Stock

Comprehensive

Retained

Stockholders'

Shares

Amount

Capital

Shares

Amount

Loss

Earnings

Equity

Balances as of November 27, 2021

33,683 

$

337 

$

342,807 

$

$

(11,749)

$

22,205 

$

353,600 

Exercise of stock options

312 

3 

4,311 

4,314 

Stock-based compensation expense

2,115 

2,115 

Issuance of common stock purchased under

Employee Stock Purchase Plan

243 

2 

2,825 

2,827 

Issuance of restricted stock

22 

-

Cash dividends declared ($0.14 per share)

(4,635)

(4,635)

Dividend equivalents on restricted stock units

70 

(70)

-

Repurchase of common stock

1,155 

(19,651)

(19,651)

Currency translation adjustment

(963)

(963)

Net income for the three months ended

February 26, 2022

19,421 

19,421 

Balances as of February 26, 2022

34,260 

$

342 

$

352,128 

1,155 

$

(19,651)

$

(12,712)

$

36,921 

$

357,028 

For the Nine Months Ended February 26, 2022

Accumulated

Additional

Other

Total

Common Stock

Paid-in

Treasury Stock

Comprehensive

Retained

Stockholders'

Shares

Amount

Capital

Shares

Amount

Loss

Earnings

Equity

Balances as of May 29, 2021

64,626 

$

646 

$

489,864 

31,741 

$

(520,800)

$

(7,393)