NASDAQ$RGP

Resources Connection Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Revenue grew and margin expanded over the prior year quarter.

Resources Connection reported Q4 revenue of $172.3 million, a 10.0% increase sequentially. Net income grew to $23.2 million, or $0.70 diluted earnings per common share, which included a discrete tax benefit of $12.8 million, or $0.39 per diluted common share. Adjusted diluted earnings per common share improved to $0.80.

  • Revenue up 10.0% sequentially to $172.3 million compared to $156.6 million in the third quarter
  • Same day constant currency revenue up 4.7% sequentially and 1.2% from the prior year quarter
  • SG&A expense decreased 18.1% to $50.8 million compared to $62.0 million in the prior year quarter
  • Adjusted diluted earnings per common share improved to $0.80 compared to $0.33 in the prior year quarter

Headline financials

Total Revenue

$172M

Previous: $179M-3.5%
EPS (adj)

$0.80

Previous: $0.16+400.0%
Consultant Headcount

2.9K

No prior period
Average Bill Rate

$126.00

No prior period
Average Pay Rate

$64.00

No prior period
Capital Expenditures

$997K

Previous: $303K+229.0%
Free Cash Flow

$3.58M

Previous: $27.7M-87.1%
Net Income

$23.2M

Previous: $4.1M+467.0%
Operating Income

$15.5M

Previous: $0.00
Gross Profit

$68.3M

Previous: $72.2M-5.4%
Cash & Equivalents

$74.4M

Previous: $95.6M-22.2%
Total Assets

$521M

Previous: $529M-1.6%
Stock-Based Comp

$1.67M

Previous: $1.41M+18.9%

Revenue & EPS history

Resources Connection · Revenue · Quarterly

$172M

Q4 2021-3.5%vs Q4 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

Company is starting off the new fiscal year in a position of strength as our pipeline has grown significantly over the past six months, fueled by our clients’ needs for transformational project work and traditional staffing gaps.

Tailwinds

  • Strong top line growth
  • Gross margin improvement
  • Disciplined cost control
  • Expanding Adjusted EBITDA margin by 600 basis points sequentially and 160 basis points year over year
  • Starting off the new fiscal year in a position of strength as our pipeline has grown significantly over the past six months

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2021

Historical avgQ4 2021

-2.0%

Avg return

Earnings day

-2.4%

Avg return

5 days after

-2.1%

Avg return

30 days after

44%

30 / 68 earnings

Positive

+17.6%

Q1 2022

Best reaction

-19.8%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+0.5%+7.1%+26.4%
Q2 2026-14.6%+3.8%-2.9%
Q1 2026-4.2%-14.1%-9.7%
Q4 2025+0.0%-1.3%-12.1%
Q3 2025-19.8%-23.1%-12.2%
Q2 2025+6.4%+4.0%-1.5%
Q1 2025-13.9%-13.7%-17.0%
Q4 2024+2.1%+0.6%-7.2%
Q3 2024-9.9%-5.2%-11.3%
Q2 2024-4.4%-6.7%-4.7%
Q1 2024-7.1%-2.8%-4.3%
Q4 2023+4.8%-0.8%-3.5%
Q3 2023-10.5%-8.1%-16.4%
Q2 2023-16.8%-8.1%-2.4%
Q1 2023-13.6%-12.9%-3.7%
Q4 2022+4.7%+6.8%-0.1%
Q3 2022+5.7%+4.0%-1.1%
Q2 2022+8.0%+2.0%-4.4%
Q1 2022+17.6%+9.5%+14.1%
Q4 2021+15.3%+19.5%+18.4%
Q3 2021+1.7%+2.5%+8.8%
Q2 2021-3.8%-6.3%-0.9%
Q1 2021-1.1%+3.0%-6.5%
Q4 2020-9.0%-5.7%+5.4%
Q3 2020-5.6%-0.2%+4.6%
Q2 2020+6.6%+1.0%-6.7%
Q1 2020-10.8%-15.5%-11.6%
Q4 2019+1.8%+2.8%+3.8%
Q3 2019-11.7%-5.6%+0.1%
Q2 2019+13.1%+15.0%+19.5%
Q1 2019+15.0%+11.1%-0.7%
Q4 2018-17.0%-11.4%-6.4%
Q3 2018-0.3%-2.2%-1.3%
Q2 2018-0.3%+5.4%+3.8%
Q1 2018+5.6%+4.2%+10.9%
Q4 2017-6.5%-8.6%-16.2%
Q3 2017-16.3%-17.5%-17.2%
Q2 2017-11.6%-12.9%-14.4%
Q1 2017-11.4%-10.4%-1.2%
Q4 2016-3.9%-3.8%-2.5%
Q3 2016-11.9%
Q2 2016-14.2%
Q1 2016+6.6%
Q4 2015-5.1%
Q3 2015-6.0%
Q2 2015+7.7%
Q1 2015+0.2%
Q4 2014+14.5%
Q3 2014-3.6%
Q2 2014+4.0%
Q1 2014-10.8%
Q4 2013-4.4%
Q3 2013-5.2%
Q2 2013-7.8%
Q1 2013+0.1%
Q4 2012+0.1%
Q3 2012-2.8%
Q2 2012-5.9%
Q1 2012+6.1%
Q4 2009+1.5%
Q4 2011+1.5%
Q3 2011-1.8%
Q3 2010-1.8%
Q2 2011+11.9%
Q4 2010+1.2%
Q2 2010+1.2%
Q1 2010+1.2%
Q1 2011+1.2%

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