Stock Monitor: ASGN Inc. Post Earnings Reporting

LONDON, UK / ACCESSWIRE / April 27, 2018 / Active-Investors.com has just released a free earnings report on Resources Connection, Inc. (NASDAQ: RECN). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=RECN. Resources Connection reported its third quarter fiscal 2018 operating and financial results on April 04, 2018. The consulting Company surpassed earnings expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for ASGN Incorporated (NYSE: ASGN), which also belongs to the Services sector as the Company Resources Connection. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Resources Connection most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=RECN

Earnings Highlights and Summary

Resources Connection's revenue increased by 19.9% to $172.4 million for the third quarter of fiscal 2018 compared to $143.8 million in Q3 FY17. Without Accretive Solutions, Inc. (Accretive) revenue of $17.3 million in the reported quarter and taskforce - Management on Demand AG (taskforce)'s revenue of $3.8 million, the Company's revenue grew 5.2%.

During Q3 FY18, Resources Connection's gross margin was 36.3%, flat compared to the prior year's corresponding quarter. Sequentially, the Company's gross margin decreased 160 basis points from 37.9% in Q2 FY18, primarily due to an increase in average pay rate per hour and an increase in employer payroll tax expense typically experienced with the beginning of a new calendar year.

For Q3 FY18, Resources Connection's selling, general, and administrative (SG&A) expenses were $55.3 million, or 32.1% of revenue, compared to $45.4 million, or 31.5% of revenue, in Q3 FY17. The Company recorded approximately $3.6 million related to severance, acquisition, transformation and integration costs in the reported quarter, including approximately $700,000 related to severance expenses. Without these charges, the primary driver of the SG&A increase on a y-o-y basis was additional expenses related to the operations of accretive and taskforce of $6.2 million.

For Q3 FY18, Resources Connection's net income improved to $4.6 million, or $0.14 per diluted share, compared to net income of $2.9 million, or $0.09 per diluted share, in Q3 FY17. The Company's reported quarter results included $0.07 per diluted share related to a reduction in income tax expense from the Tax Cuts and Jobs Act, offset by costs of $0.11 per diluted share related to severance, acquisition, business development and transformation related expenses.

In Q3 FY18, Resources Connection's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) was $8.7 million, or 5.0% of revenue, compared to $8.4 million, or 5.8% of revenue, for Q3 FY17.

Revenue Details

During Q3 FY18, Resources Connection's revenue in the US increased by 14.9% on a y-o-y basis. Excluding Accretive operations, the Company's US revenue was flat on a y-o-y basis. Resources Connection's International revenue surged 41.4% on a y-o-y basis, reflecting strength in the Company's United Kingdom, Ireland, and Sweden practices. Resources Connection's revenue in Europe surged 34.4% on a y-o-y basis, excluding revenue attributable to the taskforce acquisition.

Cash Matters

As of February 24, 2018, Resources Connection's cash and cash equivalents were $43.2 million compared to $56.3 million at the end of Q2 FY18 on November 25, 2017.

During Q3 FY18, Resources Connection's cash used in operations was $3.9 million compared to $1.2 million for Q3 FY17. The increased use of cash was primarily driven by growth in the Company's revenue activity at the end of the reported quarter, increasing the Q3 FY18 ending balance of accounts receivable.

Stock Performance Snapshot

April 26, 2018 - At Thursday's closing bell, Resources Connection's stock rose 1.27%, ending the trading session at $15.95.

Volume traded for the day: 151.42 thousand shares, which was above the 3-month average volume of 137.37 thousand shares.

Stock performance in the last month ? up 0.63%; previous six-month period ? up 3.91%; past twelve-month period ? up 10.00%; and year-to-date ? up 3.24%

After yesterday's close, Resources Connection's market cap was at $509.92 million.

Price to Earnings (P/E) ratio was at 28.58.

The stock has a dividend yield of 3.01%.

The stock is part of the Services sector, categorized under the Staffing & Outsourcing Services industry. This sector was up 1.0% at the end of the session.

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