Resources Connection, Inc. · NASDAQ:RGP
Resources Connection — Investor Presentation (October 2024)
28 slides from Resources Connection's investor presentation, October 2024
Slide 1: Investor Presentation
G L O B A L P R O F E S S I O N A L S E R V I C E S Investor Presentation. October 2024
Slide 2: Forward-Looking Statements
Within this presentation, we make “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to expectations concerning matters that are not historical facts. Suc
Slide 3: A Proven Partner for Growth
A Proven Partner LTM Total Revenue $600M 10-Yr Return of Capital $420M for Growth. RGP is a global professional services firm with roots Who We Serve Of Fortune 100 & 77% of Fortune 500 88% Clients Across Regions North America, Europe, APAC & Latin America 1,700+ in the Big 4, focused on helping bus
Slide 4: Investment Highlights
Margin Expansion Investment Recently taken measures to enhance core operating efficiency including a global technology transformation currently underway; considerable Highlights. pricing upside to further expand margin Powerful Long-Term Growth Outlook Pristine Balance Sheet Capitalizing on favorabl
Slide 5: Brands that Co-Deliver
Brands that ▪ On-Demand Talent ▪ Next Generation Consulting ▪ Outsourced Services Co-Deliver. Global Professional Services On-Demand Talent Our new operating model leverages the strengths of each RGP business segment, creating an efficient path to market expansion and revenue growth. This unified ap
Slide 6: A Top Choice for Businesses & Talent
51% 74% Big 4 Experience 16+ Yrs. Experience 51% of Consultants have Big 4, Big In North America, Among our Consulting or Big Law Experience Consultants: 74% Have 16+ Years' Experience & 15% Have 9-15 Years' Experience A Top Choice 69% 5 for Businesses Diverse 69% of our U.S.-based Consultants Year
Slide 7: On-Demand Talent
On-Demand On-Demand Helps Organizations: Talent. Scale effortlessly with flexible talent solutions Access industry expertise in days, not The demand for flexible talent solutions is on the rise, with 50% of weeks, across finance and accounting, businesses adopting a hybrid talent model to add specia
Slide 8: Next Generation Consulting
Next Generation Veracity Helps Organizations: Consulting. Drive meaningful & effective transformation by bringing together people, process and technology with In 2024, companies that combine improvements in their operations a human-centered approach with digital upgrades see up to a 40% boost in ove
Slide 9: Outsourced Services
Outsourced Countsy Helps Organizations: Services. Streamline back-office operations with integrated accounting and HR teams and a comprehensive platform for startups, Outsourcing enables businesses to scale effortlessly, adjusting to changing scaleups and spinouts demands without the limitations of
Slide 10: Total Business Impact
Finance & Customer Risk Total Business Accounting Experience Assurance Impact. Employee Research, Information Data, AI & Experience Technology Our clients are asking us to help them tackle Insights challenges across various areas of their business—operations, finance, HR, IT and beyond. Whether it's
Slide 11: Growth Powered by Industry Expertise
Growth Powered by Industry Expertise. Our deep expertise and service offerings transcend industry lines. By understanding a wide range of sectors and applying proven frameworks, we deliver tailored solutions that meet market needs. This breadth of expertise fuels our expansion and creates value for
Slide 12: Key Market Segments
CO MP RE HEN SIV E E XPER T ISE I N T O P M AR KE TS & GR OWT H ST AG ES Fortune Fortune Large Government, Startups, 500 & 1000 100 Mid-Market Public Sector & Scaleups & 77% of Fortune 88% Served Companies Non-Profit Spinouts 500 Served Key Market Segments. Our refined GTM strategy leverages cross-
Slide 13: Corporate Responsibility
30k+ 196k Square Feet Square Feet We Reduced Our Global Real Estate We Reduced Our Global Real Estate Footprint by Over 30,000 Square Feet Footprint by 196,000 Square Feet During Fiscal Year 2024 Since Fiscal Year 2021 55% 100% Corporate Female More Than Half of Our Workforce CXO Minorities 100% of
Slide 14: A Flexible Cost Model to Support Financial Agility
Gross Margins Our flexible workforce fluctuates with revenue and reduces utilization risk for our consulting business; A Flexible Cost a growing base of consulting revenue expected to drive up gross margin Model to Support SG&A Financial Agility. Our flexible incentive compensation model drives perf
Slide 15: Strategic Capital Allocation
Strategic Capital Strategic & Disciplined M&A Strategic Acquisitions: With a strong track record of Allocation. identifying and integrating accretive opportunities, we focus on acquisitions that add real value to our business & strengthen our position in the market. Growth Investments Return of Capi
Slide 16: Results of Operations
F I N A N C I A L H I G H L I G H T S Results of Operations. LTM Q1 ($ in thousands) FY2021 FY2022 FY2023 FY2024 FY2025 Revenue $ 629,516 $ 805,018 $ 775,643 $ 632,801 $ 599,567 Revenue Growth Rate (10.5%) 27.9% (3.6%) (18.4%) (5.3%) Gross Margin 38.3% 39.3% 40.4% 38.9% 38.2% Adjusted SG&A Percentag
Slide 17: Segment Financial Measures
F I N A N C I A L H I G H L I G H T S Segment Financial Measures. Q1 FY2025 ON-D EMA ND EU /ASIA OU TSOU RCED ($ in thousands) CONSULTING A LL OT HE R TALENT PACIFIC SERVICES Revenue $ 52,473 $ 55,025 $ 17,983 $ 9,491 $ 1,963 Adjusted EBITDA(1) $ 2,559 $ 7,753 $ 227 $ 1,394 $ (467) Q1 FY2024 ON-D EM
Slide 18: Balance Sheets
F I N A N C I A L H I G H L I G H T S Balance Sheets. ($ in thousands) FY2022 FY2023 FY2024 Q1 FY2025 Cash $104,224 $ 116,784 $ 108,892 $ 89,625 Current Assets $308,541 $ 264,066 $ 204,755 $ 211,468 Total Assets $ 581,473 $ 531,999 $ 510,914 $ 512,869 Current Liabilities $ 124,322 $ 97,084 $ 72,433
Slide 19: Strong Cash Flow Generation
F I N A N C I A L H I G H L I G H T S Strong Cash Flow Generation. LTM Q1 ($ in millions) FY2022 FY2023 FY2024 FY2025 $100 180% Normalized Free Cash Flow *(in Millions) Cash from Operating Activities $ 49.4 $ 81.6 $ 21.9 $ 23.8 $90 160% Normalized Free Cash Flow Conversion* $80 $76.7 140% Less: Capi
Slide 20: Investment Highlights
Margin Expansion Investment Recently taken measures to enhance core operating efficiency including a global technology transformation currently underway; considerable Highlights. pricing upside to further expand margin Powerful Long-Term Growth Outlook Pristine Balance Sheet Capitalizing on favorabl
Slide 21: Let's Connect
| rgp.com Let's Connect. A red A red A red A red x on square play and button Jenn Ryu Pat Buren Chief Financial Officer Financial Profiles [email protected] [email protected] (918) 269.1234 1 (310) 622.8244 © 2024 Resources Connection, Inc. Confidential | rgp.com | 21
Slide 22: Appendix
Appendix. © 2024 Resources Connection, Inc. Confidential | rgp.com | 22
Slide 23: Historical Segment Information
Historical Segment Information. (Unaudited) ($ in thousands, AUGUST MA Y FEBRUARY NOVEM BER AUGUST except bill rate) 24, 2024 25, 2024 24, 2024 25, 2024 26, 2023 Revenue On-Demand Talent $52,473 $59,515 $64,162 $70,949 $77,974 Consulting 55,025 56,236 55,828 59,058 56,845 Europe & Asia Pacific 17,98
Slide 24: Reconciliation on Non-GAAP Measures
Reconciliation on Non-GAAP Measures. (Unaudited) AUGUST MA Y FEBRUARY NOVEM BER AUGUST ($ in thousands) 24, 2024 25, 2024 24, 2024 25, 2024 26, 2023 Consolidated net (loss) income ($5,707) $10,472 $2,550 $4,895 $3,117 Adjustments: Amortization expense 1,485 1,330 1,413 1,321 1,314 Depreciation expen
Slide 25: Reconciliation on Non-GAAP Measures
Reconciliation on Non-GAAP Measures. Reconciliation of net income to Adjusted EBITDA LTM Q1 ($ in millions) FY2021 FY2022 FY2023 FY2024 FY2025 Net income $ 25.2 $ 67.2 $ 54.3 $ 21.0 $ 12.2 Adjustments: Amortization expense 5.2 4.9 5.0 5.4 5.6 Depreciation expense 3.9 3.6 3.5 3.1 2.7 Interest expense
Slide 26: Reconciliation on Non-GAAP Measures
Reconciliation on Non-GAAP Measures. Reconciliation of cash from operating activities to Free cash Flow and Normalized Free Cash Flow LTM Q1 ($ in millions) FY2021 FY2022 FY2023 FY2024 FY2025 Cash from operating activities $ 39.9 $ 49.4 $ 81.6 $ 21.9 $ 23.8 Less: Capital expenditures (3.8) (3.0) $ (
Slide 27: Reconciliation on Non-GAAP Measures
Reconciliation on Non-GAAP Measures. Reconciliation of run-rate SG&A leverage LTM Q1 ($ in millions) FY2021 FY2022 FY2023 FY2024 FY2025 GAAP SG&A expense $ 209.3 $ 224.7 $ 228.8 $ 208.9 $ 197.9 Less: Stock-based compensation expense 6.6 8.2 9.5 5.7 4.6 Technology transformation costs – 1.4 6.4 6.9 6
Slide 28: Reconciliation on Non-GAAP Measures
Reconciliation on Non-GAAP Measures. Three Months Ended AUGUST % OF AUGUST % OF (1) Segment A djusted EBITDA Marg in is cal cula ted ($ in thousands) 24, 2024 RE VENU E 26, 2023 RE VENU E by d ivid ing seg ment Ad justed EBITDA by segment (1 ) (1 ) revenue. Adjusted EBITDA: (Unaudited) (Unaudited) (
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