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Resources Connection Inc. (RGP+0.06%) has submitted its 10-Q filing for the quarterly period ended November 23, 2024.
The filing details a decrease in revenue to $145.6 million from $163.1 million in the same quarter the previous year, attributed to reduced client spending amidst economic uncertainty.
Direct cost of services decreased to $89.5 million, representing 61.5% of revenue, compared to 61.1% in the prior year. The decrease is linked to a decline in billable hours.
The company reported a gross profit of $56.1 million, down from $63.5 million in the previous year.
Selling, general, and administrative expenses were $51.3 million, a slight decrease from $53.0 million, due to reduced employee compensation and other cost-saving measures.
Resources Connection recorded a goodwill impairment charge of $79.5 million, impacting the On-Demand Talent and Europe & Asia Pacific segments.
Net loss for the quarter was $68.7 million, compared to a net income of $4.9 million in the previous year.
Cash provided by operating activities was $1.5 million, while cash used in investing and financing activities was $12.7 million and $17.4 million, respectively.
The company had $78.2 million in cash and cash equivalents as of November 23, 2024.
Resources Connection's Credit Facility remains undrawn, with $173.5 million available for use.
The filing also notes a material weakness in internal controls over financial reporting, which the company is addressing through enhanced review procedures and documentation standards.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Resources Connection Inc. quarterly 10-Q report dated January 2, 2025. To report an error, please email earnings@qz.com.