Resources Connection, Inc. (NASDAQ: RECN) rose Thursday after reporting better-than-expected earnings for its first quarter.
The company, based in Irvine, Calif., revealed revenue of $178.6 million, up $37.4 million (26.5%) over first quarter of fiscal 2018. U.S. revenue increased 24.8% over first quarter of fiscal 2018. Gross margin improved 20 basis points year-over-year.
Moreover, Q1 2019 diluted earnings per common share increased to $0.18 compared to $0.07 in prior-year quarter. Q1 2019 net income increased to $9.2 million compared to $5.0 million in prior year quarter
Q1 2019.
Adjusted EBITDA Margin was 7.4% compared to 5.6% in prior-year quarter. Net cash used in operating activities was $16.6 million compared to $13.1 million in the prior-year first quarter; the primary cause of the increased use of cash was the increase in revenue in the current quarter (which increased the amount of accounts receivable at quarter-end) compared to the prior year first quarter.
Said CEO Kate Duchene, "We are very pleased by the growth we delivered this quarter in North America, Europe and Asia Pac, as well as the mix of business we are building. As we continue to wind down transformation and acquisition costs over the next few quarters, we intend to deliver more profit to the bottom line.
"As we have communicated previously, we have strengthened the foundations of the business through our evolution the past 18 months; now we are keenly focused on delivering growth, expense management and improved EBITDA performance."
Shares galloped $2.58, or 15.7%, to $19.01 Thursday.
