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Resources Connection (RGP) Earnings Transcript [Globe and Mail, The (Toronto, Canada)]

Resources Connection, Inc. (RGP) 
Chief Financial Officer — Jennifer Ryu Takeaways Consolidated revenue -- $107.9 million, a 19.6% decline on a same-day, constant currency basis compared to the prior year quarter. Gross margin -- 35.7%, up 60 basis points from 35.1% in the prior year quarter, attributed to a favorable pay-to-bill ratio, lower healthcare expenses, and fewer holidays. Adjusted EBITDA -- Negative $1.4 million; no M&A revenue recognized this quarter, as confirmed by Ryu: "Yes, Alex, yes. There's no M&A revenue in the quarter." On-demand talent revenue -- $40.9 million, down 16.3%; segment adjusted EBITDA increased to $2.9 million or 7% margin from $2.6 million or 5.5% margin in the prior year quarter. Consulting revenue -- $36.9 million, a 32.5% decrease; segment adjusted EBITDA was $1.7 million or a 4.6% margin versus $5.9 million or 11.2% margin in the prior year quarter. Europe and Asia Pacific revenue -- $18.1 million, down 5.8%; adjusted EBITDA stayed at $0.8 million with margins of 4. Show less Read more
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