Resources Connection Posts 23-Cent Q1 Loss as Revenue Woes Persist
RGP sits 22% above its 52-week low of $3.055.
Summary
Resources Connection reported a Q1 loss of 23 cents per share, with an adjusted loss of 16 cents per share and a net loss of $7.97 million on revenue of $98.1 million. The company has been bleeding revenue—Q4 fell 24% year-over-year—and this loss confirms the pain is continuing. The CFO resigned effective October 2, and a material weakness in internal controls was disclosed in the 10-K. With a $30M credit facility and a $40.6M net loss last year, the balance sheet is under pressure. The October 22 annual meeting will vote on 2.5M additional shares, which could dilute existing holders.
Updates
· SEC 8-K — RGP's Q1 net loss was $8.0 million, or $0.23 per share, on revenue of $98.1 million, with adjusted EBITDA of $(3.6) million.
At the time of this announcement, RGP was trading at $3.74 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $129.8M. The 52-week trading range was $3.06 to $5.37. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.