Resources Connection Inc (NASDAQ:RECN) Q2 2020 Earnings Conference Call - Final Transcript

Jan 02, 2020 • 05:00 pm ET


Resources Connection Inc (NASDAQ:RECN) Q2 2020 Earnings Conference Call - Final Transcript


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Good afternoon, ladies and gentlemen, and welcome to the Resources Connection Inc. Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions]. As a reminder, this conference call is being recorded.

At this time, I would like to turn the call over to your host for today's call Ms. Alice Washington, General Counsel of Resources Connection. Ms. Washington, you may now begin.

Alice Washington

Thank you operator. Good afternoon everyone and thank you for participating on this call. Joining me here today are Kate Duchene, our Chief Executive Officer; Tim Brackney, our Chief Operating Officer; and Jennifer Ryu, our Interim Chief Financial Officer.

During the call, we will be commenting on our results for the second quarter ended November 23rd, 2019. By now you should have a copy of today's press release. If you need a copy and are unable to access it on our website, please call Shannon McPhee, 714-430-6363.

During this call, we may make forward-looking statements regarding future events or future financial performance of the company. Such statements are predictions and actual events or results may differ materially. Please see our report on Form 10-K for the year ended May 25th, 2019 for a discussion of risks, uncertainties and other factors such as seasonal and economic conditions. Such factors may cause our business, results of operations and financial condition to differ materially from results of operations and financial conditions expressed or implied by forward-looking statements made during this call.

I'll now turn the call over to our CEO, Kate Duchene.

Kate Duchene

Thanks Alex. Good afternoon and welcome to RGPs 2020 second quarter conference call. Happy New Year, everyone. I will start with a brief overview of our operating results for the second quarter. Second, I will update you on our progress to become a more digital business, both in how we serve our client base and how we operate. Third, I will discuss certain macro trends we believe will be beneficial to our business in the second half of the fiscal year and beyond. And fourth, I will preview a project we are initiating in Q3, to optimize our core operations and create more business agility.

Our total revenues for the second quarter of fiscal 2020 were $184.5 million, which represents a slight decrease of about 2% over the second quarter a year-ago. The sequential increase in revenue was 7.1%. The increase in revenue came from North America and Europe, aided by the addition of Veracity the digital transformation firm we acquired in late July.

Our Asia-Pacific revenue was down slightly, which is unusual in the second quarter, but mainly because of two different week-long holiday periods during the quarter in our largest markets. One holiday week was in China to celebrate 70th the anniversary of the People's Republic; and the other holiday week occurred in Japan, to honor the new Emperor's reign.

Without those significant holiday events, Asia-Pacific would have grown in