Resources Connection, Inc. (NASDAQ:RGP) Q4 2022 Earnings Conference Call July 28, 2022 5:00 PM ET

Company Participants

Kate Duchene - CEO

Tim Brackney - President & COO

Jenn Ryu - CFO

Conference Call Participants

Andrew Steinerman - JPMorgan

Mark Marcon - Robert W. Baird

Marc Riddick - Sidoti

Operator

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. As a reminder, this conference call is being recorded.

At this time, I would like to remind everyone that management will be commenting on results for the fourth quarter ended May 28, 2022. They will also refer to certain non-GAAP financial measures. An explanation and reconciliation of these measures to the most comparable GAAP financial measures are included in the press release issued today. Today’s press release can be viewed in the Investor Relations section of RGP's website and also filed today with the SEC.

Also during this call, management may make forward-looking statements regarding plans, initiatives and strategies and the anticipated financial performance of the company. Such statements are predictions and actual events or results may differ materially. Please see the Risk Factors section in RGP's report on Form 10-K for the year ended May 28, 2021, for a discussion of risks, uncertainties and other factors that may cause the company's business, results of operations and financial condition to differ materially from what is expressed or implied by forward-looking statements made during this call. Such discussion will also be included in the Risk Factors section in RGP's report on Form 10-K for the year ended May 28, 2022, which will be filed today, July 28, 2022.

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

Kate Duchene

Thank you, Operator. Good afternoon, everyone, and thanks for being with us.

We're very proud of our recent performance, strongly capping off an outstanding year. We delivered exceptional Q4 results with double-digit revenue growth and the highest margin and profitability levels reached in well over a decade. These results all exceeded the high-end of our guidance. Specifically, Q4 revenue was almost 26% higher than prior year. Gross margin improved more than 170 basis points over prior year to 41.3%. Gross profit increased more than 31% quarter-over-quarter and adjusted EBITDA margin improved 340 basis points to 15.4% over prior year.