Shares of Resources Connection Inc. (NASDAQ: RECN), a multinational professional services firm, rose sharply in trading on Friday after the company reported its fourth-quarter financial results.
For the fourth quarter ended May 26, 2012, Resources Connection reported total revenue of $145.5 million, up 1.5% on a sequential basis.
Net income for the fourth quarter was $8.9 million, or $0.21 per diluted share, compared to net income of $5.4 million, or $0.12 per diluted share reported for the same period last year. Gross margin for the quarter was 40.2%, up 210 basis points from the same period last year.
Tony Cherbak, COO of Resources Connection, said that while the uncertain global economic environment constrained RECN’s growth, the results for the fourth quarter demonstrate the company’s ongoing efforts to improve its financial metrics. Cherbak said that RECN is pleased to see substantial increases in earnings per share and adjusted EBITDA which have allowed it to continue returning capital to its shareholders.
For the year-ended May 26, 2012, RECN’s revenue was $571.8 million, compared to $545.5 million reported for the year ended May 28, 2011. The company’s net income for the year ended May 26, 2012 was $41.1 million, or $0.94 per diluted share, compared to $24.9 million, or $0.53 per diluted share reported for the year ended May 28, 2011.
RECN shares rose 2.56% to finish at $12 in trading on Friday. The stock has gained 13.31% year-to-date, compared to a gain of 11.64% for the NASDAQ.
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