Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Aug. 26, 2023 | Sep. 28, 2023 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Aug. 26, 2023 | |
Document Transition Report | false | |
Entity File Number | 0-32113 | |
Entity Registrant Name | RESOURCES CONNECTION, INC. | |
Entity Incorporation State Country Code | DE | |
Entity Tax Identification Number | 33-0832424 | |
Entity Address Address Line 1 | 17101 Armstrong Avenue | |
Entity Address City Or Town | Irvine | |
Entity Address State Or Province | CA | |
Entity Address Postal Zip Code | 92614 | |
City Area Code | 714 | |
Local Phone Number | 430-6400 | |
Security 12b Title | Common stock, par value $0.01 per share | |
Trading Symbol | RGP | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 33,697,769 | |
Current Fiscal Year End Date | --05-25 | |
Amendment Flag | false | |
Entity Central Index Key | 0001084765 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 26, 2023 | May 27, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 112,595 | $ 116,784 |
Trade accounts receivable, net of allowance for doubtful accounts of $3,288 and $3,283 as of August 26, 2023 and May 27, 2023, respectively | 131,628 | 137,356 |
Prepaid expenses and other current assets | 5,811 | 5,187 |
Income taxes receivable | 3,507 | 4,739 |
Total current assets | 253,541 | 264,066 |
Goodwill | 206,811 | 206,722 |
Intangible assets, net | 10,415 | 11,521 |
Property and equipment, net | 14,850 | 15,380 |
Operating lease right-of-use assets | 15,180 | 15,856 |
Deferred tax assets | 10,852 | 10,701 |
Other non-current assets | 10,738 | 7,753 |
Total assets | 522,387 | 531,999 |
Current liabilities: | ||
Accounts payable and other accrued expenses | 15,657 | 14,464 |
Accrued salaries and related obligations | 50,882 | 64,776 |
Operating lease liabilities, current | 6,907 | 7,460 |
Other current liabilities | 10,444 | 10,384 |
Total current liabilities | 83,890 | 97,084 |
Long-term debt | ||
Operating lease liabilities, non-current | 9,799 | 10,274 |
Deferred tax liabilities | 6,789 | 7,136 |
Other non-current liabilities | 3,068 | 2,985 |
Total liabilities | 103,546 | 117,479 |
Commitments and contingencies (see Note 12) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 5,000 shares authorized; zero shares issued and outstanding | ||
Common stock, $0.01 par value, 70,000 shares authorized; 35,765 and 35,545 shares issued, and 33,697 and 33,475 shares outstanding as of August 26, 2023 and May 27, 2023, respectively | 358 | 355 |
Additional paid-in capital | 384,381 | 378,657 |
Accumulated other comprehensive loss | (16,948) | (17,290) |
Retained earnings | 85,861 | 87,648 |
Treasury stock at cost, 2,068 and 2,070 shares as of August 26, 2023 and May 27, 2023, respectively | (34,811) | (34,850) |
Total stockholders' equity | 418,841 | 414,520 |
Total liabilities and stockholders' equity | $ 522,387 | $ 531,999 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Aug. 26, 2023 | May 27, 2023 |
Consolidated Balance Sheets [Abstract] | ||
Trade accounts receivable, allowance for doubtful accounts | $ 3,288 | $ 3,283 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 70,000,000 | 70,000,000 |
Common stock, shares issued | 35,765,000 | 35,545,000 |
Common stock, shares outstanding | 33,697,000 | 33,475,000 |
Treasury stock at cost, shares | 2,068,000 | 2,070,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Aug. 26, 2023 | Aug. 27, 2022 | |
Consolidated Statements Of Operations [Abstract] | ||
Revenue | $ 170,169 | $ 204,062 |
Direct cost of services | 103,168 | 120,595 |
Gross profit | 67,001 | 83,467 |
Selling, general and administrative expenses | 59,932 | 56,187 |
Amortization expense | 1,314 | 1,252 |
Depreciation expense | 877 | 887 |
Income from operations | 4,878 | 25,141 |
Interest (income) expense, net | (312) | 316 |
Other income | (2) | (307) |
Income before income tax expense | 5,192 | 25,132 |
Income tax expense | 2,075 | 6,992 |
Net income | $ 3,117 | $ 18,140 |
Net income per common share: | ||
Basic (per share) | $ 0.09 | $ 0.55 |
Diluted (per share) | $ 0.09 | $ 0.53 |
Weighted-average number of common and common equivalent shares outstanding: | ||
Basic (shares) | 33,412 | 33,277 |
Diluted (shares) | 34,010 | 34,234 |
Cash dividends declared per common share | $ 0.14 | $ 0.14 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 26, 2023 | Aug. 27, 2022 | |
COMPREHENSIVE INCOME: | ||
Net income | $ 3,117 | $ 18,140 |
Foreign currency translation adjustment, net of tax | 342 | (4,989) |
Total comprehensive income | $ 3,459 | $ 13,151 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Total |
Balances at May. 28, 2022 | $ 344 | $ 355,502 | $ (19,651) | $ (16,484) | $ 52,738 | $ 372,449 |
Balances (in shares) at May. 28, 2022 | 34,352 | 1,155 | ||||
Exercise of stock options | $ 3 | 6,058 | 6,061 | |||
Exercise of stock options (in shares) | 371 | |||||
Stock-based compensation expense | 2,171 | 2,171 | ||||
Issuance of common stock purchased under Employee Stock Purchase Plan | $ 2 | 2,841 | 2,843 | |||
Issuance of common stock purchased under Employee Stock Purchase Plan (in shares) | 183 | |||||
Cash dividends declared | (4,720) | (4,720) | ||||
Dividend equivalents on equity awards | 76 | (76) | ||||
Currency translation adjustment | (4,989) | (4,989) | ||||
Net income | 18,140 | 18,140 | ||||
Balances at Aug. 27, 2022 | $ 349 | 366,648 | $ (19,651) | (21,473) | 66,082 | 391,955 |
Balances (in shares) at Aug. 27, 2022 | 34,906 | 1,155 | ||||
Balances at May. 27, 2023 | $ 355 | 378,657 | $ (34,850) | (17,290) | 87,648 | $ 414,520 |
Balances (in shares) at May. 27, 2023 | 35,545 | 2,070 | 33,475 | |||
Exercise of stock options | $ 1 | 341 | $ 342 | |||
Exercise of stock options (in shares) | 22 | 22 | ||||
Stock-based compensation expense | 2,466 | $ 2,466 | ||||
Issuance of common stock purchased under Employee Stock Purchase Plan | $ 2 | 2,772 | 2,774 | |||
Issuance of common stock purchased under Employee Stock Purchase Plan (in shares) | 198 | |||||
Issuance of restricted stock | $ 39 | (39) | ||||
Issuance of restricted stock (in shares) | (2) | |||||
Cash dividends declared | (4,720) | (4,720) | ||||
Dividend equivalents on equity awards | 145 | (145) | ||||
Currency translation adjustment | 342 | 342 | ||||
Net income | 3,117 | 3,117 | ||||
Balances at Aug. 26, 2023 | $ 358 | $ 384,381 | $ (34,811) | $ (16,948) | $ 85,861 | $ 418,841 |
Balances (in shares) at Aug. 26, 2023 | 35,765 | 2,068 | 33,697 |
Consolidated Statements Of St_2
Consolidated Statements Of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Aug. 26, 2023 | Aug. 27, 2022 | |
Consolidated Statements Of Stockholders' Equity [Abstract] | ||
Cash dividends declared per common share | $ 0.14 | $ 0.14 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Aug. 26, 2023 | Aug. 27, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 3,117 | $ 18,140 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization expense | 2,191 | 2,139 |
Stock-based compensation expense | 2,552 | 2,529 |
(Gain) on dispositions of subsidiaries | (238) | |
Adjustment to allowance for doubtful accounts | 179 | 81 |
Deferred income taxes | (498) | (1,957) |
Other, net | 56 | (385) |
Changes in operating assets and liabilities, net of dispositions: | ||
Trade accounts receivable | 5,730 | (6,131) |
Prepaid expenses and other current assets | (627) | 367 |
Income taxes | 735 | 7,693 |
Other assets | (3,029) | 1,792 |
Accounts payable and other accrued expenses | 1,166 | (794) |
Accrued salaries and related obligations | (13,949) | (24,757) |
Other liabilities | 163 | (3,775) |
Net cash used in operating activities | (2,214) | (5,296) |
Cash flows from investing activities: | ||
Proceeds from sale of taskforce | 2,984 | |
Investments in property and equipment and internal-use software | (548) | (709) |
Net cash (used in) provided by investing activities | (548) | 2,275 |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 350 | 6,686 |
Proceeds from issuance of common stock under Employee Stock Purchase Plan | 2,774 | 2,843 |
Proceeds from Revolving Credit Facility | 15,000 | |
Repayments on Revolving Credit Facility | (49,000) | |
Payment of cash dividends | (4,681) | (4,647) |
Net cash used in financing activities | (1,557) | (29,118) |
Effect of exchange rate changes on cash and cash equivalents | 130 | 490 |
Net decrease in cash and cash equivalents | (4,189) | (31,649) |
Cash and cash equivalents at beginning of period | 116,784 | 104,224 |
Cash and cash equivalents at end of period | 112,595 | 72,575 |
Supplemental cashflow disclosures | ||
Income taxes paid, net | 1,620 | 1,041 |
Interest paid | 88 | $ 309 |
Non-cash investing and financing activities | ||
Increase in long-term receivable in connection with the sale of taskforce | 2,984 | |
Dividends declared, not paid | $ 4,720 | $ 4,720 |
Description Of The Company And
Description Of The Company And Its Business | 3 Months Ended |
Aug. 26, 2023 | |
Description Of The Company And Its Business [Abstract] | |
Description Of The Company And Its Business | 1. Description of the Company and its Business Resources Connection, Inc. (the “Company”), a Delaware corporation, was incorporated on November 16, 1998. The Company’s operating entities provide services primarily under the name Resources Global Professionals (“RGP”). RGP is a global consulting firm focused on project execution services that power clients’ operational needs and change initiatives utilizing on-demand, experienced and diverse talent. As a next-generation human capital partner for its clients, the Company specializes in co-delivery of enterprise initiatives typically precipitated by business transformation, strategic transactions or regulatory change. The Company’s principal markets of operations are North America, Europe and Asia Pacific. The Company’s fiscal year consists of 52 or 53 weeks, ending on the Saturday in May closest to May 31 . The first quarters of fiscal 2024 and 2023 each consisted of 13 weeks. The Company’s fiscal year 2024 will consist of 52 weeks. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 3 Months Ended |
Aug. 26, 2023 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited financial statements of the Company as of and for the three months ended August 26, 2023 and August 27, 2022 have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. These financial statements include all adjustments (consisting only of normal recurring adjustments) the Company’s management considers necessary for a fair presentation of its financial position at such dates and the operating results and cash flows for those periods. The financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although management believes these estimates and assumptions are adequate, actual results could differ from the estimates and assumptions used. The fiscal 2023 year-end balance sheet data was derived from audited consolidated financial statements, and certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to Securities and Exchange Commission (“SEC”) rules or regulations; however, the Company believes the disclosures made are adequate to make the information presented not misleading. The unaudited consolidated results of operations for the interim periods presented are not necessarily indicative of the results of operations to be expected for the full fiscal year. These interim financial statements should be read in conjunction with the audited consolidated financial statements for the year ended May 27, 2023, which are included in the Company’s Annual Report on Form 10-K (“Fiscal Year 2023 Form 10-K”) filed with the SEC on July 25, 2023 (File No. 0-32113). A complete listing of the Company’s significant accounting policies is discussed in Note 2 – Summary of Significant Accounting Policies in the Notes to Consolidated Financial Statements included in the Fiscal Year 2023 Form 10-K. Reporting Segments On May 31, 2022, the Company divested taskforce – Management on Demand GmbH, and its wholly owned subsidiary skillforce – Executive Search GmbH, a German professional services firm operating under the taskforce brand (“ taskforce”) ; see Note 4 – Dispositions for further information. Since the second quarter of fiscal 2021, the business operated by taskforce , along with its parent company, Resources Global Professionals (Germany) GmbH (“RGP Germany”), an affiliate of the Company, represented an operating segment of the Company and was reported as a part of Other Segments. Effective May 31, 2022, the Company’s operating segments consist of the following: RGP – a global consulting firm focused on project execution services that power clients’ operational needs and change initiatives utilizing on-demand, experienced and diverse talent; and Sitrick – a crisis communications and public relations firm which operates under the Sitrick brand, providing corporate, financial, transactional and crisis communication and management services. Each of these segments reports through a separate management team to the Company’s Chief Executive Officer, who is designated as the Chief Operating Decision Maker (“CODM”) for segment reporting purposes. RGP is the Company’s only reportable segment. Sitrick does not individually meet the quantitative threshold to qualify as a reportable segment. Therefore, Sitrick is disclosed in Other Segments. Each of these segments represents a reporting unit for the purposes of assessing goodwill for impairment. Prior-period comparative segment information was not restated as a result of the divestiture of taskforce as the Company did not have a change in internal organization or the financial information that the CODM uses to assess performance and allocate resources. See Note 13 – Segment Information and Enterprise Reporting for further information. Per Share Information The Company presents both basic and diluted earnings per share (“EPS”). Basic EPS is calculated by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted EPS is based upon the weighted-average number of common shares and common equivalent shares outstanding during the period, calculated using the treasury stock method. Common equivalent shares are excluded from the computation in periods in which they have an anti-dilutive effect. Stock options for which the exercise price exceeds the average market price over the period are anti-dilutive and are excluded from the calculation. Performance stock units are also excluded from the basic EPS calculation, since the number of shares subject to the award that will vest will not be determined until after the end of the applicable performance period. The following table summarizes the calculation of net income per common share for the three months ended August 26, 2023 and August 27, 2022 (in thousands, except per share amounts): Three Months Ended August 26, August 27, 2023 2022 Net income $ 3,117 $ 18,140 Basic: Weighted-average shares 33,412 33,277 Diluted: Weighted-average shares 33,412 33,277 Potentially dilutive shares 598 957 Total diluted shares 34,010 34,234 Net income per common share: Basic $ 0.09 $ 0.55 Diluted $ 0.09 $ 0.53 Anti-dilutive shares not included above 1,388 - Financial Instruments The fair value of the Company’s financial instruments reflects the amounts that the Company estimates it will receive in connection with the sale of an asset in an orderly transaction between market participants at the measurement date (exit price). The Company’s financial instruments, including cash and cash equivalents, trade accounts receivable, accounts payable and other accrued expenses and long-term debt are carried at cost, which approximates their fair value because of the short - term maturity of these instruments or because their stated interest rates are indicative of market interest rates. Capitalized Hosting Arrangements The capitalized hosting arrangements costs are primarily related to the implementation of a cloud-based enterprise resource planning system and talent acquisition and management systems. Such costs include third party implementation costs and costs associated with internal resources directly involved in the implementation. Capitalized hosting arrangements are stated at historical cost and amortized on a straight-line basis over an estimated useful life of the expected term of the hosting arrangement, taking into consideration several other factors such as, but not limited to, options to extend the hosting arrangement or options to terminate the hosting arrangement. The amortization of capitalized implementation costs for hosting arrangements will commence when the systems are ready for their intended use and will be presented as operating expenses on the consolidated statements of operations consistent with the presentation for expensing the fees for the associated hosting arrangement. As of August 26, 2023 , the capitalized costs related to hosting arrangements incurred during the application development stage were $ 9.1 million. These capitalized hosting arrangements are included in other non-current assets on the consolidated balance sheet and less than $ 0.1 million were amortized during the three months ended August 26, 2023. There were $ 6.0 million capitalized costs recorded as of May 27, 2023 and no costs were amortized during the three months ended August 27, 2022. Recent Accounting Pronouncements No recent accounting pronouncements or changes in accounting pronouncements have been issued or adopted that are of material significance , or have potential material significance, to the Company’s financial statements since those discussed in the Company’s Fiscal Year 2023 Form 10-K. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Aug. 26, 2023 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 3. Revenue Recognition The timing of revenue recognition, billings and cash collections affects the recognition of trade accounts receivable, contract assets and contract liabilities. Contract assets represent the Company’s rights to consideration for completed performance under the contract (i.e., unbilled receivables), in which the Company has transferred control of the product or services before there is an unconditional right to payment. Contract assets were $ 37.0 million and $ 35.4 million as of August 26, 2023 and May 27, 2023, respectively, which were included in trade accounts receivable in the Consolidated Balance Sheets. Contract liabilities represent deferred revenue when cash is received in advance of performance of services and are presented in other current liabilities in the Consolidated Balance Sheets. Contract liabilities were $ 2.9 million and $ 3.1 million as of August 26, 2023 and May 27, 2023, respectively. Revenue recognized during the three months ended August 26, 2023 that was included in deferred revenue as of May 27, 2023 was $ 1.6 million. |
Dispositions
Dispositions | 3 Months Ended |
Aug. 26, 2023 | |
Dispositions [Abstract] | |
Dispositions | 4. Dispositions On April 21, 2022, RGP Germany entered into a Sale and Purchase Agreement (the “SPA”) to sell its business in taskforce to MoveVision – Management-, Beteiligungs- und Servicegesellschaft mbH and Blue Elephant – Management-, Beteiligungs- und Servicegesellschaft mbH (collectively, the “Purchasers”), owned by the original founder and a member of the senior leadership team of taskforce , respectively. The SPA provided for the sale of all of the shares of taskforce from RGP Germany to the Purchasers for a purchase price of approximately EUR 5.5 million, subject to final working capital adjustments, with 50 % of the consideration to be paid in cash in connection with the closing and the remaining 50 % payable on July 1, 2024 and bearing interest based on the Company’s average borrowing interest rate plus 285 basis points, compounded annually . On May 31, 2022 , the Company completed the sale of taskforce . Upon conclusion of the Final Completion Accounts and Calculation (as defined in the Sale and Purchase Agreement), the final purchase price was determined to be EUR 5.5 million (approximately $ 6.0 million), of which EUR 2.8 million (approximately $ 3.0 million) was received in cash and EUR 2.7 million (approximately $ 3.0 million) shall become due in July 2024 in accordance with the SPA. During fiscal year 2023, the Company received full payment from the purchasers of taskforce on the note receivable in the amount of EUR 2.7 million (approximately $ 3.0 million), which included an interest payment. The Company recognized a $ 0.2 million gain on the sale in the three months ended August 27, 2022, which was recorded in other income in the Company’s Consolidated Statements of Operations. The disposition of taskforce did not qualify as a discontinued operation because it did not represent a strategic shift that has or will have a major effect on the Company’s operations or financial results. |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 3 Months Ended |
Aug. 26, 2023 | |
Goodwill And Intangible Assets [Abstract] | |
Goodwill And Intangible Assets | 5. Goodwill and Intangible Assets The following table summarizes the activity in the Company’s goodwill balance (in thousands): RGP Other Segments Total Balance as of May 27, 2023 $ 206,722 $ - $ 206,722 Impact of foreign currency exchange rate changes 89 - 89 Balance as of August 26, 2023 $ 206,811 $ - $ 206,811 The following table presents details of the Company’s intangible assets, estimated lives and related accumulated amortization (in thousands): As of August 26, 2023 As of May 27, 2023 Estimated Gross Net Gross Net Useful Carrying Accumulated Carrying Carrying Accumulated Carrying Life Amount Amortization Amount Amount Amortization Amount Customer contracts and relationships 3 - 8 years $ 22,000 $ ( 14,530 ) $ 7,470 $ 22,000 $ ( 13,802 ) $ 8,198 Computer software 2 - 3.5 years 7,749 ( 4,804 ) 2,945 7,541 ( 4,218 ) 3,323 Total $ 29,749 $ ( 19,334 ) $ 10,415 $ 29,541 $ ( 18,020 ) $ 11,521 The Company recorded amortization expense of $ 1.3 million for each of the three months ended August 26, 2023 and August 27, 2022. The following table presents future estimated amortization expense based on existing intangible assets (in thousands): Fiscal Years: 2024 (remaining nine months) $ 3,899 2025 3,768 2026 2,463 2027 285 2028 - Total $ 10,415 Actual future estimated amortization expense could differ from these estimated amounts as a result of future acquisitions, dispositions, impairments, and other factors or changes. |
Leases
Leases | 3 Months Ended |
Aug. 26, 2023 | |
Leases [Abstract] | |
Leases | 6. Leases The Company currently leases office space, vehicles and certain equipment under operating leases through fiscal 2030. In addition, the Company owns its headquarters office building located in Irvine, California and leases approximately 13,000 square feet of the approximately 57,000 square feet of the building to independent third parties pursuant to operating lease agreements with terms through fiscal 2025. Lease cost components included within selling, general and administrative expenses in the Consolidated Statements of Operations were as follows (in thousands): Three Months Ended August 26, 2023 August 27, 2022 Operating lease cost (1) $ 1,864 $ 1,529 Short-term lease cost 57 25 Variable lease cost 373 246 Sublease income (2) ( 129 ) ( 148 ) Total lease cost $ 2,165 $ 1,652 (1) Operating lease cost for the three months ended August 27, 2022 includes a $ 0.4 million reduction resulting from a one-time settlement of a lease liability involving an office space. (2) Sublease income does not include rental income received from owned property, which is not material. The weighted-average lease term and weighted-average discount rate for operating leases as of August 26, 2023 and May 27, 2023 are presented in the following table: As of As of August 26, 2023 May 27, 2023 Weighted-average remaining lease term 3.4 years 3.4 years Weighted-average discount rate 4.10 % 3.97 % Cash flow and other noncash information related to operating leases is included in the following table (in thousands): Three Months Ended August 26, 2023 August 27, 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 2,209 $ 2,473 Right-of-use assets obtained in exchange for new operating lease obligations $ 983 $ 3,601 Future m aturities of operating lease liabilities as of August 26, 2023 are presented in the following table (in thousands): Fiscal Years: Operating Lease Maturity 2024 (remaining nine months) $ 5,999 2025 4,664 2026 3,053 2027 1,830 2028 1,495 Thereafter 882 Total future lease payments $ 17,923 Less: interest ( 1,217 ) Present value of operating lease liabilities $ 16,706 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Aug. 26, 2023 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | 7. Long-Term Debt On November 12, 2021, the Company and Resources Connection LLC, as borrowers, and all of the Company’s domestic subsidiaries, as guarantors, entered into a credit agreement with the lenders party thereto and Bank of America, N.A. as administrative agent for the lenders (the “Credit Agreement”) . The Credit Agreement provides for a $ 175.0 million senior secured revolving loan (the “Credit Facility”), which includes a $ 10.0 million sublimit for the issuance of standby letters of credit and a swingline sublimit of $ 20.0 million. The Credit Facility also includes an option to increase the amount of the revolving loan up to an additional $ 75.0 million , subject to the terms of the Credit Agreement . The Credit Facility matures on November 12, 2026 . The obligations under the Credit Facility are secured by substantially all assets of the Company, Resources Connection LLC and all of the Company’s domestic subsidiaries. Future borrowings under the Credit Facility bear interest at a rate per annum of either, at the Company’s election, (i) Term SOFR (as defined in the Credit Agreement) plus a margin ranging from 1.25 % to 2.00 % or (ii) the Base Rate (as defined in the Credit Agreement), plus a margin of 0.25 % to 1.00 % with the applicable margin depending on the Company’s consolidated leverage ratio. In addition, the Company pays an unused commitment fee on the average daily unused portion of the Credit Facility, which ranges from 0.20 % to 0.30 % depending upon the Company’s consolidated leverage ratio. The Credit Agreement contains both affirmative and negative covenants. Covenants include, but are not limited to, limitations on the Company’s and its subsidiaries’ ability to incur liens, incur additional indebtedness, make certain restricted payments, merge or consolidate and make dispositions of assets. In addition, the Credit Agreement requires the Company to comply with financial covenants including limitation on the Company’s total funded debt, minimum interest coverage ratio and maximum leverage ratio. The Company was compliant with all financial covenants under the Credit Agreement as of August 26, 2023. As of August 26, 2023 and May 27, 2023, the Company had no debt outstanding under the Credit Facility. In addition, the Company had $ 0.8 million of outstanding letters of credit issued under the Credit Facility as of both August 26, 2023 and May 27, 2023. As of August 26, 2023, there was $ 174.2 million remaining capacity under the Credit Facility. On November 2, 2022, Resources Global Enterprise Consulting (Beijing) Co., Ltd. (a wholly-owned subsidiary of the Company), as borrower, and the Company, as guarantor, entered into a RMB 13.4 million (USD $ 1.8 million based on the prevailing exchange rate on November 2, 2022) revolving credit facility with Bank of America, N.A. (Beijing) as the lender (the “Beijing Revolver”). The Beijing Revolver bears interest at loan prime rate plus 0.80 %. Interest incurred on borrowings will be payable monthly in arrears. As of August 26, 2023, the Company had no debt outstanding under the Beijing Revolver and RMB 13.4 million ($ 1.9 million based on the prevailing exchange rate on August 26, 2023) in available credit. The availability of proceeds under the Beijing Revolver is at the lender's absolute discretion and may be terminated at any time by the lender, with or without prior notice to the borrower. |
Income Taxes
Income Taxes | 3 Months Ended |
Aug. 26, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | 8. Income Taxes For the three months ended August 26, 2023 and August 27, 2022, the Company’s income tax expense was $ 2.1 million, an effective tax rate of 40.0 %, and $ 7.0 million, an effective tax rate of 27.8 %, respectively. The higher effective tax rate in the first quarter of fiscal 2024 was attributed to lower pre-tax income globally when compared to the first quarter of fiscal 2023. We incurred pre-tax losses in various foreign entities where we could not recognize income tax benefits as a result of the required valuation allowances. This lower global pre-tax income causes the effective tax rate to increase because the permanent GAAP to tax differences are measured against the lower base amount. The Company operates in an international environment. Accordingly, the consolidated effective tax rate is a composite rate reflecting the earnings (losses) in various locations and the applicable tax rates in those jurisdictions, and fluctuations in the consolidated effective tax rate year over year, are due to the changes in the mix of operating income and losses amongst the various jurisdictions in which the Company operates. The Company recognized a tax benefit of approximately $ 0.2 million and $ 0.6 million associated with the exercise of nonqualified stock options, vesting of restricted stock awards, restricted stock units, and disqualifying dispositions by employees of shares acquired under the Employee Stock Purchase Plan (“ESPP”) during the three months ended August 26, 2023 and August 27, 2022, respectively. The Company’s total liability for unrecognized gross tax benefits, including accrued interest and penalties, was $ 1.0 million as of both August 26, 2023 and May 27, 2023, which, if ultimately recognized, would impact the effective tax rate in future periods. The unrecognized tax benefits are included in other long-term liabilities in the Consolidated Balance Sheets. None of the unrecognized tax benefits are short-term liabilities as the Company does not anticipate any cash payments within 12 months to settle the liability. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Aug. 26, 2023 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 9. Stockholders’ Equity Stock Repurchase Program The Company’s board of directors has previously approved a stock repurchase program authorizing the repurchase, at the discretion of the Company’s senior executives, of the Company’s common stock for a designated aggregate dollar limit. The current program was authorized in July 2015 (the “July 2015 Program”) and set an aggregate dollar limit not to exceed $ 150 million. Subject to the aggregate dollar limit, the currently authorized stock repurchase program does not have an expiration date. Repurchases under the program may take place in the open market or in privately negotiated transactions and may be made pursuant to a Rule 10b5-1 plan. During the three months ended August 26, 2023 and August 27, 2022, the Company made no repurchases of its common stock. As of August 26, 2023, approximately $ 50.2 million remained available for future repurchases of the Company’s common stock under the July 2015 Program. Quarterly Dividend Subject to approval each quarter by its board of directors, the Company pays a regular dividend. On July 27, 2023, the board of directors declared a regular quarterly dividend of $ 0.14 per share of the Company’s common stock. The dividend was paid on September 21, 2023 to stockholders of record at the close of business on August 24, 2023. As of both August 26, 2023 and May 27, 2023, $ 4.7 million was accrued and recorded in other current liabilities in the Company’s Consolidated Balance Sheets for dividends declared but not yet paid. Continuation of the quarterly dividend is at the discretion of the board of directors and depends upon the Company’s financial condition, results of operations, capital requirements, general business condition, contractual restrictions contained in the Credit Facility and other agreements, and other factors deemed relevant by the board of directors. |
Restructuring Activities
Restructuring Activities | 3 Months Ended |
Aug. 26, 2023 | |
Restructuring Activities [Abstract] | |
Restructuring Activities | 10. Restructuring Activities During calendar year 2020, the Company initiated a global restructuring and business transformation plan in North America, Asia Pacific and Europe (the “Restructuring Plans”). The Restructuring Plans consisted of two key components: (i) an effort to streamline the management and organizational structure and eliminate certain positions as well as exit certain markets to focus on core solution offerings and high-growth clients; and (ii) a strategic rationalization of the Company’s physical geographic footprint and real estate spend to focus investment dollars in high-growth core markets for greater impact. The Company incurred employee termination and facility exit costs associated with the Company’s restructuring initiatives within its RGP segment, and were recorded in selling, general and administrative expenses in its Consolidated Statements of Operations. The Restructuring Plans were substantially completed in fiscal 2021. Restructuring adjustments, including real estate exit costs and adjustments to employee termination costs, associated with the restructuring activities was zero and ($ 0.4 ) million for the three months ended August 26, 2023 and August 27, 2022, respectively. There was no remaining restructuring liability as of May 27, 2023. See Note 14 – Subsequent Event for further information. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 3 Months Ended |
Aug. 26, 2023 | |
Stock-Based Compensation Plans [Abstract] | |
Stock-Based Compensation Plans | 11. Stock-Based Compensation Plans General The Company’s stockholders approved the Resources Connection, Inc. 2020 Performance Incentive Plan (the “2020 Plan”) on October 22, 2020, which replaced and succeeded in its entirety the Resources Connection, Inc. 2014 Performance Incentive Plan (the “2014 Plan”). Executive officers and certain employees, as well as non-employee directors of the Company and certain consultants and advisors are eligible to participate in the 2020 Plan. The maximum number of shares of the Company’s common stock that may be issued or transferred pursuant to awards under the 2020 Plan equals: (1) 1,797,440 (which represents the number of shares that were available for additional award grant purposes under the 2014 Plan immediately prior to the termination of the authority to grant new awards under the 2014 Plan as of October 22, 2020), plus (2) the number of any shares subject to stock options granted under the 2014 Plan or the Resources Connection, Inc. 2004 Performance Incentive Plan (together with the 2014 Plan, the “Prior Plans”) and outstanding as of October 22, 2020 which expire, or for any reason are cancelled or terminated, after that date without being exercised, plus (3) the number of any shares subject to restricted stock and restricted stock unit awards granted under the Prior Plans that are outstanding and unvested as of October 22, 2020 which are forfeited, terminated, cancelled, or otherwise reacquired after that date without having become vested. Awards under the 2020 Plan may include, but are not limited to, stock options, stock appreciation rights, restricted stock, performance stock, stock units, stock bonuses and other forms of awards granted or denominated in shares of common stock or units of common stock, as well as certain cash bonus awards. Historically, the Company has granted restricted stock, restricted stock units and stock option awards under the 2020 Plan that typically vest in equal annual installments, and performance stock unit awards under the 2020 Plan that vest upon the achievement of certain Company-wide performance targets at the end of the defined performance period. Stock option grants typically terminate ten years from the date of grant. Vesting periods for restricted stock, restricted stock units and stock option awards range from three to four years . The performance periods for the performance stock unit awards are three years . As of August 26, 2023, there were 1,252,835 shares available for further award grants under the 2020 Plan. Stock-Based Compensation Expense Stock-based compensation expense included in selling, general and administrative expenses was $ 2.6 million and $ 2.5 million for the three months ended August 26, 2023 and August 27, 2022, respectively. These amounts consisted of stock-based compensation expense related to employee stock options, restricted stock awards, restricted stock unit awards and performance stock unit awards under the 2020 Plan and Prior Plans, employee stock purchases made via the ESPP, and stock units credited under the Directors Deferred Compensation Plan. The Company recognized a tax benefit of approximately $ 0.5 million and $ 0.7 million associated with such stock - based compensation expense during the three months ended August 26, 2023 and August 27, 2022, respectively. The Company recognizes stock-based compensation expense on time-vesting equity awards ratably over the applicable vesting period based on the grant date fair value, net of estimated forfeitures. Expense related to the liability-classified awards reflects the change in fair value during the reporting period. The number of performance stock units earned at the end of the applicable performance period may equal, exceed or be less than the targeted number of shares depending on whether the performance criteria are met, surpassed or not met. During each reporting period, the Company uses the latest forecasted results to estimate the number of shares to be issued at the end of the performance period. Any resulting changes to stock compensation expense are adjusted in the period in which the change in estimates occur. Stock Options The following table summarizes the stock option activity for the three months ended August 26, 2023 (in thousands, except weighted-average exercise price): Number of Options Weighted-Average Exercise Price Outstanding at May 27, 2023 2,648 $ 16.44 Exercised ( 22 ) 15.15 Forfeited ( 4 ) 17.44 Expired ( 24 ) 14.27 Outstanding at August 26, 2023 2,598 $ 16.47 Exercisable at August 26, 2023 2,387 $ 16.39 Vested and expected to vest at August 26, 2023 (1) 2,596 $ 16.47 (1) The options expected to vest are the result of applying the pre-vesting forfeiture rate assumptions to options not yet vested of 211,285 as of August 26, 2023. As of August 26, 2023, there was $ 0.1 million of total unrecognized compensation costs related to unvested and outstanding employee stock options. The cost is expected to be recognized over a weighted-average period of 0.12 years. Employee Stock Purchase Plan On October 20, 2022, the Company’s stockholders approved an amendment and restatement of the 2019 ESPP that increased the number of shares authorized for issuance under the ESPP by 1,500,000 , resulting in a maximum number of shares of the Company’s common stock authorized for issuance under the ESPP of 3,325,000 shares. The Company’s ESPP allows qualified employees (as defined in the ESPP) to purchase designated shares of the Company’s common stock at a price equal to 85 % of the lesser of the fair market value of common stock at the beginning or end of each semi-annual stock purchase period. The Company issued 198,150 and 183,000 shares of common stock pursuant to the ESPP during the three months ended August 26, 2023 and August 27, 2022, respectively. There were 1,580,774 shares of common stock available for issuance under the ESPP as of August 26, 2023. Restricted Stock Awards (“RSAs”) The following table summarizes the activities for the unvested RSAs for the three months ended August 26, 2023 (in thousands, except weighted-average grant-date fair value): Shares Weighted-Average Grant-Date Fair Value Outstanding at May 27, 2023 209 $ 17.19 Granted 2 16.07 Vested ( 2 ) 15.49 Forfeited - - Unvested as of August 26, 2023 209 $ 17.18 Expected to vest as of August 26, 2023 186 $ 17.13 As of August 26, 2023, there was $ 2.1 million of total unrecognized compensation costs related to unvested RSAs. The cost is expected to be recognized over a weighted-average period of 1.44 years. Restricted Stock Units (“RSUs”) The Company may issue either equity-classified RSUs, which are awards granted to employees under the 2020 Plan that settle in shares of the Company’s common stock, or liability-classified RSUs, which are awards credited to board of director members under the Directors Deferred Compensation Plan that settle in cash. The following table summarizes the activities for the unvested RSUs, including both equity- and liability-classified RSUs, for the three months ended August 26, 2023 (in thousands, except weighted-average grant-date fair value): Equity-Classified RSUs Liability-Classified RSUs Total RSUs Shares Weighted-Average Grant-Date Fair Value Shares Weighted-Average Grant-Date Fair Value Shares Weighted-Average Grant-Date Fair Value Outstanding at May 27, 2023 631 $ 15.78 60 $ 16.55 691 $ 15.85 Granted (1) 6 15.90 1 15.90 7 15.90 Vested - - - - - - Forfeited ( 3 ) 14.79 - - ( 3 ) 14.79 Unvested as of August 26, 2023 634 $ 15.79 61 $ 16.55 695 $ 15.86 Expected to vest as of August 26, 2023 588 $ 15.71 61 $ 16.55 649 $ 15.79 (1) The dividend equivalents are included in the granted shares As of August 26, 2023, there was $ 6.2 million of total unrecognized compensation costs related to unvested equity-classified RSUs. The cost is expected to be recognized over a weighted-average period of 1.65 years. As of August 26, 2023, there was $ 0.7 million of total unrecognized compensation costs related to unvested liability-classified RSUs. The cost is expected to be recognized over a weighted-average period of 1.70 years. Performance Stock Units (“PSUs”) The Company has issued PSUs to certain members of management and other select employees. The total number of shares that would vest under the PSUs will be determined at the end of the applicable three-year performance period based on the Company’s achievement of certain revenue and Adjusted EBITDA (as defined below in Note 13 – Segment Information and Enterprise Reporting ) percentage targets over the applicable performance period. The total number of shares that may be earned for these awards based on performance over the performance period ranges from zero to 150 % of the target number of shares. The following table summarizes the activities for the unvested PSUs for the three months ended August 26, 2023 (in thousands, except weighted-average grant-date fair value): Shares (1) Weighted-Average Grant-Date Fair Value Outstanding at May 27, 2023 434 $ 18.32 Granted (2) 4 15.90 Vested - - Forfeited ( 2 ) 18.34 Unvested as of August 26, 2023 436 $ 18.31 Expected to vest as of August 26, 2023 402 $ 18.32 (1) Shares are presented in this table at the stated target, which represents the base number of shares that would vest over the performance period. Actual shares that vest may be zero to 150 % of the target based on the achievement of the specific company-wide performance targets. (2) The dividend equivalents are included in the granted shares. As of August 26, 2023, there was $ 2.9 million of total unrecognized compensation costs related to unvested PSUs. The cost is expected to be recognized over a weighted-average period of 1.34 years. |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Aug. 26, 2023 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 12. Commitments and Contingencies Legal Proceedings The Company is involved in certain legal matters arising in the ordinary course of business. In the opinion of management, none of such matters, if disposed of unfavorably, would have a material adverse effect on the Company’s financial position, cash flows or results of operations. |
Segment Information And Enterpr
Segment Information And Enterprise Reporting | 3 Months Ended |
Aug. 26, 2023 | |
Segment Information And Enterprise Reporting [Abstract] | |
Segment Information And Enterprise Reporting | 13. Segment Information and Enterprise Reporting The tables below reflect the operating results of the Company’s segments consistent with the management and performance measurement system utilized by the Company. Upon completing the sale of the taskforce operating segment, effective May 31, 2022, the Company’s operating segments consist of RGP and Sitrick. Prior-period comparative segment information was not restated. See Note 2 – Summary of Significant Accounting Policies for further discussion about the Company’s operating and reportable segments. Performance measurement is based on segment Adjusted EBITDA. Adjusted EBITDA is defined as net income before amortization expense, depreciation expense, interest and income taxes plus or minus stock-based compensation expense, technology transformation costs and restructuring costs. Adjusted EBITDA at the segment level excludes certain shared corporate administrative costs that are not practical to allocate. The Company’s CODM does not evaluate segments using asset information. The following table discloses the Company’s revenue and Adjusted EBITDA by segment for both periods presented (in thousands): Three Months Ended August 26, August 27, 2023 2022 Revenue: RGP $ 167,504 $ 200,995 Other Segments (1) 2,665 3,067 Total revenue $ 170,169 $ 204,062 Adjusted EBITDA: RGP $ 20,798 $ 38,347 Other Segments (1) 71 316 Reconciling items (2) ( 9,323 ) ( 7,953 ) Total Adjusted EBITDA (3) $ 11,546 $ 30,710 (1) Amounts reported in Other Segments for the three months ended August 27, 2022 include Sitrick and an immaterial amount from taskforce from May 29, 2022 through May 31, 2022, the completion date of the sale. (2) Reconciling items are generally comprised of u nallocated corporate administrative costs, including management and board compensation, corporate support function costs and other general corporate costs that are not allocated to segments. (3) A reconciliation of the Company’s net income to Adjusted EBITDA on a consolidated basis is presented below. The table below represents a reconciliation of the Company’s net income to Adjusted EBITDA for both periods presented (in thousands): Three Months Ended August 26, August 27, 2023 2022 Net income $ 3,117 $ 18,140 Adjustments: Amortization expense 1,314 1,252 Depreciation expense 877 887 Interest (income) expense, net ( 312 ) 316 Income tax expense 2,075 6,992 EBITDA 7,071 27,587 Stock-based compensation expense 2,552 2,529 Technology transformation costs (1) 1,923 991 Restructuring adjustments (2) - ( 397 ) Adjusted EBITDA $ 11,546 $ 30,710 (1) Technology transformation costs represent costs included in net income related to the Company’s initiative to upgrade its technology platform globally, including a cloud-based enterprise resource planning system and talent acquisition and management systems. Such costs primarily include hosting and certain other software licensing costs, third-party consulting fees and costs associated with dedicated internal resources that are not capitalized. (2) The Company substantially completed the Restructuring Plans in fiscal 2021. All of the remaining accrued restructuring liability on the books related to employee termination costs that were either paid or released in fiscal 2023. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Aug. 26, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Event On October 2, 2023, the Company initiated a cost reduction plan, including a reduction in force of approximately 8 % of its U.S. management and administrative workforce intended to reduce costs and streamline operations. The Company expects to incur charges of $ 2.0 million to $ 2.5 million related to one-time employee termination benefits. The Company expects that substantially all of the charges will be recognized and paid by the end of the second quarter of fiscal 2024. |
Description Of The Company An_2
Description Of The Company And Its Business (Policy) | 3 Months Ended |
Aug. 26, 2023 | |
Description Of The Company And Its Business [Abstract] | |
Fiscal Period | The Company’s fiscal year consists of 52 or 53 weeks, ending on the Saturday in May closest to May 31 . The first quarters of fiscal 2024 and 2023 each consisted of 13 weeks. The Company’s fiscal year 2024 will consist of 52 weeks. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policy) | 3 Months Ended |
Aug. 26, 2023 | |
Summary Of Significant Accounting Policies [Abstract] | |
Basis Of Presentation | Basis of Presentation The accompanying unaudited financial statements of the Company as of and for the three months ended August 26, 2023 and August 27, 2022 have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. These financial statements include all adjustments (consisting only of normal recurring adjustments) the Company’s management considers necessary for a fair presentation of its financial position at such dates and the operating results and cash flows for those periods. The financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although management believes these estimates and assumptions are adequate, actual results could differ from the estimates and assumptions used. The fiscal 2023 year-end balance sheet data was derived from audited consolidated financial statements, and certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to Securities and Exchange Commission (“SEC”) rules or regulations; however, the Company believes the disclosures made are adequate to make the information presented not misleading. The unaudited consolidated results of operations for the interim periods presented are not necessarily indicative of the results of operations to be expected for the full fiscal year. These interim financial statements should be read in conjunction with the audited consolidated financial statements for the year ended May 27, 2023, which are included in the Company’s Annual Report on Form 10-K (“Fiscal Year 2023 Form 10-K”) filed with the SEC on July 25, 2023 (File No. 0-32113). A complete listing of the Company’s significant accounting policies is discussed in Note 2 – Summary of Significant Accounting Policies in the Notes to Consolidated Financial Statements included in the Fiscal Year 2023 Form 10-K. |
Reporting Segments | Reporting Segments On May 31, 2022, the Company divested taskforce – Management on Demand GmbH, and its wholly owned subsidiary skillforce – Executive Search GmbH, a German professional services firm operating under the taskforce brand (“ taskforce”) ; see Note 4 – Dispositions for further information. Since the second quarter of fiscal 2021, the business operated by taskforce , along with its parent company, Resources Global Professionals (Germany) GmbH (“RGP Germany”), an affiliate of the Company, represented an operating segment of the Company and was reported as a part of Other Segments. Effective May 31, 2022, the Company’s operating segments consist of the following: RGP – a global consulting firm focused on project execution services that power clients’ operational needs and change initiatives utilizing on-demand, experienced and diverse talent; and Sitrick – a crisis communications and public relations firm which operates under the Sitrick brand, providing corporate, financial, transactional and crisis communication and management services. Each of these segments reports through a separate management team to the Company’s Chief Executive Officer, who is designated as the Chief Operating Decision Maker (“CODM”) for segment reporting purposes. RGP is the Company’s only reportable segment. Sitrick does not individually meet the quantitative threshold to qualify as a reportable segment. Therefore, Sitrick is disclosed in Other Segments. Each of these segments represents a reporting unit for the purposes of assessing goodwill for impairment. Prior-period comparative segment information was not restated as a result of the divestiture of taskforce as the Company did not have a change in internal organization or the financial information that the CODM uses to assess performance and allocate resources. See Note 13 – Segment Information and Enterprise Reporting for further information. |
Per Share Information | Per Share Information The Company presents both basic and diluted earnings per share (“EPS”). Basic EPS is calculated by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted EPS is based upon the weighted-average number of common shares and common equivalent shares outstanding during the period, calculated using the treasury stock method. Common equivalent shares are excluded from the computation in periods in which they have an anti-dilutive effect. Stock options for which the exercise price exceeds the average market price over the period are anti-dilutive and are excluded from the calculation. Performance stock units are also excluded from the basic EPS calculation, since the number of shares subject to the award that will vest will not be determined until after the end of the applicable performance period. The following table summarizes the calculation of net income per common share for the three months ended August 26, 2023 and August 27, 2022 (in thousands, except per share amounts): Three Months Ended August 26, August 27, 2023 2022 Net income $ 3,117 $ 18,140 Basic: Weighted-average shares 33,412 33,277 Diluted: Weighted-average shares 33,412 33,277 Potentially dilutive shares 598 957 Total diluted shares 34,010 34,234 Net income per common share: Basic $ 0.09 $ 0.55 Diluted $ 0.09 $ 0.53 Anti-dilutive shares not included above 1,388 - |
Financial Instruments | Financial Instruments The fair value of the Company’s financial instruments reflects the amounts that the Company estimates it will receive in connection with the sale of an asset in an orderly transaction between market participants at the measurement date (exit price). The Company’s financial instruments, including cash and cash equivalents, trade accounts receivable, accounts payable and other accrued expenses and long-term debt are carried at cost, which approximates their fair value because of the short - term maturity of these instruments or because their stated interest rates are indicative of market interest rates. |
Capitalized Hosting Arrangements | Capitalized Hosting Arrangements The capitalized hosting arrangements costs are primarily related to the implementation of a cloud-based enterprise resource planning system and talent acquisition and management systems. Such costs include third party implementation costs and costs associated with internal resources directly involved in the implementation. Capitalized hosting arrangements are stated at historical cost and amortized on a straight-line basis over an estimated useful life of the expected term of the hosting arrangement, taking into consideration several other factors such as, but not limited to, options to extend the hosting arrangement or options to terminate the hosting arrangement. The amortization of capitalized implementation costs for hosting arrangements will commence when the systems are ready for their intended use and will be presented as operating expenses on the consolidated statements of operations consistent with the presentation for expensing the fees for the associated hosting arrangement. As of August 26, 2023 , the capitalized costs related to hosting arrangements incurred during the application development stage were $ 9.1 million. These capitalized hosting arrangements are included in other non-current assets on the consolidated balance sheet and less than $ 0.1 million were amortized during the three months ended August 26, 2023. There were $ 6.0 million capitalized costs recorded as of May 27, 2023 and no costs were amortized during the three months ended August 27, 2022. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements No recent accounting pronouncements or changes in accounting pronouncements have been issued or adopted that are of material significance , or have potential material significance, to the Company’s financial statements since those discussed in the Company’s Fiscal Year 2023 Form 10-K. |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Tables) | 3 Months Ended |
Aug. 26, 2023 | |
Summary Of Significant Accounting Policies [Abstract] | |
Calculation Of Net Income Per Common Share | Three Months Ended August 26, August 27, 2023 2022 Net income $ 3,117 $ 18,140 Basic: Weighted-average shares 33,412 33,277 Diluted: Weighted-average shares 33,412 33,277 Potentially dilutive shares 598 957 Total diluted shares 34,010 34,234 Net income per common share: Basic $ 0.09 $ 0.55 Diluted $ 0.09 $ 0.53 Anti-dilutive shares not included above 1,388 - |
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Tables) | 3 Months Ended |
Aug. 26, 2023 | |
Goodwill And Intangible Assets [Abstract] | |
Summary Of Activity In Goodwill Balance | RGP Other Segments Total Balance as of May 27, 2023 $ 206,722 $ - $ 206,722 Impact of foreign currency exchange rate changes 89 - 89 Balance as of August 26, 2023 $ 206,811 $ - $ 206,811 |
Summary Of Intangible Assets And Related Accumulated Amortization | As of August 26, 2023 As of May 27, 2023 Estimated Gross Net Gross Net Useful Carrying Accumulated Carrying Carrying Accumulated Carrying Life Amount Amortization Amount Amount Amortization Amount Customer contracts and relationships 3 - 8 years $ 22,000 $ ( 14,530 ) $ 7,470 $ 22,000 $ ( 13,802 ) $ 8,198 Computer software 2 - 3.5 years 7,749 ( 4,804 ) 2,945 7,541 ( 4,218 ) 3,323 Total $ 29,749 $ ( 19,334 ) $ 10,415 $ 29,541 $ ( 18,020 ) $ 11,521 |
Summary Of Future Estimated Amortization Expense | 2024 (remaining nine months) $ 3,899 2025 3,768 2026 2,463 2027 285 2028 - Total $ 10,415 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Aug. 26, 2023 | |
Leases [Abstract] | |
Lease Cost Components | Three Months Ended August 26, 2023 August 27, 2022 Operating lease cost (1) $ 1,864 $ 1,529 Short-term lease cost 57 25 Variable lease cost 373 246 Sublease income (2) ( 129 ) ( 148 ) Total lease cost $ 2,165 $ 1,652 (1) Operating lease cost for the three months ended August 27, 2022 includes a $ 0.4 million reduction resulting from a one-time settlement of a lease liability involving an office space. (2) Sublease income does not include rental income received from owned property, which is not material. |
Lease Term And Discount Rate | As of As of August 26, 2023 May 27, 2023 Weighted-average remaining lease term 3.4 years 3.4 years Weighted-average discount rate 4.10 % 3.97 % |
Supplemental Cash Flow Information Related To Operating Leases | Three Months Ended August 26, 2023 August 27, 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 2,209 $ 2,473 Right-of-use assets obtained in exchange for new operating lease obligations $ 983 $ 3,601 |
Maturities Of Operating Lease Liabilities | Fiscal Years: Operating Lease Maturity 2024 (remaining nine months) $ 5,999 2025 4,664 2026 3,053 2027 1,830 2028 1,495 Thereafter 882 Total future lease payments $ 17,923 Less: interest ( 1,217 ) Present value of operating lease liabilities $ 16,706 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 3 Months Ended |
Aug. 26, 2023 | |
Stock-Based Compensation Plans [Abstract] | |
Summary Of Stock Option Activity | Number of Options Weighted-Average Exercise Price Outstanding at May 27, 2023 2,648 $ 16.44 Exercised ( 22 ) 15.15 Forfeited ( 4 ) 17.44 Expired ( 24 ) 14.27 Outstanding at August 26, 2023 2,598 $ 16.47 Exercisable at August 26, 2023 2,387 $ 16.39 Vested and expected to vest at August 26, 2023 (1) 2,596 $ 16.47 (1) The options expected to vest are the result of applying the pre-vesting forfeiture rate assumptions to options not yet vested of 211,285 as of August 26, 2023. |
Summary Of Unvested Restricted Stock Awards | Shares Weighted-Average Grant-Date Fair Value Outstanding at May 27, 2023 209 $ 17.19 Granted 2 16.07 Vested ( 2 ) 15.49 Forfeited - - Unvested as of August 26, 2023 209 $ 17.18 Expected to vest as of August 26, 2023 186 $ 17.13 |
Summary Unvested Restricted Stock Unit Activity | Equity-Classified RSUs Liability-Classified RSUs Total RSUs Shares Weighted-Average Grant-Date Fair Value Shares Weighted-Average Grant-Date Fair Value Shares Weighted-Average Grant-Date Fair Value Outstanding at May 27, 2023 631 $ 15.78 60 $ 16.55 691 $ 15.85 Granted (1) 6 15.90 1 15.90 7 15.90 Vested - - - - - - Forfeited ( 3 ) 14.79 - - ( 3 ) 14.79 Unvested as of August 26, 2023 634 $ 15.79 61 $ 16.55 695 $ 15.86 Expected to vest as of August 26, 2023 588 $ 15.71 61 $ 16.55 649 $ 15.79 (1) The dividend equivalents are included in the granted shares |
Summary Of Unvested Performance Stock Units Activity | Shares (1) Weighted-Average Grant-Date Fair Value Outstanding at May 27, 2023 434 $ 18.32 Granted (2) 4 15.90 Vested - - Forfeited ( 2 ) 18.34 Unvested as of August 26, 2023 436 $ 18.31 Expected to vest as of August 26, 2023 402 $ 18.32 (1) Shares are presented in this table at the stated target, which represents the base number of shares that would vest over the performance period. Actual shares that vest may be zero to 150 % of the target based on the achievement of the specific company-wide performance targets. (2) The dividend equivalents are included in the granted shares. |
Segment Information And Enter_2
Segment Information And Enterprise Reporting (Tables) | 3 Months Ended |
Aug. 26, 2023 | |
Segment Information And Enterprise Reporting [Abstract] | |
Summary Of Operating Results Of Segments | Three Months Ended August 26, August 27, 2023 2022 Revenue: RGP $ 167,504 $ 200,995 Other Segments (1) 2,665 3,067 Total revenue $ 170,169 $ 204,062 Adjusted EBITDA: RGP $ 20,798 $ 38,347 Other Segments (1) 71 316 Reconciling items (2) ( 9,323 ) ( 7,953 ) Total Adjusted EBITDA (3) $ 11,546 $ 30,710 (1) Amounts reported in Other Segments for the three months ended August 27, 2022 include Sitrick and an immaterial amount from taskforce from May 29, 2022 through May 31, 2022, the completion date of the sale. (2) Reconciling items are generally comprised of u nallocated corporate administrative costs, including management and board compensation, corporate support function costs and other general corporate costs that are not allocated to segments. (3) A reconciliation of the Company’s net income to Adjusted EBITDA on a consolidated basis is presented below. |
Reconciliation Of Net Income To Adjusted EBITDA | Three Months Ended August 26, August 27, 2023 2022 Net income $ 3,117 $ 18,140 Adjustments: Amortization expense 1,314 1,252 Depreciation expense 877 887 Interest (income) expense, net ( 312 ) 316 Income tax expense 2,075 6,992 EBITDA 7,071 27,587 Stock-based compensation expense 2,552 2,529 Technology transformation costs (1) 1,923 991 Restructuring adjustments (2) - ( 397 ) Adjusted EBITDA $ 11,546 $ 30,710 (1) Technology transformation costs represent costs included in net income related to the Company’s initiative to upgrade its technology platform globally, including a cloud-based enterprise resource planning system and talent acquisition and management systems. Such costs primarily include hosting and certain other software licensing costs, third-party consulting fees and costs associated with dedicated internal resources that are not capitalized. (2) The Company substantially completed the Restructuring Plans in fiscal 2021. All of the remaining accrued restructuring liability on the books related to employee termination costs that were either paid or released in fiscal 2023. |
Description Of The Company An_3
Description Of The Company And Its Business (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |
Aug. 26, 2023 | Aug. 27, 2022 | May 25, 2024 | |
Description of the Company and its Business [Line Items] | |||
Fiscal period duration | 91 days | 91 days | |
Scenario, Plan [Member] | |||
Description of the Company and its Business [Line Items] | |||
Fiscal period duration | 364 days | ||
Minimum [Member] | |||
Description of the Company and its Business [Line Items] | |||
Fiscal period duration | 364 days | ||
Maximum [Member] | |||
Description of the Company and its Business [Line Items] | |||
Fiscal period duration | 371 days |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Aug. 26, 2023 | Aug. 27, 2022 | May 27, 2023 | |
Summary Of Significant Accounting Policies [Abstract] | |||
Capitalized costs incurred on hosting arrangements | $ 9,100,000 | $ 6,000,000 | |
Amortized costs on hosting arrangements | $ 100,000 | $ 0 |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies (Calculation Of Net Income Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Aug. 26, 2023 | Aug. 27, 2022 | |
Summary Of Significant Accounting Policies [Abstract] | ||
Net income | $ 3,117 | $ 18,140 |
Basic: | ||
Weighted-average shares | 33,412 | 33,277 |
Diluted: | ||
Weighted-average shares | 33,412 | 33,277 |
Potentially dilutive shares | 598 | 957 |
Total diluted shares | 34,010 | 34,234 |
Net income per common share | ||
Basic (per share) | $ 0.09 | $ 0.55 |
Diluted (per share) | $ 0.09 | $ 0.53 |
Anti-dilutive shares not included above | 1,388 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 26, 2023 | May 27, 2023 | |
Revenue Recognition [Abstract] | ||
Contract assets | $ 37 | $ 35.4 |
Contract liabilities | 2.9 | $ 3.1 |
Deferred revenue recognized | $ 1.6 |
Dispositions (Narrative) (Detai
Dispositions (Narrative) (Details) $ in Thousands, € in Millions | 3 Months Ended | 12 Months Ended | |||||
May 31, 2022 USD ($) | May 31, 2022 EUR (€) | Apr. 21, 2022 EUR (€) | Aug. 27, 2022 USD ($) | May 27, 2023 USD ($) | May 27, 2023 EUR (€) | May 31, 2022 EUR (€) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from dispositions of subsidiary | $ 2,984 | ||||||
Taskforce [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Disposition consideration | $ 6,000 | € 5.5 | € 5.5 | ||||
Percent of consideration to be paid at closing | 50% | ||||||
Percent of consideration payable | 50% | ||||||
Proceeds from dispositions of subsidiary | 3,000 | € 2.8 | |||||
Receivable from disposition of business | $ 3,000 | € 2.7 | |||||
Amount received of repayment on the note receivable | $ 3,000 | € 2.7 | |||||
Gain on sale of business | $ 200 | ||||||
Taskforce [Member] | Purchasers [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Interest spread on variable rate | 2.85% |
Goodwill And Intangible Asset_2
Goodwill And Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 26, 2023 | Aug. 27, 2022 | |
Goodwill And Intangible Assets [Abstract] | ||
Amortization expense | $ 1,314 | $ 1,252 |
Goodwill And Intangible Asset_3
Goodwill And Intangible Assets (Summary Of Activity In Goodwill Balance) (Details) $ in Thousands | 3 Months Ended |
Aug. 26, 2023 USD ($) | |
Goodwill [Line Items] | |
Goodwill, beginning of period | $ 206,722 |
Impact of foreign currency exchange rate changes | 89 |
Goodwill, end of period | 206,811 |
RGP [Member] | |
Goodwill [Line Items] | |
Goodwill, beginning of period | 206,722 |
Impact of foreign currency exchange rate changes | 89 |
Goodwill, end of period | $ 206,811 |
Goodwill And Intangible Asset_4
Goodwill And Intangible Assets (Summary Of Intangible Assets And Related Accumulated Amortization) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 26, 2023 | May 27, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 29,749 | $ 29,541 |
Accumulated Amortization | (19,334) | (18,020) |
Net Carrying Amount | 10,415 | 11,521 |
Customer Contracts And Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 22,000 | 22,000 |
Accumulated Amortization | (14,530) | (13,802) |
Net Carrying Amount | $ 7,470 | 8,198 |
Customer Contracts And Relationships [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful lives | 3 years | |
Customer Contracts And Relationships [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful lives | 8 years | |
Computer Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 7,749 | 7,541 |
Accumulated Amortization | (4,804) | (4,218) |
Net Carrying Amount | $ 2,945 | $ 3,323 |
Computer Software [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful lives | 2 years | |
Computer Software [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful lives | 3 years 6 months |
Goodwill And Intangible Asset_5
Goodwill And Intangible Assets (Summary Of Future Estimated Amortization Expense) (Details) $ in Thousands | Aug. 26, 2023 USD ($) |
Goodwill And Intangible Assets [Abstract] | |
2024 (remaining nine months) | $ 3,899 |
2025 | 3,768 |
2026 | 2,463 |
2027 | 285 |
Total | $ 10,415 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - California [Member] | Aug. 26, 2023 ft² |
Lessee, Lease, Description [Line Items] | |
Area of real estate property | 57,000 |
Leases To Independent Third Parties [Member] | |
Lessee, Lease, Description [Line Items] | |
Area of real estate property | 13,000 |
Leases (Lease Cost Components)
Leases (Lease Cost Components) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 26, 2023 | Aug. 27, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 1,864 | $ 1,529 |
Short-term lease cost | 57 | 25 |
Variable lease cost | 373 | 246 |
Sublease income | (129) | (148) |
Total lease cost | $ 2,165 | 1,652 |
Amount reduced from settlement agreement involving office space leased | $ 400 |
Leases (Lease Term And Discount
Leases (Lease Term And Discount Rate) (Details) | Aug. 26, 2023 | May 27, 2023 |
Leases [Abstract] | ||
Weighted-average remaining lease term | 3 years 4 months 24 days | 3 years 4 months 24 days |
Weighted-average discount rate | 4.10% | 3.97% |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information Related To Operating Leases) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 26, 2023 | Aug. 27, 2022 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 2,209 | $ 2,473 |
Right-of-use assets obtained in exchange for new operating lease obligations | $ 983 | $ 3,601 |
Leases (Maturities Of Operating
Leases (Maturities Of Operating Lease Liabilities) (Details) $ in Thousands | Aug. 26, 2023 USD ($) |
Leases [Abstract] | |
2024 (remaining nine months) | $ 5,999 |
2025 | 4,664 |
2026 | 3,053 |
2027 | 1,830 |
2028 | 1,495 |
Thereafter | 882 |
Total minimum payments | 17,923 |
Less: interest | (1,217) |
Present value of operating lease liabilities | $ 16,706 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) ¥ in Millions | 3 Months Ended | ||||
Nov. 02, 2022 USD ($) | Aug. 26, 2023 USD ($) | Aug. 26, 2023 CNY (¥) | May 27, 2023 USD ($) | Nov. 02, 2022 CNY (¥) | |
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, maximum borrowing capacity | $ 1,800,000 | ¥ 13.4 | |||
Credit facility, remaining borrowing capacity | $ 1,900,000 | ¥ 13.4 | |||
Credit facility, outstanding balance | $ 0 | ||||
Revolving Credit Facility [Member] | Prime Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest spread on variable rate | 0.80% | ||||
Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Nov. 12, 2026 | ||||
Credit facility, remaining borrowing capacity | $ 174,200,000 | ||||
Credit facility, outstanding balance | 0 | $ 0 | |||
Credit Facility [Member] | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, maximum borrowing capacity | 175,000,000 | ||||
Option to increase capacity, amount | 75,000,000 | ||||
Credit Facility [Member] | Standby Letters of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, maximum borrowing capacity | 10,000,000 | ||||
Credit facility, outstanding balance | 800,000 | $ 800,000 | |||
Credit Facility [Member] | Swingline [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, maximum borrowing capacity | $ 20,000,000 | ||||
Credit Facility [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, commitment fee | 0.20% | ||||
Credit Facility [Member] | Minimum [Member] | SOFR [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest spread on variable rate | 1.25% | ||||
Credit Facility [Member] | Minimum [Member] | Base Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest spread on variable rate | 0.25% | ||||
Credit Facility [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, commitment fee | 0.30% | ||||
Credit Facility [Member] | Maximum [Member] | SOFR [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest spread on variable rate | 2% | ||||
Credit Facility [Member] | Maximum [Member] | Base Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest spread on variable rate | 1% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Aug. 26, 2023 | Aug. 27, 2022 | May 27, 2023 | |
Income Taxes [Abstract] | |||
Tax benefit related to stock-based compensation | $ 200,000 | $ 600,000 | |
Income tax expense | 2,075,000 | $ 6,992,000 | |
Unrecognized tax benefits | 1,000,000 | $ 1,000,000 | |
Unrecognized tax benefit classified as short-term liability | $ 0 | $ 0 | |
Effective tax rate | 40% | 27.80% |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||||
Jul. 27, 2023 | Aug. 26, 2023 | Aug. 27, 2022 | May 27, 2023 | Jul. 31, 2015 | |
Stockholders' Equity Disclosure [Line Items] | |||||
Dividends paid (per share) | $ 0.14 | ||||
Dividends payable, current | $ 4.7 | $ 4.7 | |||
July 2015 Program [Member] | |||||
Stockholders' Equity Disclosure [Line Items] | |||||
Amount authorized under a stock repurchase program | $ 150 | ||||
Purchase of common stock (in shares) | 0 | 0 | |||
Stock repurchase plan, remaining amount | $ 50.2 |
Restructuring Activities (Narra
Restructuring Activities (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Aug. 26, 2023 | Aug. 27, 2022 | May 27, 2023 | |
Restructuring Activities [Abstract] | |||
Restructuring costs | $ 0 | $ (397,000) | |
Restructuring liability | $ 0 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Oct. 20, 2022 | Aug. 26, 2023 | Aug. 27, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 2,552 | $ 2,529 | |
Tax benefit related to stock-based compensation | $ 500 | $ 700 | |
Performance Incentive Plan 2020 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock made available for awards | 1,797,440 | ||
Stock options termination period | 10 years | ||
Shares available for grant | 1,252,835 | ||
Vesting period | 3 years | ||
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock made available for awards | 3,325,000 | ||
Increase in shares available for issuance | 1,500,000 | ||
Shares available for grant | 1,580,774 | ||
Percentage of exercise price per share out of fair market value | 85% | ||
Common stock issued | 198,150 | 183,000 | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to stock-based compensation | $ 100 | ||
Weighted-average period of cost to be recognized | 1 month 13 days | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to stock-based compensation | $ 2,100 | ||
Weighted-average period of cost to be recognized | 1 year 5 months 8 days | ||
Equity-Classified Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to stock-based compensation | $ 6,200 | ||
Weighted-average period of cost to be recognized | 1 year 7 months 24 days | ||
Liability-Classified Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to stock-based compensation | $ 700 | ||
Weighted-average period of cost to be recognized | 1 year 8 months 12 days | ||
Performance Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Unrecognized compensation cost related to stock-based compensation | $ 2,900 | ||
Weighted-average period of cost to be recognized | 1 year 4 months 2 days | ||
Minimum [Member] | Performance Incentive Plan 2020 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Minimum [Member] | Performance Stock Units [Member] | Three Year Performance Period [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 0% | ||
Maximum [Member] | Performance Incentive Plan 2020 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Maximum [Member] | Performance Stock Units [Member] | Three Year Performance Period [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 150% |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans (Summary Of Stock Option Activity) (Details) | 3 Months Ended |
Aug. 26, 2023 $ / shares shares | |
Stock-Based Compensation Plans [Abstract] | |
Outstanding, Beginning balance | 2,648,000 |
Exercised | (22,000) |
Forfeited | (4,000) |
Expired | (24,000) |
Outstanding, Ending balance | 2,598,000 |
Exercisable | 2,387,000 |
Vested and expected to vest | 2,596,000 |
Beginning balance, Weighted Average Exercise Price (per share) | $ / shares | $ 16.44 |
Exercised, Weighted Average Exercise Price (per share) | $ / shares | 15.15 |
Forfeited, Weighted Average Exercise Price (per share) | $ / shares | 17.44 |
Expired, Weighted Average Exercise Price (per share) | $ / shares | 14.27 |
Ending balance, Weighted Average Exercise Price (per share) | $ / shares | 16.47 |
Exercisable, Weighted Average Exercise Price (per share) | $ / shares | 16.39 |
Vested and expected to vest, Weighted Average Exercise Price (per share) | $ / shares | $ 16.47 |
Forfeiture assumption, shares | 211,285 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans (Summary Of Unvested Restricted Stock Awards) (Details) - Restricted Stock [Member] shares in Thousands | 3 Months Ended |
Aug. 26, 2023 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding, beginning balance | shares | 209 |
Granted, Shares | shares | 2 |
Vested, Shares | shares | (2) |
Unvested, ending balance, Shares | shares | 209 |
Expected to vest, Shares | shares | 186 |
Outstanding, beginning balance, Weighted Average Grant-Date Fair Value | $ / shares | $ 17.19 |
Granted, Weighted Average Grant-Date Fair Value | $ / shares | 16.07 |
Vested, Weighted Average Grant-Date Fair Value | $ / shares | 15.49 |
Unvested, ending balance, Weighted Average Grant-Date Fair Value | $ / shares | 17.18 |
Expected to vest, Weighted Average Grant-Date Fair Value | $ / shares | $ 17.13 |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans (Summary Of Unvested Restricted Stock Unit Activity) (Details) shares in Thousands | 3 Months Ended |
Aug. 26, 2023 $ / shares shares | |
Restricted Stock Units (RSUs) [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding, beginning balance | shares | 691 |
Granted, Shares | shares | 7 |
Forfeited, Shares | shares | (3) |
Unvested, ending balance, Shares | shares | 695 |
Expected to vest, Shares | shares | 649 |
Outstanding, beginning balance, Weighted Average Grant-Date Fair Value | $ / shares | $ 15.85 |
Granted, Weighted Average Grant-Date Fair Value | $ / shares | 15.90 |
Forfeited, Weighted Average Grant-Date Fair Value | $ / shares | 14.79 |
Unvested, ending balance, Weighted Average Grant-Date Fair Value | $ / shares | 15.86 |
Expected to vest, Weighted Average Grant-Date Fair Value | $ / shares | $ 15.79 |
Equity-Classified Restricted Stock Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding, beginning balance | shares | 631 |
Granted, Shares | shares | 6 |
Vested, Shares | shares | |
Forfeited, Shares | shares | (3) |
Unvested, ending balance, Shares | shares | 634 |
Expected to vest, Shares | shares | 588 |
Outstanding, beginning balance, Weighted Average Grant-Date Fair Value | $ / shares | $ 15.78 |
Granted, Weighted Average Grant-Date Fair Value | $ / shares | 15.90 |
Vested, Weighted Average Grant-Date Fair Value | $ / shares | |
Forfeited, Weighted Average Grant-Date Fair Value | $ / shares | 14.79 |
Unvested, ending balance, Weighted Average Grant-Date Fair Value | $ / shares | 15.79 |
Expected to vest, Weighted Average Grant-Date Fair Value | $ / shares | $ 15.71 |
Liability-Classified Stock Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding, beginning balance | shares | 60 |
Granted, Shares | shares | 1 |
Unvested, ending balance, Shares | shares | 61 |
Expected to vest, Shares | shares | 61 |
Outstanding, beginning balance, Weighted Average Grant-Date Fair Value | $ / shares | $ 16.55 |
Granted, Weighted Average Grant-Date Fair Value | $ / shares | 15.90 |
Unvested, ending balance, Weighted Average Grant-Date Fair Value | $ / shares | 16.55 |
Expected to vest, Weighted Average Grant-Date Fair Value | $ / shares | $ 16.55 |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plans (Summary Of Unvested Performance Stock Units Activity) (Details) - Performance Stock Units [Member] shares in Thousands | 3 Months Ended |
Aug. 26, 2023 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding, beginning balance | shares | 434 |
Granted, Shares | shares | 4 |
Forfeited, Shares | shares | (2) |
Unvested, ending balance, Shares | shares | 436 |
Expected to vest, Shares | shares | 402 |
Outstanding, beginning balance, Weighted Average Grant-Date Fair Value | $ / shares | $ 18.32 |
Granted, Weighted Average Grant-Date Fair Value | $ / shares | 15.90 |
Forfeited, Weighted Average Grant-Date Fair Value | $ / shares | 18.34 |
Unvested, ending balance, Weighted Average Grant-Date Fair Value | $ / shares | 18.31 |
Expected to vest, Weighted Average Grant-Date Fair Value | $ / shares | $ 18.32 |
Minimum [Member] | Three Year Performance Period [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting percentage | 0% |
Maximum [Member] | Three Year Performance Period [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting percentage | 150% |
Segment Information And Enter_3
Segment Information And Enterprise Reporting (Summary Of Operating Results Of Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 26, 2023 | Aug. 27, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 170,169 | $ 204,062 |
Adjusted EBITDA | 11,546 | 30,710 |
Reconciling Items [Member] | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | (9,323) | (7,953) |
RGP [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 167,504 | 200,995 |
Adjusted EBITDA | 20,798 | 38,347 |
Other Segments [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 2,665 | 3,067 |
Adjusted EBITDA | $ 71 | $ 316 |
Segment Information And Enter_4
Segment Information And Enterprise Reporting (Reconciliation Of Net Income To Adjusted EBITDA) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 26, 2023 | Aug. 27, 2022 | |
Segment Information And Enterprise Reporting [Abstract] | ||
Net income | $ 3,117 | $ 18,140 |
Amortization expense | 1,314 | 1,252 |
Depreciation expense | 877 | 887 |
Interest (income) expense, net | (312) | 316 |
Income tax expense | 2,075 | 6,992 |
EBITDA | 7,071 | 27,587 |
Stock-based compensation expense | 2,552 | 2,529 |
Technology transformation costs | 1,923 | 991 |
Restructuring adjustments | 0 | (397) |
Adjusted EBITDA | $ 11,546 | $ 30,710 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - Scenario, Plan [Member] - Cost Reduction Plan [Member] $ in Millions | 3 Months Ended |
Nov. 25, 2023 USD ($) | |
Subsequent Event [Line Items] | |
Percentage of workforce reduction | 8% |
Minimum [Member] | |
Subsequent Event [Line Items] | |
Expected restructuring costs | $ 2 |
Maximum [Member] | |
Subsequent Event [Line Items] | |
Expected restructuring costs | $ 2.5 |