Resources Connection Falls Short: Fool by Numbers

On March 28, Resources Connection (Nasdaq: RECN  ) released third-quarter earnings for the period ended Feb. 28.

• International expansion helped grow revenue by 17%.
• Escalating SG&A costs contributed to diminishing margins and lower profits.
• Resources Connection boasts a four-star rating in Motley Fool CAPS, while competitor Gartner (NYSE: IT  ) only rates two stars.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q3 2007	Q3 2006	Change
Sales	$187.5	$160.3	17.0%
Net Profit	$13.1	$13.8	(4.9%)
EPS	$0.26	$0.27	(3.7%)
Diluted Shares	51.1	51.9	(1.6%)

Get back to basics with the income statement.

Margin Checkup

	Q3 2007	Q3 2006	Change*
	38.2%	38.1%	0.1
	11.2%	13.3%	(2.1)
	7.0%	8.6%	(1.6)

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets	Q3 2007	Q3 2006	Change
Cash + Invest.	$222.6	$149.2	49.2%
Accounts Rec.	$107.8	$93.5	15.2%

No liabailities data available.

The balance sheet reflects the company's health.

Cash Flow Highlights

No data available. Lame.

Free cash flow is a Fool's best friend.

Related Foolishness:

• Foolish Forecast: Resources Global's Shiny Pennies
• Foolish Forecast: Hailing Heidrick & Struggles
• Resources Global Still Spinning

Resources Connection is a Stock Advisor recommendation. To check out more of the Fool's picks, try a free subscription for 30 days.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.