Resources Connection (RGP) Sidoti September Small-Cap Virtual Conference summary

Business overview and strategy

• Operates globally in professional services, focusing on North America, Europe, and Asia Pacific.

• Emphasizes a flexible, on-demand consultant model, not following the traditional partnership structure.

• Pursues a blended workforce strategy, aligning with post-COVID trends for dynamic talent solutions.

• Maintains a variable cost structure, enabling scalability and resilience during economic uncertainty.

• Invests in digital transformation and expanded consulting capabilities, including acquisitions and brand consolidation.

Financial performance and capital allocation

• Generates robust free cash flow and maintains a strong balance sheet with zero debt.

• Focuses on shareholder returns through a 5% dividend yield and share repurchases.

• Recent capital allocation prioritized acquisitions and digital investments; near-term focus shifts to integration and execution.

• $48 million in share buybacks and $92 million in dividends over the past five years.

Market trends and client engagement

• Sees industry shift toward technology, automation, and away from traditional partnership models.

• Clients increasingly seek blended solutions, leveraging external expertise for operational and transformational projects.

• Expanding into new C-suite buying centers beyond CFOs, including CHROs, CIOs, and CMOs.

• Developed global centers of excellence in the Philippines and India to support large-scale projects.