Resources Connection (RGP) 23 Jul 202020 Q4 Earnings call transcript

Good afternoon, ladies and gentlemen, and welcome to the Resources Connection, Inc. Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. now for turn today's I'd to call time, host your Ms. this like the to over At Alice Washington, General Counsel of Resources Connection. Ms. Washington, begin. now you may

you, everyone, on Thank afternoon, you Good participating for and this thank call. operator.

Brackney, Officer. today are Jennifer our Officer; Officer; Joining me our Chief Kate Operating Financial here Chief our Chief Duchene, Executive Tim Ryu, and

should fourth May XX, XXXX. During this commenting be press ended will copy on our today's now quarter you have call, we results a of for the By release.

and copy Web a need unable Shannon to XXX-XXX-XXXX. our you If on it are site, McPhee access call please

During for differ results for events operations call. implied our such materially. actual differ this statements this and call, I'll year the financial discussion economic we may events company. may our as seasonal made over CEO, of a and the by make XX, uncertainties and risks, of now may XX-K forward-looking to to cause from results and Please factors statements ended May epidemic Duchene. factors see or expressed Kate and regarding financial Such future other or call of predictions during or operations our future financial statements report Such XXXX conditions are the materially diseases. results Form business, performance forward-looking conditions turn condition and on of

in Alice. Welcome today. listening call. earnings you you, Thank appreciate to our 'XX QX We fiscal

will offer financial color with of into and operational overview the highlights. start some an Tim me then quarter dive Let Jen fourth and performance. deeper will certain

the was of quarter, Yet prior of a X.X% revenue an quarter. quarter. constant prior basis our fourth from we in prior expense impact, uptick XX.X the of XX.X of to respect a points of up year to profit XX But see signings in do the All COVID-XX economic soft. through of represents was to face million a from unprecedented delivery. quarter. across Adjusted subsequent year year related gross revenue quarter, down the pass XXX.X the from remain Our proved Gross started and in XX.X% slight the or X.X% environment at margin X.X% improvement a With project reduction in to is This of to million resilient board June. XX.X% reflection EBITDA new operating buying increased model decline disruption. currency. in million end

continue job until during his Our environments of that clients clients or To macro most exceptional greater managing trends challenged projects but hold will will out. on teams are exists new done further have be with new Tim in clarity extensions, in an pushing buyers to within still or market QX the new revenue point, our provide remarks. environment.

our HuGo provide Go word Now let word identity. our our staffing the brand we've platform is and given or name combines progress digital the an the HuGo, this update on tool. perfect and Human a me with of reflection

making are some integration redesign good progress have related We COVID-XX with process delays. development, impacted by efforts and been that our

we market not we technology We and committed getting right, the are will are to rush experience to until so ready. fully

be update out could XXXX, believe late the into hold complete more be XXXX. sustainability, environment to we we get year a provide as even will which closer winter prudent gain launch, We will which or calendar the coming in macro the until to of

those early fiscal to in starting Following contribute meaningful to XX We savings million we range and March reduce in million took up XX costs. previous think from on will actions, 'XX. now impact

phase review next lockdowns pushing the accelerate and initiative, COVID-XX to will our people and our estate given timeline to with likely technology of in is real current related of strategy restructuring With strategies, and We continue estate and respect view our contraction the real out our activities with trends. final throughout evaluate ongoing, Europe. Europe,

next our on provide call. will an update We

virtual Many example post-COVID contingent use macro XX% me a next clients will workers. because contingent be Staffing talent. of labor agile finance use a HR delivery COVID-XX attitudes toward time in years Gartner Industry are to in the contingent X%. analysts that predicts exploring a full labor we include new let two or more that borderless talent, shift toward workforce mainstream in client than accelerating discuss June increased remote XXX Now, RGP. XXXX versus strategy of use wider environment. for of and rise shifts reported These could equivalents the three beneficial or contingent the by of In of executives, believe becoming are and survey

willing more are clients addition, talent procure virtually. to In

essential many virtual premises engaging with talent our helps demand additional open that We've virtual workers, have model. RGP and through talent more delivery quality move from knowledge become For operating a to on create We outcomes. in business borderless believe of result strength. will opportunity realized to generation manage turnover. revenue efficiently, remote agile have for working and more should reduce with are of core entered technology and believe locations. from is of the supply rapidly now I us more The longer that and and clients which ensure working like is mind faster Keep these position ways officially and of more talent the no work in to trends Clients RGP.

in sharing I will fiscal remarks Finally, focus our 'XX. three my for areas by close

control. cost The is first

While on be globally. murky, and will improving focus can to our revenue structure may we cost continue

client cost disrupting improvements experience. all projects to Europe to to committed savings We of deliver or and evaluate to continue the parts are year consultant structure control completing and business its further without this the strengthen derive

than second strategic XXX X% revenue of clients the We by 'XX. growth QX with This basis, sauce years, five QX QX, that client programs. build more to XXX,XXX our efforts so over COVID. client core up set know want pays X.X% The spent in CAGR a of from had centricity increased day this of In on account despite the key fiscal client client core important off. same we sequential our on RGP, including base areas the has and this focus past building approximately XXX in

at these time costs are their moving expand clients Four. We to services will by services many focus Big down a on professional beyond leverage own the helping within when our looking

intend People us, also Chief to expand within Chief organizations Marketing Officers. trust and Chief new Digital, buyers like already these to who We

As acquired one client recently is shared me with you champions opportunity now expand. already here directly, to have your

from service 'XX, XX% fiscal to see XX% This For up of growing top provider. clients of 'XX. solution mission we more work our for cycle robust of in process Much procured our the in healthcare like supply optimization, revenue industry optimization the set. We pharma, in well trials, opportunity healthcare is We're do is and align clients with chain than also type to fiscal payer the from presence of XX redesign needs clients industry industry. These our one percentage capabilities medical our or committed device, dedicated the group. transformation. and critical, to clinical

third for leader this year. for introducing expanding Veracity and and post-COVID digital includes The at excitement will fortitude advancing be digital our having statistics the and top providing fiscal new Veracity fiscal RGP the saying consulting employee That's services for this market more clients effort we bringing RGP target as base introduce clients proven XX% roadmap energy the underscore Interest way cost expansion. and our perspective broadly just growing to solutions and Certainly retention is of the of XXX There this long-term start area many transformation. and is effective on our which not year, remind to fiscal fiscal but we It throughout of accelerated client remain is focus starting companies. a industries. year. last digital go-to-market engaging HuGo from will from year. to transformation workflows provide today client automation. 'XX all are and successfully in deliver also services each technical acquired includes is challenges, It digital the you people, every experiences, penetration retained for is have be to focused we technology a and 'XX Digital to RGP. point. This the still us of great and us and Transformation agendas is there firm strategy improving with it;

clients the past of years. XX XX% more top than consistently five Our over revenue our global contribute

a we While we be year-after-year, remain will we help engaged how to partner clients know trusted exactly not may initiatives. priority their execute

encourage IR like Before to Web the to our to review I new of page Investor everyone the would conclude, take main on I time presentation available Site. our Relations

I'll QX results be well this now and turn dive deeper script there our following offer into key Tim over call. a takeaways. the call to to will We posting earnings as

way am extremely fourth trends Thank trends. and and to to I and discuss afflicted results early run we're good We I quarter highlight the global quickly impacted delivery virtual our everyone. rates operations the will average by initiatives you, quarter. world pandemic. operating healthy first has the company of to afternoon, quarter responded able our and and through Kate, adjusted preserve for proud a a that

accustomed continue engage way who of with this We more clients directly, to to now and albeit are new prospects working. virtually,

We virtual business, borderless days. will unlock execute our long-term. pandemic RGP of be the to less agile enable skills a and a for our in as execution. a trend meaningful larger the talent of This benefit matching proximity consideration our us attract provides the contribute is will pre-COVID more our broadly demand, complex to This fashion, outlive catalogue than engagements As on and supply competencies is staff and and way a us on Kate to using as will will retain discussed, and this basis to talent our flexibility more in business for streamlines provide to a believe to and operate become important has a It modular also it projects. clients. opportunity clients delivery allowing a paved projects it sustainable more clear an approach and the embracing that in as we shift

quarter to our Now, let me operations. fourth turn

weekly As velocity remarks, third quarter our noted and we strong quarter. beginning activity of saw the at fourth pipeline the in

been we fourth able holding remained of have quarter, through due and experienced velocity, pipeline The principally in momentum. This consistent. where felt we'll in in starts persistency of through beginning Despite we pricing the North middle Pacific course some sales pipeline to tightening crucial development and positive Europe current we geographic by That uncertainty around the as and and quarter engaging in conditions flexible we approach said, has run clients challenged metrics to into have softened Countsy continue steady Citrix, more degradation by particularly mid-April are we timing activity. the response, to pricing with fiscal pricing Our terms deal continues resultant be pipeline headwinds, until new fiscal in QX. margins May in new and America, the efforts. decline quarter remains response and in environment steady prospects around aggressive Similarly, and maintain the climate to business outbreaks deal year. and adopted and were overall to operational 'XX, Asia impact steady and and and As our engagement The through the end when move strong Veracity opportunistic our pandemic transformation project in marketplace. deployment of remained these the still resulting velocity projects of know our and stabilized the market and activity the a of be in the of rate in business the remained the to the

know in a what our to operate world of to continue resilience we depends can. ability control on uncertainty, we we our While

ancillary ways a upside been our is as X% result of during of with to teams ways clients It part to and networking also the other. decline in and before in An that social are more of each net redoubling approximately wider distancing new benefit staying and to operating virtually. people to learning close requirements. for haven't a allow restrictions our quarter outreach virtual expense environments by in that done connect, our pandemic exploring committed means interface efforts, curating induced casting including fourth a we operating directly Our has one talent travel

We with started the is experience. the hard supply detach demand of a yield were started efficient in from operational go-to-market effectiveness, optimize by have The core business the platform matching to although productivity, results delivery these our focus continue game. elements to evolving COVID driven the and North on and efforts, to quarter impact of fourth reorganization American key and consultant we

the in provide end and which and been some fashion added program in always first Before I match conclude is our as at the pipeline with experienced my a strong is on to severity healthcare borderless Veracity remarks, particularly as our the more predict. want and above. challenge reduction early I quarter focus the of pandemic has impact and on QX I well efforts by as the This, velocity must We again, practice, on business. America this the in operations, true we take big any noted integration during summer insight of lifting QX, year, core hard to account [indiscernible] of into macro trends. months, our our to a talent strategic client a North deeper as

quarter we turn While on a more for will controlling these a opportunities, results. call real which in by review will are and detailed to remain now uncertainty is are costs, environment. of I understand there of both fourth the we focused Jen and paramount go-to-market over current encouraged productivity the our ahead

afternoon, good and Tim, you, Thank everyone.

by typical consisted quarter an of of week our increased comparable weeks our pandemic impact anticipated, increase quarter decreased quarter of currency fiscal fourth as of pandemic as 'XX X.X% this our results, the was reminder, to revenue significantly was year decrease 'XX and XX impacted a was ago by X.X% quarter. fourth mostly Starting quarters. a the the the week across fiscal with compared a year-over-year Top-line sequentially. market. fourth constant of quarter most revenue million a the quarter additional X% the adverse and for from basis XX The revenue X.X% fourth of As COVID overview XXX.X a sequentially. On offset

XX.X of XX.X% margin fiscal X or a revenue XXX included million and of the from fourth restructuring or million, was points year. Our SG&A basis last compared of which sequentially. 'XX points expenses fourth the to for up gross quarter million, of basis XX quarter XX.X% quarter, charge or XX.X% XX revenue

Our In quarter of quarter. EPS 'XX million diluted in the million was the quarter stock year X.X was net EBITDA, The $X.XX was share income restructuring share, expenses. quarter, restructuring and compared impact in X.X% per share. impact XX.X% revenue consideration as before XX.X prior in or up adjusted year fiscal to $X.XX QX for XX.X $X.XX million, adjustments reflecting fourth charge per prior of per SG&A we diluted of the X.X from the the or which EBITDA revenue the diluted defined contingent compensation, million or on or fourth of of charges favorable

markets. period. daily period revenue quarter Belgian exiting weeks. fourth in around days applying color of of consisted our quarter million let number Again, of Nordic additional revenue detail each release and quarter Please comparability business we comparable me revenue Now, To and fourth comparable current basis, revenue fourth consistency, same Veracity period ensure revenue on some compared press the of results, from to run clarity results. provide our lost to days for the the refer day of X.X the X.X the business on number XX Consolidated the in a by included from calculated our resulting and of million for revenue rate. the

X.X%, of organic was Excluding of X% within on consolidated the XX.X% compared or by same these Sequentially North day a decreased ranging in including year. and fiscal basis, and compared level declined on a constant in revenue On XX.X% by day currency decreased to declines on basis, declined basis. X.X% X.X% X% Asia a or basis, of Pac, each events similar in constant a from fiscal organic respectively to revenue XX.X% between At million geography Veracity QX Europe compared geographic X.X% currency declines 'XX, X%. by QX, organic America, and same-day day revenue currency XX% decline, QX a to X.X% revenue the 'XX. or by XX impact same a same last and constant

adversely While the in Dallas, most impacted markets, our Seattle we have in and market. Antonio bright of spots pandemic revenues our San

clients sequentially. nature Countsy compared to our revenue revenue model, of year a business compared QX from X.X% pandemic, staffing X.X% increased increased revenue observation strength SDT sequentially American final to performed year last our Revenue clients managed staffing unaffected. also remains increased Our QX from well XX.X% was sticky continued largest same-day professional by despite and point the X.X% basis. Same-day strong. inherently given services and show and A our on the from to actually last largely North professional

in third fourth 'XX fourth quarter increased Pac. in quarter Asia the The average ratio. quarter respectively. were the bill average and bill fiscal aggregating Asia increase XXX 'XX $XX rate Europe and for partially by pass to in the XX.X% $XX the from margin, rates the reimbursement pay pay The gross basis bill rate Pac. holiday is quarter to was consultant self offset in fiscal compared and through the U.S. margin client a medical in pay primarily quarter The XX year reimbursement, ratio QX basis bill expense and points medical quarter offset lower to XXX sequential of gains to Sequentially increasing the in fiscal increase contributing from compared favorable year expense $XX and a to revenue a basis fourth of for for gross through expense, roughly The to the by decline prior hourly 'XX of basis slight in the approximately rate is in partially XXX and in Turning attributable and tax points lower average gross self-insured insured attributable and XXX sequentially. was average was average U.S. bill points. increase decline points favorable driven pay rate by include XXX is to X.X% quarter higher revenue from 'XX. approximately X.X% year-over-year The fiscal payroll non-billable margin pass of and X.X% lower of bill slight by XXX sequentially. X.X% improvement compared and prior pay in the and in client This U.S.

these are period. As during based a given rates derived rates reminder, hourly prevailing each exchange on

other fourth veracity relating the quarter to of XX.X% XX.X in XX million down charges, last quarter or and spend. sequential of of restructuring General acquisition, to X due and quarter quarter. excluding activities our XX.X% discretionary revenue, business to were of travel to charges results. estimate million SG&A with expenses compared fourth changes due earn Now at was components revenue $X.X X.X other related out financial fourth million million in looking the in these or included SG&A to X.X expenses were SG&A million expense of respectively, in the year million reduced and

termination addition, In self-insured employee medical resulting in result costs reducing X.X both million real costs. X.X America a plan We our footprint. in We we of in North favorable asset as experienced and write-off. pandemic, trends claim to lower lower program usage costs lease incurred restructuring during headcount and executed our incurred of fixed termination estate related by million in the and

We beginning expect to headcount reduction 'XX. in the realize additional fiscal benefit from

As XX% more of plan, into capability forward certain estate exited we we pandemic location. approximately plan core real limited and reinvest have growth a digital to we either visibility of drive portion impact the savings respect intend on sublet of to markets. With gain the our into or time over the the these business, full to initiatives in to-date

to while operate. exploring will our We in execute to we model the virtual continue additional for markets plan, which according

potential meaningful we for time. the are there no While over savings guarantees see

tax representing increase year by of financial an provision pre fiscal tax our an 'XX 'XX. stock effective our tax tax Cash in income of other 'XX. XX% decrease fiscal was a the deduction to worthless million rate allowance. due Income the of compared the XX.X% company tax compared Effective tax related was basis in rate in XX%. The rate X.X in fiscal is to 'XX components in the to rate valuation entity. to loss full investments primarily QX impacted tax The fiscal effective mostly fourth on foreign was in the was took for lower to statement. U.S. XX.X% for quarter XX% Turning

our turn to balance and me sheet let liquidity. Now,

We of revenue the cash at business did to will quarter our compared any liquidity. outstanding continue Receivables 'XX. returns, million Directors cash quarter. to QX, In was in we share in repurchases, Board fourth other In XX preserve evaluate with strategy cash debt our not we balancing fourth We improvement focus equivalents growing containment our ended our and protocol not approximately the the were of fourth maintained quarter cash we or in XX.X cost dividend experienced in cash X.X our as fiscal remains system year while prior organically March and repurchases, our and our quarter in compared are when the infrastructure in prudent order an efforts, on shareholder we the year. end area improve invest the quarterly return repayments long-term, million from strategically. at much continues management three million extension growth to adverse dividends from terms. Capital of order make credit impacting but leverage, the cash position, business have and flow clients' expect third XX. add our a and of fiscal fiscal expect and of and to Nonetheless, our full XX.X In To-date, experience flow operations expenditures capital to to and addition requirements fiscal the the the both The we balancing of share may quarter. to operating our primary the at grant substantial quality took capital credit of we more in under liquidity the allocation quality million persist year fiscal for through a shareholders and In to impact strong. 'XX. We of receivables million changes proactive days to while of measure of of of the the to end support due end We from receivables. the a XXX facility. our to borrowed of XX.X generated our payment an million liquidity XX deterioration to additional in XXX.X of positive receivables days in million review were days COVID-XX. Days implement to two QX. pandemic

to turning again. 'XX the the fiscal Weekly U.S. start first year-over-year average to a in for the revenue trends. XX.X non-holiday shut We've expect of stabilization quarter of Now resurgence of but quarter, causes the COVID first at the quarter especially economy quarter deterioration revenue still million. once in our five first the seen weeks if down some was

Our approach have experience self-insured increase medical future resume and costs. we fiscal as to procured relates specific a with pandemic. for medical of could not doctor the quarter impact fourth or on quarter treatment, the our of could will in any as costs ongoing revenue to material which program earnings given the guidance Consistent an necessary employees visits issue gross margin fiscal 'XX, and first the uncertainty operating 'XX it

would to everyone presentation again main It's of Investor Relations available view we Before on remind I my this the our I released site. remarks, Investor like conclude quarter. Web Relations to refreshed the page

up now will call for question. open the We

Sidoti question with first Josh Our & from Vogel Instructions] Co. [Operator comes you. Thank

with may You proceed your question.

much virtual My think is, if first delivery long-term? stay. And a of maybe the you give will here is business to how about remain how sense wondering question and was you can could of virtual talking I

of now you call. finding I'll I'll with on we I us, knowledge of bear I'll other with the tools it telling will the virtual say that what research pandemic workers that on think cost it's to in to efficient probably I the expect would first, for half all side virtual And appreciate our clients. We and more picking a you. approach this us technology, that and our same. and you to this delivering turn then now on an hand is it up Tim, very we're Josh, call. now, Tim, and will We're coverage a remain effective approach welcome company. jump because and and about

in But of of start to companies time used I their broader Good as interesting more with even the some and that that that to afternoon. the access like embrace I idea more about that. right out that, procurement XX% can would Yes, XX%, caused And they be of this will to And of Josh. at think gate was talking knowledge Kate the COVID. right and think start what range of a seems difference, of get by is workers what order over I that's of to remaining too, be sort have agree habits magnitude. -- immediate. terms think virtual, I they'll they that a talent, dramatic also actually the Hey, but change

And look you, to and great. with Okay, thank you forward working do going I forward. team the

may vein, alluded think you what be talking you this I that Just estate there's at regard next year-end on where still had room real can time evaluating now to and to about I the many offices kind And a North better getting Europe only, handle I year? you're on do that you footprint. globally? necessary that you and see with pare were that of With in you're additional comment down. know America maybe, guess to how at or you share that

Yes.

to think real pursue estate I a we'll continue So strategy. contraction

has simply and announcing in personal I but would actively still our footprint experience in more both on Pac a choices. they with next work evaluating need Asia need because the real we from in regard arrangements Pac. continuing around be We say real will Europe we're call, and for premises on estate our Asia what U.S. our and the estate culturally location, way to

preparing that had We not executed and put sure and sure were see for anyway. pleased the very it doing Asia largely executed we this together we of I'm as it but were pandemic what much efficiency we plan So Pac hit. this in contract before the

board make of looking that at and in accelerated the the talent, been are the plans, COVID the think in some millennials all of satisfy across will shifts be our the we also generational I that efficient And talent. presence do business happening we our have most majority but know we how the desires workforce.

And to wants need pursue so talent choices we that as prepare for to well. the

are I It's a estate Jen, converging all strategy real technology a number why and offices? then answer it's not that about just about human about the question of that's a you strategy. And can talk, So here. capital

sure. Yes,

our North about approximately And We that. exit execute or planned have offices in had to America. roughly and little sublet XX to we a we to plan continue of either against what half importance plan; we do

the now the in do Although, going of that right in we are location. virtual, expect of rest challenge with we to sublet to trying experience the seeing some shift the market

Sure.

I Okay. before. That's that million tax pre XX thought I and the me? million. around gap bridge you If believe recall, maybe was XX Can just million million is Kate, now said savings XX I XX to for helpful. you target it between

I that working the think part we're that exit. still of on estate real is

so that underway. plan is And still

So the hope we group to. seen all savings and all but that actively, that I facilities working Jen, that through of we here pull mean, haven't haven't achieved on yet. are the of we

to add of termination timing of bit that, to a little there's employees Just the and the as their timing of as exit. also too, far

sure. Yes,

that. Sorry, Jen, added I to should have

folks end example talking Some the about. for of various and restructuring what business business Jen's QX, be that's exiting in until the the the for reasons plan related of won't

I Okay, great. environment general. light just last And one, and guess of in just one the pandemic

to you Veracity expectations your comments on targets. and have any relative performed Just has how

think you and start, will then, I in. I can Yes. Jen, pull

with and very Veracity We our addition business. their to pleased are

but think probably business. they by degree RGP's lesser COVID, were too slightly a impacted I at than

be transformation be happens want spot. accelerated. research out to And in, it growth there's I reading in invest expect that if businesses area I'm fiscal that that tells and to one all this year. me in sweet Everything read will agendas We of them their the digital

my as very them I'm remarks, focused to we So and client arsenal very will now base. that that our broadly -- them introducing in in I be on more we our pleased prepared said have

right. All

We should pretty take as performed as that expected. Veracity much Yes.

you. Thank

with question comes Marcon Mark next from Baird. Our

You question. your may proceed with

little rate better on think bit questions. of what bottom things challenging run be, do basis. But bit getting a couple -- a the million got you or the are or things side little weekly and a are still you harder to seen like a mentioned feel basically predict? You we've you the talk just terms $XX.X of I've just how trends One end about would unfolded? that in quarter seen can on the since you've

I'm to Yes, And in. really I'll jump question going over Tim. to Mark turn then, this

you call I thank day. advanced on call jumping today. for know we so a our by And our

you your calendars. we with work of all appreciate So making that

the get we see improvement, yet. markets base. stabilization to down And all the happened say client I I the locking of from uncertain, we're creates and think there, they in a said, bottom May reemergence about more the for are robust conservative. clients certainly our some it's as saw And in lot news and and wouldn't when we some starting uncertainty large but business again

clients understand while work, great doing at So get project value in and new we've we're hard it's the win. extensions the to it, that been

the that's So then you I'll to it color a And Tim, I chair. little more. provide to hand

Yes.

stabilized I very And five the think last right. to hi, of I we is Mark. I say stable, weeks would difficult think bottom. part that's within question or when four the call your the

I like our It's our think of things within I still call obviously, a close this, clients. because control. to so metrics, of environment. our our a terms operation in I to when being in many But the out at it's situation that virtually are of impossible all theatres process think in look bottom tenuous there's

for we So anything take don't granted.

We pretty just I again, are say, stable would the because last these a four, I feel five, bottom weeks. But I new like move wouldn't six rapidly over it call the days. things

your just of of particularly in further bit seeing little To a COVID? international of some with coming along you terms of seeing what With at downturn, you terms operations, they're terms of Asia sort least are in color out in regards the that just by impacted stabilization to there? extent given Pac, understatement. being give more there in an trends, regards you're can what terms the of That's to or

you Yes. one? to want this do take Tim,

mean, think my kind of Yes, I difference Asia I in Pac Sure. -- remarks I in response. talked timing and geographic about the

pipeline have And in are of pretty they've lacked a QX were stable stretch. QX I is say sort example when Asia and the good mean, longer like just in of and a good the this really the in Pac velocity stabilized pipeline. about way I environment much is and we're And in entire look environment the been was that. bellwether early terms inflection of buying the think a or what words, stabilized were little throughout of and they've at now. not, situation. as kind that kind patterns They in feel to velocity challenging It they year. over the to other the cautious. with whether mean for contained for looking of at stable into point part me business But been more I was bit overall it's it very is I easier quarter a this for that of fiscal generally dealing way

what where feel internal in us the with headcount the then, maintain? the headcount, kind productive terms a can you And of of that Great. charge we and quarter, you there for you was to percentage of capacity regards stipulated what give do stand

do you take to want Jen, this?

Yes.

was still plan exit of going of was in that last QX. point have Kate's North America announced what a is end that number about total And headcount quarter the of we we So to X% to by roughly the headcount.

add our business, capital I largest the that headcount all component structure. just Mark, of to that Headcount, is in know we our quickly. human cost

to that headcount we're the right business. make at to continuing look producing the return sure So for it's all

I think we're adding now conservative on any headcount. very right

metrics which may us that targets our in, there's are and doers, out adding that California. North utilization in see have subject ensuring really in say of getting experts, that matter for our advisory TriState seller headcount, two If example, do productivity needs we Northern right on our superstar now. conservative market for the services both be example. America, group, will we're our and in made might investments of project sales that because group kind they we've the in invest a it headcount markets But be TriState, largest You very

what regards group the how environment. obviously running to curious But it's at this Great, you're that a is utilization advisory depressed with it's point, seeing?

Yes.

So Mark, because a group, bit we mix. of don't that one a answer have for little set it's

you might you sales utilization, in we're to fall the I'd them where of the a Some depending correct and upon And and XX% that board. think managing but across at busy. good utilization targets job have say XX% me, lower we're looking doing keeping Tim, higher I scale. And

think kind our would of it across when agree velocity mean, definitely I business. I about velocity, just the cut that the you

our our what of almost we to flexible more remarks But alluding that to I our bit. helping APS we that deploy to return APS some for high having a especially bit on utilization we're clients [second my have we for model engagements. in how more that's to that Typically was now, over group. sure within more as a respect where getting So from to dedication impacted having much of we're open profile try multiple on spread might resources, when about for minute] I little we our We're was that a been [ph] a an a investment and open of before utilize some and to even making where engagements. and organization, resources resources said initiative thinking leverage model with that not

are but ground -- remind question, those Great. Sunbelt And That's impact have short-term of where And some real-time you curious. you on the just that has California seems very what would reemerged. what markets out then, a just to us can of you of in markets? percentage -- exposure just to the COVID now, the seeing

that. kind with today, what and in Angeles particularly in jump you starting of stabilized the actually is that Northern I'll and where opportunity. And and California, see our California in we've tell actually, earlier and Yes, will Sunbelt. I to we've mean, California Southern more Los I California I'm markets, start am I

like pipeline of feels region now our the one stronger Western I of parts fact, our when business. about for QX In it's think right

give that major Sunbelt of Now, ordinances pretty sudden we Texas, strong California hit do consistent. I with the I around then, right all the Arizona now, if hard -- was does of in piece saying almost have have can't stayed all that And to have come a feels same getting Phoenix what been now, as QX as stronger and been our But earlier, could you. our is clients. out commentary we have in we can a do Texas right strong of as shift change feels will has it pretty been and QX which into practice

that's right something -- not we're So ground again, could back these change. now. But we outbreaks that more haven't because giving of

hopes That's great hopefully new to about be think kind and, of are for we you into just stable? things go as just And then, about HuGo what particularly year we once hear. can talk benchmarking calendar will 'XX and the your

Yes.

me in Let jump here.

and to We're the now we have where productively that product remotely. but remarks the we're infrastructure processes expected So, back COVID. prepared a be office and stage really as working Mark, at I little by been bringing said in my is we're And think together. delayed I development now, the very

with well yet, volume there. tool is to tool sharing on our clients a with productive, said, we're us start And thereafter two environment. defined then But reporting as structure. for and their bullish in to this year have markets about I it we'd very as engage expand, now become move our then and rather not grow we into predictions to fiscal the to see add will necessary other work and allow larger they that to market. expect a pretty plan launch from We sometime we're dedicated But this quickly right

grow how all overall. us this we're very So, platform business about excited the can help

you. Thank

Andrew JPMorgan. Our with next question comes from Steinerman

your question. proceed with You may

have I three questions.

$XX.X past on But it year year-over-year My be is, just have surely we I the you July in verify in that second of the would five all fiscal trend XX the about it's talk about when one you've that. is non-holiday to weekly you impacted willing third quarter, six so question the weeks. question X verify first you I if is, us The far That's that helpful the speak average week want quarter in calls, a then give to year-over-year -- are talking we're just is, it to a know could to us. my my that And trend the a quarters for week, about weeks. sense did but to about this also it think you're XX-week I of give holiday, quarter. weekly million trends spoken the basis? My and the gave early to us first question a remember conference question. by trend could

Yes.

this And third questions. to thanks the for going to Jen, will quarter year all of to for the I'm your question. am I a for you year-over-year confirm and your it again, quarters. attend. going for it's thanks turn Andrew, schedule XX-week adjusting be to So ours XX-week

Yes.

weekly if So I were through year, Decline? year-over-year you the we're mean, quarter with last about looking XX.X that a at rest million of average to to compared XX%, a out XX%. revenue project the roughly,

willing, would We're willing Okay. I'm about us us to five July modeling? for Jen but the you weeks that weeks you the six quarter. asking then, of week our give for And question. Xth help Would in -- Jen, only be you're if last gave just now.

July the I perspective, is with Yes. line non-holiday in it's rest Xth of a the week. mean, runway from week

that's like also so XX.X, Oh, you're saying?

No.

XX.X, a if compare Given so roughly that I if day basis, to we were have you blow that mean, the correct. on it's holiday, you Yes. out? Correct. same

me Let it I sure just right, Jen. got make

day. one on saying week XX.X I you're and think subtract day from I be that an wise, that week have to it would except a else minus

Correct.

Yes.

questions I any Thank now you. And to remarks. Kate at for time. Duchene back further this call I'm would any not further showing turn the to over like

today. to look next to thank talking us fiscal Everyone safe. 'XX. want everyone forward just And after for you thank stay We again, to of again. QX I joining

and you, gentlemen, Thank this today's conference you concludes call. ladies Thank for participating.

disconnect. now may You