BUSINESSWEEK'S HOT GROWTH COMPANIES

Hot Growth Special Report 2006 >

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Resources Connection (RECN)

Created from a leveraged buyout by former Deloitte & Touche partners, Resources Connection provides CPAs to companies that need help complying with Sarbanes-Oxley disclosure requirements. The Costa Mesa (Calif.) firm has seen its business more than double since 2003. The takeover boom has also produced piles of due-diligence work for Resources Connection's 2,600 professionals, who last year worked for more than 1,900 clients, including all of the Big Four accounting firms and half the Fortune 100 companies. With more than 49 U.S. offices, Resources Connection has been on an acquisition binge since 2003, adding branches -- and more outsourcing muscle -- in Australia, Sweden, and the Netherlands, as well as opening a new office in Paris. It's no surprise, then, that its sales have soared an average of 46.9% a year for the past three years, while profits have jumped 74.3%

Company Info

2005 Rank

NR

Market Value*
($ Millions)

1,294.0

Sales*
($ Millions)

618.0

Sales Growth
(3-yr. avg. annual)

46.9 %

Profits*
($ Millions)

60.6

Profit Growth
(3-yr. avg. annual)

74.3 %

Return on Inv. Capital (3-yr.)

18.7 %

Share Price
12-Mo. Hi/Lo

32/17

Share Price
As of 4/28/06

27

Return on Equity

20.7 %

P/E Ratio

23

No. of Employees

3,231

Industry Human Resource & Employment Services
CURRENT
MARKET INFO

RECN >

COMPANY WEB SITE >
Location Costa Mesa, Calif.
Phone 714 430-6400
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

Related Articles

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CSFB Upgrades Resources Connection to Outperform


Company Snapshot

Resources Connection provides professional services to various industries and enterprises in the U.S. and internationally. It provides accounting and finance, risk management and internal audit, information technology, human resources, and supply chain management professionals to customers on a project basis. The company assists its customers in various accounting and finance projects, such as mergers and acquisitions, due diligence, financial analyses, corporate reorganizations, and tax-related projects. Resources Connection also provides human resources management services, such as compensation program design and implementation; information technology services, including transitions of management information systems; and internal audit services, such as documenting internal controls. In addition, the company offers budgeting and forecasting, audit preparation, and public reporting. Further, Resources Connection provides policyIQ, a Web-based solution for internal controls documentation and content management. The company was founded in 1996 and is headquartered in Costa Mesa, Calif.


Data provided by Capital IQ
 
Donald B. Murray

Donald B. Murray, 58

Chairman, Chief Executive Officer and President


Total Compensation*

$ 1,363,902

Total Options Value*

$ 3,287,550

* Fiscal Year 2005


Executive Bio

Donald Murray has been chairman, chief executive, president, and director of Resources Connection since the management buyout in April, 1999. Murray co-founded Resources Connection in June, 1996, and served as managing director from inception until April, 1999. Prior to founding Resources Connection, Murray was partner in charge of accounting and assurance services for the Orange County (Calif.) office of Deloitte & Touche, a professional services firm, from 1988 to 1996. From 1984 to 1987, Murray was the partner in charge of the Woodland Hills (Calif.) office of Touche Ross, a predecessor firm to Deloitte & Touche. Murray was admitted to the Deloitte & Touche partnership in 1983.


Management Team

Key Executives

Donald B. Murray; John D. Bower; Kate W. Duchene; Stephen J. Giusto; Karen M. Ferguson

Board Directors

Julie Hill; Neil Dimick; Donald B. Murray; Stephen J. Giusto; Karen M. Ferguson; A. Robert Pisano; Jolene Sykes Sarkis; Shaw, and Rosenfeld Gerald John C.


Executive Data provided by Capital IQ