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Exam Code: CPCM Practice exam 2022 by Killexams.com team
CPCM Certified Professional Contracts Manager (CPCM) 2022

Exam : CPCM
Exam Name : Certified Professional Contracts Manager(R)
Questions : 150
Passing Scores : 70%
Duration : 1 hr 30 min.

The Contract Management Body of Knowledge and Leadership
 The Contract Management Framework
 Contract Management Body of Knowledge Overview
 CMBOK 1.1 Competence
 CMBOK 1.2 Character
 CMBOK 1.3 Collaboration
 CMBOK 1.4 Vision

Management I
 CMBOK 2.0 Management
 CMBOK 2.1 Business Management
 CMBOK 2.2 Financial Management

Management II
 CMBOK 2.3 Project Management
 CMBOK 2.4 Risk Management
 CMBOK 2.5 Supply Chain Management

Guiding Principles
 CMBOK 3.1 Skills and Roles
 CMBOK 3.2 Contract Principles
 CMBOK 3.3 Standards of Conduct
 CMBOK 3.4 Regulatory Compliance
 CMBOK 3.5 Situational Assessment
 CMBOK 3.6 Team Dynamics
 CMBOK 3.7 Communication and Documentation

Pre-Award
 CMBOK 4.1 Plan Solicitation
 CMBOK 4.2 Request Offers
 CMBOK 4.3 Plan Sales

Pre-Award and Award
 CMBOK 4.4 Prepare Offer
 CMBOK 5.1 Price or Cost Analysis
 CMBOK 5.2 Plan Negotiations
CPCM Online Preparatory Course

Award and Post-Award
 CMBOK 5.3 Select Source
 CMBOK 5.4 Manage Disagreements
 CMBOK 6.1 Administer Contract
 CMBOK 6.2 Ensure Quality

Post-Award
 CMBOK 6.3 Manage Subcontracts
 CMBOK 6.4 Manage Changes
 CMBOK 6.5 Close Out Contract

Learning
 CMBOK 7.1 Continuous Learning
 CMBOK 7.2 Individual Competence
 CMBOK 7.3 Organizational Capability

Certified Professional Contracts Manager (CPCM) 2022
Financial Professional resources
Killexams : Financial Professional resources - BingNews https://killexams.com/pass4sure/exam-detail/CPCM Search results Killexams : Financial Professional resources - BingNews https://killexams.com/pass4sure/exam-detail/CPCM https://killexams.com/exam_list/Financial Killexams : These four free personal finance courses can set you up for financial success in three hours or less

Select’s editorial team works independently to review financial products and write articles we think our readers will find useful. We earn a commission from affiliate partners on many offers, but not all offers on Select are from affiliate partners.

One of the most pivotal parts of an individual's livelihood is learning about personal finance, a term used to describe how one manages their money. It essentially encompasses everything from how you earn and spend your money to how you save, invest and borrow it.

Despite its importance in our everyday lives, however, personal finance is a subject that historically has been left off school curriculums, though that's now changing. As a result, many adults today have been left without any sort of proper education or guidance as to how their finances actually work.

Thankfully, there's an abundance of resources available online, including blogs and YouTube channels, that break down the basics of personal finance to help anyone start learning. For a more organized approach, online courses also exist, taught by vetted industry professionals and experts who are just a couple of clicks away.

Below, Select outlines four free online personal finance courses that can help you kickstart your financial journey — and don't require much time.

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1. Udemy's "Personal Finance 101: Everything You Need to Know"

Udemy is a massive online educational resource covering various topics.

A good place to begin learning about personal finance is through its "Personal Finance 101: Everything You Need to Know" course. By watching animated videos, users can learn basic personal finance courses such as saving for college, retirement planning and the ins and outs of credit cards.

This three-hour class requires no prior knowledge of finance or statistics and will guide you with concise online lectures that are no longer than a few minutes each. More than 55,000 people are enrolled and reviewers are generally pleased with the content, giving the course an average rating of 4.5 out of 5 stars. You'll have to pay for a certificate of completion if you'd like one, but all the other course video content is available for free.

2. Skillshare's "My Financial Mountain: Understanding Your Path to a Solid Financial Foundation"

You may have already heard of Skillshare, as it's a popular online learning community offering all sorts of educational classes.

Though Skillshare is a subscription-based service, you can still sign up for a free trial and receive unlimited access to more than 35,000 classes. You can cancel the free trial at any time — once it elapses, you'll be charged $168 for the annual premium subscription plan.

We recommend beginners sign up for the free trial and take a course called "My Financial Mountain: Understanding Your Path to a Solid Financial Foundation" — it's only 24 minutes long and allows you to breeze through courses such as saving for the future and financial planning.

While it's definitely not a deep dive into personal finance and you won't receive a certificate for completing it, this class will help put first-timers on track to understanding the key concepts, since it also walks you through seven steps you can take to set up a strong financial foundation.

With an enrollment of about 850, this course exceeded 33% of reviewers' expectations and met 50%.

3. Alison's "Introduction to Managing Your Personal Finance Debts"

Alison — short for Advanced Learning Interactive Systems Online — is an education platform that offers free online courses with certificates and diplomas, though the latter are available for purchase. Users can use their programs to learn skills such as accounting, contract law, business management and graphic design, and there are loads of personal finance courses available.

One we suggest trying is Alison's "Introduction to Managing Your Personal Finance Debts," since so much of personal finance is related to balancing the different kinds of debt you may owe. This free course will teach you how to prioritize which debt to pay off first, how to organize your debts using a spreadsheet and how to negotiate interest rates with credit card companies, among other skills.

In 1.5 to 3 hours, you can learn about responsible debt management methods with the goal of preventing or alleviating personal debt problems. Along with the more than 40,000 people who are also enrolled, you'll earn a certificate and become an Alison Graduate by achieving an 80% or higher on all assessments.

Reviewers call this course "very informative" and "easy to follow," while it boasts a near perfect average five-star rating.

Those interested in learning more can take a look at Alison's free courses in wealth building, retirement savings, and financial freedom — all of which take under three hours to complete.

4. Coursera's "Create a Budget with Google Sheets"

Coursera is another digital educational course provider that's offered by some of the country's top universities and companies.

We especially like its "Create a Budget with Google Sheets" class, which teaches budgeting as well as how to navigate Google Sheets like a pro — let's face it, spreadsheets are the key to getting a good overview of your money.

In just one hour, you'll learn how to build, format and update your budget to help you reach your financial goals. About 8,000 people are already enrolled, and the course has an average rating of 4.7 out of 5 stars.

While you won't get a certificate for completing this course, you will end up with a professional budget to help keep your finances in order.

Bottom line

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

Wed, 20 Jul 2022 09:24:00 -0500 en text/html https://www.cnbc.com/select/free-personal-finance-courses/
Killexams : 3 Strategies For Addressing Employees' Heightened Financial Stress

CMO & Head of People at BrightPlan, a Total Financial Wellness company.

When playing a word association game, most Americans would likely respond to “2021” with “COVID” and “2022” with “inflation.” Domestic and international economic uncertainties are the factors that weigh most heavily on workers. They're more stressed about their finances, which is forcing them to rethink their approaches to everything from saving for retirement to financing a home.

This shift is, in no small way, compelling HR executives to reconsider how they can best support the needs of their workforce and what’s most important in the employment relationship. As evidenced in the 2022 Wellness Barometer Survey, the increase in economic challenges is influencing employees’ overall well-being, with financial stress impacting both mental health (77% report an increase) and physical health (52% report an increase).

COVID-19 forced a radical, permanent transformation in the terms of engagement between companies and their workers. With economic stress now front and center, companies and people leaders must continue to reshape their definition of employee wellness and act accordingly if they are going to attract, retain and motivate their best employees.

Be A Trusted Partner

In employees’ eyes, personal wellness is no longer something for them to wrestle with alone. They expect their company to be a full partner in providing solutions for work/life balance, caregiving, mental health, personal finance, career development and more. Of all the cooperative support options, financial-wellness-related benefits top the list this year. Nearly nine in 10 employees expect their employers to offer financial education and/or tools for investing. Mental health benefits, flexible time off and professional development are also highly sought after.

These progressive benefits are important because it keeps trust in employers increasing. Perhaps driven by the changes brought about during COVID-19, more employees feel their companies are concerned with their health, safety and well-being. For employers and HR leaders, this is a unique opportunity to further demonstrate that company assistance doesn’t happen only between 9 and 5.

When employees are supported both inside and outside the workplace, the company benefits as well. Workers overwhelmingly believe that enhanced benefits are motivating. They are more likely to work harder, feel more secure, be more engaged in their work and ultimately stay longer in their jobs.

Offer Financial Literacy Solutions

With financial stress tightly connected to physical and mental well-being, financial literacy is a great place to begin the pursuit of holistic employee wellness. In the 2021 TIAA Institute-GFLEC Personal Finance Index survey, only 50% of U.S. adults were able to answer basic financial questions correctly—a drop of 2% from 2020. Money management is rarely taught at home or in school, a predicament that follows many individuals into adulthood.

Companies can help by offering easy-to-digest financial education, as well as tools for financial planning, investing, day-to-day money management and access to financial professionals. While younger generations are most in need of education about financial concepts, older employees value expert assistance on how to navigate issues regarding healthcare options, retirement planning and wealth management.

Include A Focus On Holistic Wellness

At a time when stress is rampant and employees are struggling for answers, HR can be a highly valued source of information, resources and encouragement. It begins by prioritizing wellness in all its forms—physical, mental, social and financial—and responding with both compassion and strategic solutions. While literacy and skills development are important, holistic wellness involves more than educating the employee. It’s about evolving workplace culture.

Understanding diverse employee needs and ensuring employees feel seen and accepted is key to this equation. Most employees still strongly believe that their employer has room to Boost in the area of diversity, equity and inclusion (DE&I). Moreover, many feel only somewhat safe, accepted and comfortable at work. Initiatives to increase inclusion across gender, age, sexual, cultural and racial lines are improving but still need further expansion. Employers can do more by focusing on hiring diverse candidates, engaging in progressive equity policies, offering mentorship programs and expanding DE&I training.

With the mounting global concerns, energy shocks and historic inflation, workers have every reason to be uncertain and anxious about the future. The events of the past several months have further accelerated the need for new perspectives and strategies among HR professionals and C-Suite executives alike. It’s time for creativity, empathy and responsiveness. Embracing and prioritizing the holistic well-being of workers improves productivity and creates a more supportive, welcoming environment. This can help ensure that workers will associate “2023” with “belonging.”


Forbes Human Resources Council is an invitation-only organization for HR executives across all industries. Do I qualify?


Wed, 03 Aug 2022 23:00:00 -0500 Neha Mirchandani en text/html https://www.forbes.com/sites/forbeshumanresourcescouncil/2022/08/04/3-strategies-for-addressing-employees-heightened-financial-stress/
Killexams : Help business owner clients protect their greatest asset: Their people

Most advisers and financial professionals working with business owners view themselves as partners who help their clients prepare for a secure financial future through activities like managing their assets. In my previous column, I challenged advisers to think of themselves as an extension of their clients’ risk management team by broadening their thinking around “assets” to include risks related to things like their clients’ most valuable asset — their people.

Since the pandemic, millions of Americans are reflecting on what matters most to them, leaving their jobs in search of more money, a better work-life balance or a more engaging work environment. According to the Department of Labor, the U.S. saw a record 4.4 million workers quit their jobs in April 2022 alone.  

While this may seem like an HR issue, advisers and financial professionals have an opportunity to help business clients understand risks associated with losing talent or failing to provide the resources employees desire to grow and become more engaged at work.

According to Gallup, U.S. businesses are losing $1 trillion every year due to voluntary turnover. For an individual organization, the cost of replacing an employee is one-half to two times the employee’s annual salary. You may be able to help by offering solutions within your portfolio or leveraging your network to bring the right resources to the table before turnover affects your business clients’ bottom line.

Carve out time in your next conversation to ask your business clients about their plan for managing people risk. Remind them that in today’s competitive environment, it’s important to think about how they can go beyond the basics when it comes to taking care of employees and planning for the future. Structure the conversation around the following categories:

BENEFITS

If your client is already offering competitive salaries, a good benefits package can give them an edge over the competition. According to a Care.com report, almost 98% of HR and C suite leaders plan to start offering or expand at least one employee benefit, prioritizing the ones workers deem most essential, like child and senior care benefits, flexibility around when and where work gets done, and expanded mental health support.

Standard medical, dental and vision benefits aren’t enough to differentiate most businesses. Business leaders don’t have to offer every kind of specialty benefit; instead, they need to determine what their employees want. In many cases, the expense is negligible, with most of the cost covered by the employee.

UPSKILLING

A great way to boost employee engagement and prepare for the future is through professional development. According to a McKinsey Global Survey on future workforce needs, nearly nine in 10 executives and managers say their organizations have skill gaps already or expect gaps to develop within the next five years. Now is the time for business leaders to be thinking about how they can address these gaps. This could include mentoring, training or other professional development opportunities.

RETENTION AND SUCCESSION PLANNING

Upskilling also prepares your workforce for future job openings. Losing a senior leader or top performer to a competitor or retirement can be a major blow. You can help your clients put a succession plan in place — or update the plan if it’s out of date.

Often the best solution can be found within the business, which can benefit the entire workforce. According to LinkedIn Learning’s 2021 Workplace Learning Report, employees at companies that hire or promote from within stay almost twice as long as employees at companies with low internal mobility. In addition, employees who move into new roles internally are 3.5 times more likely to be engaged.

You can also help your clients insure against the loss of key leaders with corporate-owned life insurance. COLI can be used in many ways, such as informally funding certain types of nonqualified deferred compensation plans. It can also be used as key person life insurance, paying out a death benefit to the business if a key employee passes away, which can buy time to find the right replacement.

WORKFORCE EXHAUSTION

According to Mercer Marsh, workforce exhaustion is rising as a result of work-life balance issues, change fatigue and too many priorities. This can lead to errors, turnover, reduced productivity and even a damaged reputation for your clients.

Offering flexible schedules and work environments can help business owners combat workforce exhaustion. If you’re working with many different clients, you’re likely hearing about a variety of approaches and can share these insights. You may even be able to leverage your network to connect clients with employee wellness experts equipped to provide mental health support.

When you engage your clients in conversations about managing people risk, helping them identify protection gaps and bringing solutions to the table, you will establish yourself as an even more valuable member of their risk management team.

[More: How are advisory firms withstanding the Great Resignation?]

Juan José Perez is president of Nationwide Corporate Solutions.

Tue, 19 Jul 2022 04:30:00 -0500 en-US text/html https://www.investmentnews.com/help-business-owner-clients-protect-their-greatest-asset-their-people-223955
Killexams : CECO ENVIRONMENTAL ANNOUNCES EXECUTIVE TRANSITION IN FINANCE AND HUMAN RESOURCES

DALLAS, Aug. 8, 2022 /PRNewswire/ -- CECO Environmental Corp. (Nasdaq: CECE) ("CECO"), a leading environmentally focused, diversified industrial company whose solutions protect people, the environment, and industrial equipment, today announced Matthew Eckl, Chief Financial Officer, and Pamela Turay, Senior Vice President – Human Resources will be leaving the company in August to pursue other opportunities. Eckl had been with the company since 2017 and Turay since 2018.

CECO Environmental Corp. Logo (PRNewsfoto/CECO Environmental Corp.) (PRNewsfoto/CECO Environmental Corp.)

Effective Aug. 15, 2022, Peter Johansson will join CECO as Chief Financial and Strategy Officer. CECO's current General Counsel Lynn Watkins-Asiyanbi will assume the newly created role of Chief Administrative and Legal Officer, which incorporates the legal, human resources and corporate communication functions.

"Matt and Pam have been valuable members of the CECO leadership team and have helped the organization advance in many important areas," said Todd Gleason, Chief Executive Officer, CECO Environmental. "CECO is stronger because of their efforts, and we wish them success in their future endeavors."

Eckl commented, "I'm privileged to have been a part of such an incredible team and I'm proud of our achievements during my tenure with CECO. The company is in a great position, and I am committed to supporting a smooth transition."

"I'm excited to welcome Peter to CECO as our next Chief Financial and Strategy Officer. He brings a significant amount of financial, business development and strategy experience to our organization at the perfect time for us as we believe that we are truly gaining momentum toward our ongoing transformation," added Gleason. "Additionally, broadening Lynn's role as our Chief Administrative and Legal Officer will unlock new processes and perspectives to align our functional excellence with our business strategies and growth deployment goals. We expect these important leadership changes further advance our progress and execution of the CECO's strategic plan to create long-term value for our stockholders."

Johansson has more than 30 years of diverse industrial business experience with companies such as Accudyne Industries, IDEX Corporation, ITT Corporation, Trane Technologies, WABCO, Honeywell and AlliedSignal. He has led complex organizations through transformational growth, and brings new perspectives and capabilities around financial analysis, capital market programs and leading concepts with respect to business development programs and operational effectiveness. Since October 2021, Johansson has worked with CECO as a consultant, assisting the leadership team with evaluating market strategies and business development opportunities.

Watkins-Asiyanbi joined CECO in June 2022 as Senior Vice President, General Counsel and Corporate Secretary. She has over 25 years of industrial business experience, with global industrial companies such as John Bean Technologies, W.W. Grainger, Inc. U.S. Foods, Inc., Mars, Inc., and General Mills. Watkins has a multitude of experience and skills, particularly with mergers and acquisitions, manufacturing operations, ethics, corporate governance, CSR and ESG, and financial and regulatory compliance.

ABOUT CECO ENVIRONMENTAL

CECO Environmental is a leading environmentally focused, diversified industrial company, serving a broad landscape of industrial air, industrial water and energy transition markets across the globe through its key business segments: Engineered Systems and Industrial Process Solutions. Providing innovative technology and application expertise, CECO helps companies grow their business with safe, clean, and more efficient solutions that help protect people, the environment and industrial equipment. In regions around the world, CECO works to Boost air quality, optimize the energy value chain, and provide custom solutions for applications including power generation, petrochemical processing, general industrial, refining, midstream oil and gas, electric vehicle production, poly silicon fabrication, battery recycling, beverage can, and water/wastewater treatment along with a wide range of other applications. CECO is listed on Nasdaq under the ticker symbol "CECE." Incorporated in 1966, CECO's global headquarters is in Dallas, Texas. For more information, please visit www.cecoenviro.com.

Media Contact:
Kimberly Plaskett, Corporate Communications
kplaskett@onececo.com 

Investor Relations Contact:
Steven Hooser or Gary Guyton
Three Part Advisors, LLC
214-872-2710 
investor.relations@onececo.com

SAFE HARBOR

Any statements contained in this Press Release, other than statements of historical fact, including statements regarding the benefits from changes to our leadership team, our business strategy and plans, market growth, and our objectives for future operations, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, and should be evaluated as such. These statements are made on the basis of management's views and assumptions regarding future events and business performance. We use words such as "believe," "expect," "anticipate," "intends," "estimate," "forecast," "project," "will," "plan," "should" and similar expressions to identify forward-looking statements. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Potential risks and uncertainties, among others, that could cause actual results to differ materially are discussed under "Part I – Item 1A. Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and include, but are not limited to: the sensitivity of our business to economic and financial market conditions generally and economic conditions in CECO's service areas; dependence on fixed price contracts and the risks associated therewith, including actual costs exceeding estimates and method of accounting for revenue; the effect of growth on CECO's infrastructure, resources, and existing sales; the ability to expand operations in both new and existing markets; the potential for contract delay or cancellation as a result of on-going or worsening supply chain challenges; liabilities arising from faulty services or products that could result in significant professional or product liability, warranty, or other claims; changes in or developments with respect to any litigation or investigation; failure to meet timely completion or performance standards that could result in higher cost and reduced profits or, in some cases, losses on projects; the potential for fluctuations in prices for manufactured components and raw materials, including as a result of tariffs and surcharges; the substantial amount of debt incurred in connection with our strategic transactions and our ability to repay or refinance it or incur additional debt in the future; the impact of federal, state or local government regulations; our ability to repurchase shares of our common stock and the amounts and timing of repurchases, if any; economic and political conditions generally; our ability to successfully realize the expected benefits of our restructuring program; our ability to successfully integrate acquired businesses and realize the synergies from strategic transactions; and unpredictability and severity of catastrophic events, including cyber security threats, acts of terrorism or outbreak of war or hostilities or public health crises, such as uncertainties regarding the extent and duration of impacts of matters associated with the novel coronavirus ("COVID-19"), as well as management's response to any of the aforementioned factors. Many of these risks are beyond management's ability to control or predict. Should one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results may vary in material aspects from those currently anticipated. Investors are cautioned not to place undue reliance on such forward-looking statements as they speak only to our views as of the date the statement is made. Furthermore, forward-looking statements speak only as of the date they are made. Except as required under the federal securities laws or the rules and regulations of the Securities and Exchange Commission, we undertake no obligation to update or review any forward-looking statements, whether as a result of new information, future events or otherwise.

Cision View original content to get multimedia:https://www.prnewswire.com/news-releases/ceco-environmental-announces-executive-transition-in-finance-and-human-resources-301601271.html

SOURCE CECO Environmental Corp.

Sun, 07 Aug 2022 23:09:00 -0500 en text/html https://markets.businessinsider.com/news/stocks/ceco-environmental-announces-executive-transition-in-finance-and-human-resources-1031660686
Killexams : Resources Connection, Inc. Reports Financial Results for Fourth Quarter and Full Fiscal Year 2022

IRVINE, Calif.--(BUSINESS WIRE)--Jul 28, 2022--

Resources Connection, Inc. (Nasdaq: RGP ) (the “Company”), a global consulting firm, today announced its financial results for its fourth quarter and full fiscal year ended May 28, 2022.

Fourth Quarter Fiscal 2022 Highlights:

  • Revenue increased 25.9% year over year and 6.1% sequentially, to $217.0 million
  • Same-day constant currency revenue, a non-GAAP measure, was up 27.5% from the prior year quarter and 1.3% sequentially
  • Gross profit improved to $89.7 million, up 31.3% from the prior year quarter
  • Gross margin was 41.3%, an improvement of 170 basis points over the prior year quarter
  • Selling, general and administrative expenses (“SG&A”) as a percentage of revenue improved 220 basis points from the prior year quarter to 27.3%
  • Net income was $20.5 million (net income margin of 9.5%) compared to $23.2 million (net income margin of 13.5%) in the prior year quarter, which included a $7.8 million tax benefit
  • Diluted earnings per common share of $0.61 compared to $0.70 in the prior year quarter
  • Adjusted EBITDA, a non-GAAP measure, increased to $33.4 million, or 15.4% Adjusted EBITDA margin, a 340 basis point margin improvement compared to the prior year quarter
  • Cash dividends declared of $0.14 per share, consistent with the prior year quarter

Full Fiscal Year 2022 Highlights:

  • Revenue grew 27.9% to $805.0 million compared to $629.5 million the prior year
  • Same-day constant currency revenue was up 28.7% from the prior year
  • Gross profit improved to $316.6 million, up 31.2% from the prior year
  • Gross margin was 39.3%, an improvement of 100 basis points from the prior year
  • SG&A as a percentage of revenue improved 540 basis points from the prior year to 27.9%
  • Net income was $67.2 million (net income margin of 8.3%), or $2.00 diluted earnings per common share, more than doubling the $25.2 million (net income margin of 4.0%), or $0.78 diluted earnings per common share in the prior year
  • Adjusted EBITDA margin, a non-GAAP measure, was 12.8%, up 440 basis points compared to the prior year
  • Available financial liquidity was $224.0 million, up from $150.1 million at fiscal year-end 2021

Management Commentary

“We are very excited to have produced the strongest revenue and Adjusted EBITDA we’ve seen in over ten years for both the fourth quarter and full fiscal year. We accomplished this by successfully executing on our record pipeline of opportunities across all businesses, while remaining disciplined on the cost front,” stated Kate W. Duchene, Chief Executive Officer. “Project size and duration continued to grow as we expanded the depth of our relationships and the breadth of our services within our global client base. As we look ahead, we are greatly encouraged by the solid trajectory of our pipeline supported by reoccurring projects from our strategic clients as they leverage RGP’s experienced talent to help them execute on transformations and fill on-demand talent gaps.”

Ms. Duchene continued, “With our flexible platform, we continue to attract a premier professional workforce that is focused and motivated to outperform client expectations. In a permanently changing world, we are building the ideal professional home for the best talent who wants to work in new ways. Our successful execution, coupled with favorable secular trends including rapid adoption of workforce agility, workforce gaps caused by the tightening labor market, the persistent demand for digital transformation services, and the increase in client spending on significant transformational initiatives, should continue to enable us to deliver increased shareholder value.”

Fourth Quarter Fiscal 2022 Results

The Company executed seamlessly against market opportunities in the fourth quarter and achieved strong year-over-year growth as well as sequential growth. Revenue was driven by growing pipeline and size of closed deals over latest quarters. Our successful execution, coupled with favorable secular trends including a rapid shift to workforce agility and a continued tight labor market, enabled us to attain broad based topline growth across most client segments, including strategic global and regional accounts in the majority of our markets and solution areas. With heightened and continued focus on pricing, the Company’s average bill rate increased by 4.0% from the prior year quarter and 2.3% sequentially, contributing to the overall year-over-year revenue growth of 25.9% to $217.0 million, the strongest fiscal quarter revenue performance since fiscal 2008.

Gross margin for the fourth quarter was 41.3%, compared to 39.6% in the prior year’s quarter. The increase was primarily due to a 190 basis point improvement in pay/bill ratio driven by ongoing efforts to enhance pricing while offering competitive consultant wages as the labor market continues to tighten.

SG&A for the fourth quarter of fiscal 2022 was $59.4 million, or 27.3% of revenue, compared to $50.8 million, or 29.5% of revenue, for the fourth quarter of fiscal 2021, reflecting an improvement of 220 basis points largely as a result of higher operating leverage. The rise in SG&A year over year was primarily due to higher incentive compensation as a result of achieving significant growth in both revenue and profitability.

The fourth quarter of fiscal 2022 had a provision for income taxes of $7.2 million (an effective tax rate of 26.1%) compared to an income tax benefit of $7.8 million (an effective benefit rate of 50.6%) for the fourth quarter of fiscal 2021. The income tax benefit in the fourth quarter of fiscal 2021 was related to an NOL carryback permitted under the Coronavirus Aid, Relief, and Economic Security Act, generating a $12.8 million tax benefit from the tax rate differential between the various applicable tax years.

Strong performance in the fourth quarter resulted in net income of $20.5 million (net income margin of 9.5%), compared to $23.2 million (net income margin of 13.5%) in the prior year quarter, which included the one-time $7.8 million income tax benefit discussed above. Adjusted EBITDA margin was 15.4% for the fourth quarter of fiscal 2022, an improvement of 340 basis points over the prior year quarter and the highest margin level in over a decade.

Full Fiscal Year 2022 Results

Annual revenue growth for fiscal 2022 was 27.9% to $805.0 million and gross margin improved by 100 basis points to 39.3% from a year ago, driven by our reinvigorated focus to raise bill rates that better reflected value delivered to clients. Operational efficiency in the business supported better SG&A leverage to 27.9%, a 540 basis point improvement from a year ago. The Company delivered net income of $67.2 million (net income margin of 8.3%) for fiscal 2022, diluted earnings per common share of $2.00, and 12.8% Adjusted EBITDA margin, all record results relative to the past decade.

RESOURCES CONNECTION, INC.

SUMMARY OF CONSOLIDATED FINANCIAL RESULTS

(Amounts in thousands, except per share amounts)

 

Three Months Ended

For the Years Ended

May 28,

Feb 26,

May 29,

May 28,

May 29,

2022

2022

2021

2022

2021

(Unaudited)

(Unaudited)

(Unaudited)

Revenue

$

217,031

$

204,609

$

172,318

$

805,018

$

629,516

Direct cost of services

127,356

127,815

104,035

488,376

388,112

Gross profit

89,675

76,794

68,283

316,642

241,404

Selling, general and administrative expenses

59,356

57,090

50,780

224,721

209,326

Amortization expense

1,300

1,321

1,104

4,908

5,228

Depreciation expense

881

882

943

3,575

3,897

Income from operations

28,138

17,501

15,456

83,438

22,953

Interest expense, net

320

307

284

1,064

1,600

Other expense (income) (1)

59

(35

)

(262

)

(594

)

(1,331

)

Income before income tax expense (benefit)

27,759

17,229

15,434

82,968

22,684

Income tax expense (benefit)

7,232

(2,192

)

(7,814

)

15,793

(2,545

)

Net income

$

20,527

$

19,421

$

23,248

$

67,175

$

25,229

Net income per common share:

Basic

$

0.62

$

0.59

$

0.71

$

2.04

$

0.78

Diluted

$

0.61

$

0.58

$

0.70

$

2.00

$

0.78

Weighted average number of common and common equivalent shares outstanding:

Basic

32,957

32,738

32,715

32,953

32,444

Diluted

33,499

33,375

33,053

33,556

32,552

Cash dividends declared per common share

$

0.14

$

0.14

$

0.14

$

0.56

$

0.56

Revenue by Geography

Revenue:

North America

$

183,817

$

173,569

$

141,518

$

676,419

$

512,777

Europe

19,433

17,856

19,371

76,075

72,496

Asia Pacific

13,781

13,184

11,429

52,524

44,243

Total revenue

$

217,031

$

204,609

$

172,318

$

805,018

$

629,516

Cash dividend

Total cash dividends paid

$

4,635

$

4,715

$

4,605

$

18,600

$

18,230

Note: The sum of quarterly amounts, including per share amounts, may not equal amounts reported for year-to-date periods. This is due to the effects of rounding and changes in the number of weighted average shares outstanding for each period.

(1) Other income for the current fiscal year primarily consisted of COVID-19 government relief funds received globally and a gain from lease modification. Other income for the year ended May 29, 2021 primarily consisted of COVID-19 government relief funds received globally.

Conference Call Information

RGP will hold a conference call for analysts and investors at 5:00 p.m., ET, today, July 28, 2022. A live webcast of the call will be available on the “Investor Relations” Events section of the Company’s website. To access the call by phone, please go to this link ( registration link ), and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time by visiting the Events section of the Company website.

About 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 our clients, we specialize in co-delivery of enterprise initiatives typically precipitated by business transformation, strategic transactions or regulatory change. Our engagements are designed to leverage human connection and collaboration to deliver practical solutions and more impactful results that power our clients’, consultants’, and partners’ success. Our unique approach to workforce strategy strongly positions us to help our clients transform their businesses and workplaces, especially in a time where high-quality talent is increasingly scarce and the usage of a flexible workforce to execute transformational projects has become the dominant operating model. Our mission as an employer is to connect our team members to meaningful opportunities that further their career ambitions within the context of a supportive talent community of dedicated professionals. With approximately 4,300 professionals, we annually engage with over 2,200 clients around the world from over 40 physical practice offices and multiple virtual offices. We are their partner in delivering on the “now of work.” Headquartered in Irvine, California, RGP is proud to have served over 88% of the Fortune 100.

The Company is listed on the Nasdaq Global Select Market, the exchange’s highest tier by listing standards. To learn more about RGP, visit: http://www.rgp.com. (RGP-F)

Forward-Looking Statements

Certain statements in this press release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to expectations concerning matters that are not historical facts. Such forward-looking statements may be identified by words such as “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “remain,” “should” or “will” or the negative of these terms or other comparable terminology. In this press release, such statements include statements regarding our growth and operational plans, our project pipeline, expectations regarding secular trends and expectations regarding our continued growth and ability to deliver increased shareholder value. Such statements and all phases of the Company’s operations are subject to known and unknown risks, uncertainties and other factors that could cause our actual results, levels of activity, performance or achievements and those of our industry to differ materially from those expressed or implied by these forward-looking statements. Risks and uncertainties include, but are not limited to, the following: risks related to an economic downturn or deterioration of general macroeconomic conditions, risks arising from epidemic diseases or pandemics, the highly competitive nature of the market for professional services, risks related to the loss of a significant number of our consultants, or an inability to attract and retain new consultants, the possible impact on our business from the loss of the services of one or more key members of our senior management, risks related to potential significant increases in wages or payroll-related costs, our ability to secure new projects from clients, our ability to achieve or maintain a suitable pay/bill ratio, our ability to compete effectively in the competitive bidding process, risks related to unfavorable provisions in our contracts which may permit our clients to, among other things, terminate the contracts partially or completely at any time prior to completion, our ability to realize the level of benefit that we expect from our restructuring initiatives, risks that our latest digital expansion and technology transformation efforts many not be successful, our ability to build an efficient support structure as our business continues to grow and transform, our ability to grow our business, manage our growth or sustain our current business, our ability to serve clients internationally, possible disruption of our business from our past and future acquisitions, the possibility that our latest rebranding efforts may not be successful, our potential inability to adequately protect our intellectual property rights, risks that our computer hardware and software and telecommunications systems are damaged, breached or interrupted, risks related to the failure to comply with data privacy laws and regulations and the adverse effect it may have on our reputation, results of operations or financial condition, our ability to comply with governmental, regulatory and legal requirements and company policies, the possible legal liability for damages resulting from the performance of projects by our consultants or for our clients’ mistreatment of our personnel, risks arising from changes in applicable tax laws or adverse results in tax audits or interpretations, the possible adverse effect on our business model from the reclassification of our independent contractors by foreign tax and regulatory authorities, the possible difficulty for a third party to acquire us and resulting depression of our stock price, the operating and financial restrictions from our credit facility, risks related to the variable rate of interest in our credit facility, the possibility that we are unable to or elect not to pay our quarterly dividend payment, and other factors and uncertainties as are identified in our most latest Annual Report on Form 10-K for the year ended May 29, 2021, the Annual Report on Form 10-K for the year ended May 28, 2022, which will be filed on or around July 28, 2022, and our other public filings made with the Securities and Exchange Commission (File No. 0-32113). Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also affect our business or operating results. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not intend, and undertakes no obligation, to update the forward-looking statements in this press release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, unless required by law to do so.

Use of Non-GAAP Financial Measures

The Company utilizes certain financial measures and key performance indicators that are not defined by, or calculated in accordance with, accounting principles generally accepted in the U.S. (“GAAP”) to assess our financial and operating performance. A non-GAAP financial measure is defined as a numerical measure of a company’s financial performance that (i) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the comparable measure calculated and presented in accordance with GAAP in the consolidated statement of operations; or (ii) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the comparable GAAP measure so calculated and presented. The following non-GAAP measures are presented in this press release:

  • Same-day constant currency revenue is adjusted for the following items:
    • Currency impact. In order to remove the impact of fluctuations in foreign currency exchange rates, the Company calculates constant currency revenue, which represents the outcome that would have resulted had exchange rates in the current period been the same as those in effect in the comparable prior period.
    • Business days impact. In order to remove the fluctuations caused by comparable periods having a different number of business days, the Company calculates same-day revenue as current period revenue (adjusted for currency impact) divided by the number of business days in the current period, multiplied by the number of business days in the comparable prior period. The number of business days in each respective period is provided in the “Number of Business Days” section of the “Reconciliation of GAAP to Non-GAAP Financial Measures” table below.
  • EBITDA is calculated as net income before amortization expense, depreciation expense, interest and income taxes.
  • Adjusted EBITDA is calculated as net income before amortization expense, depreciation expense, interest and income taxes plus stock-based compensation expense, restructuring costs, technology transformation costs, and plus or minus contingent consideration adjustments. Adjusted EBITDA at the segment level excludes certain shared corporate administrative costs that are not practical to allocate.
  • Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenue.
  • Cash tax rate excludes the non-cash tax impact of stock option expirations, non-cash tax impact of valuation allowances on international deferred tax assets, and other non-cash tax items.
  • Adjusted (benefit from) provision for income taxes is calculated based on the Company’s cash tax rates (as defined above).
  • Adjusted diluted earnings per common share is calculated as diluted earnings per common share, plus the per share impact of stock-based compensation expense, restructuring costs, and technology transformation costs, plus or minus the per share impact of contingent consideration adjustments, and adjusted for the related tax effects of these adjustments.

We believe the above-mentioned non-GAAP measures, which are used by management to assess the core performance of our Company, provide useful information and additional clarity of our operating results to our investors in their own evaluation of the core performance of our Company and facilitate a comparison of such performance from period to period. These are not measurements of financial performance or liquidity under GAAP and should not be considered in isolation or construed as substitutes for revenue, net income or other cash flow data prepared in accordance with GAAP for purposes of analyzing our revenue, profitability or liquidity. These measures should be considered in addition to, and not as a substitute for, revenue, net income, earnings per share, cash flows or other measures of financial performance prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies, as other companies may calculate such financial results differently.

RESOURCES CONNECTION, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited, amounts in thousands, except number of business days)

Three Months Ended

Three Months Ended

For the Years Ended

Revenue by Geography

May 28,

February 26,

May 28,

May 29,

May 28,

May 29,

2022

2022

2022

2021

2022

2021

North America

As reported (GAAP)

$

183,817

$

173,569

$

183,817

$

141,518

$

676,419

$

512,777

Currency impact

(58

)

16

(297

)

Business days impact

(11,308

)

-

2,694

Same-day constant currency revenue

$

172,451

$

183,833

$

678,816

Europe

As reported (GAAP)

$

19,433

$

17,856

$

19,433

$

19,371

$

76,075

$

72,496

Currency impact

890

1,869

1,650

Business days impact

164

(172

)

(153

)

Same-day constant currency revenue

$

20,487

$

21,130

$

77,572

Asia Pacific

As reported (GAAP)

$

13,781

$

13,184

$

13,781

$

11,429

$

52,524

$

44,243

Currency impact

487

857

1,477

Business days impact

-

119

-

Same-day constant currency revenue

$

14,268

$

14,757

$

54,001

Total Consolidated

As reported (GAAP)

$

217,031

$

204,609

$

217,031

$

172,318

$

805,018

$

629,516

Currency impact

1,319

2,742

2,830

Business days impact

(11,144

)

(53

)

2,541

Same-day constant currency revenue

$

207,206

$

219,720

$

810,389

Number of Business Days

North America (1)

65

61

65

65

251

252

Europe (2)

62

63

62

62

254

253

Asia Pacific (2)

62

62

62

62

247

247

(1) This represents the number of business days in the United States.

(2) This represents the number of business days in the countries in which the revenues are most concentrated within the geography.

RESOURCES CONNECTION, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited, amounts in thousands, except per share amounts and percentages)

Three Months Ended

May 28,

% of

February 26,

% of

May 29,

% of

Adjusted EBITDA

2022

Revenue

2022

Revenue

2021

Revenue

Net income

$

20,527

9.5

%

$

19,421

9.5

%

$

23,248

13.5

%

Adjustments:

Amortization expense

1,300

0.6

1,321

0.6

1,104

0.6

Depreciation expense

881

0.4

882

0.4

943

0.5

Interest expense, net

320

0.1

307

0.2

284

0.2

Income tax expense (benefit)

7,232

3.3

(2,192

)

(1.1

)

(7,814

)

(4.5

)

EBITDA

30,260

13.9

19,739

9.6

17,765

10.3

Stock-based compensation expense

2,317

1.1

2,202

1.1

1,674

1.0

Restructuring costs

26

-

67

-

(185

)

(0.1

)

Contingent consideration adjustment

-

-

-

-

1,460

0.8

Technology transformation costs (1)

759

0.4

461

0.3

-

-

Adjusted EBITDA

$

33,362

15.4

%

$

22,469

11.0

%

$

20,714

12.0

%

Adjusted Diluted Earnings per Common Share

Diluted earnings per common share, as reported

$

0.61

$

0.58

$

0.70

Stock-based compensation expense

0.07

0.07

0.05

Restructuring costs

-

-

(0.01

)

Contingent consideration adjustment

-

-

0.04

Technology transformation costs

0.02

0.01

-

Income tax impact of adjustments

(0.03

)

(0.01

)

0.02

Adjusted diluted earnings per common share

$

0.67

$

0.65

$

0.80

Adjusted Income Tax Expense (Benefit) and Cash Tax Rate

Income tax expense (benefit)

$

7,232

$

(2,192

)

$

(7,814

)

Effect of non-cash tax items:

Stock option expirations

(69

)

84

(906

)

Valuation allowance on international deferred tax assets

(1,891

)

6,698

1,063

Net uncertain tax position adjustments

(6

)

(15

)

(9

)

Other adjustments

(783

)

669

152

Adjusted income tax expense (benefit)

$

4,483

$

5,244

$

(7,514

)

Effective tax rate

26.1

%

(12.7

%)

(50.6

%)

Total effect of non-cash tax items on effective tax rate

(9.9

%)

43.2

%

1.9

%

Cash tax rate

16.2

%

30.5

%

(48.7

%)

(1) Commencing with the three months ended November 27, 2021, Adjusted EBITDA also excludes the impact of technology transformation costs. 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 system. Such costs primarily include software licensing costs, third-party consulting fees and costs associated with dedicated internal resources that are not capitalized.

RESOURCES CONNECTION, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited, amounts in thousands, except per share amounts and percentages)

For the Years Ended

May 28,

% of

May 29,

% of

May 30,

% of

Adjusted EBITDA

2022

Revenue

2021

Revenue

2020

Revenue

Net income

$

67,175

8.3

%

$

25,229

4.0

%

$

28,285

4.0

%

Adjustments:

-

Amortization expense

4,908

0.6

5,228

0.8

5,745

0.8

Depreciation expense

3,575

0.4

3,897

0.6

5,019

0.7

Interest expense, net

1,064

0.2

1,600

0.3

2,061

0.3

Income tax expense (benefit)

15,793

2.0

(2,545

)

(0.4

)

6,943

1.0

EBITDA

92,515

11.5

33,409

5.3

48,053

6.8

Stock-based compensation expense

8,168

1.0

6,613

1.1

6,057

0.9

Restructuring costs

833

0.1

8,260

1.3

4,982

0.7

Contingent consideration adjustment

166

-

4,512

0.7

794

0.1

Technology transformation costs (1)

1,449

0.2

-

-

-

-

Adjusted EBITDA

$

103,131

12.8

%

$

52,794

8.4

%

$

59,886

8.5

%

Adjusted Diluted Earnings per Common Share

Diluted earnings per common share, as reported

$

2.00

$

0.78

$

0.88

Stock-based compensation expense

0.24

0.20

0.19

Restructuring costs

0.02

0.25

0.15

Contingent consideration adjustment

-

0.14

0.02

Technology transformation costs

0.04

-

-

Income tax impact of adjustments

(0.08

)

(0.07

)

(0.06

)

Adjusted diluted earnings per common share

$

2.22

$

1.30

$

1.18

Adjusted Income Tax Expense (Benefit) and Cash Tax Rate

Income tax expense (benefit)

$

15,793

$

(2,545

)

$

6,943

Effect of non-cash tax items:

Stock option expirations

(231

)

(1,226

)

(1,113

)

Valuation allowance on international deferred tax assets

5,371

(880

)

(1,418

)

Net uncertain tax position adjustments

(36

)

(24

)

(806

)

Other adjustments

(129

)

357

35

Adjusted income tax expense (benefit)

$

20,768

$

(4,318

)

$

3,641

Effective tax rate

19.0

%

(11.2

%)

19.7

%

Total effect of non-cash tax items on effective tax rate

6.0

%

(7.8

%)

(9.4

%)

Cash tax rate

25.0

%

(19.0

%)

10.3

%

(1) Commencing in November 27, 2021, Adjusted EBITDA also excludes the impact of technology transformation costs. 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 system. Such costs primarily include software licensing costs, third-party consulting fees and costs associated with dedicated internal resources that are not capitalized.

Segment Results

Effective in the second quarter of fiscal 2021, the Company revised its segment reporting to align with changes made in its internal management structure and its reporting structure of financial information used to assess performance and allocate resources. On May 31, 2022, we completed the sale of taskforce to the senior leaders of the business. We believe an interim management business that primarily serves the middle-market client base in Germany no longer aligns with our strategy in the European region, which highly focuses on providing project consulting and execution services to large global clients. Beginning in fiscal 2023, we will operate in the remaining two operating segments, RGP and Sitrick.

Operating results by reportable segment are included in the following table. Please refer to the “Reconciliation of GAAP to Non-GAAP Financial Measures” table above for the reconciliation of consolidated net income to Adjusted EBITDA for each of the periods presented.

Three Months Ended

For the Years Ended (3)

May 28,

February 26,

May 29,

May 28,

May 29,

(Amounts in thousands)

2022

2022

2021

2022

2021

(Unaudited)

(Unaudited)

(Unaudited)

Revenue:

RGP

$

206,766

$

195,251

$

162,022

$

764,350

$

587,620

Other Segments

10,265

9,358

10,296

40,668

41,896

Total revenue

$

217,031

$

204,609

$

172,318

$

805,018

$

629,516

Adjusted EBITDA:

RGP

$

42,354

$

30,656

$

26,918

$

134,187

$

77,589

Other Segments

710

579

714

3,527

3,580

Reconciling items (1)

(9,702

)

(8,766

)

(6,918

)

(34,583

)

(28,375

)

Total Adjusted EBITDA (2)

$

33,362

$

22,469

$

20,714

$

103,131

$

52,794

(1)

Reconciling items are generally comprised of unallocated corporate administrative costs, including management and board compensation, corporate support function costs and other general corporate costs that are not allocated to segments.

(2)

A reconciliation of the Company’s net income to Adjusted EBITDA on a consolidated basis is presented above under “Use of Non-GAAP Financial Measures--Reconciliation of GAAP to Non-GAAP Financial Measures.”

(3)

Information is derived from the audited financial statements within the Form 10-K issued on July 28, 2022.

RESOURCES CONNECTION, INC.

SELECTED BALANCE SHEET, CASH FLOW AND OTHER INFORMATION

(Amounts in thousands, except consultant headcount and average rates)

May 28,

May 29,

SELECTED BALANCE SHEET INFORMATION (1):

2022

2021

Cash and cash equivalents

$

104,224

$

74,391

Trade accounts receivable, net of allowance for doubtful accounts

$

153,154

$

116,455

Total assets

$

581,473

$

520,644

Current liabilities

$

124,322

$

100,906

Long-term debt

$

54,000

$

43,000

Total liabilities

$

209,024

$

191,098

Total stockholders’ equity

$

372,449

$

329,546

For the Years Ended

May 28,

May 29,

SELECTED CASH FLOW INFORMATION (1):

2022

2021

Cash flow -- operating activities

$

49,444

$

39,943

Cash flow -- investing activities

$

(2,961

)

$

(3,843

)

Cash flow -- financing activities

$

(13,371

)

$

(59,461

)

Three Months Ended

May 28,

May 29,

SELECTED OTHER INFORMATION:

2022

2021

(Unaudited)

(Unaudited)

Consultant headcount, end of period

3,388

2,902

Average bill rate

$

131

$

126

Average pay rate

$

64

$

64

Common shares outstanding, end of period

33,197

32,885

(1) Information is derived from the audited financial statements within the Form 10-K issued on July 28, 2022.

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20220728005491/en/

CONTACT: Investor Contact:

Jennifer Ryu, Chief Financial Officer

(US+) 1-714-430-6500

jennifer.ryu@rgp.comMedia Contact:

Michael Sitrick

(US+) 1-310-788-2850

mike_sitrick@sitrick.com

KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA

INDUSTRY KEYWORD: CONSULTING PROFESSIONAL SERVICES HUMAN RESOURCES

SOURCE: Resources Connection, Inc.

Copyright Business Wire 2022.

PUB: 07/28/2022 04:07 PM/DISC: 07/28/2022 04:07 PM

http://www.businesswire.com/news/home/20220728005491/en

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Killexams : State Department Awards $350M Financial Management Support Contract to IFAS

Woodbridge, Virginia-based Integrated Finance and Accounting Solutions has been awarded a potential $350 million contract to provide support services to the State Department’s Bureau of the Comptroller and Global Financial Services.

The department announced the Charleston Global Financial Services indefinite-delivery/ indefinite-quantity contract through an award notice published Friday.

CGFS-Charleston provides financial services to the State Department, including domestic organizations and posts abroad.

Under the IDIQ contract, the contractor will provide certified and trained financial and information technology professionals and administrative services staff in support of the department’s basic financial accounting, disbursement and payroll functions for foreign service officers, civil service personnel and local employees supporting the department’s overseas posts.

The vendor will also deliver related support services, including financial systems analysis, design; business process analysis; testing; implementation support; database management; system integration and operations support; configuration management; technical and operational analysis; enterprise resource analysis and processing; help desk; security; accounting services; budgeting; financial reporting and analysis; audit follow-up services; planning and performance measurement services; reconciliation; and training, according to the scope of work.

Sun, 07 Aug 2022 22:05:00 -0500 en-US text/html https://www.govconwire.com/2022/08/state-department-awards-350m-financial-services-contract-to-ifas/
Killexams : Black Business Expo and Financial Empowerment Summit to be held Friday in downtown Flint

FLINT, MI- A five-hour, free to the public summit and business expo event will take place this Friday in downtown Flint.

The Black Business Expo Financial Empowerment Summit presented by Chennelle Dismond will take place from 11 a.m. to 4 p.m. on Friday, July 22, at the Flint Farmers’ Market, 300 E. 1st St.

This event will be showcasing a variety of local vendors and organizations. The showcase will include healthcare & wellness organizations, nonprofit agencies, restaurant owners & food truck operators, catering & unique food prep services, business resource distributors, clothing designers, merchant service providers, authors/publishers, IT/Digital/ Media Support Experts, advisors/consultants, business educators & coaches, and more.

Dismond, who has a background in the financial realm, put together the event. She found inspiration, revamped and inherited the whole concept of the Black Business Expo from the late Superintendent Quintin Marshall Senior.

After he passed away in 2018, Dismond said she was in the mindset where she wanted to revise the whole concept, so she stayed in contact with his wife and brought it back with a focus on finance.

“I understand the dynamics behind the perceived lack of resources really being a matter of lack of knowledge of the resources that one needs, and how to identify and access,” she said. “This is a resource rich community and I’ve been here as a financial professional and in community for over 25 years. So, I know what everybody doesn’t know.”

The summit aims to inform the community about the awareness of minority-owned businesses through different financial education courses such as “How Do I Get Started,” “How to Pivot in a Pandemic,” “Show Me the Money in My Backyard,” and “Taking My Business to The NEXT LEVEL.”

There will also be a youth entrepreneur corner where youth entrepreneurs 17 and under can showcase their products and services for free.

“I want to showcase that you’re never too young to get started and you’re never too old,” said Dismond. “I want to be able to showcase opposite ends of the spectrum and see what that looks like when you follow your dreams.”

The day’s events will include speakers, presentations, and vendors.

“I’m looking for every person that walks in that door that they walk away with something, even if they don’t find that the information was most beneficial to them,” said Dismond. “This is what it says. It’s a financial empowerment summit, an opportunity for you to come into contact with those entities in your community that will help you to grow and develop that business that may have already come to fruition, or that you’re just thinking about.

“This is where you find the money in your backyard when you think that there’s no resources. This is about education. At the heart of this, education is where I hang my head.”

For more information on this event, contact BlackBusinessExpo.Flint@gmail.com.

Read more at The Flint Journal:

Communities First will purchase Baker College campus property with $4M grant

Crim Fitness Foundation unveils new downtown plaza

Here’s a look at the lineup for Grand Blanc’s food truck festival on Friday

Beer Fest event to debut at Tenacity Brewing in Flint this Sunday

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Thu, 21 Jul 2022 22:49:00 -0500 en text/html https://www.mlive.com/news/flint/2022/07/black-business-expo-and-financial-empowerment-summit-to-be-held-friday-in-downtown-flint.html
Killexams : Black Business Expo and Financial Empowerment Summit teaches businesses growth opportunities

FLINT, MI -- The 2022 Black Business Expo and Financial Empowerment Summit was held on Friday, July 22 at the Flint Farmers’ Market.

The event was designed to highlight minority-owned businesses by providing professional financial education, information on local and government resources for business development, and social media presence.

Chennelle Dismond, chairperson of the Black Business Expo, inherited the organization in 2018 from the late Superintendent Quintin Marshall Senior.

“The purpose behind this event is to bring to life and spotlight the informational resources in our backyard,” she said. “This is a resource rich community. I know it for myself being here so long and everyone doesn’t know it. When a business lacks growth, often they think it’s because they have a lack of resources or they don’t know what resources they need. Today is an opportunity for us to connect the dots.”

Some of the courses included were:

  • “How do I get started”
  • “How to pivot in a pandemic”
  • “Show me the money in my backyard”
  • “Taking my business to the next level”

Dismond is born and raised in Flint, calling herself a “Flintstone.”

She is the vice president of community manager at JPMorgan Chase & Co. and through her upbringing, noticed the Black community needed an organization such as the Black Business Expo.

Her family heavily believed in education.

“One of the things I got to do with my grandparents at the old Hamady store was I used to write the check,” Dismond said. “Whoever could estimate the amount of things in the grocery cart, you could write the check. Not everyone had that experience and I learned that coming up. My family talked about things like that and not everybody did.”

Andrew Younger, executive director of the Flint and Genesee Chamber, was a representative at the event.

“We believe our economy will be successful when everybody has an equal opportunity to start their business and to grow in their careers,” he said. “We want to help people grow with networking connecting with customers and clients. It’s also about finding vendors and partners, along with mentors building those relationships. I think the African American community hasn’t felt welcomed and we want to make sure we change that.”

One of the changes Younger touched on was creation of the The African American Advisory Committee (AAAC) of the Flint & Genesee Chamber.

“They focus on highlighting businesses, highlighting resources for businesses and it creates a nice way entering in the chamber of community,” he said.

Dismond is planning on having a Black women’s business expo in October, while also planning on bringing back the Black Business Expo and Financial Empowerment Summit next year in Flint.

Read more at The Flint Journal:

Whaley’s Children’s Center opens new independent home living in Flint

Flint boxer Anthony Dirrell hosts Xceptional Heroes program to support special needs community

Michigan’s Best Local Eats: Taco’s Jamay offers tasty tacos, football-sized burritos

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Fri, 22 Jul 2022 09:06:00 -0500 en text/html https://www.mlive.com/news/2022/07/black-business-expo-and-financial-empowerment-summit-teaches-businesses-growth-opportunities.html
Killexams : Democratic Proposal Would Expand Federal Financial Aid To Dream Students

For many students, federal financial aid makes the difference between being able to afford college and never attending. For Dreamer students, those resources are not available, leaving many of them struggling to pay for the college education they have dreamed of. Those struggles might be a little easier if a new proposal becomes law.

Last week, the House Appropriations Committee released a spending proposal for higher education that would, for the first time ever, expand access to federal financial aid to students who hold Deferred Action for Childhood Arrivals (DACA) status, also known as Dreamers.

The proposal to open federal student aid to Dreamers was included in a funding plan that would increase funding for the Department of Education (ED) by 13 percent for the fiscal year 2023. The plan also includes a $500 dollar increase to the maximum Pell Grant and increases funding for historically black colleges and universities (HBCUs) and minority-serving Institutions (MSIs). Additionally, the funding plan would increase funding for childcare support for students and provide additional funds for adult and technical education.

The bill was approved on a party line vote of 32-24.

College is hard enough to pay for even with access to federal student aid; providing dreamers access to federal financial aid would make a massive difference in helping them afford college. Currently, dreamers are not eligible for any federal financial aid, although some states, including California, and Texas, provide state financial aid grants to dream students. Access to federal aid would give access to Pell grants, federal student loans, and work-study funds.

The Obama administration implemented DACA to provide support to students who had been brought to the US as children by their parents. The law provides work authorization and protection from deportation for approximately 650,000 people. However, this represents a minority of potentially eligible, with some estimates suggesting there are as many as 3.6 million dreamers. Many did not apply for the program or aged into it after it stopped accepting new applications.

DACA has faced multiple legal challenges and setbacks, with recipients often wondering if their legal status will change at the drop of a hat. The Trump administration tried—unsuccessfully— to end the program multiple times. More recently, the Biden administration has said it intends to strengthen the program to ensure that DACA recipients have greater certainty over their future. A court ruling that blocked any new DACA applications from being processed has made it impossible to expand the programs.

Dreamer students have campaigned for years to receive access to federal student aid to provide access to higher education, rightly arguing that the benefits greatly outweigh the costs. Since DACA was implemented, recipients have become more likely to obtain a degree, increase their earning potential, and become more likely to enter into professional fields.

The current proposal remains a long way from becoming law at the moment. The house still must vote on the proposal, where it stands a reasonable chance of passing. The proposal will likely face more significant opposition in the Senate, where many Republicans are likely to oppose expanding federal student aid programs, particularly for undocumented students.

Dreamers continue to face huge uncertainty over their futures, with their status used as a perennial political football. Improving federal financial aid policy to support dreamers would go a long way to Boost their long term security. Providing support to help dreamers pay for the education they strive for is the clearest example of helping fulfill the American Dream.

Sat, 09 Jul 2022 12:00:00 -0500 Edward Conroy en text/html https://www.forbes.com/sites/edwardconroy/2022/07/10/democratic-proposal-would-expand-federal-financial-aid-to-dream-students/
Killexams : Amerigo Resources Ltd. (ARREF) CEO Aurora Davidson on Q2 2022 Results - Earnings Call Transcript

Amerigo Resources Ltd. (OTCQX:ARREF) Q2 2022 Results Conference Call August 4, 2022 2:00 PM ET

Company Participants

Graham Farrell - Harbor Access IR

Aurora Davidson - CEO

Carmen Amezquita - CFO

Conference Call Participants

Stephen Ferazani - Sidoti

Terry Fisher - CIBC World Markets

John Polcari - Mutual of America Capital Management

Operator

Good afternoon. My name is Sylvie, and I will be your conference operator today. At this time, I would like to welcome everyone to Amerigo Resources Q2 2022 Earnings Conference Call.

[Operator Instructions] Mr. Graham Farrell of Harbor Access Investment Relations, you may begin the conference.

Graham Farrell

Thank you, operator. Good afternoon, and welcome, everyone, to Amerigo Resources quarterly conference call to discuss the company’s financial results for the second quarter of 2022. We are delighted to have you join us today. This call will cover Amerigo’s financial and operating results for the second quarter ended June 30, 2022. Following our prepared remarks, we will open the conference call to a question-and-answer session.

Our call today will be led by Amerigo’s Chief Executive Officer, Aurora Davidson, along with the company’s Chief Financial Officer, Carmen Amezquita.

Before we begin our formal remarks, I would like to remind everyone that some of the statements on this conference call may be forward-looking statements. Forward-looking statements may include, but are not necessarily limited to, financial projections or other statements of the company’s plans, objectives, expectations or intentions. These matters involve certain risks and uncertainties. The company’s actual results may differ significantly from those projected or suggested by any forward-looking statements due to a variety of factors which are discussed in detail in our SEDAR filings.

I will now hand the call over to Aurora Davidson. Please go ahead, Aurora.

Aurora Davidson

Thank you, Graham. Welcome, everyone, to Amerigo’s earnings call for the second quarter of 2022. We remind you all that dollar figures that we report in this call are U.S. dollars, except where we specifically refer to Canadian dollars. After 7 consecutive quarters reporting net earnings, we are reporting a net loss this quarter of $0.03 or CAD0.04. EBITDA was $6.7 million. The loss was due to the confluence of weakness in copper prices and our annual maintenance shutdown quarter. The impact of earnings of realized lower copper prices was $5.1 million and the effect on quarterly earnings from lower production due to the shutdown was $2.9 million.

As we mentioned in our production report, operations at MVC are strong following the shutdown and proceeding according to plan. We continue to trend over guidance. Copper production was 14.9 million during the quarter. 61% of this came from processing fresh tailings and the remainder from the historical tailings at Cauquenes. We have continued to successfully increase the percentage of fresh tailings we process, which is minimizing our water use and extending the length of our research at Cauquenes.

During the second quarter, copper from fresh tailings processing was positively impacted by higher tonnage, grade and recoveries. In Cauquenes, we had higher grade and higher recoveries. These positives were mitigated by the fewer operating days associated with the maintenance shutdown. We had no operational issues during the quarter, and operations continued without any disruptions due to COVID-19. MVC reported good safety performance. There were no environmental incidents and plant availability was 99.2%. CapEx projects are proceeding on time and budget.

Water reserves are trending in the right direction, with stored water of 5.6 million cubic meters at the end of July, which is 14% higher than we reported in the last earnings call. We monitor our sources and uses of water very closely and maintain detailed projections for the next 18 months ahead of us. At present, we have no indications of needing to adjust our plans to preserve quarter.

Amerigo continues to show excellent control of its operating costs despite the highly inflationary environment in Chile, where the inflation rate was 3.4% in the quarter and 12.5% over the last 12 months. Based on our latest cost modeling, annual cash cost is trending towards $1.96 per pound, which is only 3% higher than guidance, and this is attributable almost entirely to lower molybdenum by-product credits from lower-than-anticipated moly production.

Amerigo’s performance continues to provide a solid foundation, supporting our capital return strategy, which I discussed last quarter, and we’ll now give you further details on. In the second quarter, Amerigo returned $13 million to shareholders, $4.1 million were paid through Amerigo’s regular quarterly dividend of CAD0.03 per share and $8.9 million were returned through the purchase of 6.9 million common shares for cancellation through Amerigo’s now completed annual normal course issuer bid.

Cash is still making its way into Amerigo shareholders accounts as promised. As was announced yesterday, Amerigo’s Board of Directors declared another quarterly dividend of CAD0.03 per share, which will be payable on September 20. The company’s return of capital strategy has 3 pillars: regular quarterly dividends, share buybacks and flexible performance dividends. The goal of this strategy is to maintain comfortable but not excessive levels of cash on the balance sheet. We will return the excess cash to shareholders to deploy in the most effective way they see fit.

The quarterly dividend is a fundamental pillar of Amerigo’s return of capital strategy and Amerigo shareholders can count on the quarterly dividend in their portfolios. Based on Amerigo’s end of quarter share price, this represents an annual dividend yield of 9.68%. We have also been very active on the second pillar of share buybacks. Amerigo’s number of shares outstanding is down to 166 million shares compared to 182 million shares 1 year ago. In total, $21.1 million have been used in share repurchases to reduce the outstanding share count by almost 9%.

The third pillar are the flexible performance dividends, which the company has yet to declare. These types of dividends will depend on several factors such as the company’s financial performance, the copper market outlook and cash balances. It may be paid in any amount at any time and as frequently as the Board sees appropriate. These types of dividends are to be paid in addition to, not instead of the company’s regular quarterly dividends. This mechanism gives us the flexibility to maintain safe quarterly dividends and not leave more cash than necessary on the balance sheet. This mechanism also allows the company to distribute excess cash more quickly, flexibly and frequently venture buyback programs or quarterly dividends.

As I described in our last quarterly call, performance dividends will be a very powerful component of Amerigo’s overall yield during periods of high copper prices. We have guided the market as a cash balance of $25 million is a comfortable level to run our business with, and our current unrestricted cash balance is $53 million. As copper prices start to rebound and our operations continue to perform as they have, the total yield potential for Amerigo’s shares is tremendous.

Because of our current and potential yields, we’re actively transforming the way we tell the Amerigo story so that we may introduce ourselves to additional types of investors. Our story is based on the strong capability of sustained higher copper prices and Amerigo’s insulation from the factors and events that negatively impact the world’s copper miners. This is because Amerigo is not a copper miner. Amerigo a simple industrial company whose product is copper.

Let me elaborate a bit further. Amerigo is not a copper miner. I see us as a copper manufacturer. We have 2 streams of someone else’s waste material coming into our plant. We process those streams and recover copper, which would otherwise be lost to the world. In fact, we are providing additional copper without any additional mining activity. We have an industrial process, not a mining one. And our ESG credentials, unlike so many other companies are bonafide and transparent.

Our clearly defined industrial process is conducive to an extremely efficient business model that generates stable and excessive cash flows at strong copper prices. This transforms Amerigo into solid yield investment, which is how we should be known in the market and why we are expanding the focus of the type of investors we’re addressing. The necessary element for a successful investment in Amerigo are not aspirational. They are in place now. We have seen lower copper prices starting in May this year.

As I have mentioned before and will mention again later in my comments, we believe in a sustained period of strong copper prices. This does not mean, however, that there will not be volatility in the copper market from time to time, as we have recently seen. In latest months, copper prices are factored in fears of a recession, high inflation, higher cost of capital, a slowdown of Chinese economic activity and the shock wave of the Ukraine-Russia conflict. However, historically, low metal inventories and supply shocks to global copper production have provided reasons for sentiment shift. It is unclear whether copper’s traditional function as an inflation hedge has started to take effect. But when it does, it will provide additional support to copper prices.

Let’s look at 2 fundamental points to understand the strength of copper prices going forward. It is really a simple growing demand, shrinking supply story. Demand growth is expected, mostly in response to the energy transition, but also from conventional demand. Supply on the other hand, will continue to be stressed out by the complexity of permitting, building and operating copper mines. Put together, these 2 market forces are expected to create a substantial and chronic gap between worldwide copper supply and demand. This shortage will support copper prices.

Many industry associations and experts predict an annual supply gap of anywhere from 4.7 million to 10 million tonnes by 2030. It is important to remember that these shortages will start to show themselves well before 2030, and we’re already in the second half of 2022. It is also important to understand the magnitude of these tonnages. When we speak of a 10 million tone supply gap that is almost 50%, 5, 0 of current global copper production.

Filling a gap of this size will require monumental efforts. It will also require higher copper prices to restrain demand and incentivize new production. The complexities of finding significant copper deposits and then permitting, financing and building copper mines are huge. These processes span years and require billions of dollars of investment. Once built, the miners then face the challenges of operating a copper mine. This includes continued investment to maintain the life of mine, declining grades, water supply issues, growing environmental requirements, resource nationalism and social scrutiny. These factors all translate to copper supply challenges.

And let me give you an example. Chilean copper production has declined this year by 6.4% compared to the same period in 2021. This is much worse than what was seen in 2021 when Chilean annual copper production dropped by 1.9%. However, Chilean copper production was originally expected to grow 4.7% this year. So at this stage, we are seeing an 11% delta between actual and expected mine copper production from the world’s biggest copper producer.

How can a huge projected supply gap we met with current production? If production is significantly falling behind despite elevated copper prices, to solve the supply gap, even higher copper prices will be required, and this will, of course, benefit Amerigo and our shareholders. Amerigo will benefit from rising copper prices but will remain immune for most of the problems facing the world’s mining companies. This is because, as I said before, Amerigo is not a copper miner, but a waste stream processor that recovers copper that would otherwise be lost. This is a particularly powerful story in today’s world of ESG investing.

It is also a powerful story in an inflationary environment where investors are searching for yield and copper prices have historically been a tremendous hedge against inflation. We are excited to explain this to the market. It is a unique story that combines the strength of copper price with a simple manufacturing business model that produces stable cash flows and guarantees a strong yield for investors.

Carmen Amezquita, Amerigo’s Chief Financial Officer, will now discuss the second quarter financial results. Carmen, please go ahead.

Carmen Amezquita

Thank you, Aurora. We are pleased to present the Q2 2022 quarterly financial reports from Amerigo Resources and its MVC operation in Chile. Amerigo had a net loss during Q2 2022 of $5.1 million, loss per share of $0.03 or CAD0.04, EBITDA of $6.7 million, negative free cash flow to equity of $10.7 million and used operating cash flow before changes in non-cash working capital of $4 million.

The 2022 second quarter financial results were impacted by reduced copper production during the annual scheduled maintenance shutdown of MVC, which we have estimated at $2.9 million and by $5.1 million in negative price settlement adjustments to prior quarter copper sales because of low copper prices during the second quarter.

On June 30, 2022, the company had cash and restricted cash balance of $57.2 million and working capital of $10.9 million compared to a cash and restricted cash balance of $64 million and working capital of $24.6 million at December 31, 2021. Amerigo’s provisional copper price for Q2 2022 copper sales is $4.10 per pound. A 10% increase or decrease from the $4.10 per pound provisional price used on June 30, 2022, would result in a $6.1 million change in revenue in Q3 2022 in respect of the Q2 2022 production.

Because Amerigo’s financial performance is highly sensitive to copper prices, I would like to walk you through the real life example of how our first quarter’s prices were finalized in the second quarter and to familiarize you with the mechanism that is used.

Amerigo’s has an M+3 price convention for its copper sales where the final copper price for any given month will be the average LME price for the third month following the delivery of our copper to Codelco. From the time of sale until 3 months later when the final price becomes known, we use the monthly provisional prices, which we take from the price curve between the published LME monthly average M and M+3 price. This is a mark-to-market mechanism. In this example, at the end of Q1 2022, the final prices for January, February and March sales were not yet known. However, by looking at the March 2022 LME average M to M+3 prices, we could determine a mark-to-market price of $4.64 per pound for the first quarter sales when closing the March 2022 financial statements.

Then as we advance through Q2, the January, February and March monthly prices became final. So the April average price was applied as the final price to January sales. The May average price was the final price for February sales and the June average price was the final price for March sales. With some of these adjustments to Q1 sales resulted in negative final adjustment of $5.1 million to revenue booked on the Q2 financial. Because we do a full financial close each month, we follow the same mechanism to record adjustments to same quarter revenue, and this resulted in negative adjustments to same quarter production of $2.8 million in Q2, which were not yet final price adjustments as the final prices will become known in Q3.

Following the same mechanics, the final prices for our April, May and June 2022 sales will be the average prices for July, August and September 2022, respectively. The Q2 2022 sales were provisionally priced at quarter end using the June 2022 LME price curve at $4.10 per pound and will be adjusted during Q3 as the average prices for July, August and September become known. I hope this illustration of our pricing mechanics is helpful for your analysis. Today’s copper price is $3.47 per pound.

Revenue in the second quarter of 2022 was $33.6 million compared to $50.5 million in Q2 2021. This included copper tolling revenue of $31.4 million and molybdenum revenue of $2.2 million. Within the copper revenue, the gross copper sales were $63.7 million, and there were negative settlement adjustments of $7.9 million, which included $5.1 million in final adjustments, as I mentioned before, and $2.8 million in same quarter provisional adjustments.

Then deducted from revenue, we had $18.3 million in royalties to DET, smelting and refinery costs of $5.8 million and transportation costs of $0.4 million. Total tolling and production costs, including depreciation, were $32 million. This compares to tolling and production costs of $31.4 million from the comparative Q2 2021 period at essentially the same production levels despite inflationary pressures.

Under other expenses, general and administrative expenses were $1 million compared to $0.9 million in the prior year quarter. This included salaries, management and professional fees of $0.5 million, share-based payments of $0.3 million and office and general expenses of $0.2 million. Other losses during Q2 2022 were $2.9 million compared to other losses of $0.2 million in the prior year period. The main difference between the expenses period-over-period was a foreign exchange loss of $2.9 million recorded in Q2 2022 compared to a foreign exchange loss of $0.1 million in Q2 2021. The foreign exchange loss was mostly of an unrealized nature and came from mark-to-market foreign exchange rate adjustments at quarter end for amounts held in MVC that are denominated in Chilean pesos. These adjustments were affected by an all-time load to Chilean peso at the end of the quarter.

The company’s finance expense in Q2 2022 was $0.3 million compared to $2.1 million in Q2 2021, which includes interest on loans, leases and bank charges of $0.7 million and a positive fair value changes on an interest rate swap of $0.4 million. On June 30, 2022, the balance of the term loan net the transaction cost was $27 million.

In Q2 2022, the company recognized an income tax expense of $3.3 million compared to $4.3 million in Q2 2021. Although the company incurred a loss during the quarter, there was current tax expenses. The current tax expense recorded during the period included taxes triggered by the repatriation of cash from Chile to Canada for distribution to shareholders.

It is important to note that the new Chilean government has announced a complete tax reform, which is currently underway. Based on our analysis prepared by our tax advisers, the changes introduced by this reform would have no impact on MVC. Income tax rates for MVC has not changed and neither with the tax treatment on dividends from Chile to Canada.

In respect of cash flow in the quarter, cash flow used in operating activities before capital -- working capital changes during Q2 2022 was $4 million with cash generated of $2.7 million after working capital changes. Year-to-date cash flow generated from operations before working capital changes was $26.7 million, and after working capital changes, there has been cash flow generated of $24.1 million.

Cash flow used in investing activities during the quarter was $3 million, which related entirely to the purchase of plant and equipment. Year-to-date cash flow used in investing activities have been $5.4 million. Cash used in financing activities in Q2 2022 was $16.6 million. Most of this related to the $13 million in cash that was returned to shareholders in the quarter with $4.1 million paid to Amerigo’s increased quarterly dividend of CAD0.03 per share and $8.9 million returns through the purchase of 6.9 million common shares for cancellation through Amerigo’s normal course issuer bid. There was also $3.5 million in debt repayment during the quarter.

Overall, there was a net decrease in cash and cash equivalents of $16.9 million in Q2 and an ending cash balance of $53 million. Additionally, the company held $4.2 million in restricted cash.

We will report the Q3 2022 financial results in November 2022, and I want to thank you for your continued interest in the company. We will now take questions from call participants.

Question-and-Answer Session

Operator

[Operator Instructions] And your first question will be from Stephen Ferazani at Sidoti.

Stephen Ferazani

Just want to ask first about the raise to production guidance for the year. What generated that? And is the higher production related to the grade of copper? Are you getting more efficient at the plant? Is that just more El Teniente production that’s allowing you to increase fresh tailings? Can you provide a little bit of color around the raised guidance?

Aurora Davidson

Yes. Thanks for the question. It is a combination of factors. We are performing very efficiently in respect of fresh tailings. We’re processing more. We have good grades coming in from El Teniente and we’re also recovering more copper. We’ve done tune ups in our plant, changed our grinding profile to devote more grinding power to fresh tailings. This is giving us good results. And to the extent that we’re getting these good results from processing more of the fresh tailings, we are -- as you may have noticed from our production release, adjusting downwards the processing from Cauquenes. So we essentially are not only meeting but surpassing guidance mostly without having to tap into the resources of Cauquenes to the extent that we had projected. So this is -- the benefit is double benefit for the year, but also on a long-term basis by lowering the depletion rate of Cauquenes.

Stephen Ferazani

Great. When I think about your weighing capital allocation and you introduced the idea to top up dividend fairly recently, obviously, that’s before the latest decline in copper prices. By our model, you’re still above the $25 million in cash or a good margin by the end of the year. At the same time, I imagine the market volatility and the swing down has to affect the thoughts. How do you weigh that plus weigh the importance of the share buyback, which you could renew the end of the year versus trying to make a payment in a market that hopefully is better by the end of the year? If you can just sort of consider those factors?

Aurora Davidson

Well, I think that -- and that’s a good question. The fundamental answer, the short answer to that is that we will do whatever we need to do to protect the quarterly dividend. So yes, we probably would have triggered a performance dividend already, given the cash balances that we have on the balance sheet had it not been for the volatility that we have seen in latest months in copper prices, right? So that introduces a level of observation, a level of conservatism. We will not go out and drain the resource and put that quarterly dividend at risk, but as conditions continue to Boost in respect of copper prices that view will change. But we fundamentally are preserving the viability of that quarterly dividend until conditions in the market are looking a little bit better in the short term. There is that volatility that you alluded to. I alluded to that in my comments as well. It’s unavoidable. It exists in all markets, but we’re not thoroughly concerned about it from a more long-term midterm analysis. But in the short term, we have to factor that in.

Stephen Ferazani

I’ve asked this in the past, it’s very hard to model and maybe you can help out a little bit in terms of just timing of cash repatriation. Because obviously, we didn’t model in the tax expense this quarter given the expected operating loss. How do you think about timing of cash repatriation? And should it be -- is it off of buyback, when you’re going to be making buybacks? I’m just trying to figure out, think about -- I’m sure others want to sort of think about how to be considering when you’ll see that higher tax expense due to repatriation to return that cash?

Aurora Davidson

Yes. It’s normally on the second quarter of the year. We have the free cash flow determination done in March of every year and then we return capital in the second quarter of the year. Just as a side note, because I don’t want to complicate your modeling too much, but we didn’t return all the capital that we needed from Chile in one go just out of forecasting internally. So there is still cash in Chile that will need to be returned later on this year, but most of it was already returned in Q2.

Stephen Ferazani

Fantastic. And then in terms of the settlement of the receivables, obviously, it was higher this quarter than you might have projected just ongoing mark-to-market quarter-to-quarter. There was that extra $2.8 million. Help us out on how that can reverse based on the way prices move? Or can you help us out on that extra $2.8 million?

Aurora Davidson

Yes. You have to be an accountant to understand that we try to simplify it as much as we could and got to the point of, I think, Carmen did an excellent job in trying to explain it. Look, if we only report it or if we only did our financial statements on a quarterly basis, you would only be seeing the $5.1 million, right, because you wouldn’t have had any adjustments. Those additional $2.7 million adjustment would have gone to revenue. What happens is that if we have sales, for example, in July, and they are mark-to-market in July and then that mark-to-market has to be done again for those July sales in August and then in September. So we captured some of that adjustment within the line. This is just a line that we referenced to note, it’s not -- it doesn’t affect the top revenue line at all. But it’s not just that the settlement adjustments refer only to the prior quarter sales. They also refer to the intra-quarter adjustments from 1 month to the next, just because we want to be busy and do financial statements every month.

Operator

Next question is from [John Whittier at C3].

Unidentified Analyst

I have just a quick question about -- you alluded to some of the no income tax change as a part of or income tax effect as a part of a change in the constitution. Is there anything in that draft of the constitution, whether it’s production levels in the future or anything else? Is there anything that’s unexpected that can be added in or changed in the last minute, that gives you any cause for potential concern at the present time?

Aurora Davidson

Thanks for the question. Let me just clarify that. The tax reform that was launched in Chile a couple of months ago and that Carmen alluded to in her comments, is through the normal channels that are not part of the constitutional reform. So this is just normal business government, irrespective of the constitutional referendum. We do not anticipate any changes in, for example, higher income tax rates. We had anticipated that those could be a possibility, but they didn’t come through. So everything is good on that front.

With respect to the changes that could come as a result of an approval of the constitutional referendum, we do not see any immediate changes from a taxation perspective that would have an impact on our operations in Chile either.

Unidentified Analyst

Okay. With just -- and maybe I can ask you about this offline as well. But another just related comment or question is within the future, do you believe that there will be a fiscal stability agreements with -- and just with anybody having to do with copper production going forward? Or is that something that you don’t take in this new government that, that is something that the existing ones, they will expire, but there won’t be any new ones?

And the reason I’m asking the question is, as it relates to negative implications from any change that would just come up next month with the constitution, if it were to pass. The question I have is with Codelco being your JV partner, the question is it doesn’t seem like it would benefit them to put in place negative legislation or consequences that would lead to negative results for Amerigo. So is there a benefit necessarily to you because of your existing relationship with Codelco or do you not view it that way?

Aurora Davidson

I don’t think that there would be an impact coming in from an approval of the new constitution that would have a tax effect on us or a tax effect on Codelco.

Unidentified Analyst

Okay. I just want to make one comment and it has to do with the -- and I’ll be quick with the gentleman’s questions that preceded me, and I’ll just make this comment that you are the only stock in our portfolio that when your equity goes down for us as long-term shareholders, it’s exciting. If you execute -- and you might not view it that way and -- and candidly, some of the larger shareholders might not who are performance oriented in the short term might not view it that way. My comment is just driven by this. It is the simple -- and not asking for you to validate this, but the 7 strong quarters that you had, we think, when we look back on this company’s overall performance and return to shareholders in the next 10 years, it was those 7 quarters that trailing quarters, absent this last one, fundamentally changed the long-term outlook of the company.

And we can look no further than if you just take your trailing 12-month absolute performance and look at what you did and you mirror that going forward and you -- I don’t think you can hold the stock price constant, but if you were to mirror that going forward, you’re all of a sudden, if you have those same performance going forward in terms of how you return shareholder value, at the end of 2026, you’re just above 100 million shares outstanding and that -- with the same $16 million capital outlay to the regular dividend, you’re already unusually high 9% yield if you’re looking at where we are today, it’s 15%. And it’s just -- so it is one of these things I’ll say, in a very difficult outcome. Congratulations on your quarter.

Aurora Davidson

Thank you for your comments.

Operator

Next question will be from Terry Fisher at CIBC World Markets.

Terry Fisher

Okay. Well, I missed the first part of the call, I’m sorry. I’ve been dealing with COVID actually, almost over it. I don’t believe there’s a replay of the call.

Aurora Davidson

Yes, there will be one.

Terry Fisher

Okay. Fine.

Aurora Davidson

We always have the scripts, and we always have the replays on the website. It takes about 2 days for the provider to give it to us, but they will be available.

Terry Fisher

Okay, on the website. Okay. Well, the only question I had, you’ll appreciate this because way briefer than usual. My source in Chile tell me that the snow pack in the Andes is building up pretty well this year. Do you have any intelligence on that?

Aurora Davidson

Yes. It’s building up very nicely. It’s the biggest snow buildup that has been in the region in 3 years. So it’s boding well for El Teniente and for us in respect of water.

Terry Fisher

And also for the vineyards, which I care deeply about.

Aurora Davidson

Me too.

Terry Fisher

Congratulations.

Operator

[Operator Instructions] And your next question will be from John Polcari at Mutual of America Capital Management.

John Polcari

A couple of quick questions. By the way, we all think an excellent job being done by you and staff. First, just ballpark, how many remaining months of water supply would you say are available going forward without any significant changes -- maybe 18 months, 20 months, 24 months, something like that?

Aurora Davidson

Look, we work -- John, we work on an 18-month forecast just to have numbers in front of us. It doesn’t mean that the curtain drops magically at the end of 18 months, and certainly, we don’t have water. It just means that we are sharpening our calculations to ensure that at least for the next 12, 18 months, we know what’s going on. So there are no red flags at least for that period. It could be longer than that, but we work on that basis of 18 months, which is a good enough period of analysis for our people in Chile to be focused on.

John Polcari

Great. On the labor front, I believe, is the contract renewal coming up this fall. Am I correct on the date or...?

Aurora Davidson

That is correct. We have the MVC Union of workers’ contract is coming up for renewal at the end of October.

John Polcari

And have negotiations have been initiated, what were you…

Aurora Davidson

Legally, negotiations begin on the last week of August.

John Polcari

I see. Any reason to think that it would be any different than prior -- it’s a 3-year contract, I believe?

Aurora Davidson

It is a 3-year contract.

John Polcari

And so all things being equal, that would be the ultimate renewal term 3 years with whatever bonus might be negotiated?

Aurora Davidson

Correct. We don’t expect any major surprises. It’s just a normal negotiation as has occurred in the past.

John Polcari

And then 2 more quick questions. Do you have a specific -- I think it’s very difficult to determine what price level to buy the stock back in. The markets is volatile, copper is volatile, prices benefit volatile. But are you looking at any particular metric in terms of when you buy the stock back? I know you’ve used your allocation for this year. But I believe at the end of the year, you can start again. Is there a particular metric again that you’re looking to target before you buy more aggressively?

Aurora Davidson

Yes. We announced during our last news release that we are going to be seeking approval from the TSX to reinitiate the normal course issuer bid on December 2, which is when we can go out to the market again. We like the mechanism of the normal course issuer bid because it’s market prices, it’s an immediate activity on the market. So there are no -- you’re not working with a fixed price as would occur in a substantial bid. And yes, the metric, we have our own internal metric. We know that our shares are undervalued. We have not run into a period where we see that we are nearing the price where it wouldn’t make any sense for us to buy our shares. And that’s what I can share with you, John.

John Polcari

I’m sorry. You are nearing a price where you would buy them back?

Aurora Davidson

Yes. I mean definitely, we haven’t ever been in a place yet since we started repurchasing shares where we feel the price is too high, we shouldn’t be buying this back.

John Polcari

Understand. And lastly all in, assuming that molybdenum price credits are where they are now all in for smelting, transportation, the royalty [hoops and nuts], could you ballpark where the free cash flow breakeven point would be for standard guidance on production in terms of a copper price? In other words, just to pick a number, at $2 would the free cash flow would be about breakeven all in for all cash costs? Or would it be a little bit higher perhaps? Again, assuming the literal credits don’t change, just assuming the royalty is what it is as it fluctuates, assuming transportation smelting costs are where they are, even though they might escalate?

Aurora Davidson

You can refer to our EBITDA guidance and our free cash flow to equity guidance on our website. We have all the different ranges of copper prices there. You can see that there are periods in which free cash flow to equity is not being generated at lower copper prices, and that’s why we have the cash reserves that we have at hand, right? So until we see that there is no change on the short-term outlook of copper, we have to maintain the necessary surplus cash to maintain that sustainable dividend when free cash flow through equity would not be generated as such in a quarter.

John Polcari

Understand. Now I did look at the website, and I assume that those tables that are included, include everything, the royalty transportation, smelting --

Aurora Davidson

They include everything, yes. They include all of the costs that have to be considered.

John Polcari

Okay. At the current guidance for production, correct?

Aurora Davidson

Correct.

Operator

At this time, we have no further questions registered. Please proceed with closing remarks.

Aurora Davidson

Thank you. If we don’t have any further questions, we will close the call now, and we will be back in about 3 more months, reporting the third quarter results of the year. Thank you all for your interest in Amerigo.

Operator

Thank you. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. And at this time, we do ask that you please disconnect your lines.

Sun, 07 Aug 2022 03:17:00 -0500 en text/html https://seekingalpha.com/article/4531236-amerigo-resources-ltd-arref-ceo-aurora-davidson-on-q2-2022-results-earnings-call-transcript
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