Segment Information and Enterprise Reporting (Tables)

12 Months Ended

May 25, 2024

Summary of Operating Results of Segments

The following table discloses the Company’s revenue and Adjusted EBITDA by segment for all periods presented (in thousands):


	For the Years Ended
	May 25, 2024		May 27, 2023		May 28, 2022

Revenue:
RGP	$	622,895	$	764,511	$	764,350
Other Segments (1)	9,906		11,132		40,668
Total revenue	$	632,801	$	775,643	$	805,018

Adjusted EBITDA:
RGP	$	84,677	$	132,377	$	134,187
Other Segments	(676)		1,179		3,527
Reconciling items (2)	(32,518)		(33,362)		(34,583)
Total Adjusted EBITDA (3)	$	51,483	$	100,194	$	103,131

(1)Amounts reported for the year ended May 27, 2023 include Sitrick and an immaterial amount from taskforce from May 29, 2022 through May 31, 2022, the completion date of the sale. Amounts previously reported for the year ended May 28, 2022 included the Sitrick and taskforce operating segments.

(2)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.

(3)A reconciliation of the Company’s net income to Adjusted EBITDA on a consolidated basis is presented below.

Reconciliation of Net Income to Adjusted EBITDA

The table below represents a reconciliation of the Company’s net income to Adjusted EBITDA for all periods presented (in thousands):


	For the Years Ended
	May 25, 2024		May 27, 2023		May 28, 2022

Net income	$	21,034	$	54,359	$	67,175
Adjustments:
Amortization expense	5,378		5,018		4,908
Depreciation expense	3,050		3,539		3,575
Interest expense, net	(1,064)		552		1,064
Income tax expense (benefit)	8,795		18,259		15,793
EBITDA	37,193		81,727		92,515
Stock-based compensation expense	5,732		9,521		8,168
Technology transformation costs (1)	6,901		6,355		1,449
Goodwill impairment (2)	-		2,955		-
Acquisition costs (3)	1,970		-		-
Restructuring costs (4)	4,087		(364)		833
Contingent consideration adjustment	(4,400)		-		166
Adjusted EBITDA	$	51,483	$	100,194	$	103,131

(1)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 systems. Such costs primarily include hosting and certain other software licensing costs, third-party consulting fees and costs associated with dedicated internal resources that are not capitalized.

(2)The effect of the goodwill impairment charge recognized during the year ended May 27, 2023 was related to Sitrick's operating segment.

(3)Acquisition costs primarily represent one-time costs included in net income related to the Company’s acquisitions, which include fees paid to the Company’s brokers and other professional services firms. See Note 3 – Acquisitions and Dispositions in the Notes to Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K for further discussion.

(4)The Company initiated the cost reduction plan (the “U.S. Restructuring Plan”) in October 2023 and substantially completed the U.S. Restructuring Plan during fiscal 2024. In addition, the Company substantially completed its global restructuring and business transformation plans in North America, Asia Pacific and Europe in fiscal 2021 and the remaining accrued restructuring liability was released in fiscal 2023.

Summary of Revenue and Long-Lived Assets by Geographic Location

The table below represents the Company’s revenue and long-lived assets by geographic location (in thousands):


	Revenue for the Years Ended						Long-Lived Assets (1) as of
	May 25, 2024		May 27, 2023		May 28 2022		May 25, 2024		May 27, 2023
United States	$	519,869	$	664,515	$	663,980	$	13,343	$	28,377
International	112,932		111,128		141,038		2,319		2,859
Total	$	632,801	$	775,643	$	805,018	$	15,662	$	31,236

(1)Long-lived assets are comprised of property and equipment and ROU assets.