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Segment Information | 6 Months Ended
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Nov. 28, 2020
Segment Information [Abstract] |
Segment Information | 12. Segment Information With the execution of the European Plan, discussed in Note 9—Restructuring Activities, the Company changed its internal management structure and its reporting structure of financial information used to assess performance and allocate resources during the second quarter of fiscal 2021. As a result, the Company revised its historical one segment position and identified the following new operating segments effective in the second quarter of fiscal 2021: RGP – a global business consulting practice which operates primarily under the RGP brand and focuses on professional project consulting and staffing services in areas such as finance and accounting, business strategy and transformation, risk and compliance, and technology and digital; taskforce – a German professional services firm that operates under the taskforce brand. It utilizes a distinct independent contractor/partner business model and infrastructure and focuses on providing senior interim management and project management services to middle market clients in the German market; Sitrick – a crisis communications and public relations firm which operates under the Sitrick brand, providing corporate, financial, transactional and crisis communication and management services. RGP also includes the operations of Veracity, which is being integrated with the rest of the RGP business operations. RGP is the Company’s only reportable segment. taskforce and Sitrick do not individually meet the quantitative thresholds to qualify as reportable segments. Therefore, they are combined and disclosed as Other Segments. The tables below reflect the operating results of the Company’s segments consistent with the management and performance measurement system utilized by the Company. All prior year periods presented were recast to reflect the impact of the preceding segment changes. Performance measurement is based on segment Adjusted EBITDA. Adjusted EBITDA is defined as net (loss) income before amortization of intangible assets, depreciation expense, interest and income taxes plus stock-based compensation expense, restructuring 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. The Company’s CODM does not evaluate segments using asset information.
| Three Months Ended |  | Six Months Ended
| November 28, |  | November 23, |  | November 28, |  | November 23,
| 2020 |  | 2019 |  | 2020 |  | 2019
| (Amounts in thousands)
Revenues: |  |  |  |  |  |  |  |  |  |  |
RGP | $ | 142,002 |  | $ | 173,987 |  | $ | 279,111 |  | $ | 335,997
Other Segments |  | 11,220 |  |  | 10,520 |  |  | 21,456 |  |  | 20,735
Total revenues | $ | 153,222 |  | $ | 184,507 |  | $ | 300,567 |  | $ | 356,732
Gross profit: |  |  |  |  |  |  |  |  |  |  |
RGP | $ | 54,079 |  | $ | 70,206 |  | $ | 108,026 |  | $ | 133,466
Other Segments |  | 4,099 |  |  | 4,171 |  |  | 8,048 |  |  | 8,414
Total gross profit | $ | 58,178 |  | $ | 74,377 |  | $ | 116,074 |  | $ | 141,880
Adjusted EBITDA: |  |  |  |  |  |  |  |  |  |  |
RGP | $ | 18,401 |  | $ | 28,598 |  | $ | 34,859 |  | $ | 48,068
Other Segments |  | 1,251 |  |  | 868 |  |  | 2,417 |  |  | 2,099
Reconciling items (1) |  | (7,257) |  |  | (6,795) |  |  | (14,664) |  |  | (15,587)
Total Adjusted EBITDA | $ | 12,395 |  | $ | 22,671 |  | $ | 22,612 |  | $ | 34,580
(1) Reconciling items are generally comprised of u nallocated corporate administrative costs, including management and board compensation, back office support function costs and other general corporate costs that are not allocated to segments. The below is a reconciliation of the Company's net (loss) income to adjusted EBITDA for all periods presented.
| Three Months Ended |  | Six Months Ended
| November 28, |  | November 23, |  | November 28, |  | November 23,
| 2020 |  | 2019 |  | 2020 |  | 2019
Consolidated | (Amounts in thousands)
Net (loss) income | $ | (992) |  | $ | 12,337 |  | $ | 1,292 |  | $ | 17,276
Adjustments: |  |  |  |  |  |  |  |  |  |  |
Amortization of intangible assets |  | 1,393 |  |  | 1,510 |  |  | 2,923 |  |  | 2,604
Depreciation expense |  | 984 |  |  | 1,424 |  |  | 1,991 |  |  | 2,793
Interest expense, net |  | 460 |  |  | 551 |  |  | 955 |  |  | 1,033
Provision for income taxes |  | 2,256 |  |  | 5,337 |  |  | 4,213 |  |  | 7,978
EBITDA |  | 4,101 |  |  | 21,159 |  |  | 11,374 |  |  | 31,684
Stock-based compensation expense |  | 1,708 |  |  | 1,643 |  |  | 3,105 |  |  | 3,158
Restructuring costs |  | 6,775 |  |  | - |  |  | 7,791 |  |  | -
Contingent consideration adjustment |  | (189) |  |  | (131) |  |  | 342 |  |  | (262)
Total Adjusted EBITDA | $ | 12,395 |  | $ | 22,671 |  | $ | 22,612 |  | $ | 34,580

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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