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Segment Information
 6 Months Ended
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 unallocated 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