XML 43 R32.htm IDEA: XBRL DOCUMENT
v3.24.3

Segment Information and Enterprise Reporting (Tables) | 3 Months Ended
--- | ---
Aug. 24, 2024
Segment Reporting [Abstract] |
Summary of Operating Results of Segments | The following table discloses the Company’s revenue and Adjusted EBITDA by segment for both periods presented (in thousands):
| Three Months Ended |  |
| August 24, 2024 |  | August 26, 2023 |  |  |  |
Revenue: |  |  |  |  |  |  |
On-Demand Talent | $ | 52,473 |  |  | $ | 77,974 |  |  |  |  |
Consulting | 55,025 |  |  | 56,845 |  |  |  |  |
Europe & Asia Pacific | 17,983 |  |  | 23,267 |  |  |  |  |
Outsourced Services | 9,491 |  |  | 9,418 |  |  |  |  |
All Other | 1,963 |  |  | 2,665 |  |  |  |  |
Total consolidated revenue | $ | 136,935 |  |  | $ | 170,169 |  |  |  |  |
Adjusted EBITDA: |  |  |  |  |  |  |
On-Demand Talent | $ | 2,559 |  |  | $ | 8,557 |  |  |  |  |
Consulting | 7,753 |  |  | 8,529 |  |  |  |  |
Europe & Asia Pacific | 227 |  |  | 1,704 |  |  |  |  |
Outsourced Services | 1,394 |  |  | 1,548 |  |  |  |  |
All Other | (467) |  |  | 71 |  |  |  |  |
Unallocated items (1) | (9,146) |  |  | (8,863) |  |  |  |  |
Consolidated Adjusted EBITDA (2) | $ | 2,320 |  |  | $ | 11,546 |  |  |  |  |
(1)Unallocated items are generally comprised of u nallocated 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 below.
Reconciliation of Net Income to Adjusted EBITDA | The table below represents a reconciliation of the Company’s net (loss) income to Adjusted EBITDA for both periods presented (in thousands):
| Three Months Ended |  |
| August 24, 2024 |  | August 26, 2023 |  |  |  |
Net (loss) income | $ | (5,707) |  | $ | 3,117 |  |  |  |  |
Adjustments: |  |  |  |  |  |  |
Amortization expense | 1,485 |  |  | 1,314 |  |  |  |  |
Depreciation expense | 540 |  |  | 877 |  |  |  |  |
Interest income, net | (148) |  |  | (312) |  |  |  |  |
Income tax expense | 1,054 |  |  | 2,075 |  |  |  |  |
EBITDA | (2,776) |  | 7,071 |  |  |  |  |
Stock-based compensation expense | 1,561 |  |  | 2,552 |  |  |  |  |
Technology transformation costs (1) | 1,858 |  |  | 1,923 |  |  |  |  |
Acquisition costs (2) | 1,289 |  |  | — |  |  |  |
Goodwill impairment (3) | 3,855 |  |  | — |  |  |  |
Gain on sale of assets (4) | (3,420) |  | — |  |  |  |
Restructuring adjustments | (47) |  | — |  |  |  |
Adjusted EBITDA | $ | 2,320 |  |  | $ | 11,546 |  |  |  |  |
(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)Acquisition costs primarily represent one-time costs included in net income related to the Company’s business acquisition, which include fees paid to the Company’s broker and other professional services firms. See Note 4 – Acquisition in the Notes to Consolidated Financial Statements for further discussion. (3)Goodwill impairment charge recognized during the three months ended August 24, 2024 was related to the Europe Asia Pacific segment. (4) The Company completed the sale of its Irvine office building on August 15, 2024.

X
- Definition Tabular disclosure of reconciliation of other items from reportable segments to their consolidated amount. Excludes reconciliation of revenue, profit (loss), and assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-30 + Details
Name: | us-gaap_ReconciliationOfOtherSignificantReconcilingItemsFromSegmentsToConsolidatedTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-25 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-30 + Details
Name: | us-gaap_ScheduleOfSegmentReportingInformationBySegmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration