• RCM Technologies, Inc. Announces Third Quarter Results

    Источник: Nasdaq GlobeNewswire / 09 ноя 2022 16:05:01   America/New_York

    PENNSAUKEN, N.J., Nov. 09, 2022 (GLOBE NEWSWIRE) -- RCM Technologies, Inc. (NasdaqGM: RCMT), a premier provider of business and technology solutions designed to enhance and maximize the operational performance of its customers through the adaptation and deployment of advanced engineering, specialty health care, and information technology services, today announced financial results for the thirteen and thirty-nine weeks ended October 1, 2022.

    RCM Technologies reported revenue of $58.2 million for the thirteen weeks ended October 1, 2022 (the current period), an increase of 27.9% compared to $45.5 million for the thirteen weeks ended October 2, 2021 (the comparable prior-year period). Gross profit was $17.4 million for the current period, a 42.1% increase compared to $12.2 million for the comparable prior-year period.  The Company experienced GAAP operating income of $4.8 million for the current period compared to $3.7 million for the comparable prior-year period.  The Company experienced GAAP net income of $3.5 million, or $0.33 per diluted share, for the current period compared to $2.8 million, or $0.24 per diluted share, for the comparable prior-year period. The Company experienced adjusted EBITDA of $4.8 million for the current period compared to $1.8 million for the comparable prior-year period.

    RCM Technologies reported revenue of $214.5 million for the thirty-nine weeks ended October 1, 2022 (the current period), an increase of 54.3% compared to $139.0 million for the thirty-nine weeks ended October 2, 2021 (the comparable prior-year period). Gross profit was $62.5 million for the current period, a 76.8% increase compared to $35.3 million for the comparable prior-year period.  The Company experienced GAAP operating income of $22.0 million for the current period compared to $7.0 million for the comparable prior-year period.  The Company experienced GAAP net income of $16.1 million, or $1.52 per diluted share, for the current period compared to $5.0 million, or $0.43 per diluted share, for the comparable prior-year period. The Company experienced adjusted EBITDA of $22.5 million for the current period compared to $5.8 million for the comparable prior-year period.

    Bradley Vizi, Executive Chairman of RCM Technologies, commented, “RCM delivered continued strong performance in our seasonally challenged third quarter. I am proud of the team's execution; our results demonstrate RCM's leverageable business model, driven by our unwavering commitment to delivering value for our world-class client base.”

    Kevin Miller, Chief Financial Officer of RCM Technologies, commented, “We continue to deliver on EBITDA-driven growth initiatives, with third-quarter and year-to-date adjusted EBITDA growing by 162% and 290%, respectively, over the prior year. Also, our strong balance sheet affords us strategic optionality to act opportunistically and drive continued value creation.”

    Conference Call
    On Thursday, November 10, 2022, RCM Technologies will host a conference call to discuss these results. The call will begin at 11:30 a.m. Eastern Time. The dial-in number is (800) 285-6670.

    About RCM
    RCM Technologies, Inc. is a premier provider of business and technology solutions designed to enhance and maximize the operational performance of its customers through the adaptation and deployment of advanced information technology and engineering services. RCM is an innovative leader in delivering these solutions to commercial and government sectors. RCM is also a provider of specialty healthcare services to major health care institutions and educational facilities. RCM's offices are located in major metropolitan centers throughout North America and Serbia. Additional information can be found at www.rcmt.com.

    The statements contained in this release that are not purely historical are forward-looking statements within the Private Securities Litigation Reform Act of 1995. They are subject to various risks, uncertainties, and other factors that could cause the Company’s actual results, performance, or achievements to differ materially from those expressed or implied by such forward-looking statements. These statements often include words such as “may,” “will,” “expect,” “anticipate,” “continue,” “estimate,” “project,” “intend,” “believe,” “plan,” “seek,” “could,” “can,” “should,” “are confident” or similar expressions. In addition, statements that are not historical should also be considered forward-looking statements. These statements are based on assumptions that we have made in light of our experience in the industry, and our perceptions of historical trends, current conditions, expected future developments, and other factors we believe are appropriate in these circumstances. Forward-looking statements include, but are not limited to, those relating to the impact of the COVID-19 pandemic, demand for the Company’s services, expectations regarding our future revenues and other financial results, our pipeline, and potential project wins, and our expectations for growth in our business. Such statements are based on current expectations that involve several known and unknown risks, uncertainties, and other factors, which may cause actual events to be materially different from those expressed or implied by such forward-looking statements. Risk, uncertainties, and other factors may emerge from time to time that could cause the Company’s actual results to differ from those indicated by the forward-looking statements. Investors are directed to consider such risks, uncertainties, and other factors described in documents filed by the Company with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. The Company assumes no obligation (and expressly disclaims any such obligation) to update any forward-looking statements contained in this release as a result of new information or future events or developments, except as may be required by law.

    Tables to Follow


    RCM Technologies, Inc. 
    Condensed Consolidated Statements of Operations 
    (Unaudited) 
    (In Thousands, Except Per Share Amounts) 
      
     Thirteen Weeks Ended 
     October 1,
    2022
     October 2,
    2021
     
    Revenue$58,152 $45,471 
    Cost of services 40,794  33,257 
    Gross profit 17,358  12,214 
    Selling, general and administrative 12,551  10,382 
    Depreciation and amortization of property and equipment 266  250 
    Amortization of acquired intangible assets -  6 
    Gain on sale of assets (219) (2,151)
    Operating income 4,760  3,727 
    Other (income) expense, net (55) 16 
    Income before income taxes 4,815  3,711 
    Income tax expense 1,297  959 
    Net income$3,518 $2,752 
         
    Diluted net earnings per share data$0.33 $0.24 


     Thirty-Nine Weeks Ended 
     October 1,
    2022
     October 2,
    2021
     
    Revenue$214,459 $138,953 
    Cost of services 151,998  103,623 
    Gross profit 62,461  35,330 
    Selling, general and administrative 39,962  29,566 
    Depreciation and amortization of property and equipment 729  775 
    Amortization of acquired intangible assets -  95 
    Gain on sale of assets (219) (2,151)
    Operating income 21,989  7,045 
    Other expense, net (31) 229 
    Income before income taxes 22,020  6,816 
    Income tax expense 5,968  1,801 
    Net income$16,052 $5,015 
         
    Diluted net earnings per share data$1.52 $0.43 


    RCM Technologies, Inc.
    Summary Consolidated Selected Balance Sheet Data
    (In Thousands)
     
     October 1,
    2022
     January 1,
    2022
     (Unaudited)  
    Cash and cash equivalents$761 $235
    Accounts receivable, net$50,786 $48,240
    Total current assets$55,578 $51,971
    Total assets$76,809 $72,852
    Total current liabilities$36,551 $29,857
    Borrowings under line of credit$1,160 $14,151
    Total liabilities$40,086 $46,883
    Stockholders’ equity$36,723 $25,969


    RCM Technologies, Inc.
    Supplemental Operating Results on a Non-GAAP Basis
    (Unaudited)
    (In Thousands)

    The following non-GAAP measures, which adjust for the categories of expenses described below, are non-GAAP financial measures.  Our management believes that these non-GAAP financial measures (“EBITDA” and “Adjusted EBITDA”) are useful information for investors, shareholders, and other stakeholders of our Company in gauging our results of operations on an ongoing basis and to enhance investors’ overall understanding of our current financial performance and period-to-period comparisons.  EBITDA and Adjusted EBITDA should not be considered an alternative to net income as an indicator of performance.  In addition, EBITDA and Adjusted EBITDA do not take into account changes in certain assets and liabilities and interest and income taxes that can affect cash flows.  We do not intend the presentation of these non-GAAP measures to be considered in isolation or as a substitute for results prepared in accordance with GAAP. These non-GAAP measures should be read-only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

    The following unaudited table presents the Company’s GAAP net income and the corresponding adjustments used to calculate EBITDA and Adjusted EBITDA for the thirteen and thirty-nine weeks ended October 1, 2022 and October 2, 2021. 

     Thirteen Weeks Ended Thirty-Nine Weeks Ended 
     October 1,
    2022
     October 2,
    2021
     October 1,
    2022
     October 2,
    2021
     
    GAAP net income$3,518 $2,752 $16,052 $5,015 
    Income tax expense 1,297  959  5,968  1,801 
    Interest expense 35  64  201  307 
    Change in fair value of contingent consideration -  -  -  52 
    Depreciation of property and equipment 266  250  729  775 
    Amortization of acquired intangible assets -  6  -  95 
    EBITDA (non-GAAP)$5,116 $4,031 $22,950 $8,045 
             
    Adjustments        
    Gain on sale of assets (219) (2,151) (219) (2,151)
    Gain on foreign currency transactions (90) (48) (232) (130)
    Adjusted EBITDA (non-GAAP)$4,807 $1,832 $22,499 $5,764 


    RCM Technologies, Inc. 
    Summary of Selected Income Statement Data 
    (Unaudited) 
    (In Thousands) 
      
     Thirteen Weeks Ended October 1, 2022 
     Engineering Specialty
    Health Care
     Information
    Technology
     Consolidated 
             
    Revenue$20,922 $27,997 $9,233 $58,152 
    Cost of services 15,594  19,014  6,186  40,794 
    Gross profit$5,328 $8,983 $3,047 $17,358 
    Gross profit margin 25.5% 32.1% 33.0% 29.8%


     Thirteen Weeks Ended October 2, 2021 
     Engineering Specialty
    Health Care
     Information
    Technology
     Consolidated 
             
    Revenue$16,482 $19,646 $9,343 $45,471 
    Cost of services 12,694  14,115  6,448  33,257 
    Gross profit$3,788 $5,531 $2,895 $12,214 
    Gross profit margin 23.0% 28.2% 31.0% 26.9%


     Thirty-Nine Weeks Ended October 1, 2022 
     Engineering Specialty
    Health Care
     Information
    Technology
     Consolidated 
             
    Revenue$61,726 $123,638 $29,095 $214,459 
    Cost of services 45,653  86,772  19,573  151,998 
    Gross profit$16,073 $36,866 $9,522 $62,461 
    Gross profit margin 26.0% 29.8% 32.7% 29.1%


     Thirty-Nine Weeks Ended October 2, 2021 
     Engineering Specialty
    Health Care
     Information
    Technology
     Consolidated 
             
    Revenue$47,882 $63,723 $27,348 $138,953 
    Cost of services 36,875  47,564  19,184  103,623 
    Gross profit$11,007 $16,159 $8,164 $35,330 
    Gross profit margin 23.0% 25.4% 29.9% 25.4%


    RCM Technologies, Inc.
    Condensed Consolidated Statements of Cash Flows
    (Unaudited)
    (In Thousands)
     
     Thirteen Weeks Ended 
     October 1,
    2022
     October 2,
    2021
     
    Net income$3,518 $2,752 
    Adjustments to reconcile net income to cash used in operating activities 364  (1,400)
    Changes in operating assets and liabilities:    
     Accounts receivable (5,155) (8,536)
     Prepaid expenses and other current assets 169  1,414 
     Net of transit accounts receivable and payable (788) (1,328)
     Accounts payable and accrued expenses 2,064  860 
     Accrued payroll and related costs 1,187  2,025 
     Right of use liabilities (257) (392)
     Income taxes payable (361) 251 
     Deferred revenue (621) 2,944 
     Deposits (11) (12)
    Total adjustments (3,409) (4,174)
    Net cash provided by (used in) operating activities$109 ($1,422)
         
    Net cash (used in) provided by investing activities (123) 6,202 
    Net cash used in financing activities (2,293) (3,327)
    Effect of exchange rate changes (44) (32)
    Increase in cash and cash equivalents($2,351)$1,421 


     Thirty-Nine Weeks Ended  
     October 1,
    2022
     October 2,
    2021
     
    Net income$16,052 $5,015 
    Adjustments to reconcile net income to cash used in operating activities 1,550  1,133 
    Changes in operating assets and liabilities:    
     Accounts receivable (1,590) (9,602)
     Prepaid expenses and other current assets 603  3,090 
     Net of transit accounts receivable and payable (998) (1,449)
     Accounts payable and accrued expenses 1,479  2,523 
     Accrued payroll and related costs 4,235  1,794 
     Right of use liabilities (1,183) (1,380)
     Income taxes payable 2,574  259 
     Deferred revenue (1,858) 3,522 
     Deposits -  (6)
    Total adjustments 4,812  (116)
    Net cash provided by operating activities$20,864 $4,899 
         
    Net cash (used in) provided by investing activities (576) 6,020 
    Net cash used in financing activities (19,468) (8,751)
    Effect of exchange rate changes (294) (82)
    Increase in cash and cash equivalents$526 $2,086 


    RCM Technologies, Inc.Tel: 856.356.4500Corporate Contacts:
    2500 McClellan AvenueFax: 856.356.4600Bradley S. Vizi
    Pennsauken, NJ 08109info@rcmt.comExecutive Chairman
     www.rcmt.comKevin D. Miller
      Chief Financial Officer



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