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RCM Technologies, Inc. Announces Third Quarter Results
来源: Nasdaq GlobeNewswire / 07 11月 2024 16:05:02 America/New_York
PENNSAUKEN, N.J., Nov. 07, 2024 (GLOBE NEWSWIRE) -- RCM Technologies, Inc. (NasdaqGM: RCMT), a premier provider of solutions designed to enhance the operational performance of its customers through the deployment of advanced engineering, specialty health care, and information technology services, today announced financial results for the thirteen and thirty-nine weeks ended September 28, 2024.
RCM Technologies reported revenue of $60.4 million for the thirteen weeks ended September 28, 2024 (the current quarter), an increase of 4.0% compared to $58.0 million for the thirteen weeks ended September 30, 2023 (the comparable prior quarter). Gross profit was $17.8 million for the current quarter, a 3.2% increase compared to $17.3 million for the comparable prior quarter. The Company experienced GAAP net income of $2.7 million, or $0.35 per diluted share, for the current quarter compared to $3.8 million, or $0.46 per diluted share, for the comparable prior quarter. The Company experienced adjusted EBITDA (non-GAAP) of $5.6 million for the current quarter, a 9.5% increase compared to $5.1 million for the comparable prior quarter. The Company experienced $0.44 of adjusted net income per diluted share (non-GAAP) for the current quarter as compared to $0.50 for the comparable prior quarter.
RCM Technologies reported revenue of $201.5 million for the thirty-nine weeks ended September 28, 2024 (the current period), an increase of 4.8% compared to $192.2 million for the thirty-nine weeks ended September 30, 2023 (the comparable prior-year period). Gross profit was $58.2 million for the current period, a 5.7% increase compared to $55.1 million for the comparable prior-year period. The Company experienced GAAP net income of $10.5 million, or $1.31 per diluted share, for the current period compared to $11.6 million, or $1.33 per diluted share, for the comparable prior-year period. The Company experienced adjusted EBITDA (non-GAAP) of $19.6 million for the current period, a 10.5% increase compared to $17.7 million for the comparable prior-year period. The Company experienced $1.54 of adjusted net income per diluted share (non-GAAP) for the current period as compared to $1.41 for the comparable prior-year period.
Bradley Vizi, Executive Chairman of RCM Technologies, commented, “Third-quarter growth was led by Healthcare and Engineering, as both businesses continue to ramp in their respective end markets.”
Kevin Miller, Chief Financial Officer of RCM Technologies, commented, “Growth remains consistent, while we anticipate enhanced cash conversion in coming quarters.”
Conference Call
On Friday, November 8, 2024, RCM Technologies will host a conference call to discuss these results. The call will begin at 1:00 p.m. Eastern Time. The dial-in number is (888) 272-8703.About RCM
RCM Technologies (NasdaqGM: RCMT) is a business and technology solutions provider with world-class talent in key market segments. We help design, build, and enable the Industries of Tomorrow, Today. Operating at the intersection of resources, critical infrastructure and modernization of industries, RCM is a provider of services in Health Care, Engineering, Aerospace & Defense, Process & Industrial, Life Sciences and Data & Solutions. 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 demand for the Company’s services, expectations regarding our future revenues and other financial results, such as cash flows, our pipeline, and potential project wins, and our expectations for investment and 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 September 28,
2024September 30,
2023Revenue $60,365 $58,049 Cost of services 42,524 40,768 Gross profit 17,841 17,281 Selling, general and administrative 13,018 12,662 Depreciation and amortization of property and equipment 393 243 Amortization of acquired intangible assets 45 45 Operating income 4,385 4,331 Other expense, net 619 141 Income before income taxes 3,766 4,190 Income tax expense 1,020 434 Net income $2,746 $3,756 Diluted net earnings per share data $0.35 $0.46 Diluted weighted average shares outstanding 7,789,446 8,196,330 Thirty-Nine Weeks Ended September 28,
2024September 30,
2023Revenue $201,468 $192,209 Cost of services 143,259 137,144 Gross profit 58,209 55,065 Selling, general and administrative 40,762 38,782 Depreciation and amortization of property and equipment 1,012 756 Amortization of acquired intangible assets 136 136 Costs associated with potential stock issuance 259 - Gain on sale of assets - (395 ) Operating income 16,040 15,786 Other expense, net 1,619 965 Income before income taxes 14,421 14,821 Income tax expense 3,961 3,245 Net income $10,460 $11,576 Diluted net earnings per share data $1.31 $1.33 Diluted weighted average shares outstanding 7,990,238 8,730,998 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 (“Adjusted operating income,” “EBITDA,” “Adjusted EBITDA,” “Adjusted net income” and “Adjusted diluted net earnings per share”) 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. Adjusted operating income, EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted diluted net earnings per share should not be considered alternatives to operating income or net income, as the case may be, as an indicator of performance. In addition, Adjusted operating income, EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted diluted net earnings per share 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 operating income and GAAP net income and the corresponding adjustments used to calculate Adjusted operating income, EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted diluted net earnings per share for the thirteen and thirty-nine weeks ended September 28, 2024 and September 30, 2023.
Thirteen Weeks Ended Thirty-Nine Weeks Ended September 28,
2024September 30,
2023September 28,
2024September 30,
2023(Unaudited) (Unaudited) (Unaudited) (Unaudited) GAAP operating income $4,385 $4,331 $16,040 $15,786 Adjustments Gain on sale of assets - - - (395 ) Costs associated with potential stock issuance - - 259 - Equity compensation 767 484 2,154 1,451 Adjusted operating income (non-GAAP) $5,152 $4,815 $18,453 $16,842 GAAP net income $2,746 $3,756 $10,460 $11,576 Income tax expense 1,020 434 3,961 3,245 Interest expense, net 492 185 1,551 970 Depreciation of property and equipment 393 243 1,012 756 Amortization of acquired intangible assets 45 45 136 136 EBITDA (non-GAAP) $4,696 $4,663 $17,120 $16,683 Adjustments Gain on sale of assets - - - (395 ) Costs associated with potential stock issuance - - 259 - Loss (gain) on foreign currency transactions 127 (44 ) 68 (5 ) Equity compensation 767 484 2,154 1,451 Adjusted EBITDA (non-GAAP) $5,590 $5,103 $19,601 $17,734 RCM Technologies, Inc.
Supplemental Operating Results on a Non-GAAP Basis (Continued)
(Unaudited)
(In Thousands)Thirteen Weeks Ended Thirty-Nine Weeks Ended September 28,
2024September 30,
2023September 28,
2024September 30,
2023(Unaudited) (Unaudited) (Unaudited) (Unaudited) GAAP net income $2,746 $3,756 $10,460 $11,576 Adjustments Gain on sale of assets - - - (395 ) Costs associated with potential stock issuance - - 259 - Loss (gain) on foreign currency transactions 127 (44 ) 68 (5 ) Equity compensation 767 484 2,154 1,451 Tax impact from normalized rate (190 ) (138 ) (674 ) (295 ) Adjusted net income (non-GAAP) $3,450 $4,058 $12,267 $12,332 GAAP diluted net earnings per share $0.35 $0.46 $1.31 $1.33 Adjustments Gain on sale of assets ($0.04 ) Costs associated with potential stock issuance - - $0.03 - Loss (gain) on foreign currency transactions $0.01 - $0.01 - Equity compensation $0.10 $0.06 $0.27 $0.16 Tax impact from normalized rate ($0.02 ) ($0.02 ) ($0.08 ) ($0.04 ) Adjusted diluted net earnings per share (non-GAAP) $0.44 $0.50 $1.54 $1.41 RCM Technologies, Inc.
Summary of Selected Income Statement Data
(Unaudited)
(In Thousands)Thirteen Weeks Ended September 28, 2024 Specialty
Health CareEngineering Life Sciences
and ITConsolidated Revenue $26,554 $24,167 $9,644 $60,365 Cost of services 18,271 18,273 5,980 42,524 Gross profit 8,283 5,894 3,664 17,841 Gross profit margin 31.2 % 24.4 % 38.0 % 29.6 % Thirteen Weeks Ended September 30, 2023 Specialty
Health CareEngineering Life Sciences
and ITConsolidated Revenue $24,895 $22,452 $10,702 $58,049 Cost of services 17,438 16,846 6,484 40,768 Gross profit $7,457 $5,606 $4,218 $17,281 Gross profit margin 30.0 % 25.0 % 39.4 % 29.8 % Thirty-Nine Weeks Ended September 28, 2024 Specialty
Health CareEngineering Life Sciences
and ITConsolidated Revenue $101,668 $70,180 $29,620 $201,468 Cost of services 71,672 52,818 18,769 143,259 Gross profit 29,996 17,362 10,851 58,209 Gross profit margin 29.5 % 24.7 % 36.6 % 28.9 % Thirty-Nine Weeks Ended September 30, 2023 Specialty
Health CareEngineering Life Sciences
and ITConsolidated Revenue $99,553 $61,956 $30,700 $192,209 Cost of services 70,623 47,482 19,039 137,144 Gross profit $28,930 $14,474 $11,661 $55,065 Gross profit margin 29.1 % 23.4 % 38.0 % 28.6 % RCM Technologies, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In Thousands, Except Share Amounts)September 28, December 30, 2024 2023 (Unaudited) Current assets: Cash and cash equivalents $3,156 $6,284 Accounts receivable, net of provision for credit losses of $1,600 at September 28, 2024 and December 30, 2023 75,913 70,690 Transit accounts receivable 6,315 8,891 Prepaid expenses and other current assets 5,112 4,637 Total current assets 90,496 90,502 Property and equipment, net 6,793 4,005 Deposits 215 313 Deferred income taxes, foreign 55 55 Goodwill 22,147 22,147 Operating right of use asset 5,292 2,779 Intangible assets, net 547 683 Total other assets 28,256 25,977 Total assets $125,545 $120,484 Current liabilities: Accounts payable and accrued expenses $11,525 $12,454 Transit accounts payable 28,215 31,102 Accrued payroll and related costs 11,634 11,203 Finance lease payable 689 233 Income taxes payable 220 330 Operating right of use liability 1,019 693 Contingent consideration from acquisitions 300 300 Deferred revenue 2,042 1,881 Total current liabilities 55,644 58,196 Deferred income taxes, net, foreign 185 187 Deferred income taxes, net, domestic 1,719 1,568 Finance lease payable, net of current position 1,290 - Contingent consideration from acquisitions, net of current position 1,671 1,671 Operating right of use liability, net of current position 4,519 2,268 Borrowings under line of credit 30,477 30,804 Total liabilities 95,505 94,694 Contingencies (note 15) - - Stockholders’ equity: Preferred stock, $1.00 par value; 5,000,000 shares authorized; no shares issued or outstanding - - Common stock, $0.05 par value; 40,000,000 shares authorized; 17,833,287 shares issued and 7,597,028 shares outstanding at September 28, 2024 and 17,673,427 shares issued and 7,844,821 shares outstanding at December 30, 2023 890 882 Additional paid-in capital 118,136 116,579 Accumulated other comprehensive loss (2,787 ) (2,813 ) Accumulated deficit (8,805 ) (19,265 ) Treasury stock, 10,236,259 shares at September 28, 2024 and 9,828,606 shares at December 30, 2023, at cost (77,394 ) (69,593 ) Total stockholders’ equity 30,040 25,790 Total liabilities and stockholders’ equity $125,545 $120,484 RCM Technologies, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In Thousands)Thirteen Weeks Ended September 28,
2024September 30,
2023Net income $2,746 $3,756 Adjustments to reconcile net income to cash used in operating activities 1,508 1,049 Changes in operating assets and liabilities: Accounts receivable (9,033 ) 4,143 Prepaid expenses and other current assets 321 (987 ) Net of transit accounts receivable and payable 435 1,556 Accounts payable and accrued expenses (1,445 ) (785 ) Accrued payroll and related costs 1,919 2,790 Right of use liabilities (228 ) (333 ) Income taxes payable 81 15 Deferred revenue (636 ) (169 ) Deposits (12 ) 2 Total adjustments (7,090 ) 7,281 Net cash (used in) provided by operating activities ($4,344 ) $11,037 Net cash (used in) provided by investing activities (522 ) 79 Net cash provided by (used in) financing activities 4,375 (11,343 ) Effect of exchange rate changes on cash and cash equivalents 167 (392 ) Decrease in cash and cash equivalents ($324 ) ($619 ) Common stock repurchase ($2,410 ) ($3,389 ) Thirty-Nine Weeks Ended September 28,
2024September 30,
2023Net income $10,460 $11,576 Adjustments to reconcile net income to cash used in operating activities 4,200 2,795 Changes in operating assets and liabilities: Accounts receivable (5,207 ) (6,696 ) Prepaid expenses and other current assets (475 ) (675 ) Net of transit accounts receivable and payable (311 ) 22,384 Accounts payable and accrued expenses (760 ) (1,798 ) Accrued payroll and related costs 433 1,596 Right of use liabilities (686 ) (1,016 ) Income taxes payable (106 ) 162 Deferred revenue 161 (784 ) Deposits 98 4 Total adjustments (2,653 ) 15,972 Net cash provided by operating activities 7,807 27,548 Net cash used in investing activities (1,589 ) (480 ) Net cash used in financing activities (9,135 ) (26,558 ) Effect of exchange rate changes on cash and cash equivalents (211 ) (195 ) (Decrease) increase in cash and cash equivalents ($3,128 ) $315 Common stock repurchase ($7,801 ) ($24,449 ) RCM Technologies, Inc. Tel: 856.356.4500 Corporate Contacts: 2500 McClellan Avenue info@rcmt.com Bradley S. Vizi Pennsauken, NJ 08109 www.rcmt.com Executive Chairman Kevin D. Miller Chief Financial Officer 
