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RCM Technologies, Inc. Announces Fourth Quarter and Fiscal Year 2023 Results
来源: Nasdaq GlobeNewswire / 13 3月 2024 16:05:00 America/New_York
PENNSAUKEN, N.J., March 13, 2024 (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 fifty-two weeks ended December 30, 2023.
RCM Technologies reported revenue of $71.0 million for the thirteen weeks ended December 30, 2023 (the current quarter), an increase of 1.1% compared to $70.2 million for the thirteen weeks ended December 31, 2022 (the comparable prior quarter). Gross profit was $21.6 million for the current quarter, a 5.7% increase compared to $20.5 million for the comparable prior quarter. The Company experienced GAAP operating income of $7.9 million for the current quarter compared to $6.8 million for the comparable prior quarter. The Company experienced GAAP net income of $5.3 million, or $0.65 per diluted share, for the current quarter compared to $4.8 million, or $0.48 per diluted share, for the comparable prior quarter. The Company experienced adjusted EBITDA (non-GAAP) of $8.9 million for the current quarter compared to $7.5 million for the comparable prior quarter. The Company experienced $0.71 of adjusted net income per diluted share (non-GAAP) for the current quarter as compared to $0.52 for the comparable prior quarter.
RCM Technologies reported revenue of $263.2 million for the fifty-two weeks ended December 30, 2023 (the current year), a decrease of 7.5% compared to $284.7 million for the fifty-two weeks ended December 31, 2022 (the comparable prior year). Gross profit was $76.7 million for the current year, a 7.5% decrease compared to $82.9 million for the comparable prior year. The Company experienced GAAP operating income of $23.7 million for the current year compared to $28.8 million for the comparable prior year. The Company experienced GAAP net income of $16.8 million, or $1.96 per diluted share, for the current year compared to $20.9 million, or $2.00 per diluted share, for the comparable prior year. The Company experienced adjusted EBITDA (non-GAAP) of $26.6 million for the current year compared to $31.1 million for the comparable prior year. The Company experienced $2.11 of adjusted net income per diluted share (non-GAAP) for the current year as compared to $2.08 for the comparable prior year.
Bradley Vizi, Executive Chairman of RCM Technologies, commented, “We finished 2023 strong with $8.9 million of adjusted EBITDA in the fourth quarter, a growth rate of 18.5%. All three business segments provided healthy contributions to growth.”
Kevin Miller, Chief Financial Officer of RCM Technologies, commented, “Improved cash collections in the first quarter have helped bolster our confidence in achieving our goal of $20 million in cash flow from operations in fiscal 2024.”
Conference Call
On Thursday, March 14, 2024, RCM Technologies will host a conference call to discuss these results. The call will begin at 11:00 a.m. Eastern Time. The dial-in number is (800) 285-6670.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 through advanced technologies, 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, 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 December 30,
2023December 31,
2022Revenue $ 71,028 $ 70,221 Cost of services 49,397 49,755 Gross profit 21,631 20,466 Selling, general and administrative 13,403 13,433 Depreciation and amortization of property and equipment 276 266 Amortization of acquired intangible assets 46 46 Remeasurement of acquisition related contingent consideration - (88 ) Operating income 7,906 6,809 Other expense, net 532 349 Income before income taxes 7,374 6,460 Income tax expense 2,119 1,623 Net income $ 5,255 $ 4,837 Diluted net earnings per share data $ 0.65 $ 0.48 Diluted weighted average shares outstanding 8,142,184 10,076,898 Fifty-Two Weeks Ended December 30,
2023December 31,
2022Revenue $ 263,237 $ 284,680 Cost of services 186,541 201,753 Gross profit 76,696 82,927 Selling, general and administrative 52,185 53,395 Depreciation and amortization of property and equipment 1,032 995 Amortization of acquired intangible assets 182 46 Gain on sale of assets (395 ) (219 ) Remeasurement of acquisition related contingent consideration - (88 ) Operating income 23,692 28,798 Other expense, net 1,497 318 Income before income taxes 22,195 28,480 Income tax expense 5,364 7,591 Net income $ 16,831 $ 20,889 Diluted net earnings per share data $ 1.96 $ 2.00 Diluted weighted average shares outstanding 8,592,572 10,442,176
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” 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. Adjusted operating income, EBITDA and Adjusted EBITDA should not be considered alternatives to net income as an indicator of performance. In addition, Adjusted operating income, 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 Adjusted operating income, EBITDA and Adjusted EBITDA for the thirteen and fifty-two weeks ended December 30, 2023 and December 31, 2022.
Thirteen Weeks Ended Fifty-Two Weeks Ended December 30,
2023December 31,
2022December 30,
2023December 31,
2022GAAP operating income $ 7,906 $ 6,809 $ 23,692 $ 28,798 Adjustments Gain on sale of assets - - (395 ) (219 ) Remeasurement of acquisition related
contingent consideration- (88 ) - (88 ) Equity compensation 641 452 2,092 1,582 Adjusted operating income (non-GAAP) $ 8,547 $ 7,173 $ 25,389 $ 30,073 GAAP net income $ 5,255 $ 4,837 $ 16,831 $ 20,889 Income tax expense 2,119 1,623 5,364 7,591 Interest expense, net 429 169 1,399 370 Depreciation of property and equipment 276 266 1,032 995 Amortization of acquired intangible assets 46 46 182 46 EBITDA (non-GAAP) $ 8,125 $ 6,941 $ 24,808 $ 29,891 Adjustments Gain on sale of assets - - (395 ) (219 ) Remeasurement of acquisition related
contingent consideration- (88 ) - (88 ) Loss (gain) on foreign currency transactions 103 180 98 (52 ) Equity compensation 641 452 2,092 1,582 Adjusted EBITDA (non-GAAP) $ 8,869 $ 7,485 $ 26,603 $ 31,114 RCM Technologies, Inc.
Supplemental Operating Results on a Non-GAAP Basis (Continued)
(Unaudited)
(In Thousands)Thirteen Weeks Ended Fifty-Two Weeks Ended December 30,
2023December 31,
2022December 30,
2023December 31,
2022GAAP net income $ 5,255 $ 4,837 $ 16,831 $ 20,889 Adjustments Gain on sale of assets - - (395 ) (219 ) Remeasurement of acquisition related
contingent consideration- (88 ) - (88 ) Loss (gain) on foreign currency transactions 103 180 98 (52 ) Equity compensation 641 452 2,092 1,582 Tax impact from normalized rate (186 ) (147 ) (467 ) (356 ) Adjusted net income (non-GAAP) $ 5,813 $ 5,234 $ 18,159 $ 21,756 GAAP diluted net earnings per share $ 0.65 $ 0.48 $ 1.96 $ 2.00 Adjustments Gain on sale of assets - - ($ 0.05 ) ($ 0.02 ) Remeasurement of acquisition related
contingent consideration- (0.01 ) - ($ 0.01 ) Loss (gain) on foreign currency transactions 0.01 0.02 $ 0.01 ($ 0.01 ) Equity compensation 0.07 0.05 $ 0.24 $ 0.15 Tax impact from normalized rate (0.02 ) (0.02 ) ($ 0.05 ) ($ 0.03 ) Adjusted diluted net earnings per share (non-GAAP) $ 0.71 $ 0.52 $ 2.11 $ 2.08 RCM Technologies, Inc.
Summary of Selected Income Statement Data
(Unaudited)
(In Thousands)Thirteen Weeks Ended December 30, 2023 Specialty
Health CareEngineering Life Sciences
and IT
ConsolidatedRevenue $ 36,688 $ 22,719 $ 11,621 $ 71,028 Cost of services 25,686 16,589 7,122 49,397 Gross profit 11,002 6,130 4,499 21,631 Gross profit margin 30.0 % 27.0 % 38.7 % 30.5 % Thirteen Weeks Ended December 31, 2022 Specialty
Health CareEngineering Life Sciences
and IT
ConsolidatedRevenue $ 35,810 $ 24,211 $ 10,200 $ 70,221 Cost of services 24,771 18,565 6,419 49,755 Gross profit $ 11,039 $ 5,646 $ 3,781 $ 20,466 Gross profit margin 30.8 % 23.3 % 37.1 % 29.15 % Fifty-Two Weeks Ended December 30, 2023 Specialty
Health CareEngineering Life Sciences
and IT
ConsolidatedRevenue $ 136,241 $ 84,675 $ 42,321 $ 263,237 Cost of services 96,309 64,071 26,161 186,541 Gross profit 39,932 20,604 16,160 76,696 Gross profit margin 29.3 % 24.3 % 38.2 % 29.1 % Fifty-Two Weeks Ended December 31, 2022 Specialty
Health CareEngineering Life Sciences
and IT
ConsolidatedRevenue $ 159,448 $ 85,937 $ 39,295 $ 284,680 Cost of services 111,543 64,218 25,992 201,753 Gross profit $ 47,905 $ 21,719 $ 13,303 $ 82,927 Gross profit margin 30.0 % 25.3 % 33.9 % 29.1 % RCM Technologies, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In Thousands, Except Share Amounts)December 30, December 31, 2023 2022 Current assets: Cash and cash equivalents $ 6,284 $ 339 Accounts receivable, net 70,690 50,762 Contract assets 8,891 3,280 Prepaid expenses and other current assets 4,637 4,636 Total current assets 90,502 59,017 Property and equipment, net 4,005 2,098 Other assets: Deposits 313 173 Deferred tax assets, net, domestic - - Deferred tax assets, foreign 55 - Goodwill 22,147 22,147 Operating right of use asset 2,779 3,665 Intangible assets, net 683 864 Total other assets 25,977 26,849 Total assets $ 120,484 $ 87,964 Current liabilities: Accounts payable and accrued expenses $12,454 $14,147 Contract liabilities 31,102 9,767 Accrued payroll and related costs 11,203 13,023 Finance lease payable 233 462 Income taxes payable 330 85 Operating right of use liability 693 1,349 Contingent consideration from acquisitions 300 472 Deferred revenue 1,881 1,119 Total current liabilities 58,196 40,424 Deferred income taxes, net, foreign 187 166 Deferred income taxes, net, domestic 1,568 1,495 Finance lease payable - 232 Contingent consideration from acquisitions, net of current portion 1,671 1,970 Operating right of use liability, net of current portion 2,268 2,932 Borrowings under line of credit 30,804 8,783 Total liabilities 94,694 56,002 Contingencies (note 16) and Commitments (note 18) 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; 17,673,427 shares issued and 7,844,821 shares outstanding at
December 30, 2023, 17,287,967 shares issued and 9,285,318 shares outstanding at
December 31, 2022 and 16,903,157 shares issued and 10,290,935 shares
outstanding at January 1, 2022882 863 Additional paid-in capital 116,579 113,878 Accumulated other comprehensive loss (2,813 ) (2,863 ) Accumulated deficit (19,265 ) (36,096 ) Treasury stock, 9,828,606 shares at December 30, 2023,
8,002,649 shares at December 31, 2022 and 6,612,222 shares at January 1, 2022(69,593 ) (43,820 ) Stockholders’ equity 25,790 31,962 Total liabilities and stockholders’ equity $120,484 $87,964 RCM Technologies, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In Thousands)Thirteen Weeks Ended December 30,
2023December 31,
2022Net income $5,255 $4,837 Adjustments to reconcile net income to cash
used in operating activities1,526 2,989 Changes in operating assets and liabilities: Accounts receivable (13,880 ) 81 Prepaid expenses and other current assets 678 (2,953 ) Net of transit accounts receivable and payable (6,660 ) 6,431 Accounts payable and accrued expenses 292 3,440 Accrued payroll and related costs (3,421 ) (4,211 ) Right of use liabilities (337 ) (336 ) Income taxes payable 80 (2,298 ) Deferred revenue 1,546 (441 ) Deposits (145 ) 3 Total adjustments (20,321 ) 2,705 Net cash (used in) provided by operating activities ($15,066 ) $7,542 Net cash used in investing activities (2,056 ) (4,367 ) Net cash provided by (used in) financing activities 22,706 (3,659 ) Effect of exchange rate changes on cash and cash equivalents 46 62 Increase in cash and cash equivalents $5,630 ($422 ) Common stock repurchase (1,324 ) (11,166 ) Fifty-Two Weeks Ended December 30,
2023December 31,
2022Net income $16,831 $20,889 Adjustments to reconcile net income to cash
used in operating activities4,321 4,539 Changes in operating assets and liabilities: Accounts receivable (20,576 ) (1,509 ) Prepaid expenses and other current assets 3 (2,350 ) Net of transit accounts receivable and payable 15,724 5,433 Accounts payable and accrued expenses (1,506 ) 4,919 Accrued payroll and related costs (1,825 ) 24 Right of use liabilities (1,353 ) (1,642 ) Income taxes payable 242 276 Deferred revenue 762 (2,299 ) Deposits (141 ) 3 Total adjustments (4,349 ) 7,394 Net cash provided by operating activities 12,482 28,283 Net cash used in investing activities (2,536 ) (4,820 ) Net cash used in financing activities (3,852 ) (23,127 ) Effect of exchange rate changes on cash and cash equivalents (149 ) (232 ) Increase in cash and cash equivalents 5,945 $104 Common stock repurchase (25,773 ) (17,560 ) 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 
