PENNSAUKEN, N.J., May 08, 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 weeks ended March 30, 2024.

RCM Technologies reported revenue of $71.9 million for the thirteen weeks ended March 30, 2024 (the current quarter), an increase of 7.2% compared to $67.1 million for the thirteen weeks ended April 1, 2023 (the comparable prior quarter). Gross profit was $20.4 million for the current quarter, a 7.1% increase compared to $19.0 million for the comparable prior quarter. The Company experienced GAAP net income of $4.0 million, or $0.48 per diluted share, for the current quarter compared to $3.8 million, or $0.41 per diluted share, for the comparable prior quarter. The Company experienced adjusted EBITDA (non-GAAP) of $6.8 million for the current quarter compared to $6.1 million for the comparable prior quarter. The Company experienced $0.53 of adjusted net income per diluted share (non-GAAP) for the current quarter as compared to $0.41 for the comparable prior quarter.

Bradley Vizi, Executive Chairman of RCM Technologies, commented, “Our breadth of strategic focus is widening and deepening throughout the organization, with all teams executing on current initiatives while seeding new initiatives designed to propel growth well into the future.”

Kevin Miller, Chief Financial Officer of RCM Technologies, commented, “In the first quarter, adjusted EBITDA and adjusted EPS increased 11.1% and 30.4%, respectively. Cash conversion increased both sequentially and year over year. We anticipate continued improvement in cash flow from operations in each of the next two quarters.”

Conference Call
On Thursday, May 9, 2024, 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 (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, 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  
 March 30,
2024		 April 1,
2023		 
Revenue$71,939 $67,124 
Cost of services 51,572  48,100 
Gross profit 20,367  19,024 
Selling, general and administrative 14,199  13,396 
Depreciation and amortization of property and equipment 287  271 
Amortization of acquired intangible assets 45  45 
Gain on sale of assets -  (395)
Operating income 5,836  5,707 
Other expense, net 426  407 
Income before income taxes 5,410  5,300 
Income tax expense 1,458  1,463 
Net income$3,952 $3,837 
     
Diluted net earnings per share data$0.48 $0.41 
Diluted weighted average shares outstanding 8,170,839  9,401,867 



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 ended March 30, 2024 and April 1, 2023. 

 Thirteen Weeks Ended 
 March 30,
2024		 April 1,
2023		 
GAAP operating income$5,836 $5,707 
Adjustments    
Gain on sale of assets -  (395)
Equity compensation 635  496 
Adjusted operating income (non-GAAP)$6,471 $5,808 
     
GAAP net income$3,952 $3,837 
Income tax expense 1,458  1,463 
Interest expense, net 478  360 
Depreciation of property and equipment 287  271 
Amortization of acquired intangible assets 45  45 
EBITDA (non-GAAP)$6,220 $5,976 
     
Adjustments    
Gain on sale of assets -  (395)
(Gain) loss on foreign currency transactions (52) 47 
Equity compensation 635  496 
Adjusted EBITDA (non-GAAP)$6,803 $6,124 



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

 Thirteen Weeks Ended 
 March 30,
2024		 April 1,
2023		 
GAAP net income$3,952 $3,837 
Adjustments    
Gain on sale of assets -  (395)
(Gain) loss on foreign currency transactions (52) 47 
Equity compensation 635  496 
Tax impact from normalized rate (174) (136)
Adjusted net income (non-GAAP)$4,361 $3,849 
     
GAAP diluted net earnings per share$0.48 $0.41 
Adjustments    
Gain on sale of assets -  (0.04)
(Gain) loss on foreign currency transactions 0.00  0.00 
Equity compensation 0.08  0.05 
Tax impact from normalized rate (0.03) (0.01)
Adjusted diluted net earnings per share (non-GAAP)$0.53 $0.41 



RCM Technologies, Inc.
Summary of Selected Income Statement Data
(Unaudited)
(In Thousands)

 Thirteen Weeks Ended March 30, 2024 
 Specialty
Health Care		 Engineering Life Sciences
and IT		 Consolidated 
         
Revenue$38,182 $23,505 $10,252 $71,939 
Cost of services 27,108  18,003  6,461  51,572 
Gross profit$11,074 $5,502 $3,791 $20,367 
Gross profit margin 29.0% 23.4% 37.0% 28.3%


 Thirteen Weeks Ended April 1, 2023 
 Specialty
Health Care		 Engineering Life Sciences
and IT		 Consolidated 
         
Revenue$39,130 $18,490 $9,504 $67,124 
Cost of services 27,458  14,444  6,198  48,100 
Gross profit$11,672 $4,046 $3,306 $19,024 
Gross profit margin 29.8% 21.9% 34.8% 28.3%



RCM Technologies, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In Thousands, Except Share Amounts)

 March 30, December 30, 
  2024  2023 
 (Unaudited)   
Current assets:    
 Cash and cash equivalents$2,099 $6,284 
 Accounts receivable, net 73,486  70,690 
 Transit accounts receivable 9,722  8,891 
 Prepaid expenses and other current assets 4,515  4,637 
  Total current assets 89,822  90,502 
       
Property and equipment, net 4,386  4,005 
     
Deposits 290  313 
Deferred income taxes, foreign 53  55 
Goodwill 22,147  22,147 
Operating right of use asset 3,147  2,779 
Intangible assets, net 638  683 
  Total other assets 26,275  25,977 
       
  Total assets$120,483 $120,484 


Current liabilities:    
 Accounts payable and accrued expenses$13,596 $12,454 
 Transit accounts payable 31,715  31,102 
 Accrued payroll and related costs 12,174  11,203 
 Finance lease payable 116  233 
 Income taxes payable 778  330 
 Operating right of use liability 615  693 
 Contingent consideration from acquisitions 300  300 
 Deferred revenue 3,514  1,881 
  Total current liabilities 62,808  58,196 
     
Deferred income taxes, net, foreign 185  187 
Deferred income taxes, net, domestic 1,619  1,568 
Contingent consideration from acquisitions, net of current position 1,671  1,671 
Operating right of use liability, net of current position 2,644  2,268 
Borrowings under line of credit 22,159  30,804 
 Total liabilities 91,086  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;    
  17,775,693 shares issued and 7,947,087 shares outstanding at
March 30, 2024 and 17,673,427 shares issued and 7,844,821 shares
outstanding at December 30, 2023		 887  882 
 Additional paid-in capital 116,256  116,579 
 Accumulated other comprehensive loss (2,840) (2,813)
 Accumulated deficit (15,313) (19,265)
 Treasury stock, 9,828,606 shares at March 30, 2024 and    
 December 30, 2023, at cost (69,593) (69,593)
  Total stockholders’ equity 29,397  25,790 
       
  Total liabilities and stockholders’ equity$120,483 $120,484 



RCM Technologies, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In Thousands)

 Thirteen Weeks Ended  
 March 30,
2024		 April 1,
2023		 
Net income$3,952 $3,837 
Adjustments to reconcile net income to cash used in operating activities 1,250  703 
Changes in operating assets and liabilities:    
 Accounts receivable (2,802) (8,035)
 Prepaid expenses and other current assets 120  960 
 Net of transit accounts receivable and payable (219) 1,472 
 Accounts payable and accrued expenses 1,345  (1,667)
 Accrued payroll and related costs 976  2,404 
 Right of use liabilities (304) (348)
 Income taxes payable 451  141 
 Deferred revenue 1,633  (310)
 Deposits 24  11 
Total adjustments 2,474  (4,669)
Net cash provided by (used in) operating activities 6,426  (832)
     
Net cash used in investing activities (669) (332)
Net cash (used in) provided by financing activities (9,714) 2,416 
Effect of exchange rate changes on cash and cash equivalents (228) 234 
(Decrease) increase in cash and cash equivalents($4,185)$1,486 


RCM Technologies, Inc.Tel: 856.356.4500Corporate Contacts:
2500 McClellan Avenueinfo@rcmt.comBradley S. Vizi
Pennsauken, NJ 08109www.rcmt.comExecutive Chairman
  Kevin D. Miller
  Chief Financial Officer

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Source: RCM Technologies, Inc.

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