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About RCM
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
Tables to Follow
Condensed Consolidated Statements of Operations
(Unaudited)
(In Thousands, Except Per Share Amounts)
Thirteen Weeks Ended | ||||||
2023 | 2022 | |||||
Revenue | ||||||
Cost of services | 40,768 | 40,794 | ||||
Gross profit | 17,281 | 17,358 | ||||
Selling, general and administrative | 12,662 | 12,551 | ||||
Depreciation and amortization of property and equipment | 243 | 266 | ||||
Amortization of acquired intangible assets | 45 | - | ||||
Gain on sale of assets | - | (219 | ) | |||
Operating income | 4,331 | 4,760 | ||||
Other expense (income), net | 141 | (55 | ) | |||
Income before income taxes | 4,190 | 4,815 | ||||
Income tax expense | 434 | 1,297 | ||||
Net income | ||||||
Diluted net earnings per share data | ||||||
Diluted weighted average shares outstanding | 8,196,330 | 10,522,158 |
Thirty-Nine Weeks Ended | ||||||
2023 | 2022 | |||||
Revenue | ||||||
Cost of services | 137,144 | 151,998 | ||||
Gross profit | 55,065 | 62,461 | ||||
Selling, general and administrative | 38,782 | 39,962 | ||||
Depreciation and amortization of property and equipment | 756 | 729 | ||||
Amortization of acquired intangible assets | 136 | - | ||||
Gain on sale of assets | (395 | ) | (219 | ) | ||
Operating income | 15,786 | 21,989 | ||||
Other expense (income), net | 965 | (31 | ) | |||
Income before income taxes | 14,821 | 22,020 | ||||
Income tax expense | 3,245 | 5,968 | ||||
Net income | ||||||
Diluted net earnings per share data | ||||||
Diluted weighted average shares outstanding | 8,730,998 | 10,566,816 |
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 thirty-nine weeks ended
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
GAAP net income | ||||||||||||
Income tax expense | 434 | 1,297 | 3,245 | 5,968 | ||||||||
Interest expense, net | 185 | 35 | 970 | 201 | ||||||||
Depreciation of property and equipment | 243 | 266 | 756 | 729 | ||||||||
Amortization of acquired intangible assets | 45 | - | 136 | - | ||||||||
EBITDA (non-GAAP) | ||||||||||||
Adjustments | ||||||||||||
Gain on sale of assets | - | (219 | ) | (395 | ) | (219 | ) | |||||
Gain on foreign currency transactions | (44 | ) | (90 | ) | (5 | ) | (232 | ) | ||||
Adjusted EBITDA (non-GAAP) |
Summary of Selected Income Statement Data
(Unaudited)
(In Thousands)
Thirteen Weeks Ended | ||||||||||||
Specialty Health Care | Engineering | Life Sciences and IT | Consolidated | |||||||||
Revenue | ||||||||||||
Cost of services | 17,438 | 16,846 | 6,484 | 40,768 | ||||||||
Gross profit | ||||||||||||
Gross profit margin | 30.0 | % | 25.0 | % | 39.4 | % | 29.8 | % |
Thirteen Weeks Ended | ||||||||||||
Specialty Health Care | Engineering | Life Sciences and IT | Consolidated | |||||||||
Revenue | ||||||||||||
Cost of services | 19,014 | 15,594 | 6,186 | 40,794 | ||||||||
Gross profit | ||||||||||||
Gross profit margin | 32.1 | % | 25.5 | % | 33.0 | % | 29.8 | % |
Thirty-Nine Weeks Ended | ||||||||||||
Specialty Health Care | Engineering | Life Sciences and IT | Consolidated | |||||||||
Revenue | ||||||||||||
Cost of services | 70,623 | 47,482 | 19,039 | 137,144 | ||||||||
Gross profit | ||||||||||||
Gross profit margin | 29.1 | % | 23.4 | % | 38.0 | % | 28.6 | % |
Thirty-Nine Weeks Ended | ||||||||||||
Specialty Health Care | Engineering | Life Sciences and IT | Consolidated | |||||||||
Revenue | ||||||||||||
Cost of services | 86,772 | 45,653 | 19,573 | 151,998 | ||||||||
Gross profit | ||||||||||||
Gross profit margin | 29.8 | % | 26.0 | % | 32.7 | % | 29.1 | % |
Condensed Consolidated Balance Sheets
(Unaudited)
(In Thousands, Except Share Amounts)
2023 | 2022 | |||||||
(Unaudited) | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | ||||||||
Accounts receivable, net | 57,459 | 50,762 | ||||||
Transit accounts receivable | 9,550 | 3,280 | ||||||
Prepaid expenses and other current assets | 5,311 | 4,636 | ||||||
Total current assets | 72,974 | 59,017 | ||||||
Property and equipment, net | 2,221 | 2,098 | ||||||
Other assets: | ||||||||
Deposits | 168 | 173 | ||||||
22,147 | 22,147 | |||||||
Operating right of use asset | 2,976 | 3,665 | ||||||
Intangible assets, net | 728 | 864 | ||||||
Total other assets | 26,019 | 26,849 | ||||||
Total assets |
Current liabilities: | ||||||||
Accounts payable and accrued expenses | ||||||||
Transit accounts payable | 38,421 | 9,767 | ||||||
Accrued payroll and related costs | 14,619 | 13,023 | ||||||
Finance lease payable | 348 | 462 | ||||||
Income taxes payable | 247 | 85 | ||||||
Operating right of use liability | 884 | 1,349 | ||||||
Contingent consideration from acquisitions | 300 | 472 | ||||||
Deferred revenue | 335 | 1,119 | ||||||
Total current liabilities | 67,307 | 40,424 | ||||||
Deferred income taxes, net, foreign | 166 | 166 | ||||||
Deferred income taxes, net, domestic | 1,652 | 1,495 | ||||||
Finance lease payable | - | 232 | ||||||
Contingent consideration from acquisitions, net of current position | 1,671 | 1,970 | ||||||
Operating right of use liability, net of current position | 2,382 | 2,932 | ||||||
Borrowings under line of credit | 6,657 | 8,783 | ||||||
Total liabilities | 79,835 | 56,002 | ||||||
Contingencies (note 15) | - | - | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, | ||||||||
no shares issued or outstanding | - | - | ||||||
Common stock, | ||||||||
17,660,999 shares issued and 7,900,190 shares outstanding at September 30, 2023 and 17,287,967 shares issued and 9,285,318 shares outstanding at | 880 | 863 | ||||||
Additional paid-in capital | 116,146 | 113,878 | ||||||
Accumulated other comprehensive loss | (2,858 | ) | (2,863 | ) | ||||
Accumulated deficit | (24,520 | ) | (36,096 | ) | ||||
8,002,649 shares at | (68,269 | ) | (43,820 | ) | ||||
Total stockholders’ equity | 21,379 | 31,962 | ||||||
Total liabilities and stockholders’ equity |
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In Thousands)
Thirteen Weeks Ended | |||||||
2023 | 2022 | ||||||
Net income | |||||||
Adjustments to reconcile net income to cash used in operating activities | 1,049 | 364 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 4,143 | (5,155 | ) | ||||
Prepaid expenses and other current assets | (987 | ) | 169 | ||||
Net of transit accounts receivable and payable | 1,556 | (788 | ) | ||||
Accounts payable and accrued expenses | (785 | ) | 2,064 | ||||
Accrued payroll and related costs | 2,790 | 1,187 | |||||
Right of use liabilities | (333 | ) | (366 | ) | |||
Income taxes payable | 15 | (336 | ) | ||||
Deferred revenue | (169 | ) | (621 | ) | |||
Deposits | 2 | (11 | ) | ||||
Total adjustments | 7,281 | (3,488 | ) | ||||
Net cash provided by operating activities | |||||||
Net cash used in investing activities | (315 | ) | (44 | ) | |||
Net cash used in financing activities | (11,343 | ) | (2,293 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 2 | (44 | ) | ||||
Increase in cash and cash equivalents | ($ | 619 | ) | ($ | 2,351 | ) | |
Common stock repurchase | ($ | 3,389 | ) | ($ | 3,613 | ) |
Thirty-Nine Weeks Ended | |||||||
2023 | 2022 | ||||||
Net income | |||||||
Adjustments to reconcile net income to cash used in operating activities | 2,795 | 1,550 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (6,696 | ) | (1,590 | ) | |||
Prepaid expenses and other current assets | (675 | ) | 603 | ||||
Net of transit accounts receivable and payable | 22,384 | (998 | ) | ||||
Accounts payable and accrued expenses | (1,798 | ) | 1,479 | ||||
Accrued payroll and related costs | 1,596 | 4,235 | |||||
Right of use liabilities | (1,016 | ) | (1,306 | ) | |||
Income taxes payable | 162 | 2,574 | |||||
Deferred revenue | (784 | ) | (1,858 | ) | |||
Deposits | 4 | - | |||||
Total adjustments | 15,972 | 4,689 | |||||
Net cash provided by operating activities | 27,548 | ||||||
Net cash used in investing activities | (480 | ) | (453 | ) | |||
Net cash used in financing activities | (26,558 | ) | (19,468 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (195 | ) | (294 | ) | |||
Increase in cash and cash equivalents | |||||||
Common stock repurchase | ( | ) | ( | ) |
Tel: 856.356.4500 | Corporate Contacts: | |
Fax: 856.356.4600 | ||
info@rcmt.com | Executive Chairman | |
www.rcmt.com | ||
Chief Financial Officer |
Source:
2023 GlobeNewswire, Inc., source