Advertisement

Topics

RCM Technologies, Inc. Announces Second Quarter Results

20:00 EDT 11 Aug 2015 | Globe Newswire

PENNSAUKEN, N.J., Aug. 12, 2015 (GLOBE NEWSWIRE) -- RCM Technologies, Inc. (Nasdaq: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, information technology and specialty health care services, today announced financial results for the thirteen and twenty-six week periods ended July 4, 2015.

RCM Technologies reported revenues of $45.3 million for the thirteen week period ended July 4, 2015, a 8.5% decrease as compared to $49.5 million for the thirteen week period ended June 28, 2014 (the comparable prior year period). Gross profit was $12.1 million for the thirteen week period ended July 4, 2015, a 6.7% decrease as compared to $13.0 million for the comparable prior year period.  Operating income was $1.2 million for the thirteen week period ended July 4, 2015, a 60.0% decrease as compared to $3.0 million for the comparable prior year period. Net income for the thirteen week period ended July 4, 2015 was $0.7 million, or $0.05 per diluted share, as compared to $2.0 million, or $0.15 per diluted share, for the comparable prior year period.

The Company reported revenues of $93.3 million for the twenty-six week period ended July 4, 2015, a 4.9% decrease as compared to $98.1 million for the twenty-six week period ended June 28, 2014 (the comparable prior year period). Gross profit was $25.4 million for the twenty-six week period ended July 4, 2015, a 0.1% increase as compared to $25.2 million for the comparable prior year period.  Operating income was $3.6 million for the twenty-six week period ended July 4, 2015, a 29.6% decrease over $5.1 million for the comparable prior year period. Net income for the twenty-six week period ended July 4, 2015 was $2.1 million, or $0.16 per diluted share, as compared to $3.2 million, or $0.25 per diluted share, for the comparable prior year period.

Rocco Campanelli, President and Chief Executive Officer of RCM Technologies, commented, “We are disappointed with the results of our second quarter of 2015. As we previously disclosed, the primary reason for lower revenues and operating income as compared to the second quarter of 2014 were revenue declines from a very large project worked on by our Canadian Engineering Group, which we do not expect to pick up in the near term. While we remain optimistic about our Canadian Engineering Group going forward, particularly as we look to fiscal 2016, we’ve had to make staffing adjustments for the second half of fiscal 2015. We are cautiously optimistic that we will soon announce a very large master services agreement with a major client in Canada. On a much brighter note, our Specialty Healthcare segment has continued on its strong pace, setting new quarterly records for both revenues and gross profit. The expected impact from the recently announced engagement with the Chicago Board of Education will further improve on the Specialty Healthcare’s record year and bolster our run rate as we head into fiscal 2016. Our Information Technology segment’s performance in the second quarter was steady with numbers of staffing placements at existing and new clients significantly higher than last year’s results. We are excited about our consolidated prospective performance for the second half of fiscal 2015 as compared to the first half of 2015 and we expect to realize some of our considerable pipeline opportunities and lay the groundwork for a very strong fiscal 2016.”

Kevin Miller, Chief Financial Officer of RCM Technologies, added, “We are obviously disappointed with the decline in revenues in the second quarter of fiscal 2015 versus last year’s second quarter. The primary reason for the decrease was an $8.0 million reduction in revenues from work performed, as a subcontractor or directly, for a large Engineering client in Canada. While we do not foresee any near term material expansion of work for this client, we do have a robust pipeline across all three segments of our business and expect to see improvement in operating income for the second half of fiscal 2015 as compared to the first half of the year.”

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 the delivery of 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.  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 and 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” 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, as well as 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 growth in our business. Such statements are based on current expectations that involve a number of 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 Income
(Unaudited)
 (In Thousands, Except Share and Per Share Amounts)
 
 Thirteen Week Periods Ended 
 July 4,
2015
 June 28,
2014
 
Revenues$45,286  $49,509  
Cost of services 33,196   36,554  
Gross profit 12,090   12,955  
Selling, general and administrative 10,546   9,653  
Depreciation and amortization 334   277  
Operating income 1,210   3,025  
Other income, net (118)  37  
Income before income taxes 1,092   3,062  
Income tax expense 403   1,045  
Net income$689  $2,017  
     
Diluted net earnings per share data$0.05  $0.15  

 

 Twenty-Six Week Periods Ended 
 July 4,
2015
 June 28,
2014
 
Revenues$93,252  $98,078  
Cost of services 67,859   72,866  
Gross profit 25,393   25,212  
Selling, general and administrative 21,178   19,601  
Depreciation and amortization 650   548  
Operating income 3,565   5,063  
Other income (expense), net (253)  (25) 
Income before income taxes 3,312   5,038  
Income tax expense 1,235   1,818  
Net income$2,077  $3,220  
     
Diluted net earnings per share data$0.16  $0.25  

 

RCM Technologies, Inc.
Summary Consolidated Selected Balance Sheet Data
 (In Thousands)
 
 July 4,
2015
 January 3,
2015
 
 (Unaudited)   
Cash and cash equivalents$2,646  $6,411  
Accounts receivable, net$60,854  $59,187  
Total current assets$70,969  $72,579  
Total assets$85,754  $87,273  
Total current liabilities$20,605  $23,633  
Borrowing under line of credit$20,000  $20,000  
Net debt (borrowings less cash)$17,354  $13,589  
Total liabilities$41,380  $44,408  
Stockholders’ equity$44,374  $42,865  

 

RCM Technologies, Inc.
Condensed Consolidated Statements of Cash Flows
 (Unaudited)
(In Thousands)
 
 Thirteen Week Periods Ended 
 July 4,
2015
 June 28,
2014
 
Net income$689  $2,017  
Adjustments to reconcile net income to cash provided by operating activities 997   1,615  
Changes in operating assets and liabilities    
 Accounts receivable 1,546   211  
 Prepaid expenses and other current assets (107  (649 
 Net of transit accounts receivable and payable 321   2,470  
 Accounts payable and accrued expenses (2,442  1,794  
 Accrued payroll and related costs 1,704   (1,001 
 Income taxes payable (274  257  
Total adjustments 1,745   4,697  
Cash provided by operating activities$2,434  $6,714  
     
Net cash used in investing activities (359)   (923 
Net cash provided by financing activities -   184  
Effect of exchange rate changes 43   41  
Increase in cash and cash equivalents$2,118  $6,016  

 

 Twenty-Six Week Periods Ended 
 July 4,
2015
 June 28,
2014
 
Net income$2,077  $3,220  
Adjustments to reconcile net income to cash provided by operating activities 2,132   2,237  
Changes in operating assets and liabilities    
 Accounts receivable (3,445)  (4,036 
 Prepaid expenses and other current assets (175  (1,876 
 Net of transit accounts receivable and payable (1,785  2,535  
 Accounts payable and accrued expenses (923  1,830  
 Accrued payroll and related costs 73   49  
 Income taxes payable (429  (52 
Total adjustments (4,552  687  
Cash provided by operating activities$(2,475 $3,907  
     
Net cash used in investing activities (976  (1,407 
Net cash provided by financing activities 108   90  
Effect of exchange rate changes (422  (296 
Increase in cash and cash equivalents$(3,765 $2,294  

 

RCM Technologies, Inc.
Summary of Selected Income Statement Data
 (Unaudited)
(In Thousands)
 
 Thirteen Week Period Ended July 4, 2015 
 Engineering Information
Technology
 Specialty
Health Care
  
Consolidated
 
         
Revenue$19,827  $14,859  $10,600  $45,286  
Cost of services 15,490   10,336   7,370   33,196  
Gross Profit$4,337  $4,523  $3,230  $12,090  
Gross Margin 21.9 % 30.4 % 30.5 % 26.7 %

 

 Thirteen Week Period Ended June 28, 2014 
 Engineering Information
Technology
 Specialty
Health Care
  
Consolidated
 
         
Revenue$26,056  $14,651  $8,802  $49,509  
Cost of services 19,967   10,312   6,275   36,554  
Gross Profit$6,089  $4,339  $2,527  $12,955  
Gross Margin 23.4 % 29.6 % 28.7 % 26.2 %

 

 Twenty-Six Week Period Ended July 4, 2015 
 Engineering Information
Technology
 Specialty
Health Care
  
Consolidated
 
         
Revenue$42,618  $29,513  $21,121  $93,252  
Cost of services 32,659   20,430   14,770   67,859  
Gross Profit$9,959  $9,083  $6,351  $25,393  
Gross Margin 23.4 % 30.8 % 30.1 % 27.2 %

 

 Twenty-Six Week Period Ended June 28, 2014 
 Engineering Information
Technology
 Specialty
Health Care
  
Consolidated
 
         
Revenue$50,780  $29,670  $17,628  $98,078  
Cost of services 39,455   20,792   12,619   72,866  
Gross Profit$11,325  $8,878  $5,009  $25,212  
Gross Margin 22.3 % 29.9 % 28.4 % 25.7 %



RCM Technologies, Inc.
2500 McClellan Avenue
Pennsauken, NJ 08109

Tel:  856.356.4500
Fax: 856.356.4600
info@rcmt.com
www.rcmt.com

Corporate Contacts:
Rocco Campanelli
President & CEO
Kevin D. Miller
Chief Financial Officer

Primary Logo

NEXT ARTICLE

More From BioPortfolio on "RCM Technologies, Inc. Announces Second Quarter Results"

Advertisement
Quick Search
Advertisement
Advertisement

 

Relevant Topics

The Top 100 Pharmaceutical Companies
Top 10 biotech and pharmaceutical companies worldwide based on market value in 2015 2015 ranking of the global top 10 biotech and pharmaceutical companies based on revenue (in billion U.S. dollars) Johnson & Johnson, U.S. 74...

Collaborations in biotechnology
Commercial and academic collaborations are used throughout the biotechnology and pharmaceutical sector to enhance research and product development. Collaborations can take the form of research and evaluation agreements, licensing, partnerships etc. ...

Healthcare
Health care (or healthcare) is the diagnosis, treatment, and prevention of disease, illness, injury, and other physical and mental impairments in humans. Health care is delivered by practitioners in medicine, chiropractic, dentistry, nursing, pharmacy, a...