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 week periods ended January 1, 2022.
RCM Technologies reported revenue of $64.9 million
for the thirteen week period ended January 1, 2022 (the current
period), a 57.7% increase as compared to $41.2 million for the
fourteen week period ended January 2, 2021 (the comparable prior
year period). Gross profit was $17.8 million for the current
period, a 66.5% increase as compared to $10.7 million for the
comparable prior year period. The Company experienced GAAP
operating income of $7.1 million for the current period as compared
to a GAAP operating loss of $1.9 million for the comparable prior
year period. The Company experienced adjusted operating
income of $5.1 million for the current period as compared to $0.4
million for the comparable prior year period. The Company
experienced GAAP net income of $6.0 million, or $0.54 per diluted
share, for the current period as compared to a GAAP net loss of
$1.7 million, or ($0.15) per diluted share, for the comparable
prior year period. The Company experienced adjusted EBITDA of $5.3
million for the current period as compared to adjusted EBITDA of
$0.7 million for the comparable prior year period. The Company
experienced adjusted net income of $3.7 million, or $0.34 per
diluted share, for the current period as compared to an adjusted
net loss of $0.1 million, or ($0.01) per diluted share, for the
comparable prior year period.
RCM Technologies reported revenue of $203.9
million for the fifty-two week period ended January 1, 2022 (the
current period), a 35.5% increase as compared to $150.4 million for
the fifty-three week period ended January 2, 2021 (the comparable
prior year period). Gross profit was $53.1 million for the current
period, a 36.7% increase as compared to $38.9 million for the
comparable prior year period. The Company experienced GAAP
operating income of $14.1 million for the current period as
compared to a GAAP operating loss of $11.0 million for the
comparable prior year period. The Company experienced
adjusted operating income of $10.0 million for the current period
as compared to an adjusted operating loss of $0.3 million for the
comparable prior year period. The Company experienced GAAP net
income of $11.0 million, or $0.95 per diluted share, for the
current period as compared to a GAAP net loss of $8.9 million, or
($0.73) per diluted share, for the comparable prior year period.
The Company experienced adjusted EBITDA of $11.1 million for the
current period as compared to $1.1 million for the comparable prior
year period. The Company experienced adjusted net income of $7.1
million, or $0.61 per diluted share, for the current period as
compared to an adjusted net loss of $1.0 million, or ($0.09) per
diluted share, for the comparable prior year period.
On July 30, 2021, the Company sold the principal
assets and certain liabilities of its Pickering and Kincardine
offices, located in Ontario, Canada. These two offices were often
referred to as the Canadian Power Systems business and principally
provided engineering services to two major nuclear power providers
in Canada. The two Canadian Power Systems offices were part
of a reporting unit within the Company’s Engineering segment. The
Company continues to offer other engineering services in Canada and
similar services in the United States. For the thirteen week
periods ended January 1, 2022 and January 2, 2021, these two
offices generated revenue of zero and $3.2 million, respectively.
For the fifty-two week period ended January 1, 2022 and the
fifty-three week period ended January 2, 2021, these two offices
generated revenue of $4.9 million and $11.8 million,
respectively.
Bradley Vizi, Executive Chairman of RCM
Technologies, commented, “Our fourth quarter results serve as a
nice bookend to 2021. As I reflect on our transformation plan
dating back before the pandemic, I am proud of the team's
execution. The results speak for themselves, with broad-based
strength across each segment.”
Kevin Miller, Chief Financial Officer of RCM
Technologies, commented, “We are excited to announce our record
fourth quarter of 2021, growing adjusted EBITDA by 627% over 2020
and 120% over 2019. In addition, we grew revenue by $53 million for
the year and continued to generate positive cash flow from
operations.”
Conference Call On Thursday,
March 31, 2022, RCM Technologies will host a conference call to
discuss these results. The call will begin at 10:00 a.m. Eastern
Time. The dial-in number is (888) 272-8703.
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 and Serbia.
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,” “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, 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 the impact of the COVID-19
pandemic, 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 Operations
(Unaudited) (In Thousands, Except Per
Share Amounts)
|
|
Thirteen WeekPeriod
EndedJanuary 1, 2022 |
|
Fourteen WeekPeriod EndedJanuary 2,
2021 |
|
| Revenue |
$64,922 |
|
$41,163 |
|
| Cost of
services |
47,128 |
|
30,474 |
|
| Gross
profit |
17,794 |
|
10,689 |
|
| Selling,
general and administrative |
12,453 |
|
9,954 |
|
| Depreciation
and amortization of property and equipment |
232 |
|
272 |
|
| Amortization
of acquired intangible assets |
- |
|
81 |
|
| Write-off
of receivables and professional fees incurred related to
arbitration |
- |
|
- |
|
|
Impairment of right of use assets and related costs |
- |
|
2,231 |
|
| Gain on sale
of assets |
(269 |
) |
- |
|
| Remeasurement of acquisition related contingent
consideration |
(1,713 |
) |
- |
|
| Operating
income (loss) |
7,091 |
|
(1,849 |
) |
| Other income
(expense), net |
7 |
|
(212 |
) |
| Income
(loss) before income taxes |
7,098 |
|
(2,061 |
) |
| Income tax
expense (benefit) |
1,124 |
|
(373 |
) |
| Net income
(loss) |
$5,974 |
|
($1,688 |
) |
| |
|
|
|
|
| Diluted net
earnings (loss) per share data |
$0.54 |
|
($0.15 |
) |
|
|
Fifty-Two WeekPeriod
EndedJanuary 1, 2022 |
|
Fifty-Three WeekPeriod EndedJanuary 2,
2021 |
|
| Revenue |
$203,875 |
|
$150,409 |
|
| Cost of
services |
150,751 |
|
111,554 |
|
| Gross
profit |
53,124 |
|
38,855 |
|
| Selling,
general and administrative |
42,019 |
|
37,791 |
|
| Depreciation
and amortization of property and equipment |
1,007 |
|
1,065 |
|
| Amortization
of acquired intangible assets |
95 |
|
321 |
|
| Write-off
of receivables and professional fees incurred related to
arbitration |
- |
|
8,397 |
|
|
Impairment of right of use assets and related costs |
- |
|
2,231 |
|
| Gain on sale
of assets |
(2,420 |
) |
- |
|
|
Remeasurement of acquisition-related contingent consideration |
(1,713 |
) |
- |
|
| Operating
income (loss) |
14,136 |
|
(10,950 |
) |
| Other
expense, net |
(222 |
) |
(1,107 |
) |
| Income
(loss) before income taxes |
13,914 |
|
(12,057 |
) |
| Income tax
expense (benefit) |
2,925 |
|
(3,188 |
) |
| Net income
(loss) |
$10,989 |
|
($8,869 |
) |
| |
|
|
|
|
| Diluted net
earnings (loss) per share data |
$0.95 |
|
($0.73 |
) |
| |
|
|
|
|
RCM Technologies, Inc.
Summary Consolidated Selected Balance Sheet Data
(In Thousands)
|
|
January 1,2022 |
|
January 2,2021 |
|
|
|
(Unaudited) |
|
|
|
| Cash and
cash equivalents |
$235 |
|
$734 |
|
| Accounts
receivable, net |
$48,240 |
|
$36,007 |
|
| Total
current assets |
$51,971 |
|
$43,934 |
|
| Total
assets |
$72,852 |
|
$68,339 |
|
| Total
current liabilities |
$29,857 |
|
$28,741 |
|
| Borrowing
under line of credit |
$14,151 |
|
$11,890 |
|
| Net debt
(line of credit less cash) |
$13,916 |
|
$11,156 |
|
| Total
liabilities |
$46,883 |
|
$46,101 |
|
|
Stockholders’ equity |
$25,969 |
|
$22,238 |
|
| |
|
|
|
|
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 (loss)”, “EBITDA”,
“Adjusted EBITDA”, “Adjusted net income (loss)”, and “Adjusted
diluted net earnings (loss) 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. We believe
these non-GAAP financial measures are performance measures and not
liquidity measures. These non-GAAP financial measures should not be
considered as an alternative to net income as an indicator of
performance. In addition, neither EBITDA nor Adjusted EBITDA
takes into account changes in certain assets and liabilities as
well as 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 tables present the
Company's GAAP net income and GAAP operating income and the
corresponding adjustments used to calculate Adjusted operating
income (loss), EBITDA, Adjusted EBITDA, Adjusted net income (loss)
and Adjusted diluted net earnings (loss) per share for the
fifty-two week period ended January 1, 2022 and the fifty-three
week period ended January 2, 2021.
|
|
ThirteenWeek PeriodEndedJanuary 1,2022 |
|
FourteenWeek PeriodEndedJanuary 2,2021 |
|
Fifty-TwoWeekPeriodEndedJanuary 1,2022 |
|
Fifty-Three WeekPeriodEndedJanuary 2,2021 |
|
|
GAAP operating income (loss) |
$7,091 |
|
($1,849 |
) |
$14,136 |
|
($10,950 |
) |
|
Adjustments |
|
|
|
|
|
|
|
|
|
Write-off of receivables and professional fees incurred related to
arbitration |
- |
|
- |
|
- |
|
8,397 |
|
|
Impairment of right of use assets and related costs |
- |
|
2,231 |
|
- |
|
2,231 |
|
|
Gain on sale of assets |
(269 |
) |
- |
|
(2,420 |
) |
- |
|
|
Remeasurement of acquisition related contingent consideration |
(1,713 |
) |
- |
|
(1,713 |
) |
- |
|
|
Adjusted operating income (loss) (non-GAAP) |
$5,109 |
|
$382 |
|
$10,003 |
|
($322 |
) |
|
|
|
|
|
|
|
|
|
|
| GAAP net
income (loss) |
$5,974 |
|
($1,688 |
) |
$10,989 |
|
($8,869 |
) |
| Income tax
expense (benefit) |
1,124 |
|
(373 |
) |
2,925 |
|
(3,188 |
) |
| Interest
expense, net |
58 |
|
128 |
|
365 |
|
778 |
|
| Change in
fair value of contingent consideration |
- |
|
37 |
|
52 |
|
145 |
|
| Depreciation
of property and equipment |
232 |
|
272 |
|
1,007 |
|
1,065 |
|
|
Amortization of acquired intangible assets |
- |
|
81 |
|
95 |
|
321 |
|
|
EBITDA (non-GAAP) |
$7,388 |
|
($1,543 |
) |
$15,433 |
|
($9,748 |
) |
| |
|
|
|
|
|
|
|
|
|
Adjustments |
|
|
|
|
|
|
|
|
|
Write-off of receivables and professional fees incurred related to
arbitration |
- |
|
- |
|
- |
|
8,397 |
|
|
Impairment of right of use assets and related costs |
- |
|
2,231 |
|
- |
|
2,231 |
|
|
Gain on sale of assets |
(269 |
) |
- |
|
(2,420 |
) |
- |
|
|
Remeasurement of acquisition related contingent consideration |
(1,713 |
) |
- |
|
(1,713 |
) |
- |
|
|
Loss (gain) on foreign currency transactions |
(65 |
) |
47 |
|
(195 |
) |
184 |
|
|
Adjusted EBITDA (non-GAAP) |
$5,341 |
|
$735 |
|
$11,105 |
|
$1,064 |
|
| |
|
|
|
|
|
|
|
|
RCM Technologies, Inc.
Supplemental Operating Results on a Non-GAAP Basis
(Continued) (Unaudited) (In
Thousands)
|
|
ThirteenWeek PeriodEndedJanuary 1,2022 |
|
FourteenWeek PeriodEndedJanuary 2,2021 |
|
Fifty-TwoWeekPeriodEndedJanuary 1,2022 |
|
Fifty-Three WeekPeriodEndedJanuary 2,2021 |
|
| GAAP net
income (loss) |
$5,974 |
|
($1,688 |
) |
$10,989 |
|
($8,869 |
) |
|
Adjustments |
|
|
|
|
|
|
|
|
|
Write-off of receivables and professional fees incurred related to
arbitration |
- |
|
- |
|
- |
|
8,397 |
|
|
Impairment of right of use assets and related costs |
- |
|
2,231 |
|
- |
|
2,231 |
|
|
Gain on sale of assets |
(269 |
) |
- |
|
(2,420 |
) |
- |
|
|
Remeasurement of acquisition related contingent consideration |
(1,713 |
) |
- |
|
(1,713 |
) |
- |
|
|
Tax impact from normalized rate |
(282 |
) |
(420 |
) |
237 |
|
(2,795 |
) |
|
Adjusted net income (loss) (non-GAAP) |
$3,710 |
|
$123 |
|
$7,093 |
|
($1,036 |
) |
|
|
|
|
|
|
|
|
|
|
| GAAP diluted
net earnings (loss) per share |
$0.54 |
|
($0.15 |
) |
$0.95 |
|
($0.73 |
) |
|
Adjustments |
|
|
|
|
|
|
|
|
|
Write-off of receivables and professional fees incurred related to
arbitration |
- |
|
- |
|
- |
|
$0.69 |
|
|
Impairment of right of use assets and related costs |
- |
|
$0.20 |
|
- |
|
$0.18 |
|
|
Gain on sale of assets |
($0.02 |
) |
- |
|
($0.21 |
) |
- |
|
|
Remeasurement of acquisition related contingent consideration |
($0.16 |
) |
- |
|
($0.15 |
) |
- |
|
|
Tax impact from normalized rate |
(0.02 |
) |
($0.04 |
) |
$0.02 |
|
($0.23 |
) |
|
Adjusted diluted net earnings (loss) per share (non-GAAP) |
$0.34 |
|
$0.01 |
|
$0.61 |
|
($0.09 |
) |
| |
|
|
|
|
|
|
|
|
RCM Technologies, Inc.
Summary of Selected Income Statement Data
(Unaudited) (In Thousands)
| |
Thirteen Week Period Ended January 1, 2022 |
|
|
|
Engineering |
|
SpecialtyHealth Care |
|
InformationTechnology |
|
Consolidated |
|
| |
|
|
|
|
|
|
|
|
| Revenue |
$18,290 |
|
$34,772 |
|
$11,860 |
|
$64,922 |
|
| Cost of
services |
13,234 |
|
25,613 |
|
8,281 |
|
47,128 |
|
| Gross
profit |
$5,056 |
|
$9,159 |
|
$3,579 |
|
$17,794 |
|
| Gross profit
margin |
27.6 |
% |
26.3 |
% |
30.2 |
% |
27.4 |
% |
| |
Fourteen Week Period Ended January 2, 2021 |
|
|
|
Engineering |
|
SpecialtyHealth Care |
|
InformationTechnology |
|
Consolidated |
|
| |
|
|
|
|
|
|
|
|
| Revenue |
$14,427 |
|
$18,585 |
|
$8,151 |
|
$41,163 |
|
| Cost of
services |
10,554 |
|
14,079 |
|
5,841 |
|
30,474 |
|
| Gross
profit |
$3,873 |
|
$4,506 |
|
$2,310 |
|
$10,689 |
|
| Gross profit
margin |
26.8 |
% |
24.2 |
% |
28.3 |
% |
26.0 |
% |
| |
Fifty-Two Week Period Ended January 1, 2022 |
|
|
|
Engineering |
|
Specialty Health Care |
|
Information Technology |
|
Consolidated |
|
| |
|
|
|
|
|
|
|
|
| Revenue |
$66,172 |
|
$98,495 |
|
$39,208 |
|
$203,875 |
|
| Cost of
services |
50,109 |
|
73,177 |
|
27,465 |
|
150,751 |
|
| Gross
profit |
$16,063 |
|
$25,318 |
|
$11,743 |
|
$53,124 |
|
| Gross profit
margin |
24.3 |
% |
25.7 |
% |
30.0 |
% |
26.1 |
% |
| |
Fifty-Three Week Period Ended January 2, 2021 |
|
|
|
Engineering |
|
SpecialtyHealth Care |
|
InformationTechnology |
|
Consolidated |
|
| |
|
|
|
|
|
|
|
|
| Revenue |
$57,715 |
|
$60,481 |
|
$32,213 |
|
$150,409 |
|
| Cost of
services |
41,227 |
|
47,116 |
|
23,211 |
|
111,554 |
|
| Gross
profit |
$16,488 |
|
$13,365 |
|
$9,002 |
|
$38,855 |
|
| Gross profit
margin |
28.6 |
% |
22.1 |
% |
28.0 |
% |
25.8 |
% |
| |
|
|
|
|
|
|
|
|
RCM Technologies, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited) (In Thousands)
| |
Thirteen WeekPeriod EndedJanuary 1,
2022 |
|
Fourteen WeekPeriod EndedJanuary 2,
2021 |
|
|
Net income (loss) |
$5,974 |
|
($1,688 |
) |
|
Adjustments to reconcile net income (loss) to cash (used in)
provided by operating activities |
657 |
|
2,532 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
(5,108 |
) |
(2,944 |
) |
| |
Prepaid
expenses and other current assets |
(1,252 |
) |
(2,432 |
) |
| |
Net of
transit accounts receivable and payable |
132 |
|
1,701 |
|
| |
Accounts
payable and accrued expenses |
(1,005 |
) |
(327 |
) |
| |
Accrued
payroll and related costs |
(1,645 |
) |
3,732 |
|
| |
Right of use
liabilities |
(462 |
) |
221 |
|
| |
Income taxes
payable |
(695 |
) |
210 |
|
| |
Deferred
revenue |
(502 |
) |
458 |
|
| |
Deposits |
(1 |
) |
1 |
|
|
Total adjustments |
(9,881 |
) |
3,152 |
|
|
Net cash (used in) provided by operating activities |
(3,907 |
) |
1,464 |
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities |
193 |
|
(60 |
) |
|
Net cash used in financing activities |
1,197 |
|
(1,441 |
) |
|
Effect of exchange rate changes |
(68 |
) |
14 |
|
|
Increase (decrease) in cash and cash equivalents |
($2,585 |
) |
($23 |
) |
| |
Fifty-Two WeekPeriod EndedJanuary 1,
2022 |
|
Fifty-Three WeekPeriod EndedJanuary 2,
2021 |
|
|
Net income (loss) |
$10,989 |
|
($8,869 |
) |
|
Adjustments to reconcile net income (loss) to cashprovided by
operating activities |
1,790 |
|
10,559 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
(14,710 |
) |
15,947 |
|
| |
Net of
transit accounts receivable and payable |
(1,317 |
) |
2,757 |
|
| |
Prepaid
expenses and other current assets |
1,838 |
|
(162 |
) |
| |
Accounts
payable and accrued expenses |
1,518 |
|
1,587 |
|
| |
Accrued
payroll and related costs |
149 |
|
4,557 |
|
| |
Right of use
liabilities |
(1,919 |
) |
(1,529 |
) |
| |
Income taxes
payable |
(436 |
) |
304 |
|
| |
Deferred
revenue |
3,020 |
|
52 |
|
| |
Deposits |
(7 |
) |
41 |
|
|
Total adjustments |
(10,074 |
) |
34,113 |
|
|
Net cash provided by operating activities |
915 |
|
25,244 |
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities |
6,291 |
|
(460 |
) |
|
Net cash used in financing activities |
(7,554 |
) |
(25,632 |
) |
|
Effect of exchange rate changes on cash and cash equivalents |
(151 |
) |
(265 |
) |
|
Decrease in cash and cash equivalents |
($499 |
) |
($1,113 |
) |
|
|
|
|
|
|
|
RCM Technologies, Inc. |
Tel: 856.356.4500 |
Corporate Contacts: |
|
2500 McClellan Avenue |
Fax: 856.356.4600 |
Bradley S. Vizi |
|
Pennsauken, NJ 08109 |
info@rcmt.com |
Executive Chairman |
|
|
www.rcmt.com |
Kevin D. Miller |
|
|
|
Chief Financial Officer |
RCM Technologies (NASDAQ:RCMT)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
RCM Technologies (NASDAQ:RCMT)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024
