PENNSAUKEN, N.J., May 10, 2016 (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 week period ended April 2, 2016.
RCM Technologies reported revenues of $47.2 million for the thirteen week period ended April 2, 2016, a 1.6%
decrease as compared to $48.0 million for the thirteen week period ended April 4, 2015 (the comparable prior year period). Gross
profit was $12.7 million for the thirteen week period ended April 2, 2016, a 4.7% decrease as compared to $13.3 million for the
comparable prior year period. Operating income was $1.8 million for the thirteen week period ended April 2, 2016, a 22.7%
decrease as compared to $2.4 million for the comparable prior year period. Net income for the thirteen week period ended April 2,
2016 was $1.0 million, or $0.08 per diluted share, as compared to $1.4 million, or $0.11 per diluted share, for the comparable
prior year period.
On the last day of fiscal 2015 the Company disposed of its QAD Software Solutions business unit (“QAD Business”)
which for the comparable prior year period generated $1.0 million in revenues and $0.6 million in gross profit.
Rocco Campanelli, President and Chief Executive Officer of RCM Technologies, commented, “We are pleased with the
results of the first quarter of fiscal 2016. We continue to build our pipeline with new and existing clients and believe we will
have a strong second half of the year. Of significant note, our Healthcare segment continues to excel by setting historically high
quarterly revenues and gross profit. Both our Engineering and Information Technology segments met our expectation for this quarter
and while revenue and gross profit were slightly less than recent quarters, we are confident that both of these groups will realize
improved results in the third and fourth quarters of fiscal 2016.”
Kevin Miller, Chief Financial Officer of RCM Technologies, added, “Consolidated results for the first quarter of
fiscal 2016 were in line with management’s expectations. We expect a significant increase in demand from our Canadian Engineering
clients in the second half of fiscal 2016 and beyond. We are ready to meet that demand; however, predicting the quarterly timing of
the increase in demand can be a challenge. We anticipate that our second quarter operating income results will continue to be soft
as we manage our bench in Canada.”
Conference Call
On Wednesday, May 11, 2016, 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 (800) 285-6670.
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,” “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 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 |
| |
|
|
|
|
April 2,
2016 |
|
April 4,
2015 |
| Revenues |
|
|
|
|
$ |
47,176 |
|
|
$ |
47,966 |
|
| Cost of services |
|
|
|
|
|
34,500 |
|
|
|
34,663 |
|
| Gross profit |
|
|
|
|
|
12,676 |
|
|
|
13,303 |
|
| Selling, general and administrative |
|
|
|
|
|
10,465 |
|
|
|
10,632 |
|
| Depreciation and amortization |
|
|
|
|
|
390 |
|
|
|
316 |
|
| Operating income |
|
|
|
|
|
1,821 |
|
|
|
2,355 |
|
| Other (expense) income, net |
|
|
|
|
|
(200 |
) |
|
|
(135 |
) |
| Income before income taxes |
|
|
|
|
|
1,621 |
|
|
|
2,220 |
|
| Income tax expense |
|
|
|
|
|
620 |
|
|
|
832 |
|
| Net income |
|
|
|
|
$ |
1,001 |
|
|
$ |
1,388 |
|
| |
|
|
|
|
|
|
|
| Diluted net earnings per share data |
|
|
|
|
$ |
0.08 |
|
|
$ |
0.11 |
|
| RCM Technologies, Inc. |
| Summary Consolidated Selected Balance Sheet
Data |
| (In Thousands) |
| |
| |
|
|
|
|
April 2,
2016 |
|
January 2,
2016 |
| |
|
|
|
|
(Unaudited) |
|
|
| Cash and cash equivalents |
|
|
|
|
$ |
103 |
|
|
$ |
985 |
|
| Accounts receivable, net |
|
|
|
|
$ |
53,494 |
|
|
$ |
50,946 |
|
| Total current assets |
|
|
|
|
$ |
59,202 |
|
|
$ |
64,529 |
|
| Total assets |
|
|
|
|
$ |
76,242 |
|
|
$ |
81,336 |
|
| Total current liabilities |
|
|
|
|
$ |
21,819 |
|
|
$ |
26,629 |
|
| Borrowing under line of credit |
|
|
|
|
$ |
19,900 |
|
|
$ |
21,000 |
|
| Net debt (borrowings less cash) |
|
|
|
|
$ |
19,797 |
|
|
$ |
20,015 |
|
| Total liabilities |
|
|
|
|
$ |
42,955 |
|
|
$ |
49,133 |
|
| Stockholders’ equity |
|
|
|
|
$ |
33,287 |
|
|
$ |
32,203 |
|
| Treasury stock |
|
|
|
|
$ |
10,963 |
|
|
$ |
10,365 |
|
| RCM Technologies, Inc. |
| Condensed Consolidated Statements of Cash
Flows |
| (Unaudited) |
| (In Thousands) |
| |
| |
Thirteen Week Periods
Ended
|
|
| |
April 2,
2016
|
|
April 4,
2015
|
|
| Net income |
$ |
1,001 |
|
$ |
1,388 |
|
Adjustments to reconcile net income to cash
provided by operating activities |
|
715 |
|
|
1,135 |
|
| Changes in operating assets and liabilities |
|
|
| |
Accounts receivable |
|
|
|
|
(2,222 |
) |
|
(4,991 |
) |
| |
Prepaid expenses and other current assets |
|
|
|
|
1,053 |
|
|
(68 |
) |
| |
Net of transit accounts receivable and payable |
|
|
|
|
2,827 |
|
|
(2,106 |
) |
| |
Accounts payable and accrued expenses |
|
|
|
|
(491 |
) |
|
1,519 |
|
| |
Accrued payroll and related costs |
|
|
|
|
(1,813 |
) |
|
(1,631 |
) |
| |
Income taxes payable |
|
|
|
|
(16 |
) |
|
(155 |
) |
| Total adjustments |
|
53 |
|
|
(6,297 |
) |
| Cash provided by (used in) operating activities |
$ |
1,054 |
|
$ |
(4,909 |
) |
| |
|
|
|
|
|
|
| Net cash used in investing activities |
|
(393 |
) |
|
(617 |
) |
| Net cash (used in) provided by financing activities |
|
(1,545 |
) |
|
108 |
|
| Effect of exchange rate changes |
|
2 |
|
|
(465 |
) |
| Decrease in cash and cash equivalents |
$ |
(882 |
) |
$ |
(5,883 |
) |
| RCM Technologies, Inc. |
| Summary of Selected Income Statement
Data |
| (Unaudited) |
| (In Thousands) |
| |
| |
|
|
Thirteen Week Period
Ended April 2, 2016
|
|
| |
|
|
Engineering |
|
|
Information
Technology |
|
|
Specialty
Health Care |
|
|
Consolidated |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
|
|
$ |
18,685 |
|
|
$ |
12,740 |
|
|
$ |
15,751 |
|
|
$ |
47,176 |
|
| Cost of services |
|
|
|
13,853 |
|
|
|
8,947 |
|
|
|
11,700 |
|
|
|
34,500 |
|
| Gross Profit |
|
|
$ |
4,832 |
|
|
$ |
3,793 |
|
|
$ |
4,051 |
|
|
$ |
12,676 |
|
| Gross Margin |
|
|
|
25.9 |
% |
|
|
29.8 |
% |
|
|
25.7 |
% |
|
|
26.9 |
% |
| |
|
|
Thirteen Week Period
Ended April 4, 2015
|
|
| |
|
|
Engineering |
|
|
Information
Technology |
|
|
Specialty
Health Care |
|
|
Consolidated |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
|
|
$ |
22,791 |
|
|
$ |
14,655 |
|
|
$ |
10,520 |
|
|
$ |
47,966 |
|
| Cost of services |
|
|
|
17,164 |
|
|
|
10,097 |
|
|
|
7,402 |
|
|
|
34,663 |
|
| Gross Profit |
|
|
$ |
5,627 |
|
|
$ |
4,558 |
|
|
$ |
3,118 |
|
|
$ |
13,303 |
|
| Gross Margin |
|
|
|
24.7 |
% |
|
|
31.1 |
% |
|
|
29.6 |
% |
|
|
27.7 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
