RCM Technologies, Inc. Announces Second Quarter Results PENNSAUKEN, N.J., Aug. 7, 2013 (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 information technology and engineering services, today announced financial results for its second quarter, the thirteen and twenty-six week periods ended June 29, 2013. The Company announced revenues of $42.4 million for the thirteen week period ended June 29, 2013, increased from $35.8 million for the thirteen week period ended June 30, 2012 (comparable prior year period). The Company had operating income of $1.7 million for the thirteen week period ended June 29, 2013 as compared to $1.0 million for the comparable prior year period. Net income for the thirteen week period ended June 29, 2013 was $1.5 million, or $0.12 per diluted share, as compared to net income of $0.5 million, or $0.04 per diluted share, for the comparable prior year period. The Company announced revenues of $83.6 million for the twenty-six week period ended June 29, 2013, increased from $74.0 million for the twenty-six week period ended June 30, 2012 (comparable prior year period). The Company had operating income of $3.2 million for the twenty-six week period ended June 29, 2013 as compared to $2.8 million for the comparable prior year period. Net income for the twenty-six week period ended June 29, 2013 was $2.4 million, or $0.20 per diluted share, as compared to net income of $1.6 million, or $0.12 per diluted share, for the comparable prior year period. The thirteen and twenty-six week periods ended June 29, 2013 reflect an increase to net income of $0.5 million resulting from the reduction of an unrecognized tax benefit. Leon Kopyt, Chairman and CEO of RCM, commented: "We are pleased with the overall results of the Company for the second quarter and particularly pleased with the record performance of our Engineering segment and the continuing strong performance of our Information Technology segment. Our Engineering segment experienced record quarterly revenues and gross profit. Our Information Technology segment experienced its fourth straight consecutive quarter with sequential growth in both revenues and gross profit, both the highest since the first quarter of 2011. While our Specialty Health Care Segment experienced a decline in revenues as compared to last year's second quarter, the revenues and gross profit improved from the first quarter of 2013, indicating an upward progressive momentum in performance." Outlook "As the board and management team continue to execute on RCM's strategic plan and achieve progressively positive results, we are cautiously optimistic that our overall results for the two remaining quarters of fiscal 2013 will exceed the comparative two quarters of fiscal 2012. Based on our current internal metrics we expect that we will enjoy a marked increase in performance in fiscal 2014 as compared to fiscal 2013." Initiatives to Enhance Shareholder Value "Our Board and management team remain committed to taking swift and decisive action to deliver value to our shareholders without compromising our strong balance sheet, financial flexibility and strategic growth trajectory, or our ability to continue investing in our business. While potential future initiatives such as stock repurchases and declarations of dividends are subject to approval of the Board and will depend on the Company's results of operations, financial condition, anticipated capital requirements, business conditions, level of indebtedness, contractual restrictions and other factors deemed relevant by the Board, we remain committed to continuing to explore further actions to enhance shareholder value," concluded Mr. Kopyt. 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, expected demand for our services and expectations regarding our revenues, the Company's ability to continue to utilize goodwill, to continue to increase gross margins, to achieve and manage growth, to develop and market new applications and services, risks relating to the acquisition and integration of acquired businesses, the ability of the Company to consummate acquisitions as to which it executes non-binding letters of intent, demand for new services and applications, timing of demand for services, industry strength and competition and general economic factors. 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. 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. RCM Technologies, Inc. Condensed Consolidated Statements of Income (Unaudited) (In Thousands, Except Share and Per Share Amounts) Thirteen Week Periods Ended June 29, June 30, 2013 2012 Revenues $42,379 $35,753 Cost of services 31,117 26,097 Gross profit 11,262 9,656 Selling, general and administrative 9,007 8,382 Facilities consolidation charge 260 -- Depreciation and amortization 281 259 Operating income 1,714 1,015 Other expense, net (13) (4) Income before income taxes 1,701 1,011 Income tax expense 231 506 Net income $1,470 $505 Diluted net earnings per share data $0.12 $0.04 Twenty-Six Week Periods Ended June 29, June 30, 2013 2012 Revenues $83,609 $73,959 Cost of services 61,726 54,018 Gross profit 21,883 19,941 Selling, general and administrative 17,762 16,613 Facilities consolidation charge 343 -- Depreciation and amortization 550 537 Operating income 3,228 2,791 Other income, net 78 29 Income before income taxes 3,306 2,820 Income tax expense 876 1,256 Net income $2,430 $1,564 Diluted net earnings per share data $0.20 $0.12 RCM Technologies, Inc. Summary Consolidated Selected Balance Sheet Data (In Thousands) June 29, December 29, 2013 2012 Cash and cash equivalents $13,195 $14,123 Accounts receivable, net $49,089 $43,706 Total current assets $70,292 $70,345 Total assets $84,471 $84,548 Total current liabilities $22,459 $25,063 Total liabilities $23,076 $25,776 Stockholders' equity $61,395 $58,772 Stockholder's equity less goodwill and $51,594 $48,895 intangible assets RCM Technologies, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (In Thousands) Thirteen Week Periods Ended June 29, June 30, 2013 2012 Net income $1,470 $505 Adjustments to reconcile net income to cash 671 703 (used in) provided by operating activities Changes in operating assets and liabilities Accounts receivable 291 (643) Transit accounts receivable 908 (3,406) Prepaid expenses and other current assets (137) (395) Accounts payable and accrued expenses 1,129 (625) Transit accounts payable (3,824) 6,992 Accrued payroll and related costs (746) (1,614) Income taxes payable (37) (108) Total adjustments (1,745) 904 Cash (used in) provided by operating activities ($275) $1,409 Net cash used in investing activities (498) (38) Net cash provided by (used in) financing 55 (3,745) activities Effect of exchange rate changes 17 48 Decrease in cash and cash equivalents ($701) ($2,326) Twenty-Six Week Periods Ended June 29, June 30, 2013 2012 Net income $2,430 $1,564 Adjustments to reconcile net income to cash 953 1,093 (used in) provided by operating activities Changes in operating assets and liabilities Accounts receivable (5,602) (1,324) Transit accounts receivable 4,141 (1,537) Prepaid expenses and other current assets 318 (592) Accounts payable and accrued expenses 2,388 (900) Transit accounts payable (5,325) 6,050 Accrued payroll and related costs 165 (185) Income taxes payable 330 493 Total adjustments (2,632) 3,098 Cash (used in) provided by operating activities (202) $4,662 Net cash used in investing activities (811) (185) Net cash provided by (used in) financing 122 (3,770) activities Effect of exchange rate changes (37) 28 (Decrease) increase in cash and cash equivalents ($928) $735 CONTACT: RCM Technologies, Inc. 2500 McClellan Avenue Pennsauken, NJ 08109 Tel: 856.356.4500 Fax: 856.356.4600 email@example.com www.rcmt.com Corporate Contacts: Leon Kopyt Chairman, President & CEO Kevin D. Miller Chief Financial Officer RCM Technologies, Lnc.
RCM Technologies, Inc. Announces Second Quarter Results
Press spacebar to pause and continue. Press esc to stop.