RCM Technologies, Inc. Announces Second Quarter Results

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
         info@rcmt.com
         www.rcmt.com
        
         Corporate Contacts:
         Leon Kopyt
         Chairman, President & CEO
         Kevin D. Miller
         Chief Financial Officer

RCM Technologies, Lnc.
 
Press spacebar to pause and continue. Press esc to stop.