RCM Technologies, Inc. Announces Fourth Quarter and Full Year 2013 Results

RCM Technologies, Inc. Announces Fourth Quarter and Full Year 2013 Results

PENNSAUKEN, N.J., Feb. 26, 2014 (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,
engineering and specialty health care services, today announced financial
results for the thirteen and fifty-two week periods ended December 28, 2013.

The Company announced revenues of $45.8 million for the thirteen week period
ended December 28, 2013, increased from $37.0 million for the thirteen week
period ended December 29, 2012 (comparable prior year period), an increase of
23.9%. The Company had an operating loss of $2.5 million for the thirteen week
period ended December 28, 2013 as compared to operating income of $1.3 million
for the comparable prior year period. The Company had a net loss for the
thirteen week period ended December 28, 2013 of $1.6 million, or $0.13 per
diluted share, as compared to net income of $1.0 million, or $0.09 per diluted
share, for the comparable prior year period.

The Company announced revenues of $170.8 million for the fifty-two week period
ended December 28, 2013, increased from $145.8 million for the fifty-two week
period ended December 29, 2012 (comparable prior year period), an increase of
17.1%. The Company had operating income of $2.6 million for the fifty-two week
period ended December 28, 2013 as compared to $5.2 million for the comparable
prior year period, a decrease of 51.1%. Net income for the fifty-two week
period ended December 28, 2013 was $2.0 million, or $0.16 per diluted share,
as compared to net income of $3.2 million, or $0.26 per diluted share, for the
comparable prior year period, a decrease of 38.3%.

The Company recognized $4.7 million and $5.2 million in severance and other
charges for the thirteen and fifty-two weeks ended December 28, 2013,
respectively, as compared to zero for the comparable prior year periods. The
thirteen weeks ended December 28, 2013 included $2.9 million related to the
retirement of Leon Kopyt, the Company's President and Chief Executive Officer,
$1.5 million related to the proxy contest leading to the Company's December 5,
2013 stockholder meeting, $0.1 million in facilities consolidation charges and
$0.2 million in professional fees related to a research and development tax
credit study. The fifty-two weeks ended December 28, 2013 included $2.9
million related to the retirement of Leon Kopyt, the Company's President and
Chief Executive Officer, $1.6 million related to the proxy contest leading to
the Company's December 5, 2013 stockholder meeting, $0.5 million in facilities
consolidation charges and $0.2 million in professional fees related to a
research and development tax credit study.

The fifty-two week period ended December 28, 2013 reflects an increase to net
income of $0.5 million, or $0.04 per diluted share, resulting from the
reduction of a previously unrecognized tax benefit.

Leon Kopyt, Chairman and CEO of RCM, commented: "We are pleased to report our
highest quarterly revenues since the start of the Great Recession in the
fourth quarter of fiscal 2008. Our Engineering segment experienced its highest
quarterly revenue and second highest gross profit (trailing only the third
quarter of 2013) in RCM's history. Our Specialty Healthcare segment
experienced its highest quarterly revenues and gross profit in RCM's history.
Our Information Technology segment continued its upward trend by posting its
highest quarterly revenue and gross profit since the first quarter of fiscal
2011. By way of comparing the fourth quarter of fiscal 2013 to the fourth
quarter of 2012, Engineering grew revenues and gross profit 29.7% and 12.5%,
respectively, Information Technology grew revenues and gross profit 9.8% and
14.2%, respectively, and Specialty Healthcare grew revenues and gross profit
35.3% and 31.4%, respectively."

Outlook

"As the board and management team continue to execute RCM's strategic plan to
achieve progressively positive results, we are optimistic that our overall
results for fiscal 2014 should improve compared to fiscal 2013. On a personal
note, I have been contemplating retirement for the past few years. I've always
wanted to retire at a time when all three business segments are positioned
with strong leadership in place and are contributing together to the overall
performance of the Company. I am extremely pleased to hand over leadership to
Rocco Campanelli at this very exciting time in our history. I'm confident
that the Company will continue to grow and prosper under his leadership."

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 optimistic that" 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, initiatives to enhance stockholder value 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 Per Share Amounts)
                                                               
                                                 Thirteen Week Periods Ended
                                                 December 28,   December 29,
                                                  2013           2012
Revenues                                          $45,849        $37,019
Cost of services                                 34,055         26,920
Gross profit                                      11,794         10,099
Selling, general and administrative               9,263          8,401
Depreciation and amortization                     282            368
Operating income before severance and other       2,249          1,330
charges
Severance and other charges                       4,728          --
Operating (loss) income                           (2,479)        1,330
Other (expense) income, net                       (42)           84
(Loss) income before income tax effect           (2,521)        1,414
Income tax (benefit) expense                     (939)          385
Net (loss) income                                 ($1,582)       $1,029
                                                               
Diluted net (loss) earnings per share data        ($0.13)        $0.09
                                                               
                                                 Fifty-Two Week Periods Ended
                                                 December 28,   December 29,
                                                  2013           2012
Revenues                                          $170,778       $145,817
Cost of services                                 126,417        106,102
Gross profit                                      44,361         39,715
Selling, general and administrative               35,514         33,166
Depreciation and amortization                     1,111          1,321
Operating income before severance and other       7,736          5,228
charges
Severance and other charges                       5,181          --
Operating income                                  2,555          5,228
Other income, net                                 32             102
Income before income taxes                       2,587          5,330
Income tax expense                               597            2,103
Net income                                        $1,990         $3,227
                                                               
Diluted net earnings per share data               $0.16          $0.26
                                                               
RCM Technologies, Inc.
Summary Consolidated Selected Balance Sheet Data
(In Thousands)
                                                               
                                                 December 28,   December 29,
                                                  2013           2012
Cash and cash equivalents                        $9,317         $14,123
Accounts receivable, net                          $55,726        $43,706
Total current assets                              $72,704        $70,345
Total assets                                      $86,524        $84,548
Total current liabilities                         $24,739        $25,063
Total liabilities                                 $25,146        $25,776
Stockholders' equity                              $61,378        $58,772
Stockholder's equity less goodwill and intangible $51,617        $48,895
assets


RCM Technologies, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In Thousands)
                                                               
                                                 Thirteen Week Periods Ended
                                                 December 28,   December 29,
                                                  2013           2012
Net income                                        ($1,582)       $1,029
Adjustments to reconcile net income to cash       (548)          500
provided by operating activities
Changes in operating assets and liabilities                     
Accounts receivable                               (1,418)        (5,584)
Transit accounts receivable                       1,432          (6,677)
Prepaid expenses and other current assets         (636)          (9)
Accounts payable and accrued expenses             (1,502)        597
Transit accounts payable                          (1,872)        8,077
Accrued payroll and related costs                 2,187          (1,478)
Income taxes payable                              (593)          (339)
Total adjustments                                 (2,950)        (4,913)
Cash used in operating activities                 ($4,532)       ($3,884)
                                                               
Net cash used in investing activities             (292)          (197)
Net cash provided by (used in) financing          16             (12,016)
activities
Effect of exchange rate changes                   76             8
Decrease in cash and cash equivalents             ($4,732)       ($16,089)
                                                               
                                                               
                                                 Fifty-Two Week Periods Ended
                                                 December 28,   December 29,
                                                  2013           2012
Net income                                        $1,990         $3,227
Adjustments to reconcile net income to cash       703            2,253
provided by operating activities
Changes in operating assets and liabilities                     
Accounts receivable                               (12,473)       (4,693)
Transit accounts receivable                       6,073          (6,981)
Prepaid expenses and other current assets         46             160
Accounts payable and accrued expenses             3,676          370
Transit accounts payable                          (8,052)        8,958
Accrued payroll and related costs                 3,951          376
Income taxes payable                              294            (106)
Total adjustments                                 (5,782)        337
Cash used in operating activities                 ($3,792)       $3,564
                                                               
Net cash used in investing activities             (1,322)        (1,848)
Net cash provided by (used in) financing          290            (15,999)
activities
Effect of exchange rate changes                   18             (11)
Decrease in cash and cash equivalents             ($4,806)       ($14,294)

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.
 
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