RCM Technologies, Inc. Announces First Quarter Results

RCM Technologies, Inc. Announces First Quarter Results

Achieves Highest Quarterly Revenues in Five Years

PENNSAUKEN, N.J., May 7, 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 engineering, information
technology and specialty health care services, today announced financial
results for its first quarter, the thirteen week period ended March 29, 2014.

RCM Technologies reported revenues of $48.6 million in the first quarter of
2014, a 17.8% increase over $41.2 million in the thirteen week period ended
March 30, 2013 (the comparable prior year period). Operating income was $2.0
million in the first quarter of 2014 compared to $1.5 million in the
comparable prior year period. Net income in the first quarter of 2014 was $1.2
million, or $0.10 per diluted share, as compared to $1.0 million, or $0.08 per
diluted share, in the comparable prior year period.

Rocco Campanelli, President and Chief Executive Officer of RCM Technologies,
commented, "Our service and client diversification strategy and focus on
delivering customer-focused solutions are generating strong revenue growth
across all three of our segments. In the first quarter, we achieved our
highest quarterly revenues in the past five years and our Engineering and
Specialty Healthcare segments recorded their highest historic quarterly
revenues for the fifth and second consecutive quarters, respectively. Our
Information Technology segment continued to post impressive results and
experienced its sixth consecutive growth quarter."

Kevin Miller, Chief Financial Officer of RCM Technologies, added, "The revenue
growth we are delivering across our segments is encouraging. Engineering, our
largest segment, achieved 21.7% year-over-year growth, Information Technology,
our second largest segment, grew 7.3% year-over-year, and Specialty
Healthcare, our smallest, but fastest growing segment, delivered
year-over-year growth of 27.4%. Based on our current backlog and pipeline, we
are optimistic that both revenues and operating income for the balance of
fiscal 2014 will exceed the comparative prior year period."

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, 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 Share and Per Share Amounts)
                                                
                                   Thirteen Week Periods Ended
                                   March 29,     March 30,
                                    2014          2013
Revenues                            $48,569       $41,230
Cost of services                   36,312        30,609
Gross profit                        12,257        10,621
Selling, general and administrative 9,844         8,693
Severance and other charges         104           145
Depreciation and amortization       271           269
Operating income                   2,038         1,514
Other income, net                   (62)          91
Income before income taxes         1,976         1,605
Income tax expense                 773           645
Net income                          $1,203        $960
                                                
Diluted net earnings per share data $0.10         $0.08


RCM Technologies, Inc.
Summary Consolidated Selected Balance Sheet Data
(In Thousands)
                                                                
                                                      March 29,   December 28,
                                                     2014        2013
                                                      (Unaudited)
Cash and cash equivalents                             $5,595      $9,317
Accounts receivable, net                              $59,955     $55,726
Total current assets                                  $74,737     $72,704
Total assets                                          $88,624     $86,524
Total current liabilities                             $25,574     $24,739
Total liabilities                                     $25,981     $25,146
Stockholders' equity                                  $62,643     $61,378
Stockholder's equity less goodwill and intangible     $52,902     $51,617
assets


RCM Technologies, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In Thousands)
                                                               
                                                  Thirteen Week Periods Ended
                                                  March 29,     March 30,
                                                   2014          2013
Net income                                         $1,203        $960
Adjustments to reconcile net income to cash        622           282
provided by operating activities
Changes in operating assets and liabilities                     
Accounts receivable                                (4,247)       (5,893)
Transit accounts receivable                        (312)         3,233
Prepaid expenses and other current assets          (1,227)       455
Accounts payable and accrued expenses              36            1,259
Transit accounts payable                           377           (1,501)
Accrued payroll and related costs                  1,050         911
Income taxes payable                               (309)         367
Total adjustments                                  (4,010)       (887)
Cash (used in) provided by operating activities    ($2,807)      $73
                                                               
Net cash used in investing activities              (484)         (313)
Net cash (used in) provided by financing           (94)          67
activities
Effect of exchange rate changes                    (337)         (54)
Decrease in cash and cash equivalents              ($3,722)      ($227)

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:
         Rocco Campanelli
         President & CEO
         Kevin D. Miller
         Chief Financial Officer

RCM Technologies, Lnc.
 
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