EX-99 2 ex_786548.htm EXHIBIT 99 ex_786548.htm

Exhibit 99

 image01.jpg

RCM Technologies, Inc.

Tel: 856.356.4500

Corporate Contacts:

2500 McClellan Avenue

[email protected]

Bradley S. Vizi

Pennsauken, NJ 08109

www.rcmt.com

Executive Chairman

 

 

Kevin D. Miller
   

Chief Financial Officer

 

 

P R E S S   R E L E A S E

 

RCM TECHNOLOGIES, INC. ANNOUNCES

FOURTH QUARTER AND FISCAL YEAR 2024 RESULTS

 

Pennsauken, NJ – March 12, 2025 -- RCM Technologies, Inc. (NasdaqGM: RCMT), a premier provider of solutions designed to enhance the operational performance of its customers through the deployment of advanced engineering, specialty health care, and information technology services, today announced financial results for the thirteen and fifty-two weeks ended December 28, 2024.

 

RCM Technologies reported revenue of $76.9 million for the thirteen weeks ended December 28, 2024 (the current quarter), an increase of 8.3% compared to $71.0 million for the thirteen weeks ended December 30, 2023 (the comparable prior quarter). Gross profit was $21.6 million for the current quarter and the comparable prior quarter.  The Company experienced GAAP net income of $2.9 million, or $0.37 per diluted share, for the current quarter compared to $5.3 million, or $0.65 per diluted share, for the comparable prior quarter. The Company experienced adjusted EBITDA (non-GAAP) of $6.3 million for the current quarter, as compared to $8.9 million for the comparable prior quarter.  The Company experienced $0.49 of adjusted net income per diluted share (non-GAAP) for the current quarter as compared to $0.73 for the comparable prior quarter.

 

RCM Technologies reported revenue of $278.4 million for the fifty-two weeks ended December 28, 2024 (the current year), an increase of 5.8% compared to $263.2 million for the fifty-two weeks ended December 30, 2023 (the comparable prior year). Gross profit was $79.8 million for the current year, a 4.0% increase compared to $76.7 million for the comparable prior year.  The Company experienced GAAP net income of $13.3 million, or $1.68 per diluted share, for the current year compared to $16.8 million, or $1.96 per diluted share, for the comparable prior year. The Company experienced adjusted EBITDA (non-GAAP) of $25.9 million for the current year as compared to $26.6 million for the comparable prior year.  The Company experienced $2.03 of adjusted net income per diluted share (non-GAAP) for the current year as compared to $2.04 for the comparable prior year.

 

Bradley Vizi, Executive Chairman of RCM Technologies, commented, “2024 demonstrated substantial progress as many of our strategic initiatives gained traction heading into the new year.”

 

Kevin Miller, Chief Financial Officer of RCM Technologies, commented, “As we look to 2025, we believe we have forged the foundation for increased earnings power.”

 

 
 

 

Conference Call

 

On Thursday, March 13, 2025, RCM Technologies will host a conference call to discuss these results. The call will begin at 11:30 a.m. Eastern Time. The dial-in number is (888) 272-8703.

 

About RCM

 

RCM Technologies (NasdaqGM: RCMT) is a business and technology solutions provider with world-class talent in key market segments. We help design, build, and enable the Industries of Tomorrow, Today. Operating at the intersection of resources, critical infrastructure and modernization of industries, RCM is a provider of services in Health Care, Engineering, Aerospace & Defense, Process & Industrial, Life Sciences and Data & Solutions. 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. They 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, and 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, such as cash flows, our pipeline, and potential project wins, and our expectations for investment and growth in our business. Such statements are based on current expectations that involve several 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 Operations

(Unaudited)

(In Thousands, Except Share and Per Share Amounts)

 

 

 

Thirteen Weeks Ended

 
 

December 28,

2024

  

December 30,

2023

  

Revenue

$76,912

  

$71,028

  

Cost of services

55,343

  

49,397

  

Gross profit

21,569

  

21,631

  

Selling, general and administrative

16,025

  

13,403

  

Depreciation and amortization of property and equipment

407

  

276

  

Amortization of acquired intangible assets

-

  

46

  

Impairment of intangible assets

547

  

-

  

Potential stock issuance and financing transactions

64

  

-

  

Remeasurement of contingent consideration

(1,759

)

-

  

Gain on sale of assets

-

  

(395

)

Operating income

6,285

  

7,906

  

Other expense, net

516

  

532

  

Income before income taxes

5,769

  

7,374

  

Income tax expense

2,902

  

2,119

  

Net income

$2,867

  

$5,255

  
         

Diluted net earnings per share data

$0.37

  

$0.65

  

Diluted weighted average shares outstanding

7,733,142

  

8,142,184

  

 

 

 

Fifty-Two Weeks Ended

 
 

December 28,

2024

  

December 30,

2023

  

Revenue

$278,380

  

$263,237

  

Cost of services

198,602

  

186,541

  

Gross profit

79,778

  

76,696

  

Selling, general and administrative

56,787

  

52,185

  

Depreciation and amortization of property and equipment

1,419

  

1,032

  

Amortization of acquired intangible assets

136

  

182

  

Impairment of intangible assets

547

  

-

  

Potential stock issuance and financing transactions

323

  

-

  

Remeasurement of contingent consideration

(1,759

)

-

  

Gain on sale of assets

-

  

(395

)

Operating income

22,325

  

23,692

  

Other expense, net

2,135

  

1,497

  

Income before income taxes

20,190

  

22,195

  

Income tax expense

6,863

  

5,364

  

Net income

$13,327

  

$16,831

  
         

Diluted net earnings per share data

$1.68

  

$1.96

  

Diluted weighted average shares outstanding

7,939,381

  

8,592,572

  

 

 

 
 

 

RCM Technologies, Inc.

Supplemental Operating Results on a Non-GAAP Basis

(Unaudited)

(In Thousands, Except Per Share Amounts)

 

The following non-GAAP measures, which adjust for the categories of expenses described below, are non-GAAP financial measures.  Our management believes that these non-GAAP financial measures (“Adjusted operating income,” “EBITDA,” “Adjusted EBITDA,” “Adjusted net income” and “Adjusted diluted net earnings per share”) are useful information for investors, shareholders, and other stakeholders of our Company in gauging our results of operations on an ongoing basis and to enhance investors’ overall understanding of our current financial performance and period-to-period comparisons.  Adjusted operating income, EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted diluted net earnings per share should not be considered alternatives to operating income or net income, as the case may be, as an indicator of performance.  In addition, Adjusted operating income, EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted diluted net earnings per share do not take into account changes in certain assets and liabilities and interest and income taxes that can affect cash flows.  We do not intend the presentation of these non-GAAP measures to be considered in isolation or as a substitute for results prepared in accordance with GAAP. These non-GAAP measures should be read-only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

 

The following unaudited table presents the Company’s GAAP operating income and GAAP net income and the corresponding adjustments used to calculate Adjusted operating income, EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted diluted net earnings per share for the thirteen and fifty-two weeks ended December 28, 2024 and December 30, 2023.   

 

 

Thirteen Weeks Ended

  

Fifty-Two Weeks Ended

  
 

December 28,

2024

  

December 30,

2023

  

December 28,

2024

  

December 30,

2023

  
                 

GAAP operating income

$6,285

  

$7,906

  

$22,325

  

$23,692

  

Adjustments

                

Gain on sale of assets

-

  

-

  

-

  

(395

)

Remeasurement of contingent consideration

(1,759

)

-

  

(1,759

)

-

  

Equity compensation

710

  

641

  

2,864

  

2,092

  

Potential stock issuance and financing transaction

64

  

-

  

323

  

-

  

Impairment of intangible assets

547

  

-

  

547

  

-

  

Adjusted operating income (non-GAAP)

$5,847

  

$8,547

  

$24,300

  

$25,389

  
                 

GAAP net income

$2,867

  

$5,255

  

$13,327

  

$16,831

  

Income tax expense

2,902

  

2,119

  

6,863

  

5,364

  

Interest expense, net

664

  

429

  

2,215

  

1,399

  

Depreciation of property and equipment

407

  

276

  

1,419

  

1,032

  

Amortization of acquired intangible assets

-

  

46

  

136

  

182

  

EBITDA (non-GAAP)

$6,840

  

$8,125

  

$23,960

  

$24,808

  
                 

Adjustments

                

Gain on sale of assets

-

  

-

  

-

  

(395

)

Remeasurement of contingent consideration

(1,759

)

-

  

(1,759

)

-

  

(Gain) loss on foreign currency transactions

(148

)

103

  

(80

)

98

  

Equity compensation

710

  

641

  

2,864

  

2,092

  

Potential stock issuance and financing transaction

64

  

-

  

323

  

-

  

Impairment of intangible assets

547

  

-

  

547

  

-

  

Adjusted EBITDA (non-GAAP)

$6,254

  

$8,869

  

$25,855

  

$26,603

  

 

 
 

 

RCM Technologies, Inc.

Supplemental Operating Results on a Non-GAAP Basis (Continued)

(Unaudited)

(In Thousands)

 

 

 

Thirteen Weeks Ended

  

Fifty-Two Weeks Ended

  
 

December 28,

2024

  

December 30,

2023

  

December 28,

2024

  

December 30, 2023

  
                 

GAAP net income

$2,867

  

$5,255

  

$13,327

  

$16,831

  

Adjustments

                

Gain on sale of assets

-

  

-

  

-

  

(395

)

Remeasurement of contingent consideration

(1,759

)

-

  

(1,759

)

-

  

(Gain) loss on foreign currency transactions

(148

)

103

  

(80

)

98

  

Equity compensation

710

  

641

  

2,864

  

2,092

  

Potential stock issuance and financing transaction

64

  

-

  

323

  

-

  

Impairment of intangible assets

547

  

-

  

547

  

-

  

Tax impact from normalized rate

1,503

 

(73

)

900

 

(1,113

)

Adjusted net income (non-GAAP)

$3,784

  

$5,926

  

$116,122

  

$17,513

  
                 

GAAP diluted net earnings per share

$0.37

  

$0.65

  

$1.68

  

$1.96

  

Adjustments

                

Gain on sale of assets

-

  

-

  

-

  

($0.04

)

Remeasurement of contingent consideration

($0.22

)

-

  

($0.22

)

-

  

(Gain) loss on foreign currency transactions

($0.02

)

0.01

  

($0.01

)

$0.01

  

Equity compensation

$0.09

  

0.08

  

$0.36

  

$0.24

  

Potential stock issuance and financing transaction

$0.01

  

-

  

$0.04

  

-

  

Impairment of intangible assets

$0.07

  

-

  

$0.07

  

-

  

Tax impact from normalized rate(a)

($0.19

)

(0.01

)

($.0.11

)

($0.13

)

Adjusted diluted net earnings per share (non-GAAP)

$0.49

  

$0.73

  

$2.03

  

$2.04

  

 

 

(a)

Amount reflects an adjustment to income tax expense applied to non-GAAP adjusted consolidated taxable income. The Company used an estimated effective income tax rate of 26.5% for both periods presented, approximating the Company’s federal USA income tax rate plus the tax-affected rate for states and Puerto Rico.

 

 
 

 

RCM Technologies, Inc.

Summary of Selected Income Statement Data

(Unaudited)

(In Thousands)

 

 

 

Thirteen Weeks Ended December 28, 2024

  
 

Specialty

Health Care

  

Engineering

  

Life Sciences,

Data and Solutions

  

Consolidated

  
                 

Revenue

$41,011

  

$26,279

  

$9,622

  

$76,912

  

Cost of services

28,474

  

21,098

  

5,771

  

55,343

  

Gross profit

$12,537

  

$5,181

  

$3,851

  

$21,569

  

Gross profit margin

30.6

%

19.7

%

40.0

%

28.0

%

 

 

 

 

Thirteen Weeks Ended December 30, 2023

  
 

Specialty

Health Care

  

Engineering

  

Life Sciences,

Data and Solutions

  

Consolidated

  
                 

Revenue

$36,688

  

$22,719

  

$11,621

  

$71,028

  

Cost of services

25,686

  

16,589

  

7,122

  

49,397

  

Gross profit

$11,002

  

$6,130

  

$4,499

  

$21,631

  

Gross profit margin

30.0

%

27.0

%

38.7

%

30.5

%

 

 

 

 

Fifty-Two Weeks Ended December 28, 2024

  
 

Specialty

Health Care

  

Engineering

  

Life Sciences,

Data and Solutions

  

Consolidated

  
                 

Revenue

$142,679

  

$96,459

  

$39,242

  

$278,380

  

Cost of services

100,146

  

73,916

  

24,540

  

198,602

  

Gross profit

$42,533

  

$22,543

  

$14,702

  

$79,778

  

Gross profit margin

29.8

%

23.4

%

37.5

%

28.7

%

 

 

 

 

Fifty-Two Weeks Ended December 30, 2023

  
 

Specialty

Health Care

  

Engineering

  

Life Sciences,

Data and Solutions

  

Consolidated

  
                 

Revenue

$136,241

  

$84,675

  

$42,321

  

$263,237

  

Cost of services

96,309

  

64,071

  

26,161

  

186,541

  

Gross profit

$39,932

  

$20,604

  

$16,160

  

$76,696

  

Gross profit margin

29.3

%

24.3

%

38.2

%

29.1

%

 

 
 

 

RCM Technologies, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In Thousands, Except Share Amounts)

 

 

December 28,

  

December 30,

  
 

2024

  

2023

  
         

Current assets:

        
 

Cash and cash equivalents

$4,729

  

$6,284

  
 

Accounts receivable, net of provision for credit losses of $1,570 and $1,600

 at December 28, 2024 and December 30, 2023, respectively

77,960

  

70,690

  
 

Transit accounts receivable

7,315

  

8,891

  
 

Prepaid expenses and other current assets

7,034

  

4,637

  
   

Total current assets

97,038

  

90,502

  
             

Property and equipment, net

7,368

  

4,005

  
         

Other assets:

        
 

Deposits

230

  

313

  
 

Deferred tax assets, foreign

120

  

55

  
 

Goodwill

22,147

  

22,147

  
 

Operating right of use asset

5,174

  

2,779

  
 

Intangible assets, net

-

  

683

  
   

Total other assets

27,671

  

25,977

  
             
   

Total assets

$132,077

  

$120,484

  

 

Current liabilities:

        
 

Accounts payable and accrued expenses

$13,369

  

$12,454

  
 

Transit accounts payable

23,870

  

31,102

  
 

Accrued payroll and related costs

9,929

  

11,203

  
 

Finance lease payable

698

  

233

  
 

Income taxes payable

346

  

330

  
 

Operating right of use liability

1,046

  

693

  
 

Contingent consideration from acquisitions

212

  

300

  
 

Deferred revenue

4,163

  

1,881

  
   

Total current liabilities

53,633

  

58,196

  
         

Deferred income taxes, net, foreign

-

  

187

  

Deferred income taxes, net, domestic

4,526

  

1,568

  

Finance lease payable, net of current position

1,112

  

-

  

Contingent consideration from acquisitions, net of current position

-

  

1,671

  

Operating right of use liability, net of current position

4,355

  

2,268

  

Borrowings under line of credit

34,967

  

30,804

  
 

Total liabilities

98,593

  

94,694

  
         

Contingencies (note 16) and Commitments (note 18)

        
         

Stockholders’ equity:

        
 

Preferred stock, $1.00 par value; 5,000,000 shares authorized;

        
   

no shares issued or outstanding

-

  

-

  
 

Common stock, $0.05 par value; 40,000,000 shares authorized;

        
   

17,838,372 shares issued and 7,602,113 shares outstanding at

 December 28, 2024 and 17,673,427 shares issued and 7,844,821

 shares outstanding at December 30, 2023

890

  

882

  
 

Additional paid-in capital

118,845

  

116,579

  
 

Accumulated other comprehensive loss

(2,920

)

(2,813

)
 

Accumulated deficit

(5,938

)

(19,265

)
 

Treasury stock, 10,236,259 shares at December 28, 2024 and

 9,828,606 shares at December 30, 2023

 

(77,393

 

)

 

(69,593

 

)
   

Stockholders’ equity

33,484

  

25,790

  
             
   

Total liabilities and stockholders’ equity

$132,077

  

$120,484

  

 

 
 

 

RCM Technologies, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In Thousands)

 

 

Thirteen Weeks Ended

 
 

December 28,

2024

  

December 30,

2023

  

Net income

$2,867

  

$5,255

  

Adjustments to reconcile net income to cash

 used in operating activities

2,693

  

1,526

  

Changes in operating assets and liabilities:

        
 

Accounts receivable

(2,064

)

(13,880

)
 

Prepaid expenses and other current assets

(1,917

)

678

  
 

Net of transit accounts receivable and payable

(5,345

)

(6,660

)
 

Accounts payable and accrued expenses

1,861

  

292

  
 

Accrued payroll and related costs

(1,698

)

(3,421

)
 

Right of use liabilities

(280

)

(337

)
 

Income taxes payable

140

  

80

  
 

Deferred revenue

2,121

  

1,546

  
 

Deposits

(15

)

(145

)

Total adjustments

(4,504

)

(20,321

)

Net cash used in operating activities

($1,637

)

($15,066

)
         

Net cash used in investing activities

(983

)

(2,056

)

Net cash provided by financing activities

4,307

  

22,706

  

Effect of exchange rate changes on cash and cash equivalents

(114

)

46

  

Decrease in cash and cash equivalents

$1,573

  

$5,630

  
         

Common stock repurchase

$       -

  

($1,324

)

 

 

 

Fifty-Two Weeks Ended

 
 

December 28,

2024

  

December 30,

2023

  

Net income

$13,327

  

$16,831

  

Adjustments to reconcile net income to cash

 used in operating activities

6,893

  

4,321

  

Changes in operating assets and liabilities:

        
 

Accounts receivable

(7,271

)

(20,576

)
 

Prepaid expenses and other current assets

(2,392

)

3

  
 

Net of transit accounts receivable and payable

(5,656

)

15,724

  
 

Accounts payable and accrued expenses

1,101

  

(1,506

)
 

Accrued payroll and related costs

(1,265

)

(1,825

)
 

Right of use liabilities

(966

)

(1,353

)
 

Income taxes payable

34

  

242

  
 

Deferred revenue

2,282

  

762

  
 

Deposits

83

  

(141

)

Total adjustments

(7,157

)

(4,349

)

Net cash provided by operating activities

6,170

  

12,482

  
         

Net cash used in investing activities

(2,572

)

(2,536

)

Net cash used in financing activities

(4,828

)

(3,852

)

Effect of exchange rate changes on cash and cash equivalents

(325

)

(149

)

(Decrease) increase in cash and cash equivalents

($1,555

)

$5,945

  
         

Common stock repurchase

($7,800

)

($25,773

)