RCM Technologies, Inc. Announces Second Quarter Results | RCMT Stock News

08/06/2025 - 04:57 PM PENNSAUKEN, N.J., Aug. 06, 2025 (GLOBE NEWSWIRE) -- 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 twenty-six weeks ended June 28, 2025. RCM Technologies reported revenue of $78.2 million for the thirteen weeks ended June 28, 2025 (the current quarter), an increase of 13.0% compared to $69.2 million for the thirteen weeks ended June 29, 2024 (the comparable prior quarter). Gross profit was $22.3 million for the current quarter, an 11.4% increase compared to $20.0 million for the comparable prior quarter. The Company experienced GAAP net income of $3.8 million, or $0.50 per diluted share, for the current quarter compared to $3.8 million, or $0.47 per diluted share, for the comparable prior quarter. The Company experienced adjusted EBITDA (non-GAAP) of $8.1 million for the current quarter, as compared to $7.2 million for the comparable prior quarter. The Company experienced $0.69 of adjusted net income per diluted share (non-GAAP) for the current quarter as compared to $0.57 for the comparable prior quarter, an increase of 21.1%. RCM Technologies reported revenue of $162.6 million for the twenty-six weeks ended June 28, 2025 (the current period), an increase of 15.3% compared to $141.1 million for the twenty-six weeks ended June 29, 2024 (the comparable prior-year period). Gross profit was $44.3 million for the current period, a 9.6% increase compared to $40.4 million for the comparable prior-year period. The Company experienced GAAP net income of $8.0 million, or $1.04 per diluted share, for the current period compared to $7.7 million, or $0.95 per diluted share, for the comparable prior-year period. The Company experienced adjusted EBITDA (non-GAAP) of $15.9 million for the current period, as compared to $14.0 million for the comparable prior-year period. The Company experienced $1.32 of adjusted net income per diluted share (non-GAAP) for the current period as compared to $1.11 for the comparable prior-year period, an increase of 18.9%. Bradley Vizi, Executive Chairman of RCM Technologies, commented, “The second quarter exhibited consistent growth across all three segments demonstrating the resilience of the model as we build towards an expected strong second half of the year.” Kevin Miller, Chief Financial Officer of RCM Technologies, commented, “Momentum within Engineering continues to build as we unlock the next leg of growth in the business.” Conference Call On Thursday, August 7, 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 June 28, 2025June 29, 2024Revenue$78,166$69,164Cost of services55,88949,163Gross profit22,27720,001Selling, general and administrative15,27513,545Depreciation and amortization of property and equipment401332Amortization of acquired intangible assets-46Potential stock issuance and financial transactions-259Operating income6,6015,819Other expense, net929574Income before income taxes5,6725,245Income tax expense1,8871,483Net income$3,785$3,762Diluted net earnings per share data$0.50$0.47Diluted weighted average shares outstanding7,537,7877,955,943 Twenty-Six Weeks Ended June 28, 2025June 29, 2024Revenue$162,639$141,103Cost of services118,384100,735Gross profit44,25540,368Selling, general and administrative30,24627,744Depreciation and amortization of property and equipment825619Amortization of acquired intangible assets-91Potential stock issuance and financial transactions-259Operating income13,18411,655Other expense, net1,6271,000Income before income taxes11,55710,655Income tax expense3,5862,941Net income$7,971$7,714Diluted net earnings per share data$1.04$0.95Diluted weighted average shares outstanding7,650,2728,078,049 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 twenty-six weeks ended June 28, 2025 and June 29, 2024. Thirteen Weeks EndedTwenty-Six Weeks EndedJune 28, 2025June 29, 2024June 28, 2025June 29, 2024(Unaudited)(Unaudited)(Unaudited)(Unaudited)GAAP operating income$6,601$5,819$13,184$11,655AdjustmentsPotential stock issuance and financing transactions-259-259Equity compensation1,1337521,9061,387Adjusted operating income (non-GAAP)$7,734$6,830$15,090$13,301GAAP net income$3,785$3,762$7,971$7,714Income tax expense1,8871,4833,5862,941Interest expense, net6505811,3011,059Depreciation of property and equipment401332825619Amortization of acquired intangible assets-46-91EBITDA (non-GAAP)$6,723$6,204$13,683$12,424AdjustmentsPotential stock issuance and financing transactions-259-259Loss (gain) on foreign currency transactions279(7)326(59)Equity compensation1,1337521,9061,387Adjusted EBITDA (non-GAAP)$8,135$7,208$15,915$14,011 RCM Technologies, Inc. Supplemental Operating Results on a Non-GAAP Basis (Continued) (Unaudited) (In Thousands)Thirteen Weeks EndedTwenty-Six Weeks EndedJune 28, 2025June 29, 2024June 28, 2025June 29, 2024(Unaudited)(Unaudited)(Unaudited)(Unaudited)GAAP net income$3,785$3,762$7,971$7,714AdjustmentsPotential stock issuance and financing transactions-259-259Loss (gain) on foreign currency transactions279(7)326(59)Equity compensation1,1337521,9061,387Tax impact from normalized rate(26)(204)(137)(364)Adjusted net income (non-GAAP)$5,171$4,562$10,066$8,937GAAP diluted net earnings per share$0.50$0.47$1.04$0.95AdjustmentsPotential stock issuance and financing transactions-$0.03-$0.03Loss (gain) on foreign currency transactions$0.04-$0.05-Equity compensation$0.15$0.09$0.25$0.17Tax impact from normalized rate-($0.02)($0.02)($0.04)Adjusted diluted net earnings per share (non-GAAP)$0.69$0.57$1.32$1.11 RCM Technologies, Inc. Summary of Selected Income Statement Data (Unaudited) (In Thousands)Thirteen Weeks Ended June 28, 2025Specialty Health CareEngineeringLife Sciences, Data and Solutions ConsolidatedRevenue$42,822$26,521$8,823$78,166Cost of services30,54520,0315,31355,889Gross profit$12,277$6,490$3,510$22,277Gross profit margin28.7%24.5%39.8%28.5% Thirteen Weeks Ended June 29, 2024Specialty Health CareEngineeringLife Sciences, Data and Solutions ConsolidatedRevenue$36,932$22,508$9,724$69,164Cost of services26,29316,5426,32849,163Gross profit$10,639$5,966$3,396$20,001Gross profit margin28.8%26.5%34.9%28.9% Twenty-Six Weeks Ended June 28, 2025Specialty Health CareEngineeringLife Sciences, Data and Solutions ConsolidatedRevenue$86,105$58,663$17,871$162,639Cost of services61,62445,98910,771118,384Gross profit$24,481$12,674$7,100$44,255Gross profit margin28.4%21.6%39.7%27.2% Twenty-Six Weeks Ended June 29, 2024Specialty Health CareEngineeringLife Sciences, Data and SolutionsConsolidatedRevenue$75,114$46,013$19,976$141,103Cost of services53,40934,54012,786100,735Gross profit$21,705$11,473$7,190$40,368Gross profit margin28.9%24.9%36.0%28.6% RCM Technologies, Inc. Condensed Consolidated Balance Sheets (Unaudited) (In Thousands, Except Share Amounts)June 28,December 28,20252024(Unaudited)Current assets:Cash and cash equivalents$5,472$4,729Accounts receivable and contract assets, net of provision for credit losses of $1,541 at June 28, 2025 and $1,570 at December 28, 202483,74977,960Transit accounts receivable7,5007,315Prepaid expenses and other current assets3,9887,034Total current assets100,70997,038Property and equipment, net7,4337,368Other assets:Deposits259230Deferred tax assets, foreign135120Goodwill22,14722,147Operating right of use asset4,9035,174Total other assets27,44427,671Total assets$135,586$132,077 Current liabilities:Accounts payable and accrued expenses$9,762$13,369Transit accounts payable22,38523,870Accrued payroll and related costs10,3699,929Finance lease payable715698Income taxes payable788346Operating lease liability1,1161,046Contingent consideration from acquisitions212212Deferred revenue9,1434,163Total current liabilities54,49053,633Deferred income taxes, net, domestic4,5264,526Finance lease payable, net of current position7501,112Operating lease liability, net of current position4,0194,355Borrowings under line of credit34,01534,967Total liabilities97,80098,593Contingencies (note 15)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;17,928,284 shares issued and 7,390,385 shares outstanding at June 28, 2025 and 17,838,372 shares issued and 7,602,113 shares outstanding at December 28, 2024896890Additional paid-in capital120,088118,845Accumulated other comprehensive loss(2,723)(2,920)Retained earnings (accumulated deficit)2,033(5,938)Treasury stock, 10,537,899 shares at June 28, 2025 and10,236,259 shares at December 28, 2024(82,508)(77,393)Total stockholders’ equity37,78633,484Total liabilities and stockholders’ equity$135,586$132,077 RCM Technologies, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (In Thousands)Thirteen Weeks Ended June 28, 2025June 29, 2024Net income$3,785$3,762Adjustments to reconcile net income to cash used in operating activities1,7961,442Changes in operating assets and liabilities:Accounts receivable and contract assets(15,322)6,628Prepaid expenses and other current assets1,253(916)Net of transit accounts receivable and payable2,722(527)Accounts payable and accrued expenses(4,739)(660)Accrued payroll and related costs(2,236)(2,462)Operating lease liabilities(294)(154)Income taxes payable501(638)Deferred revenue4,681(836)Deposits(25)86Total adjustments(11,663)1,963Net cash (used in) provided by operating activities($7,878)$5,725Net cash used in investing activities(473)(398)Net cash provided by (used in) financing activities8,491(3,796)Effect of exchange rate changes on cash and cash equivalents151(150)Increase in cash and cash equivalents$291$1,381 Twenty-Six Weeks Ended June 28, 2025June 29, 2024Net income$7,971$7,714Adjustments to reconcile net income to cash used in operating activities3,2552,692Changes in operating assets and liabilities:Accounts receivable and contract assets(5,764)3,826Prepaid expenses and other current assets3,040(796)Net of transit accounts receivable and payable(1,671)(746)Accounts payable and accrued expenses(3,381)685Accrued payroll and related costs429(1,486)Operating lease liabilities(535)(458)Income taxes payable430(187)Deferred revenue5,037797Deposits(29)110Total adjustments8114,437Net cash provided by operating activities$8,782$12,151Net cash used in investing activities(900)(1,067)Net cash used in financing activities(7,092)(13,510)Effect of exchange rate changes on cash and cash equivalents(47)(378)Increase (decrease) in cash and cash equivalents$743($2,804) RCM Technologies, Inc.Tel: 856.356.4500Corporate Contacts:2500 McClellan Avenueinfo@rcmt.comBradley S. ViziPennsauken, NJ 08109www.rcmt.comExecutive Chairman Kevin D. MillerChief Financial Officer