RCM Technologies Reports Mixed Financial Results, Revenue Growth, and Strategic Developments

RCM Technologies, Inc. reported its financial results for the thirteen and thirty-nine weeks ended September 28, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the thirteen weeks ended September 28, 2024, RCM Technologies generated revenue of $60.4 million, an increase of $2.3 million from $58.0 million in the same period of 2023. The growth was driven primarily by the Specialty Health Care and Engineering segments, which saw increases of $1.6 million and $1.7 million, respectively. However, the Life Sciences and Information Technology segment experienced a decline of $1.0 million. Gross profit for the quarter rose to $17.8 million, representing 29.6% of revenue, slightly down from 29.8% in the prior year. Operating income increased marginally to $4.4 million, while net income decreased to $2.7 million from $3.8 million, reflecting a decline in net earnings per share from $0.47 to $0.36.

For the thirty-nine weeks ended September 28, 2024, total revenue reached $201.5 million, up from $192.2 million in the previous year, with the Engineering segment contributing significantly to this growth. Gross profit for the period was $58.2 million, or 28.9% of revenue, compared to 28.6% in the prior year. Operating income increased to $16.0 million, but net income fell to $10.5 million from $11.6 million, resulting in a slight decrease in diluted earnings per share from $1.33 to $1.31.

The company’s current assets remained stable at $90.5 million as of September 28, 2024, compared to $90.5 million at the end of December 2023. However, cash and cash equivalents decreased significantly from $6.3 million to $3.2 million. Accounts receivable increased to $75.9 million, reflecting a rise in billed and unbilled amounts.

Strategically, RCM Technologies is focused on enhancing its operational capabilities, including an upgrade to its SAP financial reporting system that went live in April 2024. The company has also authorized a share repurchase program of up to $50 million, with $42.2 million remaining available for future purchases. Additionally, RCM has two acquisition agreements with potential future contingent payments totaling $9.6 million.

RCM Technologies continues to navigate a cyclical market, with its business model emphasizing integrated service offerings across various sectors, including Engineering, Life Sciences, and Healthcare. The company remains compliant with its financial covenants and believes it has sufficient capital resources to meet its obligations for the next 12 months.