Financial Data and Key Metrics Changes - Gross profit for Q3 2023 was $17.3 million, essentially flat year-over-year compared to $17.4 million in Q3 2022 [51] - Healthcare gross profit decreased to $7.5 million in Q3 2023 from $9.0 million in Q3 2022, primarily due to the absence of COVID-related revenue and a strategic decision to reduce low-margin services [51][52] - The overall gross margin improved to 25.0% in Q3 2023 from 22.9% in Q2 2023, driven by a decrease in low-margin business [54][56] - Adjusted EBITDA for Q4 2023 is estimated to be between $7.6 million and $8.2 million, with consolidated revenue expected between $70.0 million and $74.0 million [57][58] Business Line Data and Key Metrics Changes - The Life Sciences and IT Group saw a 38.4% year-over-year growth in gross profit, attributed to high-value managed service offerings [56] - Engineering gross profit increased by 5.2% year-over-year, driven by project activity in the Energy Services group [55] - Healthcare revenue from schools was reported at $17.4 million for Q3 2023, with a 25% growth in school revenue in September and October compared to the previous year [63][70] Market Data and Key Metrics Changes - The macroeconomic landscape in Information Technology was challenging in 2023, but the company continued to invest in segments demonstrating secular growth [17] - The company is expanding its EPC capabilities in Europe and North America to meet increased demand for EPC projects in 2024 and beyond [22] Company Strategy and Development Direction - The company aims to build long-term partnerships by leveraging its high-value capabilities, which serve as a key differentiator in the marketplace [10] - There is a commitment to sustainable growth and innovation, with plans for further expansion into new markets and development of cutting-edge staffing solutions [15] - The company is focused on organic growth through talent acquisition and opportunistic M&A, rather than entering new markets from scratch [65] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the outlook for 2024 and beyond, anticipating continued growth across all segments [9][60] - The company is experiencing increasing demand for behavioral health services, which is expected to accelerate further [38][40] - Management acknowledged the competitive landscape but believes there is significant business potential to capture [40] Other Important Information - The company is working to reduce Days Sales Outstanding (DSOs), which were reported at 90 in Q3 2023, with a historical low of 66 in Q4 of the previous year [99] - A one-time tax benefit was noted in Q3, with an expected tax rate of 28% to 29% for Q4 [105] Q&A Session Summary Question: What was your revenue from schools in the third quarter? - The schools revenue was $17.4 million [63] Question: Can you elaborate on expanding into new staffing markets? - The company is confident in its existing portfolio and plans to expand organically by adding talent, with opportunistic M&A as a secondary strategy [65] Question: What is the outlook for the engineering segment and its backlog? - The company anticipates good momentum in engineering, expecting a sequential increase in revenue throughout 2024 [67][115] Question: Was there any COVID-related revenue in the first quarter? - Yes, there was COVID-related revenue in Q1, but none is expected in Q4 [70] Question: Can you clarify the nature of the transit account related to subcontractors? - The transit account is primarily tied to engineering and EPC contracts, involving advanced payments for equipment and construction [71] Question: What is the status of share issuance? - Approximately 100,000 shares were issued to about 20 employees under long-term restricted share awards [80] Question: Is share buyback still a priority for capital deployment? - The company remains committed to share buybacks as part of its capital deployment strategy [88]

RCM Technologies, Inc. (NASDAQ:RCMT) Q2 2023 Earnings Conference Call August 10, 2023 11:30 AM ET Company Participants Kevin Miller - CFO Brad Vizi - Executive Chairman Conference Call Participants Alex Rygiel - B. Riley Bill Sutherland - Benchmark Operator Welcome to the RCM Technology Second Quarter Earnings Call. I will now turn the call over to Kevin Miller, you may begin. Kevin Miller Good morning. And thank you for joining us. This is Kevin Miller, Chief Financial Officer of RCM Technologies. I'm join ...

Financial Data and Key Metrics Changes - Revenue for Q1 2023 was $67.2 million, reflecting a decrease primarily due to a comparison against peak COVID impacts in Q1 2022, with a solid sequential growth in underlying non-COVID-related demand [36] - Gross margin in Q1 was 28.3%, slightly down from 28.6% in the previous quarter, with strong performance in Healthcare and Life Sciences but weaker margins in Engineering due to lower utilization [14] Business Line Data and Key Metrics Changes - The Specialty Healthcare Division showed solid first-quarter performance, exceeding Q4 results, driven by increased demand for healthcare professionals [7] - Engineering results were modestly above plan with strong growth in backlog and pipeline, although performance was below Q4 run rate due to project timing [9] - Energy Services Group reported substantial growth and backlog, with several new projects initiated [10] - Aerospace continued to drive growth by adding new customers and expanding existing client relationships [11] Market Data and Key Metrics Changes - The company is experiencing increased demand for healthcare staffing solutions, particularly in schools, due to a shortage of nurses and behavioral health professionals [28] - The Energy Services Group is expanding its footprint, including a new office in Germany, and has secured significant projects with European utility clients [32] Company Strategy and Development Direction - The company is focused on capitalizing on market opportunities by investing in workforce and expanding service offerings, particularly in healthcare and engineering [4][30] - There is a strategic shift towards long-term managed service contracts to mitigate business volatility and enhance growth potential [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sequential growth in the Engineering group and strong performance in Healthcare, particularly in Q4 2023 [15][37] - The company anticipates a strong fourth quarter as new school contracts ramp up and project backlogs are realized [38] Other Important Information - The company has repurchased over 1.2 million shares, indicating confidence in its business model and financial flexibility [13] - The company is actively evaluating bolt-on opportunities for growth and has a robust pipeline of potential new clients [65] Q&A Session Summary Question: Confirmation on sequential performance between Specialty Health and Engineering - Management confirmed optimism that sequential declines in Specialty Health could be offset by growth in Engineering [17] Question: Insights on backlog growth and pipeline activity - Management noted that backlog is building and pipeline activity is broadening, with increased client involvement and project sizes [18] Question: Discussion on seasonal trends and project timing - Management indicated that Q3 and Q4 are expected to be significantly better than Q2, with strong backlog realization anticipated [56] Question: Concerns regarding accounts receivable and interest expense - Management acknowledged increased DSOs in Q1 but expects improvements moving forward, with interest expenses being manageable [70][71] Question: Clarification on gain from asset sales - Management explained that the gain was related to the collection of escrow funds from a previous sale, marking the completion of that transaction [72] Question: Future capital allocation strategy - Management confirmed that the share repurchase program will continue throughout 2023, reflecting confidence in the business [73]

RCM Technologies, Inc. (NASDAQ:RCMT) Q4 2022 Results Conference Call March 16, 2023 11:00 AM ET Company Participants Kevin Miller - CFO Brad Vizi - Executive Chairman Alex Rygiel - B. Riley Securities Conference Call Participants William Sutherland - The Benchmark Company Kevin Miller Good morning, and thank you for joining us. This is Kevin Miller, Chief Financial Officer of RCM Technologies. I am joined today by Brad Vizi, RCM's Executive Chairman. Our presentation in this call will contain forward-lookin ...

Revenue Breakdown - For the fiscal year ended December 31, 2022, RCM Technologies, Inc. generated approximately 56.0% of its total revenue from Specialty Health Care services, 30.2% from Engineering services, and 13.8% from Life Sciences and Information Technology services[15]. - Revenue for the Specialty Health Care segment increased to $159.4 million in FY 2022 from $98.5 million in FY 2021, representing a growth of 61.8%[164]. - The Engineering segment's revenue rose to $85.9 million in FY 2022, up from $66.2 million in FY 2021, marking a 29.8% increase[164]. - The Life Sciences and Information Technology segment generated $39.3 million in revenue for FY 2022, slightly up from $39.2 million in FY 2021, indicating a marginal growth of 0.3%[164]. - Revenue increased by 39.6%, or $80.8 million, for the fiscal year ended December 31, 2022, compared to the prior year period[188]. Personnel and Operations - As of December 31, 2022, RCM assigned approximately 2,540 personnel to its Specialty Health Care services and approximately 490 personnel to its Engineering services[39][44]. - The Company’s Life Sciences and Information Technology segment employs approximately 230 personnel as of December 31, 2022, to support various applications[49]. - As of December 31, 2022, the company employed approximately 280 nonbillable employees and had a total billable workforce of about 3,260, including 2,540 in Specialty Health Care services, 490 in Engineering and Technical, and 230 in Life Sciences and Information Technology[81][85]. Growth Strategy - The Company anticipates continued growth in the demand for health care professionals due to an aging population and improved medical technology, with a focus on telemedicine and behavioral health services[19]. - RCM's growth strategy includes pursuing selective strategic acquisitions to broaden service scope and enhance technical competencies, focusing on companies with substantial growth prospects and experienced management[33]. - The Company aims to increase margins by transitioning to higher value-oriented services and expanding client relationships through strategic alliances[27]. - The Company is adapting its operating strategies to remain a recognized leader in specialized professional staffing and consulting services across North America[24]. Financial Performance - Net income for the fiscal year ended December 31, 2022, was $20.9 million, or 7.3% of revenue, compared to $11.0 million, or 5.4%, in the prior year[187]. - Gross profit for the fiscal year ended December 31, 2022, was $82.9 million, representing 29.1% of revenue, up from 26.1% in the prior year[187]. - Selling, general and administrative expenses were $53.4 million for the fiscal year ended December 31, 2022, accounting for 18.8% of revenue, down from 20.6%[190]. - Adjusted EBITDA for the fiscal year ended December 31, 2022, was $29.5 million, compared to $11.1 million for the prior year[207]. - Cash provided by operating activities was $28.3 million for the fiscal year ended December 31, 2022, compared to $0.9 million in the prior year[209]. Market Conditions and Risks - The company faces significant competition in the staffing services market, with increasing pricing pressures and limited barriers to entry, which could impact its market share and profitability[98]. - Future growth prospects may be impacted by economic trends and changes in government regulations affecting employment services[183]. - The Company believes the deregulation of the utilities industry and aging nuclear power plants present opportunities for increased professional services and project management in the energy sector[7]. - The Company is exposed to risks associated with foreign currency fluctuations due to its operations in Canada and Serbia, which can affect the reported earnings and asset values[109]. Client Relationships - The Company emphasizes long-term relationships with clients, which has resulted in repeat business and a strong client retention rate[61]. - The Company maintains a disaster recovery plan to ensure business continuity and data protection against various risks[66]. - The Company operates 26 branch offices across the United States, Canada, Puerto Rico, and Serbia, focusing on markets with strong growth prospects[51]. Legal and Compliance - The Company has adopted a Code of Conduct and a Code of Ethics applicable to its directors and officers, ensuring compliance with SEC rules[89]. - The Company is subject to various legal proceedings that may arise in the ordinary course of business, which could impact financial performance[131]. - The Company operates in a complex regulatory environment concerning data privacy, which could increase operating costs and risks of non-compliance[125]. Capital Structure and Financing - The company had $8.8 million in borrowings under its Revolving Credit Facility as of December 31, 2022, with an additional $34.3 million available for borrowing[106]. - The Company has a stock repurchase program authorized for up to $25.0 million, designed to optimize its capital structure[141]. - The Company has accrued $2.9 million for asserted claims as of December 31, 2022[133].

RCM Technologies, Inc. (NASDAQ:RCMT) Q3 2022 Earnings Conference Call November 10, 2022 11:30 AM ET Company Participants Kevin Miller - CFO Bradley Vizi - Chairman Conference Call Participants William Sutherland - The Benchmark Company Alexander Rygiel - B. Riley Securities FBR Kevin Miller Good morning, and thank you for joining us. This is Kevin Miller, Chief Financial Officer of RCM Technologies. I am joined today by Brad Vizi, RCM's Executive Chairman. Our presentation in this call will contain forward- ...

RCM Technologies, Inc. (NASDAQ:RCMT) Q2 2022 Earnings Conference Call August 11, 2022 11:30 AM ET Company Participants Kevin Miller - Chief Financial Officer Bradley Vizi - Executive Chairman and President Conference Call Participants Alex Rygiel - B. Riley Bill Sutherland - Benchmark Kevin Miller Good morning, and thank you for joining us. This is Kevin Miller, Chief Financial Officer at RCM Technologies. I am joined today by Brad Vizi, RCM's Executive Chairman. Our presentation in this call will contain f ...

RCM Technologies, Inc. (NASDAQ:RCMT) Q1 2022 Earnings Conference Call April 28, 2022 10:00 AM ET Company Participants Kevin Miller - Chief Financial Officer Brad Vizi - Executive Chairman Conference Call Participants Bill Sutherland - The Benchmark Company Min Cho - B. Riley Securities Frank Kelly - Scopia Capital Operator Good morning, and thank you for joining us. This is Kevin Miller, Chief Financial Officer of RCM Technologies. I am joined today by Brad Vizi, RCMÂ's Executive Chairman. Our presentation ...

RCM Technologies, Inc. (NASDAQ:RCMT) Q4 2021 Earnings Conference Call March 31, 2022 10:00 AM ET Company Participants Kevin Miller – Chief Financial Officer Brad Vizi – Executive Chairman Conference Call Participants Alex Rygiel – B. Riley Bill Sutherland – The Benchmark Company Kevin Miller Good morning, and thank you for joining us. This is Kevin Miller, Chief Financial Officer at RCM Technologies. I am joined today by Brad Vizi, RCM’s Executive Chairman. Our presentation in this call will contain forward ...

RCM Technologies, Inc. (NASDAQ:RCMT) Q3 2021 Results Conference Call November 12, 2021 11:00 AM ET Company Participants Kevin Miller - Chief Financial Officer Brad Vizi - Executive Chairman Conference Call Participants Bill Sutherland - The Benchmark Company Min Cho - B. Riley Securities Frank Kelly - Scopia Capital Operator Good morning and thank you for joining us. This is Kevin Miller, Chief Financial Officer of RCM Technologies. I am joined today by Brad Vizi, RCM's Executive Chairman. Our presentation ...