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- ...

Financial Data and Key Metrics Changes - RCM generated second quarter revenue of $74 million, a 59% increase year-over-year after adjusting for the Power Systems Canada sale [8][20] - EBITDA for Q2 was $8.4 million, representing growth of 281% year-over-year [8] - Cash flow from operations reached a record $18.3 million for the quarter [8] Business Line Data and Key Metrics Changes - Health Care segment revenue was $43.4 million in Q2 2022, an 89% increase year-over-year [21] - Life Sciences and IT segment generated approximately $10 million in Q2 2022, up from $9.1 million in Q2 2021 [22] - Engineering segment revenue was $20.9 million in Q2 2022, a 41% increase compared to adjusted Q2 2021 revenue of $14.9 million [23] Market Data and Key Metrics Changes - The company continues to see strong performance in recession-resistant end markets, particularly in engineering and health care services [6][8] - The health care services team is expanding its strategic footprint within the education market, addressing a growing talent shortage in special education [14][15] Company Strategy and Development Direction - The company aims to grow its share in existing markets and scale into new adjacencies, leveraging its talent and technology [5][6] - Strategic investments in technology systems are being made to enhance efficiency and productivity in the Health Care segment [13] - The company is focusing on expanding its managed service contract base in Life Sciences, which is expected to lead to higher margins and predictability [33] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the company's ability to maintain strong operating performance despite macroeconomic headwinds [18][24] - The company anticipates continued strong cash flow management and expects to keep Days Sales Outstanding (DSOs) under 60 days [32] Other Important Information - The company is now debt-free after paying down the remaining balance on its revolving credit facility [20] - Recent breakthroughs in legislation, such as the Inflation Reduction Act, are seen as beneficial for the company's expertise in sustainable technologies [12] Q&A Session Summary Question: What contributed to the strong cash flow of $18 million? - Management attributed the strong cash flow to high EBITDA, efficient invoicing and collections, and seasonal factors related to school closings [30] Question: Can you elaborate on new awards in the Life Sciences segment? - Management mentioned recent multiyear awards in the regulatory and compliance side, which could lead to higher margins and more predictability [33] Question: What is the expected seasonality impact on the Health Care segment? - Management expects significant seasonality in Q3 but anticipates strong results in Q4 due to new school contracts [36] Question: What is the revenue breakdown for the Health Care segment? - In Q2, school revenues were $32.3 million, while non-school revenue was $11.2 million [45] Question: What is the capital allocation strategy now that the company is net cash positive? - Management indicated a continued agnostic approach to capital allocation, focusing on share buybacks, dividends, acquisitions, and internal investments [48]

Financial Data and Key Metrics Changes - The company generated first quarter revenue of approximately $82 million, a 26% increase sequentially and an 84% increase year-over-year [9][19] - EBITDA for Q1 came in at $9.3 million, representing growth of 74% sequentially and over 400% year-over-year [9][19] - Gross profit expanded to $23.4 million, a 32% sequential increase and over 115% increase year-over-year [20] Business Line Data and Key Metrics Changes - The healthcare segment generated revenue of $52.2 million in Q1 2022, a 50% sequential increase and a 147% increase year-over-year [21] - The Life Sciences and IT segment generated revenue of $9.9 million in Q1 2022, compared to $8.9 million in Q1 2021 [22] - The engineering segment generated revenue of $19.9 million in Q1 2022, with a year-over-year increase of 7.8 million after removing the impact of Canada Power Systems from Q1 2021 [23] Market Data and Key Metrics Changes - The Life Sciences team grew revenue by more than 27% year-over-year and increased profitability by approximately 43% [15] - The energy services team has laid the groundwork for strong 2022 as client activity remains high across the electric utility space [25] Company Strategy and Development Direction - The company is focused on expanding its client footprint in healthcare services, particularly in school districts [10] - There is a commitment to transitioning to a managed service model in Life Sciences, which is expected to enhance profitability [22] - The company is leveraging its existing process equipment technology to gain momentum in carbon capture and decarbonization initiatives [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term potential of the company, stating that they are just scratching the surface of their capabilities [6][17] - The leadership emphasized a strong company culture and collaboration among teams, which is expected to drive future growth [7] - Management does not foresee any extraordinary changes in the operating environment, maintaining a focus on double-digit growth across all business segments [34] Other Important Information - The company repurchased approximately 406,000 shares for about $2.8 million at an average price of $6.84 [61][62] - Approximately 79% of healthcare revenues are derived from school districts [62] Q&A Session Summary Question: What contributed to the growth in healthcare? - Growth was driven by new services, new schools, and increased penetration in existing schools, particularly in behavioral health and special education [30][31] Question: Is there anything one-time in nature in the first quarter? - Management indicated that there is nothing one-time in the quarter and expects continued double-digit growth across all segments [34] Question: What is the current state of accounts receivable and days sales outstanding (DSOs)? - DSOs improved significantly, with Q1 at approximately 66 days, down from 67-68 days in Q4 [51] Question: What percentage of healthcare revenues comes from school districts? - Approximately 79% of healthcare revenues are from school districts [62] Question: Any updates on capital allocation plans? - Management is focused on efficient capital allocation but has no specific announcements at this time [43] Question: Is the company seeing benefits from the infrastructure bill? - Management does not expect immediate impacts from the infrastructure bill but anticipates long-term benefits [65][66] Question: Can you provide details on carbon capture technology? - The technology is commercial and has been generating significant revenue, with ongoing pilot programs [67][68]

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 ...

Financial Data and Key Metrics Changes - The company's revenue grew by over $13.9 million year-over-year, representing an increase of approximately 44% compared to Q3 2020, while sequentially decreasing by $1.9 million after adjusting for the Canada Power Systems divestiture [15] - Adjusted EBITDA for Q3 2021 was $1.9 million, reflecting a year-over-year increase of about 780% from $0.2 million in Q3 2020 [12][15] - Gross profit increased to $12.1 million, a 38% rise over Q3 2020 and a 15% increase over Q3 2019 [16] Business Line Data and Key Metrics Changes - The Health Care Services (HCS) segment generated revenue of $19.6 million in Q3 2021, marking a 118% increase year-over-year, although it decreased by $3.3 million compared to Q2 2021 [11][17] - The IT division reported revenue of $9.3 million in Q3 2021, up from $7.5 million in Q3 2020 and $9.1 million in Q2 2021, indicating strong performance [18] - The Engineering Division generated revenue of $16.0 million in Q3 2021, showing growth both sequentially and year-over-year [19] Market Data and Key Metrics Changes - The demand for health care professionals remains robust, particularly from school districts for testing and nursing personnel, contributing to the strong performance of the health care segment [12][41] - The Engineering division is optimistic about its backlog and pipeline as it heads into 2022, with several new client wins anticipated [19] Company Strategy and Development Direction - The company aims to become a world-class services organization by embracing digital transformation and modernizing its solutions for a digital-first world [6][13] - Investments are being prioritized to revamp the company's digital architecture and enhance CRM capabilities, which are expected to facilitate a digital-first go-to-market strategy [7][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about operational momentum continuing into Q4 2021 and beyond, particularly in the health care segment [12][41] - The company anticipates a material uptick in net debt towards the high end of its target range of 1 to 2x EBITDA as it enters its strongest seasonal quarter [13] Other Important Information - The company ended Q3 with a favorable net debt position of $5.1 million, primarily due to proceeds from the sale of Canadian assets [12] - Management highlighted the importance of leveraging technology to fulfill its vision and improve operational efficiency [7][8] Q&A Session Summary Question: Health care performance relative to expectations - Management noted strength across all businesses, with strong demand for health care professionals and significant testing revenue contributing to the upside [22][23] Question: Engineering pipeline outlook - Management expects a meaningful uptick in the Engineering group's performance, with optimism across all divisions, particularly in Aerospace [29][31] Question: Health care revenue breakdown - In Q3, approximately $10.1 million of health care revenue came from schools, while $9.5 million was from nonschool sources [37] Question: Margin sustainability - Management indicated that margins in health care are sustainable in the short term, with expectations for strong gross margins moving forward [40] Question: Potential shareholder rewards - Management discussed the board's ongoing consideration of capital allocation strategies, including potential rewards to shareholders, but indicated that a dividend is unlikely in the short term [54][55]

RCM Technologies, Inc. (NASDAQ:RCMT) Q1 2021 Earnings Conference Call May 14, 2021 11:00 AM ET Company Participants Kevin Miller – Chief Financial Officer Brad Vizi – Executive Chairman Conference Call Participants Bill Sutherland – The Benchmark Company Alex Rygiel – B. Riley Securities 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, RCMÂ's Executive Chairman. Our presentation in this call will conta ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 2, 2021 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ........... to ........... Commission file number 1-10245 RCM TECHNOLOGIES, INC. (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdiction of Inco ...

RCM Technologies, Inc. (NASDAQ:RCMT) Q4 2020 Results Conference Call April 2, 2021 10:30 AM ET Company Participants Brad Vizi - Executive Chairman & President Kevin Miller - CFO, Treasurer & Secretary Conference Call Participants Bill Sutherland - The Benchmark Company Alex Rygiel - B. Riley Securities Operator Ladies and gentlemen, welcome to RCM Technologies Fourth Quarter Conference Call. Brad Vizi Good morning, everyone. This is Brad Vizi, Executive Chairman of RCM Technologies. Welcome to the RCM Techn ...