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RCM Technologies(RCMT) - 2020 Q3 - Earnings Call Transcript
2020-11-10 20:36
RCM Technologies, Inc. (NASDAQ:RCMT) Q3 2020 Earnings Conference Call November 10, 2020 11:00 AM ET Company Participants Brad Vizi - Executive Chairman Kevin Miller - Chief Financial Officer Brad Vizi Good morning, everyone. This is Brad Vizi, Executive Chairman of RCM Technologies. Welcome to the RCM Technologies 2020 Third Quarter Earnings Call. I'm joined today by Kevin Miller, our Chief Financial Officer. Kevin will begin with a legal disclaimer, and then I will summarize the operating results for each ...
RCM Technologies(RCMT) - 2020 Q2 - Earnings Call Transcript
2020-08-11 18:10
RCM Technologies, Inc. (NASDAQ:RCMT) Q2 2020 Earnings Conference Call August 11, 2020 11:00 AM ET Company Participants Brad Vizi - Executive Chairman Kevin Miller - CFO Conference Call Participants Bill Sutherland - The Benchmark Company LLC Brad Vizi Good morning, everyone. This is Brad Vizi, Executive Chairman of RCM Technologies. Welcome to the RCM Technologies 2020 Second Quarter Earnings Call. I'm joined today by Kevin Miller, our Chief Financial Officer. Kevin will begin with a legal disclaimer, and t ...
RCM Technologies(RCMT) - 2020 Q1 - Earnings Call Transcript
2020-05-12 22:13
RCM Technologies, Inc. (NASDAQ:RCMT) Q1 2020 Earnings Conference Call May 12, 2020 11:00 AM ET Company Participants Bradley Vizi - Executive Chairman Kevin Miller - Chief Financial Officer Conference Call Participants Bill Sutherland - The Benchmark Company LLC Alex Rygiel - B. Riley FBR, Inc Bradley Vizi Good morning, everyone. This is Brad Vizi, Executive Chairman of RCM Technologies. Welcome to the RCM Technologies 2020 First Quarter Earnings Call. IÂ'm joined today by Kevin Miller, our Chief Financial O ...
RCM Technologies(RCMT) - 2019 Q2 - Earnings Call Transcript
2019-08-12 21:13
Financial Data and Key Metrics Changes - RCM Technologies reported a second quarter revenue of $23.4 million in the specialty health care staffing group, a 3% increase compared to the same period in 2018 [4] - Engineering segment revenue declined by 14% year-over-year to $18.6 million [6] - Information technology group revenue increased by 20% year-over-year to $8.7 million [8] Business Line Data and Key Metrics Changes - Specialty health care staffing achieved a record revenue, with a 7% increase in revenue per school day compared to the first quarter of 2019 and a 17% increase compared to the second quarter of 2018 [4] - Engineering segment is expected to finish the year strong despite current softness, with new contracts anticipated to boost performance in 2020 [6][7] - IT group demonstrated strong growth due to a significant transformation in sales and management personnel, resulting in a 20% revenue increase [8] Market Data and Key Metrics Changes - The company is seeing increased demand in the life sciences space within the IT business, indicating a broader market opportunity [22] - The engineering segment is experiencing a pipeline of significant EPC opportunities, although the exact revenue guidance remains uncertain [16] Company Strategy and Development Direction - RCM Technologies is focused on enhancing its engineering business and positioning it for sustainable long-term results despite current revenue softness [7] - The company is investing in training and recruiting RBTs to capitalize on the new contract with the Hawaii Department of Education, which has an annual cap of $40 million [12][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of the company amid global uncertainties, highlighting the stable drivers of each business unit [3] - The company anticipates a gradual build-up in revenue from the new RBT contract, with more significant impacts expected in the fourth quarter and into 2020 [29] Other Important Information - The engineering segment's gross margin improved to 28%, attributed to better utilization and a shift away from lower-margin work [18][19] - The company is focused on reducing days sales outstanding (DSOs) and paying down debt, with a significant cash influx expected from an ongoing arbitration [32][35] Q&A Session Summary Question: Is there any improvement in permanent placements in healthcare? - Management noted no meaningful change in permanent placements, but remains encouraged by the team [10] Question: What is the outlook for the Hawaii contract? - The contract has a maximum annual value of $40 million, but the actual spending will depend on the number of RBTs that can be trained [25][27] Question: How is the engineering gross margin performing? - The gross margin of 28% is expected to be a typical target moving forward, with improvements due to better project management [18][19] Question: What is the expected revenue timeline for new engineering projects? - Revenue from the cannabis project is expected to be recognized by the end of the year, while the calcium chloride project may start generating revenue in early 2020 [20][21] Question: How is the IT business performing in terms of market demand? - The IT business is experiencing strong growth, particularly in life sciences, with opportunities for market share expansion [22] Question: What is the status of accounts receivables and debt reduction? - Management expressed disappointment in the progress of reducing receivables but expects positive cash flow in the upcoming quarters [32][35]
RCM Technologies(RCMT) - 2019 Q1 - Earnings Call Transcript
2019-05-11 03:48
RCM Technologies, Inc. (NASDAQ:RCMT) Q1 2019 Earnings Conference Call May 9, 2019 10:00 AM ET Company Participants Bradley Vizi - Executive Chairman Kevin Miller - CFO Conference Call Participants William Sutherland - The Benchmark Company Daniel Drawbaugh - B. Riley FBR Operator Good morning and welcome to the RCM Technologies, Inc. earnings conference call. Your host, Bradley, you may now begin. Bradley Vizi Good morning, everyone. This is Bradley Vizi, Executive Chairman of RCM Technologies. Welcome to t ...
RCM Technologies(RCMT) - 2018 Q4 - Earnings Call Transcript
2019-03-07 20:48
Financial Data and Key Metrics Changes - The fiscal 2018 adjusted EBITDA was $8.9 million, representing a growth of approximately 12% compared to fiscal 2017 [4] - The company reported a revenue of $23.1 million in Q4 2018, which is a 4.3% increase from Q4 2017 [5] - Fiscal 2018 revenue reached $83.7 million, exceeding fiscal 2017 by 17% [5] Business Line Data and Key Metrics Changes - The Specialty Healthcare Staffing Group achieved a record revenue of $23.1 million in Q4 2018, driven by school contracts which generated $16.2 million in Q4 2018, up from $14.7 million in Q4 2017 [5][6] - Revenue from school contracts for fiscal 2018 was $55.1 million, a growth of 36% from $40.5 million in the prior year [6] - The Locum Tenens business generated $1.5 million in revenue for 2018, up from $120,000 in 2017, while the HIM group saw revenue increase to $4.6 million from $3.9 million [7] - The permanent placement business underperformed, with fiscal 2018 revenue of approximately $1.5 million compared to $2.3 million in 2017 [7] Market Data and Key Metrics Changes - The engineering segment rebounded in Q4 2018 with revenue of $23.6 million, compared to $19.4 million in Q3 2018 and $21.2 million in Q4 2017 [10] - The information technology group reported revenue of $8.5 million in Q4 2018, the highest since Q2 2017, reflecting an 18% growth when accounting for divested units [15][16] Company Strategy and Development Direction - The company aims to continue investing in business development resources to enhance strategic client relationships and enter new geographic markets [13][14] - There is a focus on sustainable growth in engineering and monetizing core capabilities, with expectations for a strong second half of 2019 and an even better 2020 [15][18] - The company plans to prioritize debt repayment and seek low-risk acquisitions to support growth strategies [39][41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for strong performance in fiscal 2019, despite potential softness in Q1 due to project timing and strong comparables from Q1 2018 [18] - The company anticipates improvements in gross margins and operating performance in 2019, particularly in healthcare and engineering [9][18] Other Important Information - The company expects to see a retroactive bill rate increase in New York City to address minimum wage increases, which should positively impact gross margins [9] - The Days Sales Outstanding (DSO) improved to approximately 86.2 days at year-end, down from 99.8 days in Q3 2018, with expectations for further improvement [33] Q&A Session Summary Question: How is the year expected to start? - Management expects healthcare to perform well, some softness in engineering, and decent revenues in IT, with payroll tax increases impacting margins [21][24] Question: Performance of Thermal Kinetics? - Thermal Kinetics contributed about $2.58 million in revenues in Q4 with a gross margin of roughly 27%, but their performance can be lumpy due to project timing [25] Question: Insights on Canadian Power Systems and Arrow Energy Services? - Weakness was noted in aerospace and power systems, but strong performance is expected from energy services and process industrial units [27] Question: Growth trajectory in healthcare? - While top-line growth in healthcare may not match 2018 levels, increases in bill rates and headcount are expected to drive gross profit growth [31][32] Question: DSO improvement? - DSO improved to 86.2 days, with expectations to maintain DSOs in the 80s, potentially reaching the high 70s after resolving arbitration issues [33][36] Question: Capital plans and debt management? - The primary focus is on paying down debt, with plans for strategic acquisitions once debt levels are more aligned with targets [39][41]