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 ...

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, 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, 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 ...

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, 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 ...