RCM Technologies(US:RCMT)2022-05-02 17:11Financial 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]