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RCM Technologies, Inc. Announces Fourth Quarter and Fiscal Year 2024 Results

1. RCM Technologies reported 8.3% revenue increase for Q4 2024. 2. GAAP net income decreased to $2.9 million from $5.3 million year-over-year. 3. Adjusted EBITDA declined to $6.3 million compared to $8.9 million last year. 4. Executive statements highlight focus on strategic initiatives for 2025 growth. 5. The company hosts a conference call on March 13, 2025.

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PENNSAUKEN, N.J., March 12, 2025 (GLOBE NEWSWIRE) -- RCM Technologies, Inc. (NasdaqGM: RCMT), a premier provider of solutions designed to enhance the operational performance of its customers through the deployment of advanced engineering, specialty health care, and information technology services, today announced financial results for the thirteen and fifty-two weeks ended December 28, 2024. RCM Technologies reported revenue of $76.9 million for the thirteen weeks ended December 28, 2024 (the current quarter), an increase of 8.3% compared to $71.0 million for the thirteen weeks ended December 30, 2023 (the comparable prior quarter). Gross profit was $21.6 million for the current quarter and the comparable prior quarter.  The Company experienced GAAP net income of $2.9 million, or $0.37 per diluted share, for the current quarter compared to $5.3 million, or $0.65 per diluted share, for the comparable prior quarter. The Company experienced adjusted EBITDA (non-GAAP) of $6.3 million for the current quarter, as compared to $8.9 million for the comparable prior quarter. The Company experienced $0.49 of adjusted net income per diluted share (non-GAAP) for the current quarter as compared to $0.73 for the comparable prior quarter. RCM Technologies reported revenue of $278.4 million for the fifty-two weeks ended December 28, 2024 (the current year), an increase of 5.8% compared to $263.2 million for the fifty-two weeks ended December 30, 2023 (the comparable prior year). Gross profit was $79.8 million for the current year, a 4.0% increase compared to $76.7 million for the comparable prior year.  The Company experienced GAAP net income of $13.3 million, or $1.68 per diluted share, for the current year compared to $16.8 million, or $1.96 per diluted share, for the comparable prior year. The Company experienced adjusted EBITDA (non-GAAP) of $25.9 million for the current year as compared to $26.6 million for the comparable prior year. The Company experienced $2.03 of adjusted net income per diluted share (non-GAAP) for the current year as compared to $2.04 for the comparable prior year. Bradley Vizi, Executive Chairman of RCM Technologies, commented, “2024 demonstrated substantial progress as many of our strategic initiatives gained traction heading into the new year.” Kevin Miller, Chief Financial Officer of RCM Technologies, commented, “As we look to 2025, we believe we have forged the foundation for increased earnings power.” Conference Call On Thursday, March 13, 2025, RCM Technologies will host a conference call to discuss these results. The call will begin at 11:30 a.m. Eastern Time. The dial-in number is (888) 272-8703. About RCM RCM Technologies (NasdaqGM: RCMT) is a business and technology solutions provider with world-class talent in key market segments. We help design, build, and enable the Industries of Tomorrow, Today. Operating at the intersection of resources, critical infrastructure and modernization of industries, RCM is a provider of services in Health Care, Engineering, Aerospace & Defense, Process & Industrial, Life Sciences and Data & Solutions. www.rcmt.com. The statements contained in this release that are not purely historical are forward-looking statements within the Private Securities Litigation Reform Act of 1995. They are subject to various risks, uncertainties, and other factors that could cause the Company’s actual results, performance, or achievements to differ materially from those expressed or implied by such forward-looking statements. These statements often include words such as “may,” “will,” “expect,” “anticipate,” “continue,” “estimate,” “project,” “intend,” “believe,” “plan,” “seek,” “could,” “can,” “should,” “are confident” or similar expressions. In addition, statements that are not historical should also be considered forward-looking statements. These statements are based on assumptions that we have made in light of our experience in the industry, and our perceptions of historical trends, current conditions, expected future developments, and other factors we believe are appropriate in these circumstances. Forward-looking statements include, but are not limited to, those relating to demand for the Company’s services, expectations regarding our future revenues and other financial results, such as cash flows, our pipeline, and potential project wins, and our expectations for investment and growth in our business. Such statements are based on current expectations that involve several known and unknown risks, uncertainties, and other factors, which may cause actual events to be materially different from those expressed or implied by such forward-looking statements. Risk, uncertainties, and other factors may emerge from time to time that could cause the Company’s actual results to differ from those indicated by the forward-looking statements. Investors are directed to consider such risks, uncertainties, and other factors described in documents filed by the Company with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. The Company assumes no obligation (and expressly disclaims any such obligation) to update any forward-looking statements contained in this release as a result of new information or future events or developments, except as may be required by law. Tables to Follow RCM Technologies, Inc. Condensed Consolidated Statements of Operations (Unaudited) (In Thousands, Except Share and Per Share Amounts) Thirteen Weeks Ended   December 28, 2024 December 30, 2023 Revenue$76,912 $71,028 Cost of services 55,343  49,397 Gross profit 21,569  21,631 Selling, general and administrative 16,025  13,403 Depreciation and amortization of property and equipment 407  276 Amortization of acquired intangible assets -  46 Impairment of intangible assets 547  - Potential stock issuance and financing transactions 64  - Remeasurement of contingent consideration (1,759) - Gain on sale of assets -  (395)Operating income 6,285  7,906 Other expense, net 516  532 Income before income taxes 5,769  7,374 Income tax expense 2,902  2,119 Net income$2,867 $5,255      Diluted net earnings per share data$0.37 $0.65 Diluted weighted average shares outstanding 7,733,142  8,142,184          Fifty-Two Weeks Ended   December 28, 2024 December 30, 2023 Revenue$278,380 $263,237 Cost of services 198,602  186,541 Gross profit 79,778  76,696 Selling, general and administrative 56,787  52,185 Depreciation and amortization of property and equipment 1,419  1,032 Amortization of acquired intangible assets 136  182 Impairment of intangible assets 547  - Potential stock issuance and financing transactions 323  - Remeasurement of contingent consideration (1,759) - Gain on sale of assets -  (395)Operating income 22,325  23,692 Other expense, net 2,135  1,497 Income before income taxes 20,190  22,195 Income tax expense 6,863  5,364 Net income$13,327 $16,831      Diluted net earnings per share data$1.68 $1.96 Diluted weighted average shares outstanding 7,939,381  8,592,572  RCM Technologies, Inc. Supplemental Operating Results on a Non-GAAP Basis (Unaudited) (In Thousands, Except Per Share Amounts)  The following non-GAAP measures, which adjust for the categories of expenses described below, are non-GAAP financial measures.  Our management believes that these non-GAAP financial measures (“Adjusted operating income,” “EBITDA,” “Adjusted EBITDA,” “Adjusted net income” and “Adjusted diluted net earnings per share”) are useful information for investors, shareholders, and other stakeholders of our Company in gauging our results of operations on an ongoing basis and to enhance investors’ overall understanding of our current financial performance and period-to-period comparisons.  Adjusted operating income, EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted diluted net earnings per share should not be considered alternatives to operating income or net income, as the case may be, as an indicator of performance.  In addition, Adjusted operating income, EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted diluted net earnings per share do not take into account changes in certain assets and liabilities and interest and income taxes that can affect cash flows.  We do not intend the presentation of these non-GAAP measures to be considered in isolation or as a substitute for results prepared in accordance with GAAP. These non-GAAP measures should be read-only in conjunction with our consolidated financial statements prepared in accordance with GAAP. The following unaudited table presents the Company’s GAAP operating income and GAAP net income and the corresponding adjustments used to calculate Adjusted operating income, EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted diluted net earnings per share for the thirteen and fifty-two weeks ended December 28, 2024 and December 30, 2023.   Thirteen Weeks Ended Fifty-Two Weeks Ended  December 28,2024 December 30,2023 December 28,2024 December 30,2023          GAAP operating income$6,285 $7,906 $22,325 $23,692 Adjustments        Gain on sale of assets -  -  -  (395)Remeasurement of contingent consideration (1,759) -  (1,759) - Equity compensation 710  641  2,864  2,092 Potential stock issuance and financing transaction 64  -  323  - Impairment of intangible assets 547  -  547  - Adjusted operating income (non-GAAP)$5,847 $8,547 $24,300 $25,389          GAAP net income$2,867 $5,255 $13,327 $16,831 Income tax expense 2,902  2,119  6,863  5,364 Interest expense, net 664  429  2,215  1,399 Depreciation of property and equipment 407  276  1,419  1,032 Amortization of acquired intangible assets -  46  136  182 EBITDA (non-GAAP)$6,840 $8,125 $23,960 $24,808          Adjustments        Gain on sale of assets -  -  -  (395)Remeasurement of contingent consideration (1,759) -  (1,759) - (Gain) loss on foreign currency transactions (148) 103  (80) 98 Equity compensation 710  641  2,864  2,092 Potential stock issuance and financing transaction 64  -  323  - Impairment of intangible assets 547  -  547  - Adjusted EBITDA (non-GAAP)$6,254 $8,869 $25,855 $26,603               RCM Technologies, Inc. Supplemental Operating Results on a Non-GAAP Basis (Continued) (Unaudited) (In Thousands)  Thirteen Weeks Ended Fifty-Two Weeks Ended  December 28,2024 December 30,2023 December 28, 2024 December 30,2023          GAAP net income$2,867 $5,255 $13,327 $16,831 Adjustments        Gain on sale of assets -  -  -  (395)Remeasurement of contingent consideration (1,759) -  (1,759) - (Gain) loss on foreign currency transactions (148) 103  (80) 98 Equity compensation 710  641  2,864  2,092 Potential stock issuance and financing transaction 64  -  323  - Impairment of intangible assets 547  -  547  - Tax impact from normalized rate 1,503  (73) 900  (1,113)Adjusted net income (non-GAAP)$3,784 $5,926 $16,122 $17,513          GAAP diluted net earnings per share$0.37 $0.65 $1.68 $1.96 Adjustments        Gain on sale of assets -  -  - ($0.04)Remeasurement of contingent consideration($0.22) - ($0.22) - (Gain) loss on foreign currency transactions($0.02) 0.01 ($0.01)$0.01 Equity compensation$0.09  0.08 $0.36 $0.24 Potential stock issuance and financing transaction$0.01  - $0.04  - Impairment of intangible assets$0.07  - $0.07  - Tax impact from normalized rate(a)$0.19  (0.01)($0.11)($0.13)Adjusted diluted net earnings per share (non-GAAP)$0.49 $0.73 $2.03 $2.04  (a) Amount reflects an adjustment to income tax expense applied to non-GAAP adjusted consolidated taxable income. The Company used an estimated effective income tax rate of 26.5% for both periods presented, approximating the Company’s federal USA income tax rate plus the tax-affected rate for states and Puerto Rico. RCM Technologies, Inc. Summary of Selected Income Statement Data (Unaudited) (In Thousands)  Thirteen Weeks Ended December 28, 2024  Specialty Health Care Engineering Life Sciences, Data and Solutions Consolidated          Revenue$41,011 $26,279 $9,622 $76,912 Cost of services 28,474  21,098  5,771  55,343 Gross profit$12,537 $5,181 $3,851 $21,569 Gross profit margin 30.6% 19.7% 40.0% 28.0%               Thirteen Weeks Ended December 30, 2023  Specialty Health Care Engineering Life Sciences, Data and Solutions Consolidated          Revenue$36,688 $22,719 $11,621 $71,028 Cost of services 25,686  16,589  7,122  49,397 Gross profit$11,002 $6,130 $4,499 $21,631 Gross profit margin 30.0% 27.0% 38.7% 30.5%               Fifty-Two Weeks Ended December 28, 2024  Specialty Health Care Engineering Life Sciences, Data and Solutions  Consolidated          Revenue$142,679 $96,459 $39,242 $278,380 Cost of services 100,146  73,916  24,540  198,602 Gross profit$42,533 $22,543 $14,702 $79,778 Gross profit margin 29.8% 23.4% 37.5% 28.7%               Fifty-Two Weeks Ended December 30, 2023  Specialty Health Care Engineering Life Sciences, Data and Solutions Consolidated          Revenue$136,241 $84,675 $42,321 $263,237 Cost of services 96,309  64,071  26,161  186,541 Gross profit$39,932 $20,604 $16,160 $76,696 Gross profit margin 29.3% 24.3% 38.2% 29.1%              RCM Technologies, Inc. Condensed Consolidated Balance Sheets (Unaudited) (In Thousands, Except Share Amounts)  December 28, December 30,  2024 2023      Current assets:    Cash and cash equivalents$4,729 $6,284 Accounts receivable, net of provision for credit losses of $1,570 and $1,600 at December 28, 2024 and December 30, 2023, respectively 77,960  70,690 Transit accounts receivable 7,315  8,891 Prepaid expenses and other current assets 7,034  4,637 Total current assets 97,038  90,502      Property and equipment, net 7,368  4,005      Other assets:    Deposits 230  313 Deferred tax assets, foreign 120  55 Goodwill 22,147  22,147 Operating right of use asset 5,174  2,779 Intangible assets, net -  683 Total other assets 27,671  25,977      Total assets$132,077 $120,484  Current liabilities:    Accounts payable and accrued expenses$13,369 $12,454 Transit accounts payable 23,870  31,102 Accrued payroll and related costs 9,929  11,203 Finance lease payable 698  233 Income taxes payable 346  330 Operating right of use liability 1,046  693 Contingent consideration from acquisitions 212  300 Deferred revenue 4,163  1,881 Total current liabilities 53,633  58,196      Deferred income taxes, net, foreign -  187 Deferred income taxes, net, domestic 4,526  1,568 Finance lease payable, net of current position 1,112  - Contingent consideration from acquisitions, net of current position -  1,671 Operating right of use liability, net of current position 4,355  2,268 Borrowings under line of credit 34,967  30,804 Total liabilities 98,593  94,694      Contingencies (note 16) and Commitments (note 18)         Stockholders’ equity:    Preferred stock, $1.00 par value; 5,000,000 shares authorized; no shares issued or outstanding -  - Common stock, $0.05 par value; 40,000,000 shares authorized; 17,838,372 shares issued and 7,602,113 shares outstanding at December 28, 2024 and 17,673,427 shares issued and 7,844,821 shares outstanding at December 30, 2023 890  882 Additional paid-in capital 118,845  116,579 Accumulated other comprehensive loss (2,920) (2,813)Accumulated deficit (5,938) (19,265)Treasury stock, 10,236,259 shares at December 28, 2024 and 9,828,606 shares at December 30, 2023 (77,393) (69,593)Stockholders’ equity 33,484  25,790      Total liabilities and stockholders’ equity$132,077 $120,484         RCM Technologies, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (In Thousands)  Thirteen Weeks Ended   December 28, 2024 December 30, 2023 Net income$2,867 $5,255 Adjustments to reconcile net income to cash used in operating activities 2,693  1,526 Changes in operating assets and liabilities:    Accounts receivable (2,064) (13,880)Prepaid expenses and other current assets (1,917) 678 Net of transit accounts receivable and payable (5,345) (6,660)Accounts payable and accrued expenses 1,861  292 Accrued payroll and related costs (1,698) (3,421)Right of use liabilities (280) (337)Income taxes payable 140  80 Deferred revenue 2,121  1,546 Deposits (15) (145)Total adjustments (4,504) (20,321)Net cash used in operating activities($1,637)($15,066)     Net cash used in investing activities (983) (2,056)Net cash provided by financing activities 4,307  22,706 Effect of exchange rate changes on cash and cash equivalents (114) 46 Decrease in cash and cash equivalents$1,573 $5,630      Common stock repurchase $- ($1,324)         Fifty-Two Weeks Ended   December 28, 2024 December 30, 2023 Net income$13,327 $16,831 Adjustments to reconcile net income to cash used in operating activities 6,893  4,321 Changes in operating assets and liabilities:    Accounts receivable (7,271) (20,576)Prepaid expenses and other current assets (2,392) 3 Net of transit accounts receivable and payable (5,656) 15,724 Accounts payable and accrued expenses 1,101  (1,506)Accrued payroll and related costs (1,265) (1,825)Right of use liabilities (966) (1,353)Income taxes payable 34  242 Deferred revenue 2,282  762 Deposits 83  (141)Total adjustments (7,157) (4,349)Net cash provided by operating activities 6,170  12,482      Net cash used in investing activities (2,572) (2,536)Net cash used in financing activities (4,828) (3,852)Effect of exchange rate changes on cash and cash equivalents (325) (149)(Decrease) increase in cash and cash equivalents($1,555)$5,945      Common stock repurchase($7,800)($25,773)        RCM Technologies, Inc.Tel: 856.356.4500Corporate Contacts:2500 McClellan Avenueinfo@rcmt.comBradley S. ViziPennsauken, NJ 08109www.rcmt.comExecutive Chairman   Kevin D. Miller  Chief Financial Officer   

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