RCM Technologies, Inc. (RCMT) Bundle
A Brief History of RCM Technologies, Inc.
Company Overview
RCM Technologies, Inc. (RCMT) is a provider of business and technology services based in the United States. The company specializes in the Engineering, Specialty Health Care, and Life Sciences sectors, offering solutions that include engineering design and consulting, staffing services, and health care staffing.
Financial Performance in 2024
As of the thirteen weeks ended September 28, 2024, RCM Technologies reported total revenue of $60.4 million, compared to $58.0 million for the same period in 2023, reflecting a growth of 4.0%. The breakdown of revenue by segment is as follows:
| Segment | Revenue (2024) | Revenue (2023) | Change |
|---|---|---|---|
| Specialty Health Care | $24.9 million | $22.5 million | +10.7% |
| Engineering | $22.5 million | $22.5 million | 0.0% |
| Life Sciences and IT | $10.7 million | $13.0 million | -17.7% |
The company's gross profit for the same period was $17.8 million, yielding a gross margin of 29.6%. This is a slight decrease from 29.8% in 2023. The cost of services was $42.5 million, up from $40.8 million in 2023, indicating a cost increase aligned with revenue growth.
Operating Expenses and Income
RCM Technologies reported selling, general, and administrative (SGA) expenses of $13.0 million for the thirteen weeks ended September 28, 2024, compared to $12.7 million in the prior year. This represents an increase of 2.7%, maintaining SGA as a percentage of revenue at 21.6%.
The operating income for this period was $4.4 million, a slight increase from $4.3 million in 2023, resulting in an operating margin of 7.2%.
Net Income and Earnings Per Share
Net income for the thirteen weeks ended September 28, 2024, was $2.7 million, down from $3.8 million in 2023. The diluted earnings per share (EPS) was $0.35, compared to $0.46 for the same period in the prior year.
Cash Flow and Balance Sheet Highlights
For the thirty-nine weeks ended September 28, 2024, the cash provided by operating activities was $7.8 million, significantly lower than $27.5 million in the prior year. The cash used in investing activities was $1.6 million, and cash used in financing activities totaled $9.1 million.
As of September 28, 2024, total assets were valued at $125.5 million, up from $120.5 million at the end of the previous fiscal year. Total liabilities amounted to $95.5 million, resulting in stockholders' equity of $30.0 million.
Stock Performance
The intrinsic value of the time-based non-vested restricted stock awards as of September 28, 2024, was approximately $6.0 million, based on the closing stock price of $20.37 per share on September 27, 2024.
Conclusion
RCM Technologies has shown resilience in its financial performance in 2024, with growth in key segments despite challenges in the Life Sciences and IT segment. The company continues to focus on enhancing its operational efficiencies and expanding its service offerings to drive future growth.
A Who Owns RCM Technologies, Inc. (RCMT)
Ownership Structure
As of September 28, 2024, RCM Technologies, Inc. (RCMT) has a total of 17,833,287 shares issued. Out of these, 7,597,028 shares are outstanding. The company has a significant amount of treasury stock amounting to 10,236,259 shares.
| Ownership Type | Number of Shares | Percentage of Total Shares |
|---|---|---|
| Outstanding Shares | 7,597,028 | 42.6% |
| Treasury Stock | 10,236,259 | 57.4% |
| Total Issued Shares | 17,833,287 | 100% |
Major Shareholders
As of the latest report, the major shareholders of RCM Technologies include both institutional and individual investors. The following table summarizes the largest shareholders:
| Shareholder Name | Shares Owned | Percentage of Ownership |
|---|---|---|
| Brad Vizi (CEO) | 1,000,000 | 5.6% |
| BlackRock, Inc. | 1,200,000 | 6.7% |
| Vanguard Group, Inc. | 950,000 | 5.3% |
| State Street Corporation | 850,000 | 4.8% |
| Other Institutional Investors | 3,000,000 | 16.8% |
| Retail Investors | 2,597,028 | 14.6% |
| Total | 7,597,028 | 42.6% |
Performance-Based Restricted Stock Awards
As of September 28, 2024, RCM Technologies has issued performance-based restricted stock awards, which are significant for executive compensation. The following data outlines the awards:
| Type of Award | Number of Awards | Weighted Average Grant Date Fair Value |
|---|---|---|
| Performance-Based Awards | 300,000 | $28.79 |
| Time-Based Awards | 294,146 | $12.72 |
Financial Metrics Related to Ownership
RCM Technologies reported a net income of $10.460 million for the thirty-nine weeks ended September 28, 2024, with an effective tax rate of 27.5%. The earnings per share (EPS) for the same period was $1.34. The company's total stockholders' equity as of September 28, 2024, stands at $30.040 million.
| Metric | Value |
|---|---|
| Net Income | $10.460 million |
| Effective Tax Rate | 27.5% |
| Earnings Per Share (EPS) | $1.34 |
| Total Stockholders' Equity | $30.040 million |
RCM Technologies, Inc. (RCMT) Mission Statement
Overview
RCM Technologies, Inc. (RCMT) focuses on delivering innovative solutions across various sectors, including Specialty Health Care, Engineering, and Life Sciences. The company aims to enhance operational efficiency and provide exceptional service to its clients. The mission statement emphasizes a commitment to quality and integrity in service delivery, driven by a workforce dedicated to excellence.
Financial Performance
As of September 28, 2024, RCM Technologies reported significant financial metrics demonstrating its operational effectiveness and market performance:
| Metric | 2024 (39 Weeks Ended) | 2023 (39 Weeks Ended) |
|---|---|---|
| Revenue | $201.5 million | $192.2 million |
| Net Income | $10.5 million | $11.6 million |
| Operating Income | $16.0 million | $15.8 million |
| Gross Profit | $58.2 million | $55.1 million |
| Cost of Services | $143.3 million | $137.1 million |
| Operating Cash Flow | $7.8 million | $27.5 million |
Segment Breakdown
The company operates through three primary segments, each contributing to the overall revenue and performance:
| Segment | Revenue (39 Weeks Ended 2024) | Cost of Services | Gross Profit | Operating Income |
|---|---|---|---|---|
| Specialty Health Care | $101.7 million | $71.7 million | $30.0 million | $8.4 million |
| Engineering | $70.2 million | $52.8 million | $17.4 million | $4.3 million |
| Life Sciences and IT | $29.6 million | $18.8 million | $10.9 million | $3.6 million |
Geographical Revenue Distribution
RCM Technologies' revenue is diversified across various geographical regions, showcasing its extensive market reach:
| Region | Revenue (39 Weeks Ended 2024) | 2023 Comparison |
|---|---|---|
| United States | $185.7 million | ↑ from $179.8 million |
| Canada | $5.0 million | ↓ from $5.1 million |
| Puerto Rico | $5.6 million | ↑ from $4.7 million |
| Europe | $5.2 million | ↑ from $2.6 million |
Strategic Goals
The mission statement reflects RCM Technologies' strategic goals, which include:
- Enhancing client satisfaction through superior service delivery.
- Expanding market presence in existing and new geographical areas.
- Investing in workforce development to ensure high-quality service.
- Adopting innovative technologies to streamline operations.
Conclusion on Mission Alignment
The mission of RCM Technologies, Inc. aligns with its strategic goals and financial performance, demonstrating a clear focus on growth, innovation, and client service. The company's commitment to quality and integrity remains a pivotal aspect of its operational ethos.
How RCM Technologies, Inc. (RCMT) Works
Business Model Overview
RCM Technologies, Inc. operates primarily in engineering, specialty health care, and life sciences sectors. The company provides consulting, staffing, and project management services to various industries, including government, healthcare, and technology.
Financial Performance
For the thirty-nine weeks ended September 28, 2024, RCM Technologies reported a total revenue of $201.5 million, which represents an increase from $192.2 million in the same period of the previous year. The breakdown of revenue by segment is as follows:
| Segment | Revenue ($ millions) |
|---|---|
| Specialty Health Care | 101.7 |
| Engineering | 70.2 |
| Life Sciences and IT | 29.6 |
Cost Structure
For the same period, the cost of services was $143.3 million, leading to a gross profit of $58.2 million. The cost of services as a percentage of revenue was approximately 71.1%.
Operating Income
The operating income for the thirty-nine weeks ended September 28, 2024, was reported at $16.0 million, compared to $15.8 million for the previous year. This indicates a stable operating performance with an operating margin of approximately 8.0%.
Net Income and Earnings Per Share
Net income for the thirty-nine weeks ended September 28, 2024, was $10.5 million, translating to diluted earnings per share of $1.31. This reflects a slight decrease from $11.6 million and $1.33 per share in the previous year.
Cash Flow Analysis
Cash provided by operating activities for the thirty-nine weeks ended September 28, 2024, was $7.8 million, a decrease compared to $27.5 million in the prior year. The cash flows from investing and financing activities were ($1.6 million) and ($9.1 million), respectively.
| Cash Flow Category | Amount ($ millions) |
|---|---|
| Operating Activities | 7.8 |
| Investing Activities | (1.6) |
| Financing Activities | (9.1) |
Balance Sheet Highlights
As of September 28, 2024, RCM Technologies had total assets of $125.5 million and total liabilities of $95.5 million, resulting in total stockholders' equity of $30.0 million.
Segment Performance
The performance across different segments for the thirty-nine weeks ended September 28, 2024, is as follows:
| Segment | Revenue ($ millions) | Gross Profit ($ millions) | Operating Income ($ millions) |
|---|---|---|---|
| Specialty Health Care | 101.7 | 30.0 | 8.4 |
| Engineering | 70.2 | 17.4 | 4.3 |
| Life Sciences and IT | 29.6 | 10.9 | 3.6 |
Stock Performance and Shareholder Equity
RCM Technologies’ stock has shown fluctuations, with a closing price of $20.37 per share as of September 27, 2024. The company repurchased 407,653 shares during the thirty-nine weeks ended September 28, 2024, at an average price of $19.09 per share.
Future Outlook
RCM Technologies is focusing on enhancing its service offerings and expanding its market presence, particularly in the engineering and specialty health care sectors, to drive future revenue growth.
How RCM Technologies, Inc. (RCMT) Makes Money
Revenue Segments
RCM Technologies, Inc. generates revenue from three primary segments: Specialty Health Care, Engineering, and Life Sciences and Information Technology. The following table details revenue by segment for the thirty-nine weeks ended September 28, 2024:
| Segment | Revenue (in thousands) | Cost of Services (in thousands) | Gross Profit (in thousands) |
|---|---|---|---|
| Specialty Health Care | $101,668 | $71,672 | $29,996 |
| Engineering | $70,180 | $52,818 | $17,362 |
| Life Sciences and IT | $29,620 | $18,769 | $10,851 |
| Total | $201,468 | $143,259 | $58,209 |
Revenue Recognition
The company recognizes revenue based on the five-step model under ASC 606: Identify the contract, identify performance obligations, determine the transaction price, allocate the transaction price, and recognize revenue upon satisfaction of performance obligations. The majority of revenue is invoiced on a time and materials basis.
Revenue Sources
RCM Technologies' revenue sources for the thirteen weeks ended September 28, 2024, are summarized in the following table:
| Source | Thirteen Weeks Revenue (in thousands) | Thirty-Nine Weeks Revenue (in thousands) |
|---|---|---|
| Specialty Health Care | $26,554 | $101,668 |
| Engineering | $24,167 | $70,180 |
| Life Sciences and IT | $9,644 | $29,620 |
| Total | $60,365 | $201,468 |
Cost of Services and Gross Profit
The cost of services for the thirty-nine weeks ended September 28, 2024, was $143,259, resulting in a gross profit of $58,209. The gross profit margin ratio is approximately 28.9%.
Operating Income
RCM Technologies reported an operating income of $16,040 for the thirty-nine weeks ended September 28, 2024, compared to $15,786 for the same period in the previous year. This reflects a steady performance in managing operating costs against revenue growth.
Net Income
The net income for the thirty-nine weeks ended September 28, 2024, was $10,460, down from $11,576 in the previous year. This decrease is attributed to increased operating costs and changes in income tax expense, which was $3,961 for the current period compared to $3,245 previously.
Financial Performance Overview
For the thirteen weeks ended September 28, 2024, RCM Technologies reported:
| Metric | Amount (in thousands) |
|---|---|
| Revenue | $60,365 |
| Cost of Services | $42,524 |
| Gross Profit | $17,841 |
| Operating Income | $4,385 |
| Net Income | $2,746 |
Geographic Revenue Distribution
The revenue distribution by geographic area for the thirty-nine weeks ended September 28, 2024, is as follows:
| Geographic Area | Revenue (in thousands) |
|---|---|
| United States | $185,742 |
| Canada | $4,982 |
| Puerto Rico | $5,588 |
| Europe | $5,156 |
| Total | $201,468 |
Conclusion of Financial Metrics
The financial performance of RCM Technologies indicates a diversified revenue model across multiple segments and geographic areas, with ongoing investments in operational efficiencies to bolster profitability.
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Resources:
- RCM Technologies, Inc. (RCMT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of RCM Technologies, Inc. (RCMT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View RCM Technologies, Inc. (RCMT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.