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<SEC-DOCUMENT>0000700841-04-000022.txt : 20041110
<SEC-HEADER>0000700841-04-000022.hdr.sgml : 20041110
<ACCEPTANCE-DATETIME>20041110160942
ACCESSION NUMBER: 0000700841-04-000022
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20041002
ITEM INFORMATION: Results of Operations and Financial Condition
FILED AS OF DATE: 20041110
DATE AS OF CHANGE: 20041110
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: RCM TECHNOLOGIES INC
CENTRAL INDEX KEY: 0000700841
STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-HELP SUPPLY SERVICES [7363]
IRS NUMBER: 951480559
STATE OF INCORPORATION: NV
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: 8-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 001-10245
FILM NUMBER: 041133300
BUSINESS ADDRESS:
STREET 1: 2500 MCCLELLAN AVE STE 350
CITY: PENNSAUKEN
STATE: NJ
ZIP: 08109
BUSINESS PHONE: 6094861777
MAIL ADDRESS:
STREET 1: 2500 MCCLELLAN AVENUE
STREET 2: STE 350
CITY: PENNSAUKEN
STATE: NJ
ZIP: 08109-4613
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8k111004.txt
<DESCRIPTION>FORM 8K PRESS RELEASE 111004
<TEXT>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): November 10, 2004
------------------
RCM Technologies, Inc.
-----------------------------
(Exact Name of Registrant Specified in Charter)
Nevada 1-10245 95-1480559
-------------- ---------------- -----------
(State or Other (Commission File (I.R.S. Employer Identification No.)
Jurisdiction of Number)
Incorporation)
2500 McClellan Avenue, Suite 350
Pennsauken, NJ 08109-4613
- --------------------------------------------- ----------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (856) 486-1777
---------------
<PAGE>
2
Item 12. Results of Operations and Financial Condition
On November 10, 2004, the Registrant issued a press release regarding its
financial results for the forty weeks and thirteen weeks ended October 2, 2004.
A copy of the press release is furnished as Exhibit 99 to this report.
Use of Non-GAAP Financial Information
To supplement its consolidated financial statements presented in accordance with
GAAP, the Registrant uses certain non-GAAP financial measures, including EBITDA
and EBITDA per share, which are derived from results based on GAAP. Non-GAAP
adjustments are provided to enhance the user's overall understanding of the
Registrant's current financial performance and its prospects for the future,
including its results of operations, cash generated and resources available for
strategic opportunities including reinvestment in the business and acquisitions.
In addition, the Registrant has historically reported similar non-GAAP results
to the investment community, and, as a result, believes the inclusion of
non-GAAP presentations provides consistency in its financial reporting. Further,
the non-GAAP results are one of the primary indicators management uses for
planning and forecasting in future periods. The presentation of this additional
information is not meant to be considered in isolation or as a substitute for
results prepared in accordance with accounting principles generally accepted in
the United States.
The information set forth under this "Item 12. Results of Operations and
Financial Condition" (including the exhibit) shall not be deemed to be "filed"
for the purposes of Section 18 of the Securities Exchange Act of 1934, as
amended, nor shall it be incorporated by reference in any filing made by the
Registrant pursuant to the Securities Act of 1933, as amended, other than to the
extent that such filing incorporates by reference any or all of such information
by express reference thereto.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
RCM TECHNOLOGIES, INC.
By: /s/Stanton Remer
Stanton Remer
Chief Financial Officer,
Treasurer, Secretary and Director
(Principal Financial Officer and
Duly Authorized Officer of the Registrant)
Dated: November 10, 2004
<PAGE>
3
EXHIBIT INDEX
Exhibit Number Exhibit Title
99 Press release dated November 10, 2004, furnished
in accordance with Item 12 of this Current
Report on Form 8-K.
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>pressrel111004.txt
<DESCRIPTION>PRESS RELEASE 111004
<TEXT>
RCM Technologies, Inc. Tel: 856.486.1777
Corporate Contacts:
2500 McClellan Avenue Fax: 856.488.8833 Leon Kopyt
Pennsauken, NJ 08109-4613 info@rcmt.com Chairman, President & CEO
www.rcmt.com Brian Delle Donne
Chief Operating Officer
Stanton Remer, CPA
Chief Financial Officer
Kevin D. Miller
Senior Vice President
P R E S S R E L E A S E
RCM TECHNOLOGIES, INC. ANNOUNCES RESULTS FOR FORTY WEEKS
AND THIRTEEN WEEKS ENDED OCTOBER 2, 2004
November 10, 2004 -- RCM Technologies, Inc. (NNM: RCMT) today announced
financial results for the forty weeks and thirteen weeks ended October 2, 2004.
The Company announced revenues of $127.6 million for the forty weeks ended
October 2, 2004, down from $161.1 million for the thirty-nine weeks ended
September 27, 2003 (same period a year ago). Net income for the forty weeks
ended October 2, 2004 was $2.4 million, or $.21 per diluted share, as compared
to net income of $5.1 million, or $.48 per diluted share, for the thirty-nine
weeks ended September 27, 2003. For the forty weeks ended October 2, 2004,
earnings before interest, income taxes, depreciation and amortization, or
EBITDA, was $5.0 million, or $.43 per diluted share, as compared to $9.1
million, or $.84 per diluted share, for the thirty-nine weeks ended September
27, 2003.
Revenues were $40.9 million for the thirteen weeks ended October 2, 2004, down
from $55.2 million for the thirteen weeks ended September 27, 2003 (same period
a year ago). Net income for the thirteen weeks ended October 2, 2004 was
$766,000, or $.07 per diluted share, as compared to net income of $1.8 million,
or $.17 per diluted share, for the thirteen weeks ended September 27, 2003. For
the thirteen weeks ended October 2, 2004, EBITDA was $1.6 million, or $.14 per
diluted share, as compared to $3.2 million, or $.30 per diluted share, for the
thirteen weeks ended September 27, 2003.
Leon Kopyt, Chairman and CEO of RCM, commented: "Revenues for the third quarter
continue to reflect softness in technology spending as well as deliberate
decision-making by our customers. We are continuing to concentrate on marketing
and sales efforts relating to new initiatives and service offerings. Based on
the current level of prospective business opportunities, we hope to begin
building positive momentum next year."
About RCM
RCM Technologies, Inc. is a premier provider of business and technology
solutions designed to enhance and maximize the operational performance of its
customers through the adaptation and deployment of advanced information
technology and engineering services. RCM is an innovative leader in the design,
development and delivery of these solutions to commercial and government sectors
for more than 30 years. RCM's offices are located in major metropolitan centers
throughout North America. Additional information can be found at 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 and 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.
Forward-looking statements include, but are not limited to, those relating to
demand for the Company's services, expected demand for our services and
expectations regarding our revenues, the Company's ability to continue to
utilize goodwill, to continue to increase gross margins, to achieve and manage
growth, to develop and market new applications and services, risks relating to
the acquisition and integration of acquired businesses, demand for new services
and applications, timing of demand for services, industry strength and
competition and general economic factors. Investors are directed to consider
such risks, uncertainties and other factors described in documents filed by the
Company with the Securities and Exchange Commission.
Tables to Follow
<PAGE>
RCM Technologies, Inc.
Consolidated Statements of Income
(Unaudited)
(In Thousands, Except Per Share Amounts)
<TABLE>
<CAPTION>
Thirty-Nine
Forty Weeks Ended Weeks Ended
October 2, 2004 September 27,
2003
------------------ -----------------
<S> <C> <C>
Revenues $127,555 $161,094
Gross profit 30,691 33,743
Selling, general and administrative 25,649 24,810
Depreciation and amortization 905 913
Other expense 357 64
Income before income taxes 3,780 7,956
Income taxes 1,349 2,850
Net earnings $2,431 $5,106
Earnings per share (diluted)
Net income $.21 $.48
</TABLE>
<TABLE>
<CAPTION>
Thirteen Weeks
Thirteen Weeks Ended
Ended September 27,
October 2, 2004 2003
------------------ -----------------
<S> <C> <C>
Revenues $40,933 $55,224
Gross profit 9,964 11,545
Selling, general and administrative 8,322 8,335
Depreciation and amortization 305 310
Other income 116 123
Income before income taxes 1,221 2,777
Income taxes 455 960
Net earnings $766 $1,817
Earnings per share (diluted)
Net income $.07 $.17
</TABLE>
RCM Technologies, Inc.
Summary Consolidated Balance Sheet Data
(Unaudited)
(In Thousands)
<TABLE>
<CAPTION>
October 2, December 27,
2004 2003
---------------- ---------------
<S> <C> <C>
Cash and equivalents $2,916 $5,152
Accounts receivable 37,614 36,269
Working capital 27,297 23,882
Intangible assets 38,024 38,076
Total assets 97,146 99,704
Senior debt 4,900 7,300
Total liabilities 27,525 32,533
Stockholders' equity $69,944 $67,170
</TABLE>
<PAGE>
RCM Technologies, Inc.
Reconciliation of EBITDA to Net Income and Cash Provided by Operating Activities
(Unaudited)
As used in this report, EBITDA means earnings before interest, income
taxes, depreciation and amortization. We believe that EBITDA, as presented,
represents a useful measure of assessing the performance of our operating
activities. EBITDA is also used by our creditors in assessing debt covenant
compliance. We understand that, although security analysts frequently use
EBITDA in the evaluation of companies, it is not necessarily comparable to
other similarly titled captions of other companies due to potential
inconsistencies in the method of calculation. EBITDA is not intended as an
alternative to cash flow provided by operating activities as a measure of
liquidity, as an alternative to net income as an indicator of our operating
performance, nor as an alternative to any other measure of performance in
conformity with generally accepted accounting principles. The following is
a reconciliation of EBITDA to both net income and cash flow provided by
operating activities.
<TABLE>
<CAPTION>
Thirty-Nine
Forty Weeks Ended Weeks Ended
October 2, 2004 September 27,
2003
------------------ -----------------
(In Thousands)
---------------------------------------
<S> <C> <C>
EBITDA $5,037 $9,050
Depreciation and amortization 905 914
Interest expense, net of interest income 352 180
Income taxes 1,349 2,850
------------------ -----------------
Net income $2,431 $5,106
================== =================
Net income $2,431 $5,106
Adjustments to reconcile net income to cash
provided by operating activities:
Depreciation and amortization 905 914
Provision for losses on accounts receivable 63 311
Changes in operating assets and liabilities
Receivables (1,408) (7,012)
Restricted Cash (8,296)
Deferred tax asset 3,069
Prepaid expenses and other current assets 702 1,268
Accounts payable and accrued expenses (3,507) 3,885
Accrued compensation 110 3,205
Payroll and withheld taxes 726 397
Income taxes payable 63 (63)
------------------ -----------------
Cash provided by operating activities $85 $2,784
================== =================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Thirteen Weeks Thirteen Weeks
Ended Ended
October 2, 2004 September 27,
2003
---------------- ------------------
(In Thousands)
-------------------------------------
<S> <C> <C>
EBITDA $1,645 $3,190
Depreciation and amortization 305 310
Interest expense, net of interest income 119 103
Income taxes 455 960
---------------- ------------------
Net income $766 $1,817
================ ==================
Net income $766 $1,817
Adjustments to reconcile net income to cash
provided by operating activities:
Depreciation and amortization 305 310
Provision for losses on accounts receivable 93 90
Changes in operating assets and liabilities
Receivables 172 4,473
Deferred tax asset 609
Restricted Cash (8,296)
Prepaid expenses and other current assets 910 629
Accounts payable and accrued expenses (453) (1,428)
Accrued compensation (802) 1,989
Payroll and withheld taxes 59 91
Income taxes payable 199 226
---------------- ------------------
Cash provided by operating activities $1,249 $510
================ ==================
</TABLE>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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