EX-99 2 pressrel063012.htm PRESS RELEASE 06/30/12 pressrel063012.htm

 
RCM Technologies, Inc.
Tel:  856.356.4500
Corporate Contacts:
2500 McClellan Avenue
Fax: 856.356.4600
Leon Kopyt
Pennsauken, NJ 08109
info@rcmt.com
Chairman, President & CEO
 
www.rcmt.com
Kevin D. Miller
   
Chief Financial Officer

 
P R E S S   R E L E A S E

RCM TECHNOLOGIES, INC. ANNOUNCES RESULTS
FOR THE THIRTEEN AND TWENTY-SIX WEEK PERIODS ENDED JUNE 30, 2012
 
Pennsauken, NJ – August 13, 2012 -- RCM Technologies, Inc. (NASDAQ: RCMT) today announced financial results for the thirteen and twenty-six week periods ended June 30, 2012.
 
The Company announced revenues of $35.8 million for the thirteen week period ended June 30, 2012, decreased from $36.5 million for the thirteen week period ended July 2, 2011 (comparable prior year period).  The Company had operating income of $1.0 million for the thirteen week period ended June 30, 2012 as compared to $2.0 million for the comparable prior year period. Net income for the thirteen week period ended June 30, 2012 was $0.5 million, or $0.04 per diluted share, as compared to net income of $1.2 million, or $0.09 per diluted share, for the comparable prior year period.
 
The Company announced revenues of $74.0 million for the twenty-six week period ended June 30, 2012, decreased from $75.2 million for the twenty-six week period ended July 2, 2011 (comparable prior year period).  The Company had operating income of $2.8 million for the twenty-six week period ended June 30, 2012 as compared to $4.1 million for the comparable prior year period.  Net income for the twenty-six week period ended June 30, 2012 was $1.6 million, or $0.12 per diluted share, as compared to net income of $2.4 million, or $0.18 per diluted share, for the comparable prior year period.    
 
The Company announced that during the twenty-six week period ended June 30, 2012, the Company repurchased 750,014 shares of its common stock under its existing common stock repurchase plan. The Company’s Board of Directors approved a share repurchase plan of up $7.5 million of the Company’s outstanding shares of common stock in February 2010, which plan has been extended through February 2013. Through June 30, 2012 the Company has purchased a total 1,341,800 shares under this plan for an aggregate of $6.8 million, an average price of $5.06 per share.
 
Leon Kopyt, Chairman and CEO of RCM, commented:  “As previously announced, we experienced significant procedural client project delays for a major North American utility client. This resulted in second quarter revenue declines, as compared to last year’s second quarter, of $2.1 million for our Canadian Engineering division and $1.1 million for our Engineering segment.  Revenues other than from our Canadian Engineering division increased by $1.3 million, or 4.3% over such revenues for the 2011 second quarter.  Adjusting for historical seasonality relating to summer school closings for our Specialty Health Care segment in the third quarter and increased summer vacations and holidays for all billable resources in the third and fourth quarters, we anticipate that our second half performance will exceed the first half of fiscal 2012.”
 
 
 
 
 

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 delivery of these solutions to commercial and government sectors.  RCM is also a provider of specialty healthcare services to major health care institutions and educational facilities. 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. These statements often include words such as “may,” “will,” “expect,” “anticipate,” “continue,” “estimate,” “project,” “intend,” “believe,” “plan,” “seek,” “could,” “can,” “should” or similar expressions.  These statements are based on assumptions that we have made in light of our experience in the industry, as well as 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, 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, the ability of the Company to consummate acquisitions as to which it executes non-binding letters of intent, 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

 
 
 

RCM Technologies, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
 (In Thousands, Except Share and Per Share Amounts)
 
 
 
Thirteen Week Periods Ended
  
 
June 30, 2012
  
July 2, 2011
  
Revenues
$35,753
  
$36,514
  
Cost of services
26,097
  
26,054
  
Gross profit
9,656
  
10,460
  
Selling, general and administrative
8,382
  
8,158
  
Depreciation and amortization
259
  
279
  
Operating income
1,015
  
2,023
  
Other income (expense), net
(4
)
24
  
Income before income taxes
1,011
  
2,047
  
Income tax expense
506
  
805
  
Net income
$505
  
$1,242
  
         
Diluted net income per share data
$0.04
  
$0.09
  
 
 
Twenty-Six Week Periods Ended
  
 
June 30, 2012
  
July 2, 2011
  
Revenues
$73,959
  
$75,220
  
Cost of services
54,018
  
53,709
  
Gross profit
19,941
  
21,511
  
Selling, general and administrative
16,613
  
16,842
  
Depreciation and amortization
537
  
588
  
Operating income
2,791
  
4,081
  
Other income (expense), net
29
  
3
  
Income before income taxes
2,820
  
4,084
  
Income tax expense
1,256
  
1,667
  
Net income
$1,564
  
$2,417
  
         
Diluted net income per share data
$0.12
  
$0.18
  
 
 
RCM Technologies, Inc.
Summary Consolidated Selected Balance Sheet Data
 (In Thousands)
 
 
June 30,
2012
  
December 31,
2011
  
Cash and cash equivalents
$29,152
  
$28,417
  
Accounts receivable, net
$39,986
  
$39,031
  
Total current assets
$77,049
  
$73,229
  
Total assets
$89,375
  
$86,178
  
Total current liabilities
$19,747
  
$14,290
  
Total liabilities
$19,931
  
$14,517
  
Treasury stock (1,341,800 and 591,786 shares) at cost
$6,783
  
$2,713
  
Stockholders’ equity
$69,444
  
$71,661
  
Stockholder’s equity less goodwill and intangible assets
$61,967
  
$64,132
  

 
 
 

RCM Technologies, Inc.
Condensed Consolidated Statements of Cash Flows
 (Unaudited)
(In Thousands)
 
 
 
Thirteen Week Periods Ended
  
 
June 30,
2012
  
July 2,
2011
  
Net income
$505
  
$1,242
  
Adjustments to reconcile net income to cash
  provided by operating activities
703
  
642
  
Changes in operating assets and liabilities
        
 
Accounts receivable
(643
)
(1,337
)
 
Transit accounts receivable
(3,406
)
-
  
 
Prepaid expenses and other current assets
(395
)
(157
)
 
Accounts payable and accrued expenses
(625
)
(863
)
 
Transit accounts payable
6,992
  
-
  
 
Accrued payroll and related costs
(1,614
)
(1,348
)
 
Income taxes payable
(108
)
(394
)
Total adjustments
904
  
(3,457
)
Cash provided by (used in) operating activities
$1,409
  
($2,215
)
         
Net cash used in investing activities
(38
)
(60
)
Net cash used in financing activities, principally
   from stock repurchase
(3,745
)
(200
)
Effect of exchange rate changes
48
  
18
  
Increase in cash and cash equivalents
($2,326
)
($2,457
)
 
 
Twenty-Six Week Periods Ended
  
 
June 30,
2012
  
July 2,
2011
  
Net income
$1,564
  
$2,417
  
Adjustments to reconcile net income to cash
  provided by operating activities
1,093
  
870
  
Changes in operating assets and liabilities
        
 
Accounts receivable
(1,324
)
(1,812
)
 
Transit accounts receivable
(1,537
)
-
  
 
Prepaid expenses and other current assets
(592
)
(434
)
 
Accounts payable and accrued expenses
(900
)
(949
)
 
Transit accounts payable
6,050
  
-
  
 
Accrued payroll and related costs
(185
)
(375
)
 
Income taxes payable
493
  
(24
)
Total adjustments
3,098
  
(2,724
)
Cash provided by operating activities
$4,662
  
($307
)
         
Net cash used in investing activities
(185
)
(170
)
Net cash used in financing activities, principally
   from stock repurchase
(3,770
)
(748
)
Effect of exchange rate changes
28
  
9
  
Increase in cash and cash equivalents
$735
  
$1,216