Nevada
(State or Other
Jurisdiction of
Incorporation)
|
1-10245
(Commission File
Number)
|
95-1480559
(I.R.S. Employer
Identification No.)
|
2500 McClellan Avenue, Suite 350
|
||
Pennsauken, NJ
|
08109-4613
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
[ ]
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).
|
[ ]
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).
|
[ ]
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b)).
|
[ ]
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240-13e-4(c)).
|
Item 2.02.
|
Results of Operations and Financial Condition.
|
Exhibit Number
|
|
99
|
Press Release by the Registrant, dated March 1, 2016, furnished in accordance with Item 2.02 of this Current Report on Form 8-K.
|
By:
|
/s/ Kevin D. Miller
|
Kevin D. Miller
|
|
Chief Financial Officer, Treasurer and
Secretary
|
Exhibit Number
|
Exhibit Title
|
99
|
Press Release by the Registrant, dated March 1, 2016, furnished in accordance with Item 2.02 of this Current Report on Form 8-K.
|
RCM Technologies, Inc.
|
Tel: 856.356.4500
|
Corporate Contacts:
|
2500 McClellan Avenue
|
Fax: 856.356.4600
|
Rocco Campanelli
|
Pennsauken, NJ 08109
|
info@rcmt.com
|
President & CEO
|
www.rcmt.com
|
Kevin D. Miller
|
|
Chief Financial Officer
|
·
|
Our Healthcare segment grew revenues and gross profit by 32.4% and 36.4%, respectively, over fiscal 2014.
|
·
|
Our Information Technology segment essentially had level revenues and gross profit year-over-year despite revenues from its two largest 2014 life sciences clients reducing by $8.8 million in fiscal 2015 as compared to fiscal 2014. The decline in revenues is due to large discrete projects ending in late fiscal 2014 and early fiscal 2015. Normalizing for these two clients, Information Technology segment revenues grew 18.4%.
|
·
|
Our HR Solutions practice in our Information Technology segment and our Energy Services, USA practice in our Engineering segment both had outstanding years.
|
·
|
We acquired Substation Design Services, a company specializing in utility transmission and distribution services, which added several new clients, including Atlantic City Electric, Baltimore Gas and Electric (BGE), Delmarva Power and Potomac Electric Power Company (PEPCO).
|
·
|
We won several exciting new and renewed contracts:
|
o
|
Six year master services agreement to provide engineering services to Bruce Power;
|
o
|
Four year exclusive temporary nurse staffing contract with the Chicago Public School system;
|
o
|
Two year extension of our exclusive temporary nurse staffing contract with the State of Hawaii Board of Education;
|
o
|
Signed numerous master service agreements and contracts in our Energy Services group, including with ABB Canada, American Electric Power (AEP), Alstom Grid Canada, Eversource Energy, Mastercard, Siemens Energy and Gas and Verizon.
|
·
|
We generated $12.5 million in cash flow from operations and paid out $12.5 million in a special cash dividend.
|
Thirteen
|
Fourteen
|
|||
Week Periods Ended
|
||||
January 2,
2016
|
January 3,
2015
|
|||
Revenues
|
$47,407
|
$49,310
|
||
Cost of services
|
33,717
|
35,990
|
||
Gross profit
|
13,690
|
13,320
|
||
Selling, general and administrative
|
10,927
|
10,380
|
||
Depreciation and amortization
|
383
|
318
|
||
Operating income
|
2,380
|
2,622
|
||
Other (expense) income, net
|
(270
|
)
|
102
|
|
Income before income taxes
|
2,110
|
2,724
|
||
Income tax (benefit) expense
|
(866
|
)
|
1,007
|
|
Net income
|
$2,976
|
$1,717
|
||
Diluted net earnings per share data
|
$0.24
|
$0.14
|
Fifty-Two
|
Fifty-Three
|
|||
Week Periods Ended
|
||||
January 2,
2016
|
January 3,
2015
|
|||
Revenues
|
$185,736
|
$193,770
|
||
Cost of services
|
133,851
|
142,077
|
||
Gross profit
|
51,885
|
51,963
|
||
Selling, general and administrative
|
42,567
|
39,972
|
||
Depreciation and amortization
|
1,467
|
1,203
|
||
Operating income
|
7,851
|
10,518
|
||
Other (expense) income, net
|
(697
|
)
|
83
|
|
Income before income taxes
|
7,154
|
10,601
|
||
Income tax expense
|
1,139
|
3,787
|
||
Net income
|
$6,015
|
$6,814
|
||
Diluted net earnings per share data
|
$0.47
|
$0.54
|
January 2,
2016
|
January 3,
2015
|
|||
(Unaudited)
|
||||
Cash and cash equivalents
|
$985
|
$6,411
|
||
Accounts receivable, net
|
$50,946
|
$59,187
|
||
Total current assets
|
$64,529
|
$72,579
|
||
Total assets
|
$81,336
|
$87,273
|
||
Total current liabilities
|
$26,879
|
$23,633
|
||
Borrowing under line of credit
|
$21,000
|
$20,000
|
||
Net debt (borrowings less cash)
|
$20,015
|
$13,589
|
||
Total liabilities
|
$49,133
|
$44,408
|
||
Stockholders’ equity
|
$32,203
|
$42,865
|
||
Treasury stock
|
$10,365
|
$7,529
|
Thirteen
|
Fourteen
|
||||
Week Periods Ended
|
|||||
January 2,
2016
|
January 3,
2015
|
||||
Net income
|
$2,976
|
$1,717
|
|||
Adjustments to reconcile net income to cash
provided by operating activities
|
2,173
|
1,146
|
|||
Changes in operating assets and liabilities
|
|||||
Accounts receivable
|
989
|
711
|
|||
Prepaid expenses and other current assets
|
(2,180
|
)
|
(68
|
)
|
|
Net of transit accounts receivable and payable
|
940
|
2,778
|
|||
Accounts payable and accrued expenses
|
(331
|
)
|
(2,020
|
)
|
|
Accrued payroll and related costs
|
1,012
|
(1,439
|
)
|
||
Income taxes payable
|
(586
|
)
|
157
|
||
Total adjustments
|
2,017
|
1,265
|
|||
Cash provided by operating activities
|
$4,993
|
$2,982
|
|||
Net cash provided by (used in) investing activities
|
297
|
(138
|
)
|
||
Net cash used in financing activities
|
(8,982
|
)
|
(4,848
|
)
|
|
Effect of exchange rate changes
|
135
|
110
|
|||
Decrease in cash and cash equivalents
|
($3,557
|
)
|
($1,894
|
)
|
Fifty-Two
|
Fifty-Three
|
||||
Week Periods Ended
|
|||||
January 2,
2016
|
January 3,
2015
|
||||
Net income
|
$6,015
|
$6,814
|
|||
Adjustments to reconcile net income to cash
provided by operating activities
|
5,377
|
4,724
|
|||
Changes in operating assets and liabilities
|
|||||
Accounts receivable
|
4,261
|
(4,934
|
)
|
||
Prepaid expenses and other current assets
|
(2,225
|
)
|
(494
|
)
|
|
Net of transit accounts receivable and payable
|
(1,323
|
)
|
2,909
|
||
Accounts payable and accrued expenses
|
(80
|
)
|
(2,988
|
)
|
|
Accrued payroll and related costs
|
837
|
(2,321
|
)
|
||
Income taxes payable
|
(381
|
)
|
456
|
||
Total adjustments
|
6,466
|
(2,648
|
)
|
||
Cash provided by operating activities
|
$12,481
|
$4,166
|
|||
Net cash used in investing activities
|
(3,036
|
)
|
(2,161
|
)
|
|
Net cash used in financing activities
|
(14,188
|
)
|
(4,556
|
)
|
|
Effect of exchange rate changes
|
(683
|
)
|
(355
|
)
|
|
Decrease in cash and cash equivalents
|
($5,426
|
)
|
($2,906
|
)
|
Thirteen Week Period Ended January 2, 2016
|
||||||||
Engineering
|
Information
Technology
|
Specialty
Health Care
|
Consolidated
|
|||||
Revenue
|
$18,871
|
$14,200
|
$14,336
|
$47,407
|
||||
Cost of services
|
13,481
|
9,883
|
10,353
|
33,717
|
||||
Gross Profit
|
$5,390
|
$4,317
|
$3,983
|
$13,690
|
||||
Gross Margin
|
28.6
|
%
|
30.4
|
%
|
27.8
|
%
|
28.9
|
%
|
Fourteen Week Period Ended January 3, 2015
|
||||||||
Engineering
|
Information
Technology
|
Specialty
Health Care
|
Consolidated
|
|||||
Revenue
|
$24,113
|
$15,126
|
$10,071
|
$49,310
|
||||
Cost of services
|
18,189
|
10,544
|
7,257
|
35,990
|
||||
Gross Profit
|
$5,924
|
$4,582
|
$2,814
|
$13,320
|
||||
Gross Margin
|
24.6
|
%
|
30.3
|
%
|
27.9
|
%
|
27.0
|
%
|
Fifty-Two Week Period Ended January 2, 2016
|
||||||||
Engineering
|
Information
Technology
|
Specialty
Health Care
|
Consolidated
|
|||||
Revenue
|
$80,713
|
$58,885
|
$46,138
|
$185,736
|
||||
Cost of services
|
60,472
|
40,787
|
32,592
|
133,851
|
||||
Gross Profit
|
20,241
|
18,098
|
13,546
|
51,885
|
||||
Gross Margin
|
25.1
|
%
|
30.7
|
%
|
29.4
|
%
|
27.9
|
%
|
Fifty-Three Week Period Ended January 3, 2015
|
||||||||
Engineering
|
Information
Technology
|
Specialty
Health Care
|
Consolidated
|
|||||
Revenue
|
$99,728
|
$59,202
|
$34,840
|
$193,770
|
||||
Cost of services
|
75,887
|
41,278
|
24,912
|
142,077
|
||||
Gross Profit
|
$23,841
|
$17,924
|
$9,928
|
$51,693
|
||||
Gross Margin
|
23.9
|
%
|
30.3
|
%
|
28.5
|
%
|
26.7
|
%
|