RCM Technologies, Inc. Reports 2009 Fourth Quarter and Year-
End Results
GlobeNewswire
2010-03-10
PENNSAUKEN, N.J., March 10, 2010 (GLOBE NEWSWIRE) -- RCM Technologies,
Inc. (Nasdaq:RCMT) today announced financial results for the fourteen
and fifty-three week periods ended January 2, 2010.
The Company announced revenues of $49.4 million for the fourteen week
period ended January 2, 2010, down from $53.5 million for the thirteen
week period ended December 27, 2008 (comparable prior year period). Net
income for the fourteen week period ended January 2, 2010 was $0.7
million, or $0.05 per diluted share, as compared to a net loss of $39.1
million, or $3.06 per diluted share, for the comparable prior year
period.
The Company had operating income for the fourteen week period ended
January 2, 2010 of $0.9 million, or $0.07 per diluted share, up from a
net operating loss of $42.8 million, or $3.35 per diluted share, for
the comparable prior year period.
The Company announced revenues of $189.4 million for the fifty-three
week period ended January 2, 2010, down from $209.3 million for the
fifty-two week period ended December 27, 2008 (the prior year). Net
income for the fifty-three week period ended January 2, 2010 was $6.9
million, or $0.54 per diluted share, as compared to a net loss of $39.8
million, or $3.15 per diluted share, for the prior year.
The Company had operating income for the fifty-three week period ended
January 2, 2010 of $1.3 million, or $0.10 per diluted share, up from a
net operating loss of $44.1 million, or $3.48 per diluted share, for
the prior year.
The Company recorded legal settlement proceeds of $9.8 million, or $5.8
million net of income tax expense, for the fifty-three week period
ended January 2, 2010. The legal settlement resulted in an increase to
earnings per diluted share of $0.45. During the comparable prior year
period, the Company recorded a $6.1 million bad debt charge, or $3.7
million net of income tax benefit, relating to a note receivable that
the Company wrote off. The loss resulted in a reduction of earnings of
$0.29 per diluted share.
In the fourth quarter of 2008, the Company recorded a non-cash,
before-tax charge of $43.3 million for impairment of goodwill and
intangible assets. This charge is reflected in the net and operating
income for both the comparable prior year period and the full prior
year.
Leon Kopyt, Chairman and CEO of RCM, commented: "Although 2009 was
filled with formidable business challenges, we entered the new year
with positive momentum. We believe that certain factors, including an
aging infrastructure, a new software upgrade cycle and a stabilizing
economy, should drive demand for our Information Technology services.
Additionally, the current strength of our Engineering sales pipeline
suggests continuing respectable performance in 2010.
We expect business activity within our Specialty Health Care group to
remain steady, while our General Support Services group in southern
California is likely to perform at levels that reflect softness in
local market conditions. Although many of our markets are still in
recovery, we are hopeful that incrementally-sustainable improvement in
our results is attainable."
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 35 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, 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.
RCM Technologies, Inc.
Consolidated Statements of Income
(Unaudited)
(In Thousands, Except Per Share Amounts)
Fourteen Thirteen
Week Week
Period Period
Ended Ended
January 2, December
2010 27, 2008
----------- ---------
Revenues $49,370 $53,536
Gross profit 12,474 13,272
Selling, general and
administrative 11,142 12,212
Depreciation and amortization 409 528
Impairment of goodwill and
intangible assets -- 43,315
----------- ---------
Operating income (loss) 923 (42,783)
Other expense (24) (178)
----------- ---------
Income (loss) before income taxes 899 (42,961)
Income tax expense (benefit) 212 (3,821)
----------- ---------
Net income (loss) $687 ($39,140)
=========== =========
Basic and diluted earnings (loss)
per common share $0.05 ($3.06)
=========== =========
Fifty-Three Fifty-Two
Week Week
Period Period
Ended Ended
January 2, December
2010 27, 2008
----------- ---------
Revenues $189,393 $209,277
Gross profit 46,835 53,975
Selling, general and
administrative 43,885 46,568
Bad debt - note receivable -- 6,090
Depreciation and amortization 1,621 2,067
Impairment of goodwill and
intangible assets -- 43,315
----------- ---------
Operating income (loss) 1,329 (44,065)
Other income (expense), net of
legal settlement 30 (298)
Income from legal settlement 9,750 --
----------- ---------
Income (loss) before income taxes 11,109 (44,363)
Income tax expense (benefit) 4,187 (4,558)
----------- ---------
Net income (loss) $6,922 ($39,805)
=========== =========
Basic and diluted earnings (loss)
per common share $0.54 ($3.15)
=========== =========
RCM Technologies, Inc.
Summary Consolidated Balance Sheet Data
(In Thousands)
January December
2, 27,
2010 2008
------- --------
Cash and equivalents $10,942 $815
Accounts receivable, net $46,353 $55,770
Total current assets $60,677 $61,801
Goodwill and intangible
assets $8,724 $6,814
Total assets $78,209 $78,841
Total current liabilities $14,013 $23,490
Senior debt $ -- $4,900
Total liabilities $14,906 $23,490
Stockholders' equity $63,303 $55,351
RCM Technologies, Inc.
Cash Provided by (Used in) Operating Activities
(Unaudited)
(In Thousands)
Fourteen Thirteen
Week Week
Period Period
Ended Ended
January 2, December
2010 27, 2008
----------- ---------
Net income (loss) $688 ($39,140)
Adjustments to reconcile net income
(loss) to cash (used in) provided by
operating activities:
Depreciation and amortization 414 520
Impairment of goodwill and intangible
assets -- 43,315
Loss (gain) on disposal of assets 88 (7)
Stock based compensation expense 82 (45)
Provision for recovery from accounts
receivable (289) (410)
Deferred income tax benefit (824) (4,211)
Changes in operating assets and
liabilities
Accounts receivable (878) 7
Prepaid expenses and other current
assets 657 (706)
Accounts payable and accrued expenses 1,176 1,718
Accrued payroll and related costs (1,347) 1,287
Income taxes payable (32) 836
----------- ---------
Cash (used in) provided by operating
activities ($265) $3,164
=========== =========
Fifty-Three Fifty-Two
Week Week
Period Period
Ended Ended
January 2, December
2010 27, 2008
----------- ---------
Net income (loss) $6,922 ($39,805)
Adjustments to reconcile net income
(loss) to cash provided by (used in)
operating activities:
Depreciation and amortization 1,625 2,056
Impairment of goodwill and intangible
assets -- 43,315
Loss (gain) on disposal of assets 88 (7)
Stock based compensation expense 181 100
Provision for losses on (recovery
from) 115 (641)
accounts receivable
Provision for loss on note receivable -- 6,090
Deferred income tax expense (benefit) 2,047 (5,869)
Changes in operating assets and
liabilities
Accounts receivable 10,173 (10,275)
Prepaid expenses and other current
assets 643 (1,582)
Accounts payable and accrued expenses (1,142) 906
Accrued payroll and related costs (3,386) 1,368
Income taxes payable (875) (463)
----------- ---------
Cash provided by (used in) operating
activities $16,391 ($4,807)
=========== =========
CONTACT: RCM Technologies, Inc.
Leon Kopyt, Chairman, President & CEO
Kevin D. Miller, Chief Financial Officer
856.356.4500
Fax: 856.356.4600
info@rcmt.com
www.rcmt.com
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