RCM Technologies Inc (RCMT) Reports Mixed Financial Results for Fiscal Year 2023
Quarterly Revenue Growth: RCM Technologies Inc (NASDAQ:RCMT) reported a 1.1% increase in revenue for Q4 2023 compared to the same period last year.
Annual Revenue Decline: The company experienced a 7.5% decrease in annual revenue for the fiscal year 2023.
Net Income: GAAP net income for Q4 rose to $5.3 million, while annual net income decreased to $16.8 million.
Earnings Per Share (EPS): Q4 EPS increased to $0.65, with an annual EPS of $1.96.
Adjusted EBITDA Growth: Adjusted EBITDA for Q4 showed an 18.5% growth rate, reaching $8.9 million.
On March 13, 2024, RCM Technologies Inc (NASDAQ:RCMT), a leading provider of business and technology solutions, released its 8-K filing, disclosing its financial results for the fourth quarter and fiscal year ended December 30, 2023. The company operates in three segments: Engineering, Information Technology, and Specialty Health Care Services, with the latter being the largest revenue contributor. Geographically, the majority of its revenue is derived from the United States, with additional operations in Canada, Puerto Rico, and Serbia.
For the fourth quarter, RCM Technologies reported a slight increase in revenue to $71.0 million, up from $70.2 million in the comparable prior quarter. Gross profit for the quarter also increased by 5.7% to $21.6 million. The company's GAAP operating income for the quarter was $7.9 million, up from $6.8 million in the same quarter of the previous year. Adjusted EBITDA, a non-GAAP measure, grew by 18.5% to $8.9 million.
However, the annual figures tell a different story. The company's revenue for the fiscal year 2023 was $263.2 million, a decrease of 7.5% from the previous year's $284.7 million. Gross profit and GAAP operating income followed the same downward trend, with the latter dropping to $23.7 million from $28.8 million. Despite the decrease in annual revenue and operating income, the company's adjusted net income per diluted share (non-GAAP) increased slightly to $2.11 from $2.08.
Executive Chairman Bradley Vizi expressed satisfaction with the strong finish in 2023, attributing the $8.9 million adjusted EBITDA in Q4 to healthy contributions from all business segments. CFO Kevin Miller highlighted improved cash collections in Q1 as a positive sign for achieving the goal of $20 million in cash flow from operations in fiscal 2024.
The company's balance sheet and cash flow statements were not detailed in the provided excerpts, but these documents are crucial for understanding the company's financial health and liquidity. Key metrics such as cash on hand, total debt, and cash flow from operations would provide investors with a clearer picture of RCM Technologies' financial stability and operational efficiency.
In conclusion, RCM Technologies Inc (NASDAQ:RCMT) demonstrated resilience in its fourth-quarter performance with increased revenue and net income, despite facing a challenging year-over-year comparison. The company's focus on operational performance and strategic growth in its core segments, coupled with a positive outlook for cash flow, positions it to navigate the complexities of the current market environment. Investors and stakeholders will be watching closely to see if the company can maintain its momentum and achieve its operational cash flow goals in the coming fiscal year.
Explore the complete 8-K earnings release (here) from RCM Technologies Inc for further details.
This article first appeared on GuruFocus.
