NASDAQ$RCMT

RCM Technologies Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

RCM Technologies announced first-quarter results with a decrease in revenue and net income compared to the same period last year.

RCM Technologies reported a decrease in revenue and net income for the first quarter of 2023. Revenue decreased by 18.1% to $67.1 million, and net income decreased to $3.8 million, or $0.41 per diluted share. The company experienced slower activity due to project timing and program ramp-up in the Engineering segment.

  • RCM Technologies reported revenue of $67.1 million, an 18.1% decrease compared to the prior-year period.
  • Gross profit was $19.0 million, an 18.8% decrease compared to the prior-year period.
  • GAAP operating income was $5.7 million, compared to $9.0 million for the prior-year period.
  • GAAP net income was $3.8 million, or $0.41 per diluted share, compared to $6.5 million, or $0.62 per diluted share for the prior-year period.

Headline financials

Total Revenue

$67.1M

Previous: $82M-18.1%
EPS (adj)

$0.41

Previous: $0.62-33.9%
Gross Profit Margin

28.3%

Previous: 28.6%-1.0%
Capital Expenditures

-$332K

Previous: -$217K-53.0%
Free Cash Flow

$3.51M

Previous: $6.3M-44.4%
Net Income

$3.84M

Previous: $6.52M-41.2%
Operating Income

$5.71M

Previous: $9.04M-36.8%
Gross Profit

$19M

Previous: $23.4M-18.8%
Cash & Equivalents

$1.83M

Previous: $859K+112.5%
Total Assets

$97.5M

Previous: $84.2M+15.8%
Stock-Based Comp

$496K

Previous: $403K+23.1%

Revenue & EPS history

RCM Technologies · Revenue · Quarterly

$67.1M

Q1 2023-18.1%vs Q1 2022
Beat estimate in 3 of 15 quarters(20%)
ActualEstimate

Revenue by segment

RCM Technologies · $57.6M total across 2 segments · Q1 2023

  • Specialty Healthcare
    $39.1M-25.0%
  • Engineering
    $18.5M-7.1%

Forward guidance

RCM started 2023 slower than expected, primarily due to project timing and program ramp-up in our Engineering segment. The cadence of activity has increased as we move through the first half of the year, allowing us to retain our offensive posture as we continue to build on the foundation carefully laid in each of our business units.

Tailwinds

  • Cadence of activity has increased as we move through the first half of the year.
  • High return capital projects remain abundant.
  • Internal growth projects remain abundant.
  • Bolt-on acquisitions allow us to leverage the RCM platform.
  • Retaining offensive posture as we continue to build on the foundation carefully laid in each of our business units.

Headwinds

  • RCM started 2023 slower than we had expected.
  • Slower activity primarily due to project timing.
  • Slower activity primarily due to program ramp-up in our Engineering segment.
  • Revenue decreased by 18.1% compared to the prior-year period.
  • Gross profit decreased by 18.8% compared to the prior-year period.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.2%

Avg return

Earnings day

+2.6%

Avg return

5 days after

+8.2%

Avg return

30 days after

46%

30 / 65 earnings

Positive

+48.2%

Q1 2022

Best reaction

-25.0%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.6%-23.2%
Q4 2025+4.3%+44.6%+61.5%
Q3 2025-9.3%-13.0%-9.6%
Q2 2025-4.6%+1.1%+14.9%
Q1 2025+0.8%-1.0%-2.1%
Q4 2024-13.5%-10.2%-10.9%
Q3 2024+5.2%+13.5%+5.1%
Q2 2024+6.1%+2.1%+4.6%
Q1 2024+8.8%+12.8%+2.7%
Q4 2023-25.0%-23.5%-32.4%
Q3 2023+14.7%+31.0%+41.7%
Q2 2023-12.3%+3.2%-1.5%
Q1 2023+5.1%+15.2%+39.2%
Q4 2022+0.3%-4.5%-6.3%
Q3 2022-12.3%-19.4%-28.2%
Q2 2022-16.3%-3.2%-6.0%
Q1 2022+48.2%+59.2%+106.2%
Q4 2021+11.9%+42.9%+98.4%
Q3 2021-0.8%+11.6%+30.1%
Q2 2021-3.8%-5.6%+35.7%
Q1 2021+0.6%+3.5%+9.8%
Q3 2020+3.7%+0.7%+22.2%
Q2 2020+2.5%+8.7%-11.3%
Q1 2020-17.9%-23.7%+18.4%
Q4 2019+5.1%+2.6%-47.1%
Q3 2019-4.4%-3.9%-12.7%
Q2 2019+8.1%+1.9%+8.4%
Q1 2019+0.0%-0.8%-14.7%
Q4 2018-8.7%-14.0%-6.2%
Q3 2018-2.1%-6.1%-12.0%
Q2 2018+1.3%+1.1%+0.0%
Q1 2018+0.2%+2.6%+3.0%
Q4 2017-2.8%-3.4%-7.7%
Q3 2017+7.7%+16.0%+16.2%
Q2 2017-1.5%+2.3%-0.4%
Q1 2017-0.6%+3.7%+13.1%
Q4 2016-4.7%-10.2%-17.9%
Q3 2016-10.7%-11.3%+5.3%
Q2 2016-0.9%-3.2%+2.8%
Q1 2016+0.6%
Q4 2015-5.6%
Q3 2015-1.1%
Q2 2015-8.2%
Q1 2015-5.3%
Q4 2014+8.1%
Q3 2014+6.3%
Q2 2014+6.7%
Q1 2014-0.5%
Q4 2013+0.6%
Q3 2013-2.9%
Q2 2013-0.9%
Q1 2013+4.6%
Q4 2012-0.9%
Q3 2012+0.9%
Q2 2012+2.0%
Q1 2012-2.5%
Q4 2011-0.2%
Q3 2011+0.2%
Q3 2010+0.2%
Q2 2010-1.0%
Q2 2011-1.0%
Q1 2011-2.1%
Q4 2010+6.5%
Q1 2010+5.1%
Q4 2009-1.8%

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