NASDAQ$RCMT

RCM Technologies Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

RCM Technologies reported an increase in revenue and a shift from operating loss to operating income in Q3 2021.

RCM Technologies announced strong Q3 2021 results, with a 44.1% increase in revenue compared to the same period last year. The company also experienced a significant improvement in profitability, with a GAAP operating income of $3.7 million compared to a GAAP operating loss of $0.2 million in the comparable prior year period.

  • Revenue increased by 44.1% to $45.5 million compared to the same period last year.
  • Gross profit increased by 38.5% to $12.2 million compared to the same period last year.
  • GAAP operating income was $3.7 million, a significant improvement from the $0.2 million operating loss in the comparable prior year period.
  • GAAP net income was $2.8 million, or $0.24 per diluted share, compared to a GAAP net loss of $0.2 million, or ($0.02) per diluted share, in the comparable prior year period.

Headline financials

Total Revenue

$45.5M

Previous: $31.6M+44.1%
EPS (adj)

$0.05

Previous: -$0.02+350.0%
Adjusted EBITDA

$1.88M

Previous: $214K+779.4%
Capital Expenditures

-$492K

Previous: -$400K-23.0%
Free Cash Flow

$2.26M

Previous: -$644K+450.9%
Net Income

$2.75M

Previous: -$244K+1227.9%
Operating Income

$3.73M

Previous: -$158K+2458.9%
Gross Profit

$12.2M

Previous: $8.82M+38.5%
Cash & Equivalents

$2.82M

Previous: $757K+272.5%
Total Assets

$70.3M

Previous: $62.6M+12.4%

Revenue & EPS history

RCM Technologies · Revenue · Quarterly

$45.5M

Q3 2021+44.1%vs Q3 2020
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

RCM Technologies · $36.1M total across 2 segments · Q3 2021

  • Specialty Healthcare
    $19.6M+117.9%
  • Engineering
    $16.5M+9.2%

Forward guidance

The company expects to carry the momentum into the fourth quarter of 2021 and fiscal 2022 and anticipates a healthy uptick in debt during the fourth quarter as they invest in working capital.

Tailwinds

  • Excited to carry the momentum into the fourth quarter of 2021
  • Excited to carry the momentum into fiscal 2022
  • Expect a healthy uptick in debt during the fourth quarter
  • Investing in working capital
  • Ended the third quarter with a favorable net debt position

Historical earnings impact

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

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

-0.2%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+6.3%

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
Q4 2025+4.3%+10.5%
Q1 2026-0.6%-23.2%-11.8%
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 2011-1.0%
Q2 2010-1.0%
Q1 2011-2.1%
Q4 2010+6.5%
Q1 2010+5.1%
Q4 2009-1.8%

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