RCM Technologies, Inc. Tel: 856.486.1777
2500 McClellan Avenue Fax: 856.488.8833
Pennsauken, NJ 08109-4613 info@rcmt.com
www.rcmt.com
Corporate Contacts:
Leon Kopyt
Chairman, President & CEO
Brian Delle Donne
Chief Operating Officer
Stanton Remer, CPA
Chief Financial Officer
Kevin D. Miller
Senior Vice President
P R E S S R E L E A S E
RCM TECHNOLOGIES, INC. ANNOUNCES FIRST QUARTER 2003 RESULTS
April 30, 2003 -- RCM Technologies, Inc. (NNM: RCMT) today announced financial
results for the first quarter ended March 31, 2003.
The Company announced revenues of $50.7 million for the three months ended March
31, 2003, up from $47.8 million for the same period a year ago. Net income for
the three months ended March 31, 2003 was $1.4 million, or $.13 per share, as
compared to income of $2.1 million, or $0.20 per share, for the same period a
year ago. For the three months ended March 31, 2003, earnings before interest,
taxes, depreciation and amortization was $2.6 million, or $.24 per diluted
share, as compared to $4.0 million, or $.37 per diluted share, for the same
period a year ago.
Leon Kopyt, Chairman and CEO of RCM, commented: "Given the current indication of
business trends in the markets we serve and the apparent sentiment of optimism
among our customers, we believe that we have reached the line of equilibrium
between supply and demand in our markets. As economic uncertainties diminish
over the near term, we expect to see corresponding acceleration in demand and
improvement in our business environment."
About RCM
RCM Technologies, Inc., established in 1971, is a premier provider of business
and technology solutions designed to enhance and maximize the 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 services to various industries. 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, 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.
Tables to Follow
RCM Technologies, Inc.
Consolidated Statements of Income
(Unaudited)
Three Months Ended March 31, 2003 and 2002
(In Thousands, Except Per Share Amounts)
2003 2002
------------------ ---------------
Revenues $50,650 $47,774
Gross profit 10,805 12,461
Selling, general and administrative 8,200 8,432
Depreciation and amortization 296 307
Other expense 19 265
Income from continuing operations
before income taxes 2,290 3,457
Income taxes 936 1,303
Income from continuing operations 1,354 2,154
Loss from discontinued operations,
net of taxes 9
Net earnings $1,354 $2,145
Earnings per share (diluted)
Income from continuing operations $.13 $.20
Loss from discontinued operations
Net income $.13 $.20
RCM Technologies, Inc.
Summary Consolidated Balance Sheet Data
(Unaudited)
(In Thousands)
March 31, December 31,
2003 2002
---------------- -----------------
Cash and equivalents $3,126 $2,845
Accounts receivable 38,413 31,754
Working capital 15,727 16,516
Intangible assets 38,102 36,753
Total assets 94,261 89,977
Senior debt 4,300 7,420
Total liabilities 33,314 30,731
Stockholders' equity $60,947 $59,246
RCM Technologies, Inc.
Reconciliation of EBITDA to Net Income and Cash Provided by Operating Activities
(Unaudited)
As used in this report, EBITDA means earnings before interest, income taxes,
depreciation, amortization, extraordinary charges, non-recurring charges and
other non-cash items. We believe that EBITDA, as presented, represents a useful
measure of assessing the performance of our operating activities, as it reflects
our earnings trends without the impact of certain non-cash and unusual charges
or income. EBITDA is also used by our creditors in assessing debt covenant
compliance. We understand that, although security analysts frequently use EBITDA
in the evaluation of companies, it is not necessarily comparable to other
similarly titled captions of other companies due to potential inconsistencies in
the method of calculation. EBITDA is not intended as an alternative to cash flow
provided by operating activities as a measure of liquidity, as an alternative to
net income as an indicator of our operating performance, nor as an alternative
to any other measure of performance in conformity with generally accepted
accounting principles. The following is a reconciliation of EBITDA to both net
income and cash flow provided by operating activities.
Three Months Ended March 31,
(In Thousands)
2003 2002
---------------- ---------------
EBITDA $2,605 $4,029
Depreciation and amortization ( 296) ( 307)
Interest expense, net of interest income ( 19) ( 265)
Income taxes ( 936) ( 1,303)
Loss from discontinued operations ( 9)
---------------- ---------------
Net income $1,354 $2,145
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Net income $1,354 $2,145
Adjustments to reconcile net income to cash
provided by operating activities:
Depreciation and amortization 296 307
Provision for losses on accounts
receivable 16 ( 117)
Changes in operating assets and liabilities
Receivables ( 4,418) 7,858
Deferred tax asset 480 1,116
Prepaid expenses and other current assets 1,043 848
Accounts payable and accrued expenses 3,725 ( 2,367)
Accrued payroll 2,023 1,334
Payroll and withheld taxes 205 ( 43)
Income taxes payable ( 250) ( 2,199)
---------------- ---------------
Cash provided by operating activities $4,474 $8,882
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