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RCM Technologies Inc (RCMT) Q4 2024 Earnings Call Highlights: Navigating Challenges with ...

In This Article:

  • Consolidated Gross Profit (Q4 2024): $21.6 million, flat compared to Q4 2023.

  • Consolidated Gross Profit (Fiscal 2024): $79.8 million, up from $76.7 million in Fiscal 2023.

  • Adjusted EBITDA (Q4 2024): $6.3 million, down from $8.9 million in Q4 2023.

  • Adjusted EBITDA (Fiscal 2024): $25.9 million, compared to $26.6 million in Fiscal 2023.

  • Adjusted EPS (Fiscal 2024): $2.03, compared to $2.04 in Fiscal 2023.

  • Engineering Gross Profit (Q4 2024): $5.2 million, down from $6.1 million in Q4 2023.

  • Engineering Gross Margin (Q4 2024): 19.7%, compared to 27.0% in Q4 2023.

  • IT, Life Sciences, and Data Solutions Gross Profit (Q4 2024): $3.9 million, down from $4.5 million in Q4 2023.

  • IT, Life Sciences, and Data Solutions Gross Margin (Q4 2024): 40.0%, up from 38.7% in Q4 2023.

  • Healthcare Gross Profit (Q4 2024): $12.5 million, up from $11.0 million in Q4 2023.

  • Healthcare Gross Margin (Q4 2024): 30.0%, compared to 29.8% in Q4 2023.

  • School Revenue (Q4 2024): $34.9 million, up from $29.8 million in Q4 2023.

  • Non-School Revenue (Q4 2024): $6.2 million, down from $6.9 million in Q4 2023.

  • Days Sales Outstanding (DSO) (Q4 2024): Reduced to 92 from 114 in Q3 2023.

Release Date: March 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • RCM Technologies Inc (NASDAQ:RCMT) demonstrated strong topline momentum with strategic initiatives gaining traction.

  • The company reported a resumption of growth in hours and increasing activity across most business units despite macroeconomic uncertainties.

  • RCM Healthcare closed 2024 on a high note with growth in hours and a robust pipeline of new school districts and clients.

  • The aerospace and defense group experienced significant growth, increasing headcount by 20% in 2024 and realizing a healthy increase in EBITDA.

  • RCM Technologies Inc (NASDAQ:RCMT) secured multi-year renewals for managed service engagements, demonstrating client loyalty and consistent quality delivery.

Negative Points

  • Profitability in Q4 was disappointing due to discrete items that materially impacted the quarter.

  • A significant industrial process equipment order was abruptly canceled, causing a reduction in gross profit.

  • The technical publications group experienced significant rework on a large project, impacting revenue and profit.

  • The company's self-insured medical plan had abnormally high costs, increasing SG&A expenses.

  • A class action lawsuit settlement regarding California wages added unexpected legal and settlement costs.