PENNSAUKEN, N.J., March 01, 2017 (GLOBE NEWSWIRE) -- RCM Technologies, Inc. (Nasdaq:RCMT), a premier provider of business and technology solutions designed to enhance and maximize the operational performance of its customers through the adaptation and deployment of advanced engineering, information technology and specialty health care services, today announced financial results for the thirteen and fifty-two week periods ended December 31, 2016.

RCM Technologies reported revenues of $44.2 million for the thirteen week period ended December 31, 2016, a 6.8% decrease as compared to $47.4 million for the thirteen week period ended January 2, 2016 (the comparable prior year period). Gross profit of $12.1 million for the thirteen week period ended December 31, 2016, decreased 11.6% as compared to $13.7 million for the comparable prior year period.  Operating income was $0.3 million for the thirteen week period ended December 31, 2016 as compared to $2.4 million for the comparable prior year period. The Company experienced a net loss of ($0.2) million for the thirteen week period ended December 31, 2016 as compared to net income of $3.0 million for the comparable prior year period. 

RCM Technologies reported revenues of $176.4 million for the fifty-two week period ended December 31, 2016, a 5.0% decrease as compared to $185.7 million for the fifty-two week period ended January 2, 2016 (the comparable prior year period). Gross profit was $47.0 million for the fifty-two week period ended December 31, 2016, a 9.4% decrease as compared to $51.9 million for the comparable prior year period.  Operating income was $4.1 million for the fifty-two week period ended December 31, 2016 as compared to $7.9 million for the comparable prior year period. Net income for the fifty-two week period ended December 31, 2016 was $1.8 million as compared to $6.0 million for the comparable prior year period.

The Company recorded charges of $1.3 million associated with a legal settlement and office closure for the thirteen and fifty-two weeks ended December 31, 2016. The Company settled a wage and hour class action lawsuit in December 2016 and incurred total expenses of $0.7 million, including professional fees. The balance is primarily related to facilities consolidation charges associated with the closure of the Company’s Grand Rapids, Michigan office.

On December 31^st, 2015 the Company sold certain assets of a subsidiary that resold and provided implementation services for QAD software (the “QAD business unit”) as part of the Company’s Information Technology segment. The QAD business unit generated $0.8 million in revenues and $0.3 million in gross profit for the thirteen week period ended January 2, 2016. The QAD business unit generated $3.4 million in revenues and $1.4 million in gross profit for the fifty-two week period ended January 2, 2016.

Rocco Campanelli, President and Chief Executive Officer of RCM Technologies, commented, “We are pleased to finish the year with our best gross margin and second best gross profit quarter of 2016.  I want to highlight the following accomplishments:

• Our Specialty Health Care’s fourth quarter revenues of $16.3 million established a new quarterly record.
• Our Travel Nursing business continued to grow, finishing the fourth quarter with a $12.6 million revenue run-rate. We continue to hire as many qualified recruiters as we can find.
• We ended 2016 with approximately 30 paraprofessionals on staff for our new contract with the Hawaii Department of Education. We are optimistic this will continue to grow in 2017.
• We acquired Allied Health Professionals, a small provider of therapists to Chicago area schools and other health care facilities. This acquisition added an additional 20 therapists and several new clients to our growing Chicago office.
• Our Locum Tenens Division signed several contracts and made their first placement in the fourth quarter. We anticipate this group will generate positive contribution margin by the third quarter of 2017.
• Engineering generated its highest revenue and gross profit quarter of 2016.
• Engineering also achieved its highest gross margin in history, due in large part to several fixed priced contracts that were completed in the fourth quarter.
• Information Technology revenues for the fourth quarter continued to lag prior year results mainly due to shorter assignments and fewer opportunities than in previous years. We continue to make investments in sales and recruiting resources while focusing on increasing our sales activity levels and improving our recruiting processes.  We expect our sales and recruiting re-tooling will have a positive impact sometime in 2017.”

Mr. Campanelli, added, “We believe that the foundation laid in 2016 will set RCM up for significantly improved operational performance in 2017, particularly as we progress throughout the year.”

Kevin Miller, Chief Financial Officer of RCM Technologies, added, “We were pleased to experience strong cash flow in 2016, generating cash flow from operations of $11.6 million, following 2015 cash flow from operations of $12.5 million. We again experienced improvement to our DSOs in the fourth quarter of 2016 and we believe there is still significant progress to be made in 2017. We are very excited about our business as we head into 2017 and expect to see significant growth in annual operating income.”

Conference Call
On Thursday, March 2, 2017, RCM Technologies will host a conference call to discuss these results. The call will begin at 10:00 a.m. Eastern Time.  The dial-in number is (877) 331-7677.

About RCM
RCM Technologies, Inc. is a premier provider of business and technology solutions designed to enhance and maximize the operational performance of its customers through the adaptation and deployment of advanced information technology and engineering services.  RCM is an innovative leader in the delivery of these solutions to commercial and government sectors.  RCM is also a provider of specialty healthcare services to major health care institutions and educational facilities. 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.  These statements often include words such as “may,” “will,” “expect,” “anticipate,” “continue,” “estimate,” “project,” “intend,” “believe,” “plan,” “seek,” “could,” “can,” “should,” “are confident” or similar expressions.  In addition, statements that are not historical should also be considered forward-looking statements. These statements are based on assumptions that we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate in these circumstances.  Forward-looking statements include, but are not limited to, those relating to demand for the Company’s services, expectations regarding our future revenues and other financial results, our pipeline and potential project wins and our expectations for growth in our business. Such statements are based on current expectations that involve a number of known and unknown risks, uncertainties and other factors, which may cause actual events to be materially different from those expressed or implied by such forward-looking statements.  Risk, uncertainties and other factors may emerge from time to time that could cause the Company’s actual results to differ from those indicated by the forward-looking statements. Investors are directed to consider such risks, uncertainties and other factors described in documents filed by the Company with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. The Company assumes no obligation (and expressly disclaims any such obligation) to update any forward-looking statements contained in this release as a result of new information or future events or developments, except as may be required by law. 

RCM Technologies, Inc.
2500 McClellan Avenue
Pennsauken, NJ 08109

Tel:  856.356.4500
Fax: 856.356.4600
info@rcmt.com
www.rcmt.com

Corporate Contacts:
Rocco Campanelli
President & CEO
Kevin D. Miller
Chief Financial Officer