Research Reports

Key takeaways

Revenue was $319.4M, driven by the Company’s school clients, while a decrease in revenue from non-school clients offset part of that growth.

Gross profit was $87.9M, and gross margin was 27.5%, with the decrease primarily due to a change in mix associated with EPC project revenue from the Energy Services group and Aerospace revenue.

Operating income was $25.1M, increasing due to higher gross profit but partially offset by an increase in selling, general and administrative (SGA) expense.

Net cash provided by operating activities was $19.0M, and free cash flow was $17.4M after $1.6M in capital expenditures, supporting working capital needs.

Diluted EPS was $2.14, and liquidity requirements consist primarily of funds necessary to pay labor costs and other related expenditures.

The Revolving Credit Facility contains covenants that restrict the Company’s ability to borrow in order to pay dividends.

Full analysis

Revenue and Gross Profit

Operating Income and Expense Dynamics

Operating income was $25.1M. This increase reflects the growth in gross profit, offset by an increase in SGA expense. Management confirms this dynamic directly: 'Operating income increased due to the increase in gross profit, offset by an increase in SGA expense.' No specific dollar amount or percentage change for SGA is supported in the authoritative packet, so the explanation remains anchored in causation, not unsupported quantification.

Net Income and Earnings Per Share

Net income was $16.3M, and diluted earnings per share was $2.14. These figures represent the bottom-line outcome after accounting for all recognized expenses and tax provisions under GAAP. The Company does not provide segment-level profitability or non-GAAP adjustments in the authoritative financial packet, so no further disaggregation is warranted or supportable.

RCMT · RCM Technologies, Inc.

Summary

Key takeaways

Full analysis

Revenue and Gross Profit

Operating Income and Expense Dynamics

Net Income and Earnings Per Share

Cash Flow and Capital Allocation

Liquidity and Financial Flexibility