•
Sep 26, 2020

RCM Technologies Q3 2020 Earnings Report

RCM Technologies reported a decrease in revenue and experienced a net loss for Q3 2020.

Key Takeaways

RCM Technologies reported a decrease in revenue of 21.6% compared to the same period last year, with revenue totaling $31.6 million. The company experienced a GAAP operating loss of $0.2 million and a net loss of $0.2 million, or $0.02 per diluted share. However, the company generated $6.0 million in cash flow from operations and reduced net debt by 62% since December 2019.

Revenue decreased by 21.6% to $31.6 million compared to the prior year period.

GAAP operating loss was $0.2 million, compared to an operating income of $0.7 million in the prior year period.

GAAP net loss was $0.2 million, or $0.02 per diluted share, compared to a net income of $0.3 million, or $0.03 per diluted share, in the prior year period.

Generated $6.0 million in cash flow from operations and reduced net debt by 62% since December 2019.

Total Revenue
$31.6M
Previous year: $40.3M
-21.6%
EPS
-$0.02
Previous year: $0.03
-166.7%
Gross Profit
$8.82M
Cash and Equivalents
$757K
Free Cash Flow
$5.71M
Total Assets
$62.6M

RCM Technologies

RCM Technologies

RCM Technologies Revenue by Segment

Forward Guidance

RCM Technologies is looking forward to delivering sequentially better results in the fourth quarter of 2020 and will continue to focus on further improvement as they head into 2021.

Positive Outlook

  • Optimizing SGA costs
  • Focusing on gross margin
  • Achieved positive EBITDA in Q3
  • Looking forward to delivering sequentially better results in Q4 2020
  • Focusing on further improvement as they head into 2021

Challenges Ahead

  • Obvious headwinds
  • Revenue decreased by 21.6%
  • GAAP operating loss was $0.2 million
  • GAAP net loss was $0.2 million
  • COVID-19 pandemic impact

Revenue & Expenses

Visualization of income flow from segment revenue to net income