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Oct 02, 2021

RCM Technologies Q3 2021 Earnings Report

RCM Technologies reported an increase in revenue and a shift from operating loss to operating income in Q3 2021.

Key Takeaways

RCM Technologies announced strong Q3 2021 results, with a 44.1% increase in revenue compared to the same period last year. The company also experienced a significant improvement in profitability, with a GAAP operating income of $3.7 million compared to a GAAP operating loss of $0.2 million in the comparable prior year period.

Revenue increased by 44.1% to $45.5 million compared to the same period last year.

Gross profit increased by 38.5% to $12.2 million compared to the same period last year.

GAAP operating income was $3.7 million, a significant improvement from the $0.2 million operating loss in the comparable prior year period.

GAAP net income was $2.8 million, or $0.24 per diluted share, compared to a GAAP net loss of $0.2 million, or ($0.02) per diluted share, in the comparable prior year period.

Total Revenue
$45.5M
Previous year: $31.6M
+44.1%
EPS
$0.05
Previous year: -$0.02
-350.0%
Gross Profit
$12.2M
Previous year: $8.82M
+38.5%
Cash and Equivalents
$2.82M
Previous year: $757K
+272.5%
Total Assets
$70.3M
Previous year: $62.6M
+12.4%

RCM Technologies

RCM Technologies

RCM Technologies Revenue by Segment

Forward Guidance

The company expects to carry the momentum into the fourth quarter of 2021 and fiscal 2022 and anticipates a healthy uptick in debt during the fourth quarter as they invest in working capital.

Positive Outlook

  • Excited to carry the momentum into the fourth quarter of 2021
  • Excited to carry the momentum into fiscal 2022
  • Expect a healthy uptick in debt during the fourth quarter
  • Investing in working capital
  • Ended the third quarter with a favorable net debt position

Revenue & Expenses

Visualization of income flow from segment revenue to net income