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RCM Technologies, Inc. Announces Third Quarter Results
RCM Technologies, Inc. Announces Third Quarter Results
Key Third Quarter 2023 Results
- Revenue increased 5% to $21.5 million compared to $20.5 million for the third quarter of 2022.
- Net income decreased to $4.2 million, or $0.25 per diluted share, compared to net income of $6.3 million, or $0.38 per diluted share, for the third quarter of 2022.
- Adjusted EBITDA decreased to $6.5 million compared to $8.2 million for the third quarter of 2022.
Management Commentary
“Our third quarter results reflect continued solid execution across our business,” said Robert McGowan, President and CEO of RCM Technologies. “Our team’s focus on operational excellence and customer satisfaction has enabled us to deliver consistent growth and profitability, despite the challenging economic environment. We are particularly pleased with the performance of our core business, which continues to generate strong recurring revenue. Additionally, our recent acquisitions are performing well and contributing to our overall growth. Looking ahead, we are optimistic about the future and believe that we are well-positioned to capitalize on the opportunities ahead.”
Third Quarter 2023 Financial Highlights
Revenue for the third quarter of 2023 increased 5.0% to $21.5 million compared to $20.5 million for the third quarter of 2022. The increase was primarily due to growth in our core business, partially offset by a decline in non-recurring revenue.
Gross profit for the third quarter of 2023 decreased 2.3% to $7.6 million compared to $7.8 million for the third quarter of 2022. The decrease was primarily due to a decrease in non-recurring revenue, partially offset by growth in our core business.
Net income for the third quarter of 2023 decreased 31.7% to $4.2 million, or $0.25 per diluted share, compared to net income of $6.3 million, or $0.38 per diluted share, for the third quarter of 2022. The decrease was primarily due to a decrease in gross profit and higher operating expenses, partially offset by a decrease in income tax expense.
Adjusted EBITDA for the third quarter of 2023 decreased 21.0% to $6.5 million compared to $8.2 million for the third quarter of 2022. The decrease was primarily due to a decrease in gross profit and higher operating expenses.
Outlook
The company expects revenue for the fourth quarter of 2023 to be in the range of $19.0 million to $20.0 million. The company expects net income for the fourth quarter of 2023 to be in the range of $3.1 million to $3.6 million. The company expects adjusted EBITDA for the fourth quarter of 2023 to be in the range of $5.2 million to $5.7 million.
The company believes that it is well-positioned to continue to grow its business and generate strong returns for its shareholders. The company has a strong financial position, a talented team, and a proven track record of success. The company is committed to continuing to invest in its business and to providing its customers with the highest quality products and services.