RCM Technologies, Inc. (NASDAQ:RCMT) Q1 2023 Earnings Conference Call May 10, 2023 1:00 PM ET

Company Participants

Kevin Miller - Chief Financial Officer

Brad Vizi - Executive Chairman

Conference Call Participants

Alex Rygiel - B. Riley Financial

Bill Sutherland - Benchmark

Kevin Miller

Good morning and thank you for joining us. This is Kevin Miller, Chief Financial Officer of RCM Technologies. I am joined today by Brad Vizi, RCM’s Executive Chairman.

Our presentation in this call will contain forward-looking statements. The information contained in the forward-looking statements is based on our beliefs, estimates, assumptions and information currently available to us, and these matters may materially change in the future. Many of these beliefs, estimates and assumptions are subject to rapid changes. For more information on our forward-looking statements and the risks, uncertainties and other factors to which they are subject, please see the periodic reports on Forms 10-K, 10-Q and 8-K that we file with the SEC as well as our press releases that we issue from time to time.

I will now turn the call over to Brad Vizi, Executive Chairman, to provide an overview of RCM’s operating performance during the quarter.

Brad Vizi

Thanks, Kevin. Good morning, everyone. As discussed in March, after finishing 2022 strong, RCM started 2023 slower than expected, with a sequential decline in run rate, primarily due to project timing and program ramp-up in our Engineering segment. But as anticipated, the cadence of activity increased as we move through the year following us – allowing us to retain our offensive posture as we continue to build on the foundation carefully laid in each of our business units. Also, despite the steady drumbeat of company shedding staff, RCM continues to hire. In my experience, the best time to invest is when others pull back, fortifying our greatest asset, our workforce. If anything, we believe wholesale restructuring in certain parts of the economy’s labor force should provide further secular tailwind to our business model. In addition, increasing employee turnover, technological dynamism and perennial macroeconomic uncertainty further incentivize companies to focus on what they do best and embrace us as a value-added partner with decades of experience in human capital management.

Now I will briefly provide an update on each business unit, starting with Healthcare. Our Specialty Healthcare Division had a solid first quarter, exceeding our fourth quarter performance and demonstrating sequential growth. The increased demand for nurses, allied health and behavioral health professionals significantly contributed to our success. Our dedication to delivering best-in-class healthcare staffing solutions to our clients has been the primary driver of our results. We have attracted new hospital and K-12 school clients, and our existing clients have increased their essential workforce further fueling growth. In addition, we have a robust pipeline of new school districts across the United States. This expansion presents significant growth opportunities, and we are excited about its potential.