RCM Technologies, Inc. (NASDAQ:RCMT) Q2 2022 Earnings Conference Call August 11, 2022 11:30 AM ET

Company Participants

Kevin Miller - Chief Financial Officer

Bradley Vizi - Executive Chairman and President

Conference Call Participants

Alex Rygiel - B. Riley

Bill Sutherland - Benchmark

Kevin Miller

Good morning, and thank you for joining us. This is Kevin Miller, Chief Financial Officer at 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 and 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.

Bradley Vizi

Thanks, Kevin. Good morning, everyone. I am pleased to announce a strong performance throughout the company as we continue to execute against our long-term strategy. I have always believed that combining leading talent and technology with secular growth markets and excellent capital allocation would lead to superior long-term returns. Furthermore, I believe a virtuous cycle has emerged where the success of RCM as a platform can be leveraged to attract top talent and investment opportunities in a talent and return-starved environment.

Specifically, many of the participants in the workforce today, especially those with highly specialized skill sets, are passive participants. Often, these individuals are not looking for work, but if a particular firm or a colleague calls that the Canada holds in high regard, the candidate will engage with alacrity and join the team.When the company reaches a critical mass, comprising both tangible and intangible assets like the ones described above, economic benefits can increase at a compounding rate. As we look to the rest of this year and beyond, we expect our performance to carry forward as we grow our share in existing markets and scale into new adjacencies.

Turning to our second quarter. Each unit demonstrated solid execution and performed well in our mostly recession-resistant end markets. Our engineering team continued to gain traction on multiple fronts and exceed our financial expectations for the quarter. Our health care services team continues to expand its strategic footprint within the education market and deliver against the backdrop where decades of underinvestment have left the country's social infrastructure in disrepair. Finally, our life sciences and IT group have made demonstrable progress in its journey toward a managed service and solution-driven model.