RCM Technologies, Inc. (NASDAQ:RCMT) Q2 2024 Earnings Conference Call August 8, 2024 1:00 PM ET
Company Participants
Kevin Miller - CFO
Brad Vizi - Executive Chairman
Conference Call Participants
Alex Rygiel - B. Riley Securities
Bill Sutherland - Benchmark
Frank Kelly - Private Investor
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 change.
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 filed 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 second quarter.
Brad Vizi
Thanks, Kevin. Good morning, everyone. Second quarter growth was led by Engineering as project activity continues to ramp, building on the foundation carefully laid over the last several years. More important, Engineering's leadership corroborates a fundamental aspect of the RCM thesis. The success of our company is not predicated on any one division or discipline.
In 2022, performance was propelled by the success of health care. In 2023, Life Sciences data and Solutions were a key pillar to maintaining the company's trajectory, completing the transition to a post-COVID world. And now in 2024, we are witnessing the emergence of a world-class Engineering division with the infrastructure to scale. Five years ago, we presented RCM not as a health care company, not as an IT practice, nor an engineering outfit, but an emerging world-class professional services firm that can compete and win on the global stage. That was the vision then, and this is our reality today.
Also of note, we anticipate continued strong contribution from engineering, along with increased strength in the other 2 divisions in the back half of the year. Now, I will provide a more granular update on the progress of each of our teams, starting with health care. RCM's Healthcare division finished the school year strong. Looking ahead to the 2024 and 2025 school year, we are extremely encouraged about our prospects. We have successfully added many new school districts to our portfolio, several potentially requiring 50 to 75 new providers. While the exact value of these districts is yet to be determined, RCM has a proven track record of entering new districts and quickly becoming the primary vendor.