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RCM Technologies Inc. (RCMT-2.65%) has submitted its Form 10-K filing for the fiscal year ended December 28, 2024.
The filing includes financial statements for the year, showing an increase in revenue to $278.4 million from $263.2 million in the previous year. The increase is attributed to growth in the Specialty Health Care and Engineering segments.
Cost of services for the year was $198.6 million, representing 71.3% of revenue, compared to 70.9% in the previous year. This increase in cost ratio is due to higher operating expenses.
The company reported a gross profit of $79.8 million for the year, compared to $76.7 million in the previous year, with the growth driven by increased revenue.
Selling, general, and administrative expenses increased to $56.8 million from $52.2 million, primarily due to investments in sales and recruiting infrastructure.
Net income for the year was $13.3 million, down from $16.8 million in the previous year. The decline is attributed to increased operating expenses and a higher effective tax rate.
Cash provided by operating activities was $6.2 million, while cash used in investing and financing activities was $2.6 million and $4.8 million, respectively.
RCM had a working capital of $43.4 million as of December 28, 2024. The company acknowledges its reliance on its revolving credit facility for liquidity.
The filing also details the company's strategic focus on expanding its service offerings and pursuing selective acquisitions to enhance growth.
RCM does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a material weakness in its internal control over financial reporting in the previous year, which has since been remediated.
RCM continues to focus on delivering business and technology solutions across its three segments: Specialty Health Care, Engineering, and Life Sciences, Data and Solutions.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the RCM Technologies Inc. annual 10-K report dated March 13, 2025. To report an error, please email earnings@qz.com.