RCM Technologies, Inc. Announces 2012 Fourth Quarter and Year-End Results

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Wednesday, February 20th 2013
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PENNSAUKEN, N.J., Feb. 20, 2013 (GLOBE NEWSWIRE) -- RCM Technologies, Inc. (Nasdaq:RCMT) today announced financial results for the thirteen and fifty-two week periods ended December 29, 2012.

The Company announced revenues of $37.0 million for the thirteen week period ended December 29, 2012, increased from $35.0 million for the thirteen week period ended December 31, 2011 (comparable prior year period). The Company had operating income of $1.3 million for the thirteen week period ended December 29, 2012 as compared to $2.2 million for the comparable prior year period. Net income for the thirteen week period ended December 29, 2012 was $1.0 million, or $0.09 per diluted share, as compared to net income of $1.1 million, or $0.09 per diluted share, for the comparable prior year period.

The Company announced revenues of $145.8 million for the fifty-two week period ended December 29, 2012, increased from $143.8 million for the fifty-two week period ended December 31, 2011 (comparable prior year period). The Company had operating income of $5.2 million for the fifty-two week period ended December 29, 2012 as compared to $7.0 million for the comparable prior year period. Net income for the fifty-two week period ended December 29, 2012 was $3.2 million, or $0.26 per diluted share, as compared to net income of $4.3 million, or $0.33 per diluted share, for the comparable prior year period.

On December 27, 2012, the Company paid to stockholders of record on December 20, 2012 a one-time special cash dividend of $1.00 per share of common stock, for a total of approximately $12.3 million. Approximately 14.5% of the one-time special dividend was treated as an ordinary taxable dividend and the approximate balance of 85.5% was treated as a return of capital for recipients. The Company also accrued $1.00 per share on 350,000 unvested restricted stock units. 

The Company announced that during the fifty-two week period ended December 29, 2012, the Company repurchased 866,070 shares of its common stock under its existing share repurchase plan for an aggregate cost of $4.7 million at an average purchase price of $5.43 per share.  The Company's Board of Directors approved a share repurchase plan of up to $7.5 million of the Company's outstanding shares of common stock in February 2010, and subsequently extended the plan through February 2013.  As of January 4, 2013, the Company had completed the plan by purchasing a total of 1,473,306 shares under the plan for an aggregate cost of $7.5 million at an average purchase price of $5.09 per share.

Leon Kopyt, Chairman and CEO of RCM, commented: "Given the significant dislocation caused by Superstorm Sandy in several of the geographic markets we serve, we are pleased with our fourth quarter results.  We estimate that we lost close to $1 million in revenues in the aggregate from our Information Technology and Specialty Health Care segments as a result of the storm.  Looking forward, we are excited about 2013 and believe all three of our segments will show improved operating income in fiscal 2013 as compared to fiscal 2012. 

"With the fourth quarter's special one-time dividend, we demonstrated our continuing commitment to taking swift and decisive action to deliver value to our shareholders without compromising our strong balance sheet, financial flexibility and strategic growth trajectory, or our ability to continue investing in our business. We remain committed to continuing to explore further actions to enhance shareholder value. We have returned close to $20 million in capital to our shareholders over the past several years as we exhausted our $7.5 million repurchase pool in early January 2013 and issued a $12.3 million cash dividend in late December 2012.  We are excited that despite returning approximately $12.3 million to our shareholders through this dividend, our market capitalization as of February 19, 2013 of $69.2 million is at virtually the identical level it was just before we announced the dividend."

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