R C M Technologies Inc (RCMT) 2023 Q2 法說會逐字稿

Welcome to the RCM Technologies Second Quarter Earnings Call. I will now turn the call over to Kevin Miller. You may begin.

歡迎參加 RCM Technologies 第二季財報電話會議。我現在將把電話轉給凱文·米勒。你可以開始了。

Good morning, and thank you for joining us. This is Kevin Miller, Chief Financial Officer of RCM Technologies. I'm 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.

早安，感謝您加入我們。我是凱文‧米勒 (Kevin Miller)，RCM Technologies 財務長。今天 RCM 執行主席 Brad Vizi 也加入了我的行列。我們在本次電話會議中的演示將包含前瞻性陳述。前瞻性陳述中包含的資訊是基於我們的信念、估計、假設和當前可獲得的信息，這些事項將來可能會發生重大變化。其中許多信念、估計和假設都會快速改變。

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 over the call to Brad Vizi, Executive Chairman, to provide an overview of RCM's operating performance during the quarter.

有關我們的前瞻性陳述及其所面臨的風險、不確定性和其他因素的更多信息，請參閱我們向 SEC 提交的 10-K、10-Q 和 8-K 表格定期報告以及我們不時發布的新聞稿。我現在將把電話轉給執行主席 Brad Vizi，概述 RCM 在本季的營運表現。

Thanks, Kevin. Good morning, everyone. Consistent with our prior discussion after starting the year off slow due to project timing and a key client's unexpected program loss impacting the first half, we made the decision to maintain stride in building what we believe to be a highly differentiated platform in the professional service marketplace. Our secular growth markets and strong portfolio of capabilities made a decision to ignore the perpetual drumbeat of economic prognostications an easy one. In fact, as with any economic scare, we knew we would be in a position to take advantage of opportunities to further strengthen the business and enhance long-term returns while others taking a more short-term approach tap the brakes.

謝謝，凱文。大家，早安。與我們先前的討論一致，由於專案時間表和關鍵客戶意外的專案損失影響了上半年，年初進展緩慢，我們決定繼續努力建立我們認為在專業服務市場上高度差異化的平台。我們的長期成長市場和強大的能力組合使我們很容易就做出了忽視經濟預測的永恆鼓聲的決定。事實上，與任何經濟恐慌一樣，我們知道我們將能夠利用機會進一步加強業務並提高長期回報，而其他採取更短期方法的人則會踩剎車。

Since we last spoke, progress has been made across each of our divisions, and I am excited to discuss in more detail, starting with our Healthcare division. RCM's Healthcare division continues to raise the bar in various aspects of the business, our commitment to delivering best-in-class staffing services and solutions has led us to focus on several key areas. First and foremost, our steadfast dedication to improving the delivery of behavioral health care has seen very positive outcomes and growth in new school districts nationwide.

自從我們上次交談以來，我們每個部門都取得了進展，我很高興能從我們的醫療保健部門開始進行更詳細的討論。 RCM 的醫療保健部門不斷提高業務各個方面的標準，我們致力於提供一流的人才服務和解決方案，這使我們能夠專注於幾個關鍵領域。首先也是最重要的是，我們堅定不移地致力於改善行為健康護理的提供，在全國新學區取得了非常積極的成果和成長。

By implementing innovative and evidence-based approaches, we have made significant strides in addressing the behavioral and mental health challenges facing children and their ability to learn and succeed in school. Moreover, our effort to expand our school and health care facility clients have not only broadened our reach, but also strengthened our ties with local communities and providers. These initiatives have bolstered client penetration and allowed us to serve more students and patients in need, making a sustainable impact. We have also invested significantly in technology to enhance the applicant user experience and optimize operational efficiency.

透過實施創新和基於證據的方法，我們在解決兒童面臨的行為和心理健康挑戰以及他們在學校學習和成功的能力方面取得了重大進展。此外，我們擴大學校和醫療保健機構客戶的努力不僅擴大了我們的覆蓋範圍，而且加強了我們與當地社區和提供者的聯繫。這些措施增強了客戶滲透率，使我們能夠為更多有需要的學生和患者提供服務，產生可持續的影響。我們還在技術方面進行了大量投資，以增強申請人的用戶體驗並優化營運效率。

This digital transformation, including the launch of our new app has paved the way for expedited onboarding of service providers and an overall better candidate experience. Furthermore, our reinvigorated branding strategy has solidified our position as a trusted and forward-thinking health care staffing provider setting us apart from the competition and opening new avenues of growth.

這種數位轉型，包括我們新應用程式的推出，為服務提供者的快速入職和整體更好的候選人體驗鋪平了道路。此外，我們重振的品牌策略鞏固了我們作為值得信賴和前瞻性的醫療保健人員配置提供者的地位，使我們在競爭中脫穎而出，並開闢了新的成長途徑。

As we look ahead, we remain committed to our pursuit of excellence and continuous improvement, embracing new technologies and stand attuned to emerging educational and behavioral health care trends will be pivotal in shaping our continued success. With a strong foundation and a dedicated team, we are confident in our ability to navigate challenges and seize new opportunities, driving our business to new heights in the ever-evolving education and health care landscape.

展望未來，我們仍然致力於追求卓越和持續改進，擁抱新技術並適應新興的教育和行為醫療趨勢將是我們持續成功的關鍵。憑藉著堅實的基礎和敬業的團隊，我們對應對挑戰和抓住新機會的能力充滿信心，在不斷發展的教育和醫療保健領域將我們的業務推向新的高度。

On the Life Sciences and IT front, we believe the division has reached a tipping point as we continue to grow our project and managed solutions business. Just 30 months ago, the division has had less than 5% of its business in these areas. In 2023, the number has grown to more than 33% in Q1 and 43% in Q2. With a much improved revenue stream comes a more robust margin profile.

在生命科學和 IT 方面，我們相信，隨著我們繼續發展專案和託管解決方案業務，該部門已經達到了轉折點。就在 30 個月前，該部門在這些領域的業務佔比還不到 5%。到2023年，第一季這一數字將成長至33%以上，第二季將成長至43%以上。隨著收入來源的大幅改善，利潤率也更加強勁。

Again, when analyzing the same sequential quarterly periods in 2023, we improved gross margin by 500 basis points on top of over 10% revenue growth. HCM continues to galvanize partnerships within its core clients. becoming the #1 partner in its flagship offering and securing a long-term contract within the client's second key offering. Our HCM team continues to raise the bar and the rapid growth of our core clients has required increasing levels of support. We think the success of this group is in the early innings as we continue to grow our share within a fast-growing client base.

同樣，在分析 2023 年相同的連續季度時，我們在營收成長超過 10% 的基礎上，將毛利率提高了 500 個基點。 HCM 繼續促進其核心客戶之間的合​​作夥伴關係。成為其旗艦產品的第一大合作夥伴，並在客戶的第二個關鍵產品中獲得長期合約。我們的 HCM 團隊不斷提高標準，核心客戶的快速成長需要越來越多的支援。我們認為，隨著我們在快速成長的客戶群中不斷擴大份額，該團隊的成功才剛剛開始。

Our Life Sciences practice has introduced several new service offerings, including commercial operations, a new ERP practice and a series of target assessments to help clients quickly improve quality processes and data management. Our Life Sciences practice has also secured 3 new managed service clients and continues to strengthen its leadership and sales personnel.

我們的生命科學實踐引入了多種新的服務產品，包括商業營運、新的 ERP 實踐和一系列目標評估，以幫助客戶快速改善品質流程和資料管理。我們的生命科學業務還贏得了 3 個新的託管服務客戶，並繼續加強其領導力和銷售人員。

We continue to be optimistic for the remainder of 2023 and beyond. As mentioned earlier, I believe this group has reached a tipping point where it will serve as a strategic pillar within the RCM portfolio.

我們對 2023 年剩餘時間及以後繼續保持樂觀。如同前面所提到的，我相信該集團已經達到了一個轉捩點，它將成為 RCM 產品組合中的策略支柱。

Energy Services closed Q2 with strong results, seeing continuous growth through the first half of 2023. The team added a significant amount of backlog in Q2 through major contract wins and was selected to be the engineering firm for a large new substation project in the Northeastern United States. This win was made possible by delivering results as promised and being a trusted partner to our major utility clients year after year.

能源服務公司以強勁的業績結束了第二季度，並在2023 年上半年實現了持續增長。該團隊通過贏得重大合同，在第二季度增加了大量積壓訂單，並被選為東北聯合大型新變電站專案的工程公司狀態。這項勝利是透過兌現承諾的成果並年復一年成為我們主要公用事業客戶值得信賴的合作夥伴而實現的。

Across the globe, energy transition is driving investment in new projects to strengthen the grid for the future and RCM is proud to expand its services to support our clients and communities' evolving electricity demands. Our European footprint has been developing well through Q2, and the team is building a strong foundation to serve our growing list of utility clients. The focus on developing a sturdy foundation across all engineering and project management disciplines has enabled energy services to take on more large complex projects to provide our clients with complete turnkey solutions.

在全球範圍內，能源轉型正在推動新項目的投資，以加強未來的電網，RCM 很自豪能夠擴大其服務，以支持我們的客戶和社區不斷變化的電力需求。我們的歐洲業務在第二季度一直發展良好，團隊正在建立堅實的基礎，為我們不斷成長的公用事業客戶提供服務。專注於在所有工程和專案管理學科中建立堅實的基礎，使能源服務能夠承擔更大型的複雜項目，為我們的客戶提供完整的交鑰匙解決方案。

The second half of 2023 is expected to be consistently strong as the team continues to convert opportunities into backlog and expand our client list. Second quarter results in our process and industrial business were again in line with plan. Focus over the past 3 months was on project execution, growing and strengthening relationships. One important increase in the backlog came in the form of additional engineering for critical elements of an advanced ethanol facility to produce sustainable aviation fuel.

隨著團隊繼續將機會轉化為積壓訂單並擴大我們的客戶名單，預計 2023 年下半年將持續強勁。我們的流程和工業業務第二季業績再次符合計劃。過去三個月的重點是專案執行、發展和加強關係。積壓訂單的一項重要增加是為生產可持續航空燃料的先進乙醇設施的關鍵要素進行了額外的工程設計。

We had a noticeable acceleration in pipeline throughout the quarter, stemming from projects with both new and established customers. Aside from the significant revenue potential expected in 2024 this expansion of the sales funnel is strong evidence that our growth and market diversification plans are being realized and strengthening RCM's presence in the global energy transition.

由於與新客戶和老客戶的項目，整個季度我們的管道數量顯著加快。除了 2024 年預期的巨大收入潛力之外，銷售管道的擴大有力地證明了我們的成長和市場多元化計劃正在實現，並加強了 RCM 在全球能源轉型中的地位。

RCM Thermal Kinetics, a key unit within process and industrial continues to advance projects while performing engineering and lab testing for future demonstration and production scale facilities. It was rewarding to see the impact the RCM team is making to the community through the open house of our new 10,000 square foot office and lab, held in July. Many members of local universities, vendors, clients, friends and families joined us to learn from a variety of educational demonstrations.

RCM 熱動力學是製程和工業領域的關鍵部門，它繼續推進項目，同時為未來的示範和生產規模設施進行工程和實驗室測試。透過 7 月舉辦的 10,000 平方英尺新辦公室和實驗室開放日，看到 RCM 團隊對社區的影響是值得的。許多當地大學的成員、供應商、客戶、朋友和家人都加入了我們，從各種教育演示中學習。

These demonstrations in our state-of-the-art lab highlight how our approach can provide clients with higher quality output, saving time and money while derisking projects across the many markets that we serve. The team and company history was also featured by the Local Business Journal, Buffalo Business First.

我們最先進的實驗室中的這些演示凸顯了我們的方法如何為客戶提供更高品質的輸出，節省時間和金錢，同時降低我們服務的許多市場的專案風險。當地商業雜誌《Buffalo Business First》也對團隊和公司歷史進行了專題報導。

Aerospace and Defense is seeing a market recovery in the third quarter. After a key client experienced an unexpected program loss at the end of last year, the Aerospace and Defense team rose to the occasion, accelerating business development activity with new clients and deepening relationships with existing clients. Thus far, in 2023, the division has already added 8 new clients, well on the way to achieving our goal of 12 by the end of 2023.

航空航太和國防市場在第三季出現復甦。去年年底，一個重要客戶經歷了意外的專案損失後，航空航太和國防團隊迎難而上，加快了與新客戶的業務開發活動，並加深了與現有客戶的關係。到目前為止，2023 年該部門已新增 8 家新客戶，預計 2023 年底新增 12 家客戶的目標。

Also of note, we have almost tripled the number of hires across our client base in the second quarter compared to the first quarter of 2023. This expansion includes new clients in defense, specifically sea vessels, new vertical with customers as well as new customers in aerospace component, part manufacturers, assisting them on the production floor and within the aftermarket domain.

另外值得注意的是，與2023 年第一季相比，我們第二季的客戶群招募數量幾乎增加了兩倍。這種擴張包括國防領域的新客戶，特別是海上船舶、新垂直客戶以及國防領域的新客戶。航空航太零件、零件製造商，在生產車間和售後市場領域為他們提供協助。

The expansion of existing clients and new clients with our core expertise and new arenas provides much desired depth and breadth to the organization and strong positions us for 2024. We have also begun to see traction on one of our largest awards from our strongest OEM client across the entire spectrum of engineering resources with potential opportunities spanning into 2026.

透過我們的核心專業知識和新領域擴大現有客戶和新客戶，為我們的組織提供了非常理想的深度和廣度，並為我們在2024 年奠定了有利的地位。我們也開始看到來自我們最強大的OEM 客戶對我們最大的獎項之一的關注。到 2026 年具有潛在機會的全部工程資源。

In addition, we have been awarded a sole-source contract for one of our space clients, but we are providing support from conceptual design through aftermarket services in hybrid and flexible scenarios. We now have a proven track record with our digital conversion expertise and methodology within aftermarket as well as our model-based definition prowess, which now expands across multiple clients throughout the United States.

此外，我們還為我們的一位太空客戶獲得了一份獨家合同，但我們正在混合和靈活的場景中提供從概念設計到售後服務的支援。現在，我們在售後市場的數位轉換專業知識和方法以及基於模型的定義能力方面擁有良好的記錄，現在已擴展到美國各地的多個客戶。

With the addition of our new Senior Vice President, our aftermarket group is now touting [yes] factor, which broadens our reach beyond S1000B publications into S2000M material management, S3000L logistics support analysis, S4000P maintenance and S5000F in-service data feedback. Once the realization of the support we have provided our customers, it was apparent we decided it was time to market the full solution and an offering that we believe is differentiated in the marketplace.

隨著新任高級副總裁的加入，我們的售後市場團隊現在正在宣傳[yes] 因素，這將我們的業務範圍從S1000B 出版物擴展到S2000M 材料管理、S3000L 後勤支援分析、S4000P 維護和S5000F 在役數據回饋.一旦實現了我們為客戶提供的支持，我們顯然決定是時候推銷完整的解決方案和我們認為在市場上具有差異化的產品了。

I believe when we look back on 2023, RCM Aerospace and Defense will serve as a shining example of our culture at work, one of continuous improvement even in the face of adversity, day in and day out. an incessant focus on upgrading the quality of our business to value-accretive growth.

我相信，當我們回顧 2023 年時，RCM 航太與國防將成為我們工作文化的光輝典範，即使面對逆境，日復一日也能不斷進步。不斷專注於提升業務品質以實現增值成長。

Before turning the call to Kevin, who will cover our financial results in more detail, I will take a moment to touch on our progress on the capital allocation front. During the second quarter, we repurchased over 939,000 shares, bringing our year-to-date share repurchase to nearly 1.6 million shares. Our clean balance sheet and high cash generating business model and dedicated culture committed to continuous improvement of our business have allowed us to repurchase approximately 40% of the company over the last 3 years at an average price of $7.50 per share.

在打電話給凱文之前（他將更詳細地介紹我們的財務表現），我將花點時間談談我們在資本配置方面的進展。第二季度，我們回購了超過 939,000 股股票，使年初至今的股票回購數量達到近 160 萬股。我們乾淨的資產負債表、高現金生成業務模式以及致力於持續改進業務的專注文化，使我們能夠在過去 3 年中以每股 7.50 美元的平均價格回購公司約 40% 的股份。

Consistent with our prior commentary, taking into account normal Q3 seasonality, the business continues to strengthen as we move through the year, setting up a healthy double-digit earnings increase in the fourth quarter, a trajectory consistent with our long-term objectives.

與我們先前的評論一致，考慮到第三季度的正常季節性，該業務在全年中繼續增強，在第四季度實現了健康的兩位數盈利增長，這一軌跡與我們的長期目標一致。

Now I will return the call over to Kevin to discuss the Q2 2023 financial results in more detail.

現在我將回電給 Kevin，更詳細地討論 2023 年第二季的財務表現。

Thank you, Brad. Regarding our consolidated results, revenue for the second quarter was $67.0 million. flat with the first quarter of 2023. As we expected, the second quarter decline in health care was offset by sequential increases by Engineering and our Life Sciences and Information Technology segments.

謝謝你，布拉德。關於我們的綜合業績，第二季的營收為 6,700 萬美元。與 2023 年第一季持平。正如我們預期的那樣，醫療保健第二季度的下降被工程、生命科學和資訊技術部門的連續成長所抵消。

The second quarter seasonal decline in health care revenue was entirely due to several of our significant school clients closing in May and all of our school clients closing by late June. We will still see greater seasonal declines in Q3, while we gear up for the 2023, 2024 school year that starts in August and September for various school clients. We're incredibly excited about this upcoming school year. I want to give some limited information on our non-COVID related school business.

第二季醫療保健收入的季節性下降完全是由於我們的一些重要學校客戶在 5 月關閉以及我們所有的學校客戶在 6 月底關閉。我們仍會在第三季看到更大的季節性下降，同時我們為各校客戶於 8 月和 9 月開始的 2023、2024 學年做好準備。我們對即將到來的學年感到非常興奮。我想提供一些有關我們與新冠疫情無關的學校業務的有限資訊。

In fiscal 2022, we had about 60 active school clients with 22 exceeding $100,000 in revenue. That compares to fiscal 2019 when we had only 6 clients over $100,000 in revenue. For fiscal 2023, we expect at least 75 school clients with 30 over $100,000 in revenue. We saw a nice sequential uptick in engineering revenue in Q2 '23, driven mainly by the increase in Energy Services contract wins. We expect our engineering group to see sequential increases throughout the rest of 2023.

2022 財年，我們約有 60 家活躍學校客戶，其中 22 家的收入超過 10 萬美元。相較之下，2019 財年我們只有 6 個收入超過 10 萬美元的客戶。 2023 財年，我們預計至少有 75 家學校客戶，其中 30 家的收入超過 10 萬美元。我們看到 23 年第二季工程收入出現了良好的連續成長，這主要是由於能源服務合約贏得的增加所致。我們預計我們的工程團隊將在 2023 年剩餘時間內實現持續成長。

As Brad discussed, our Life Sciences and Information Technology segment had a nice sequential increase as our managed service offerings continue to drive our growth. Gross margin in the second quarter was 28.0% also flat with the first quarter. We saw outstanding gross margin performance from our Life Sciences and IT segment at 39.4%. While this may be a high watermark we do expect to see gross margins in the upper 30s going forward.

正如布拉德所討論的，隨著我們的託管服務產品繼續推動我們的成長，我們的生命科學和資訊技術部門實現了良好的連續成長。第二季的毛利率為28.0%，也與第一季持平。我們的生命科學和 IT 部門毛利率表現出色，達到 39.4%。雖然這可能是高水位線，但我們確實預計未來毛利率將在 30 左右。

Engineering gross margin saw a small sequential uptick as revenue increased. However, we expect better gross margin performance going forward. We are targeting the upper 20s. Healthcare gross margin performance was off in the second quarter due primarily to June school closings, a mix shift and several discrete adjustments. We also expect better gross margins in health care going forward and target the upper 20s as well.

隨著收入的增加，工程毛利率環比小幅上升。然而，我們預計未來會有更好的毛利率表現。我們的目標是 20 歲以上。第二季醫療保健毛利率表現下降，主要是由於 6 月學校停課、混合轉變和幾次離散調整。我們也預計醫療保健領域的毛利率將進一步提高，目標是 20 多歲。

As we look to the second half of 2023, we expect health care to continue to experience its underlying sequential growth trend. However, due to seasonal school closings, we will see a sequential top line decline in the third quarter as we do every year. We expect the fourth quarter to be our best quarter for 2023. With so many recently awarded school contracts, we are very excited to see the results. We expect both our Engineering and Life Sciences and Information Technology segments to see sequential increases in the third and fourth quarters.

展望 2023 年下半年，我們預期醫療保健將繼續呈現其基本的環比成長趨勢。然而，由於學校季節性停課，我們將看到第三季的收入將像往年一樣連續下降。我們預計第四季度將是 2023 年最好的季度。最近授予瞭如此多的學校合同，我們很高興看到結果。我們預計我們的工程、生命科學和資訊技術部門將在第三和第四季實現連續成長。

While there is always the risk of large projects sliding to the right, we expect a substantial uptick in the fourth quarter for all 3 of our engineering groups. In summary, we believe that Q3 2023 EBITDA will be similar to Q3 2022, and we are lining up for an impressive fourth quarter and a nice run rate heading into 2024. In 2024, we expect to see at least double-digit growth in EBITDA as compared to fiscal 2023. This concludes our prepared remarks.

雖然大型專案向右滑動的風險始終存在，但我們預計所有 3 個工程團隊在第四季都會大幅成長。總而言之，我們認為2023 年第三季EBITDA 將與2022 年第三季相似，我們預計第四季將取得令人印象深刻的成績，並在2024 年之前實現良好的運行率。2024 年，我們預計EBITDA至少將實現兩位數成長與 2023 財年相比。我們準備好的發言到此結束。

At this time, we will open the call for questions.

此時，我們將開放提問。

(Operator Instructions) And it looks like our first question is going to come from Alex Rygiel with B. Riley.

（操作員說明）看起來我們的第一個問題將來自 Alex Rygiel 和 B. Riley。

Gentlemen, very nice quarter. First on the health care business. As it relates to the third quarter, can you help us refine what normal seasonality what you mean by that? Obviously, a little bit difficult to look at that over the last 2, 3 years, given COVID?

先生們，非常好的季度。首先是醫療保健業務。由於它與第三季有關，您能幫助我們完善您所說的正常季節性嗎？顯然，考慮到新冠疫情，回顧過去兩三年的情況有點困難？

Yes. I mean, we typically see a pretty big decline Q2 to Q3. An exact projection is difficult, especially with all the new schools that we have coming on and some of them coming on in August when they typically, most of our school started -- in the past started in September.

是的。我的意思是，我們通常會看到第二季到第三季的大幅下降。準確的預測是很困難的，尤其是我們即將開學的所有新學校，其中一些是在八月開學的，而我們大多數學校通常是在九月開學的。

Okay. And then...

好的。進而...

But just to give you a little finer point, certainly, we'll be under $30 million in Q3. It's tough to give an exact number, but maybe 25% to 29%, 25% to 28% sort of in that range. We'll see where it comes in.

但為了給您更詳細的信息，當然，我們第三季的收入將低於 3000 萬美元。很難給出確切的數字，但可能在 25% 到 29%、25% 到 28% 的範圍內。我們會看看它來自哪裡。

Helpful. And then your margin commentary in that segment would suggest high 20s. Last year, you were in the low 30s in the second half of the year. So is the variance just sort of mix -- or is it something...

有幫助。然後您對該細分市場的利潤率評論將建議為 20 多美元。去年下半年，你還不到30歲。那麼方差只是某種混合——還是…

Yes. We had a confluence of factors in Q2 that I think created gross margin for health care that is not indicative of their actual margin. But I think the way that you should think about the gross margin in health care is we did 28.8% year-to-date. And I think that that's a pretty good number on a go-forward basis. We're always looking to improve the margin. The thing that there's a fair amount of uncertainty around health care just because we have a lot of new contracts, and we never know exactly how they're going to really start with a lot of these new schools.

是的。我們在第二季度遇到了多種因素，我認為這些因素創造了醫療保健的毛利率，但這並不代表其實際利潤率。但我認為，您應該考慮醫療保健領域的毛利率，今年迄今我們的毛利率為 28.8%。我認為從長遠來看，這是一個相當不錯的數字。我們一直在尋求提高利潤率。醫療保健方面存在相當大的不確定性，因為我們有很多新合同，而且我們永遠不知道這些新學校將如何真正開始。

But certainly, I think the 28.8% indicates a pretty good range. I would be surprised if our margins in Q3 and Q4 are in the 28% to 29% percent area. And hopefully, we're pushing up towards the top of that.

但當然，我認為 28.8% 是一個相當不錯的範圍。如果我們第三季和第四季的利潤率在 28% 至 29% 範圍內，我會感到驚訝。希望我們能夠朝著這個目標邁進。

Our next question is going to come from Bill Sutherland with Benchmark.

我們的下一個問題將來自 Benchmark 的 Bill Sutherland。

Guys, great work. Two things on specialty health care. Kevin, can you just tell me -- tell us, I'm sorry, the revenue in the quarter from school clients?

夥計們，幹得好。關於專業醫療保健的兩件事。凱文，你能告訴我──對不起，告訴我們，本季來自學校客戶的收入嗎？

Hold on, I need to grab that, actually don't have that open. Do you have another question?

等等，我需要抓住它，實際上沒有打開它。你還有其他問題想問嗎？

Yes. You kind of -- when you're running through the clients this year, last year and those over $100,000. It didn't quite get last year with 60 clients and how many over $100,000.

是的。當你瀏覽今年、去年的客戶以及那些金額超過 10 萬美元的客戶時，你會這麼認為。去年的情況不太好，有 60 個客戶，有多少客戶的金額超過 10 萬美元。

We had about -- we had 22 over $100,000. And (inaudible) when we only had about 6.

我們大約有 22 個超過 100,000 美元的。 （聽不清楚）當時我們只有大約 6 個。

In 2019, okay.

2019年，好吧。

Yes. So obviously, pick 2019 as that's a pre COVID year. And the business has changed quite a bit since 2019 as we've added so many new school clients.

是的。顯然，選擇 2019 年是因為那是新冠疫情之前的一年。自 2019 年以來，隨著我們增加了許多新的學校客戶，業務發生了很大變化。

Are you finding that the deals that you're winning in schools are broader in terms of the roles and just the -- it sounds like given the sizes...

您是否發現您在學校贏得的交易在角色方面更廣泛，而且 - 聽起來像是考慮到規模...

Yes, every school is different, Bill. Frankly, sometimes when we're in a school, it's just nursing, sometimes when we win a school, it's just behavioral health. But we -- usually, we're entering with one service, but oftentimes in the next school year, we get to introduce a second. So it's different from -- there's so many nuances to the different school systems, and it's hard to give you sort of a blanket answer. But usually, when we enter into a school, it's one service. And we often get to expand the following year to another service.

是的，每所學校都不一樣，比爾。坦白說，有時當我們在一所學校時，這只是護理，有時當我們贏得一所學校時，這只是行為健康。但我們通常會提供一項服務，但通常在下個學年，我們會推出第二項服務。所以它是不同的——不同的學校系統有很多細微差別，很難給你一個籠統的答案。但通常，當我們進入學校時，這只是一項服務。我們通常在第二年擴展到另一項服務。

Got it. In Life Science, when you're seeing this nice expansion in gross margin, and I assume it's tied to the expansion of LifeSci. Is that just pricing? Or is that something about how you can optimally run those pieces of business.

知道了。在生命科學領域，當你看到毛利率的良好成長時，我認為這與生命科學的擴張有關。這只是定價嗎？或是關於如何最佳地經營這些業務的問題。

Yes. That was a good question, Bill. Not pricing at all. Actually, in fact, it's primarily mix driven. And this is -- these wheels were set in motion about 3 years ago. when you looked at the Life Sciences and IT business, it was primarily a staffing business. And we made the strategic decision to move more towards a solutions and managed service-based model. And naturally, that comes with a higher margin profile and can be stickier as well as you continue to deliver more value to clients.

是的。這是一個很好的問題，比爾。根本就不定價。事實上，它主要是混合驅動的。這些輪子大約在三年前就開始運作了。當你觀察生命科學和 IT 業務時，你會發現它主要是一個人力資源業務。我們做出了策略決策，更多地轉向基於解決方案和託管服務的模型。當然，這會帶來更高的利潤率，並且會更具黏性，並且您可以繼續為客戶提供更多價值。

So as part of that progression, naturally, your team evolves, right? So we saw this throughout different parts of the portfolio, obviously, outside of life sciences and IT. And I think this is the point in the life cycle where they're at, where the business has kind of hit a tipping point. And I personally think that a lot of that is talent-driven naturally. You wouldn't necessarily have the same set of folks focused on staffing that you would on solutions and managed services. And so what gives me further confidence in the dynamic and the drivers there is as we continue to fortify the team and build it out. So that's one area and one part of the portfolio that we expect exciting things going forward.

因此，作為這一進步的一部分，您的團隊自然會發展，對嗎？因此，我們在產品組合的不同部分都看到了這一點，顯然是在生命科學和 IT 之外。我認為這是他們所處的生命週期的關鍵點，業務已經達到了一個臨界點。我個人認為，其中許多自然是人才驅動的。您不一定會擁有關註解決方案和託管服務的同一組人員來關注人員配置。因此，當我們繼續加強和建立團隊時，是什麼讓我對那裡的活力和驅動力有了進一步的信心。因此，這是我們預計未來會出現令人興奮的事情的一個領域和產品組合的一部分。

Roughly where are you -- go ahead, Kev.

你大概在哪裡——繼續吧，Kev。

I was just going to give you the school stuff. But if you have some more questions on life sciences, please go ahead.

我只是想給你學校的東西。但如果您還有其他關於生命科學的問題，請繼續。

Just I was curious kind of where you've gotten managed services as a percent of revenue ballpark?

我只是好奇你們獲得的託管服務佔收入的比例大約是多少？

Yes. So when you look at solutions and managed services a little under half at this point.

是的。因此，當您查看解決方案和託管服務時，此時的比例略低於一半。

Over half?

超過一半？

A little under half up from roughly 5%.

比大約 5% 增加了不到一半。

Yes. So the school revenue in Q2 of 2023 was $26.5 million, and we were just a shade over $9 million for nonschool.

是的。因此，2023 年第二季的學校收入為 2,650 萬美元，而非學校收入僅略高於 900 萬美元。

You said 22, you meant this year, didn't you?

你說的22歲，是指今年吧？

I meant this year, Q2 of '23. Sorry about that. Yes. So roughly 75% of our business in Q2 was school. So it's pretty consistent with Q1.

我的意思是今年，23 年第二季。對於那個很抱歉。是的。因此，我們第二季大約 75% 的業務是學校。所以它與 Q1 非常一致。

Okay. I guess you saw in your nonschool business, kind of the same trend that the pure plays in that side were reporting?

好的。我想您在非學校業務中看到了與該領域的純粹業務所報告的趨勢相同的趨勢？

Yes. I think it pretty much lines up. We expect to see growth there going forward though. I mean, we had a little bit of a sequential decline, but that was really almost entirely driven by one client that was scaling back some of their expenses. So we've got plenty of room to grow our nonschool business.

是的。我認為這幾乎是一致的。不過，我們預期未來會出現成長。我的意思是，我們的業績出現了一些連續下降，但這實際上幾乎完全是由一個客戶縮減了部分開支所致。因此，我們有足夠的空間來發展我們的非學校業務。

Last one on deployment. I guess you're just going to continue with this very successful path you've had as opposed to anything related to a dividend, special dividend or tender or anything that might be outside that (inaudible)?

最後一個部署。我想你只是會繼續這條非常成功的道路，而不是任何與股息、特別股息或招標或其他可能之外的事情（聽不清楚）？

All avenues are open, Bill, all avenues. But we think the stock is trading at a very attractive price. And let me see if -- let me look at my screen real fast here yes, $16.49, that kind of makes the decision pretty easy.

所有的途徑都是開放的，比爾，所有的途徑。但我們認為該股票的交易價格非常有吸引力。讓我看看——讓我快速地看一下我的螢幕，是的，16.49 美元，這樣就很容易做出決定。

(Operator Instructions) Our next question is going to come from Frank Kelly.

（操作員說明）我們的下一個問題將來自弗蘭克凱利。

Life science and IT striking almost 40%. I think that has to go marked pretty hard. That's great. And hopefully, the other sectors will come in line as well as we add value. One question, if we can shift over to the balance sheet. Looking at gross AR, can you shed some light as to why we had a 32% increase in AR over the queue and obviously, cash is king and it also drives over to the P&L on the interest cost? Can you help us -- help me understand or help us understand what is and obviously, what's not happening in AR?

生命科學和 IT 領域佔比接近 40%。我認為這必須非常努力。那太棒了。希望其他產業也能與我們一起增加價值。一個問題是，我們是否可以轉向資產負債表。看看總 AR，您能否解釋為什麼我們的 AR 比隊列中的 AR 增加了 32%，顯然，現金為王，而且它也會影響利息成本的損益表？你能幫助我們——幫助我理解或幫助我們理解 AR 中正在發生的事情以及顯然沒有發生的事情嗎？

Sure. Sure. Well, to be really frank with you, Frank, the AR is just too high in Q2. There's a whole -- as I'm sure you can appreciate, there's not one reason for it, there's a couple. But the -- and we look at DSOs as opposed to the dollar amount, but you get to the same conclusion, which is the DSOs in Q2 were just high. And we'll bring them -- so I expect the DSOs to come down. And as you know, Q3 is a seasonally low quarter for us. So we should see a pretty nice decline in Q3 in the receivable dollars. And I expect DSOs to be much better in Q4 as well.

當然。當然。好吧，弗蘭克，坦白說，第二季的 AR 太高了。這是一個整體——我相信你能理解，這不是一個原因，而是有幾個原因。但是，我們關注的是 DSO，而不是美元金額，但你會得到相同的結論，即第二季的 DSO 很高。我們會把它們帶來——所以我預計 DSO 會下降。如您所知，第三季對我們來說是季節性低迷的季度。因此，我們應該會看到第三季應收款美元出現相當大的下降。我預計 DSO 在第四季也會好得多。

Obviously, depending on where revenues coming in Q4, we may or may not see a decrease in AR, but I'm confident we'll see a decrease in the DSOs in Q4. I'm glad you asked about cash flow because obviously, we're pretty -- despite the poor performance in our trade [receivables] in Q4, we did see really good cash flow in Q2. And for the year, we're at $16.5 million for cash flow from operating activities. So we're pretty happy with the overall cash flow, but we can do better with the receivables and we will.

顯然，根據第四季度的收入情況，我們可能會或可能不會看到 AR 減少，但我相信我們會看到第四季度 DSO 的減少。我很高興您詢問現金流，因為顯然，我們很漂亮 - 儘管我們的貿易[應收帳款]在第四季度表現不佳，但我們在第二季度確實看到了非常好的現金流。今年，我們的經營活動現金流量為 1,650 萬美元。因此，我們對整體現金流非常滿意，但我們可以在應收帳款方面做得更好，而且我們會的。

Great. Yes. I just -- we're looking at borrowings and then translates down to interest and things like that. It just seems like an opportunity that we're not really capitalizing, but I'm sure you guys are -- where are we at DSOs in Q1 versus Q2?

偉大的。是的。我只是——我們正在研究借款，然後轉化為利息和類似的東西。這似乎是我們沒有真正利用的機會，但我相信你們都在利用——我們在第一季和第二季的 DSO 處於什麼位置？

I don't have the exact numbers in front of me, Frank, but they're too high. So they're just -- they're -- they need to come down, but -- and they will, as I said. And I think the more important takeaway is that as I mentioned in the press release, we expect to see really nice cash flow in the second half of this year, particularly in Q3.

弗蘭克，我沒有確切的數字，但它們太高了。所以他們只是——他們——他們需要下來，但是——正如我所說，他們會的。我認為更重要的一點是，正如我在新聞稿中提到的，我們預計今年下半年將看到非常好的現金流，特別是在第三季。

And just to be to -- obviously, we're always looking to drive our debt down, right, and drive interest costs down. But we're pretty proud of and happy with where our debt is right now relative to all the shares that we've purchased. And -- but we can do a better job with the receivables. And if our debt goes up, and our balance sheet looks good. And if our debt is going up because we're buying shares, we're happy to pay the interest.

顯然，我們一直在尋求降低債務，並降低利息成本。但我們對目前的債務相對於我們購買的所有股票的比例感到非常自豪和滿意。而且——但我們可以在應收帳款方面做得更好。如果我們的債務增加，我們的資產負債表看起來不錯。如果我們的債務因為購買股票而增加，我們很樂意支付利息。

The 2 other data points I'd just throw in there, Frank, because obviously, after the close of the quarter, collections have been good so far, but also in addition to that setting our capital allocation decisions aside, particularly on the share repurchase front. Fast forward the next couple of quarters, I would anticipate debt levels being relatively modest. If we have debt at all as we move into the fourth. So we feel pretty good about where the balance sheet is at. But the point you highlight is very relevant and is [well taken].

弗蘭克，我只是把另外兩個數據點放在那裡，因為顯然，在本季度結束後，到目前為止，收款情況一直很好，但除此之外，我們的資本分配決策也放在一邊，特別是在股票回購方面正面。快進到接下來的幾個季度，我預計債務水平相對溫和。當我們進入第四階段時，如果我們還有債務的話。所以我們對資產負債表的狀況感覺很好。但你強調的觀點非常相關且[很好]。

Great. No, I appreciate it. I understood. And I see where we're heading and that sounds like a very good direction.

偉大的。不，我很感激。我明白了。我知道我們的前進方向，這聽起來是一個非常好的方向。

(Operator Instructions) Okay. Doesn't look like there are any more questions in queue. So I will turn it back over to you for any closing remarks.

（操作員指示）好的。隊列中似乎沒有更多問題了。因此，我會將其轉回給您，供您發表結束語。

Thanks, operator. Thank you for attending RCM's second quarter conference call. We look forward to our next update in November.

謝謝，接線生。感謝您參加 RCM 第二季電話會議。我們期待 11 月的下一次更新。

This concludes your call. You may now disconnect.

您的通話到此結束。您現在可以斷開連線。