WINDSOR, ON, June 1, 2017 /CNW/ - Reko International
Group Inc. (TSX-V: REKO) today announced results for its third
quarter ended April 30, 2017.
Financial
Highlights:
|
|
Three
Months
|
Nine
Months
|
|
(unaudited)
|
(unaudited)
|
|
Fiscal
|
Fiscal
|
Fiscal
|
Fiscal
|
|
2017
|
2016
|
2017
|
2016
|
Sales
|
$11,699
|
$12,572
|
$33,272
|
$36,717
|
Net income
|
560
|
1,112
|
1,985
|
3,494
|
EPS basic
|
0.09
|
0.17
|
0.31
|
0.54
|
Working
capital
|
|
|
16,850
|
16,019
|
Shareholders'
equity
|
|
|
42,596
|
37,782
|
Shareholders' Equity
per Share
|
|
|
6.61
|
5.87
|
Consolidated sales for the quarter ended April 30, 2017, were $11.7
million, compared to $12.6
million in the prior year, a decrease of $0.9 million or 6.9%. The decrease in sales was
largely due to lower volumes in the transportation and oil and gas
sectors.
Gross profit for the quarter ended April
30, 2017, was $1.9 million, or
16.5% of sales, compared to a gross profit of $3.2 million, or 25.4% of sales in the prior
year. The decrease in gross profit was related to the decrease in
sales and the product mix during the period.
Selling and administrative expenses for the quarter ended
April 30, 2017, were $1.1 million, or 9.7% of sales, compared to
$1.1 million, or 8.6% of sales in the
prior year. The increase in SG&A is due to increases in
administrative wages and benefits, and one time professional fees
paid in the quarter.
Net income for the quarter ended April
30, 2017, was $0.56 million or
$0.09 per share, compared to net
income of $1.11 million, or
$0.17 per share in the prior
year.
"Reko delivered another consecutive profitable quarter," stated
Diane Reko, chief executive officer.
"The ongoing decline in volumes from our long-term machining
contract has continued to negatively impact year over year sales
and margins. As well, we have experienced higher than normal
expenditures for outsourcing services, due to the reduced capacity
and increased demand currently being experienced in the automotive
market. In order to reduce some of these outsource costs, we look
forward to the arrival of a new gun drill machine in the first
quarter of fiscal 2018 and are reviewing other investments that
would improve both our efficiency as well as our bottom line."
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
About Reko International Group Inc.
Reko International Group Inc. (TSX-V: REKO) is a diversified,
technology-driven manufacturing organization located in
Southwestern Ontario, just minutes
from the U.S. border. Areas of expertise include robotic factory
automation solutions, the precision machining of large, critical
parts, and plastic injection and low compression acoustic tooling.
Reko's family-oriented culture embraces past experience, fosters
innovation, and always ensures the highest standard of quality.
Reko believes in strengthening communities by advancing
manufacturing.
SOURCE Reko International Group Inc.