WINDSOR, ON, Oct. 4, 2017 /CNW/ - Reko International
Group Inc. (TSX-V: REKO) today announced results for its fourth
quarter and year ended July 31,
2017.
Financial Highlights:
|
Three
Months
|
Twelve
Months
|
(unaudited)
|
(unaudited)
|
Fiscal
|
Fiscal
|
Fiscal
|
Fiscal
|
2017
|
2016
|
2017
|
2016
|
Sales
|
$9,695
|
$13,882
|
$42,967
|
$50,599
|
Net income
|
560
|
4,107
|
2,545
|
7,601
|
EPS basic
|
0.09
|
0.64
|
0.40
|
1.18
|
Working
capital
|
|
|
17,606
|
20,603
|
Shareholders'
equity
|
|
|
43,115
|
41,896
|
Shareholders' Equity
per Share
|
|
|
6.70
|
6.51
|
On July 4, 2016, Reko announced
that the customer related to the long term supply agreement
announced in 2014, had exercised its right to make an advance
payment. This one time payment of $3.9
million increased sales, gross profit and net income in Q4
2016 by this amount and net income by $2.9
million. There was no comparable payment in fiscal
2017, and therefore variances must be viewed in the context of this
difference.
Consolidated sales for the year ended July 31, 2017, were $43.0
million, compared to $50.6
million in the prior year, a decrease of $7.6 million or 15.1%. The decrease in sales was
related to the receipt of a one time payment in lieu of guaranteed
volume under the long term agreement in the prior year, noted
above, as well as a decrease in volumes in certain types of work in
transportation and oil and gas sectors.
Gross profit for the year ended July 31,
2017, was $7.5 million, or
17.4% of sales, compared to a gross profit of $15.6 million, or 30.9% of sales in the prior
year. The decrease relates to the payment received from the long
term agreement as described in sales, as well the impact of a
change in customer mix.
Selling and administrative expenses for the year ended
July 31, 2017, were $4.0 million, or 9.2% of sales, compared to
$4.6 million, or 9.1% of sales in the
prior year. The decrease in SG&A is due to decreases in
non-production wages & salaries due to reductions in variable
pay, decreases in office expenses, and a decrease in premiums
relating to our accounts receivable insurance.
Net income for the year ended July 31,
2017, was $2.5 million or
$0.40 per share, compared to net
income of $7.6 million, or
$1.18 per share in the prior
year.
"Volatility in our workload and in exchange rates heavily
impacted our profitability this year," stated Diane Reko, chief executive officer. "We look
forward to the completion of our new facility in early 2018 and the
opportunity to expand our offerings of innovative manufacturing
solutions."
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.