WINDSOR, ON, March 1, 2018 /CNW/ - Reko International Group
Inc. (TSX-V: REKO) today announced results for its first quarter
ended January 31, 2018.
Financial Highlights:
|
Three
Months
|
Six Months
|
(unaudited)
|
(unaudited)
|
Fiscal
|
Fiscal
|
Fiscal
|
Fiscal
|
2018
|
2017
|
2018
|
2017
|
Sales
|
$11,529
|
$11,213
|
$20,290
|
$21,573
|
Net income
|
420
|
789
|
675
|
1,425
|
EPS basic
|
0.07
|
0.12
|
0.11
|
0.22
|
Working
capital
|
|
|
13,982
|
19,104
|
Shareholders'
equity
|
|
|
43,802
|
42,037
|
Shareholders' Equity
per Share
|
|
|
6.80
|
6.52
|
Consolidated sales for the quarter ended January 31, 2018, were $11.5 million, compared to $11.2 million in the prior year, an increase of
$0.3 million or 2.8%. The increase in
sales was related to increases in demand in both the automotive and
capital equipment markets.
Gross profit for the quarter ended January 31, 2018, was $1.5
million, or 13.4% of sales, compared to a gross profit of
$2.0 million, or 18.0% of sales in
the prior year. The decrease in gross profit was reflective of a
change in product mix, with certain projects worked on during the
quarter experiencing lower margins than in prior quarters.
Selling and administrative expenses for the quarter ended
January 31, 2018 were $1.1 million, or 9.8% of sales, compared to
$1.0 million, or 8.5% of sales in the
prior year. The increase in SG&A largely relates to one-time
consulting fees pertaining to the upcoming expansion.
Net income for the quarter ended January
31, 2018 was $0.4 million or
$0.07 per share, compared to net
income of $0.8 million, or
$0.12 per share in the prior
year.
Subsequent to the end of the quarter, the mortgage payable of
$3,211 at a rate of 6% which matured
in February 2018 was repaid in full
and a commitment entered into for a new mortgage facility in the
amount of $3,500 with a rate of 3.72%
and a five year term. This change will result in reduced
payments of approximately $490
annually.
"Reko's second quarter results showed an improvement in
profitability from the prior quarter," stated Diane Reko, chief executive officer. "New orders
during the quarter improved by 32% compared to the prior quarter.
Investments in new equipment, along with the completion of our new
building will position us to take advantage of additional
opportunities and improve performance. Reko has spent almost
$5.5M on these capital initiatives
year to date and is renewing long term debt at attractive rates to
assist us with the upcoming expansion of our manufacturing
footprint and technical capabilities."
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.