WINDSOR, ON, June 9, 2021 /CNW/ - Reko International Group
Inc. (TSXV: REKO) today announced results for its quarter ended
April 30, 2021.
Financial Highlights:
(in 000 's except for per share amounts)
|
Three
Months
|
Nine
Months
|
(unaudited)
|
(unaudited)
|
Fiscal
|
Fiscal
|
Fiscal
|
Fiscal
|
2021
|
2020
|
2021
|
2020
|
Sales
|
$12,413
|
$9,985
|
$30,239
|
$28,873
|
Net income
|
801
|
65
|
373
|
261
|
EPS basic
|
0.13
|
0.01
|
0.06
|
0.04
|
Working
capital
|
|
|
20,270
|
18,386
|
Shareholders'
equity
|
|
|
46,594
|
46,454
|
Shareholders' Equity
per Share
|
|
|
7.74
|
7.42
|
Consolidated sales for the third quarter of 2021 were
$12.4 million compared to
$10.0 million in the same period last
year, an increase of $2.4 million, or
24.3%. Sales volumes continue to show improvement, with third
quarter sales 13% above the second quarter sales, and 81% higher
than those of the first quarter.
Gross profit for the quarter ended April
30, 2021 was $2.4 million
compared to $0.7 million for the same
period in the previous year. Gross profit as a percentage of sales
of 19.1% for the three months ended April
30, 2021 is significantly higher than the 6.9% from the same
period in the prior year. Last year's lower sales volumes had
a large impact on gross margin, and overall profitability.
Gross profit for the nine months ended April 30, 2021 increased $0.6 million, or 18%, to $3.8 million, compared to $3.2 million in the same period in the prior
year. For the nine months ended April
30, 2021, gross profit as a percentage of sales improved to
12.5% compared to 11.1% in the previous year. Operational
efficiencies continue to be a key contributor to improved
margins.
Selling and administrative expenses for the third quarter of
fiscal 2021 totaled $1.1 million
compared to $1.2 million for the same
period in fiscal 2020. The decrease in year-to-date costs
compared to last year are attributable to the terminations that
occurred in the first quarter as a result of restructuring.
Net income for the three months ended April 30, 2021 was $0.8
million or $0.13 per share
compared to $0.06 million or
$0.01 per share for the same period
in the prior year. For the nine months ended April 30, 2021, net income was $0.4 million or $0.06 per share, compared to $0.3 million or $0.04 per share in the same period last year.
"This quarter's sales improvement was a strenuous team victory,"
stated Diane Reko, CEO. "Our
opponents were many, including the global pandemic; the border
closure with the United States;
supply disruptions; and a falling US dollar, to name a few.
We believe that there continues to be significant pent-up demand –
especially for the innovative and quick solutions that the Reko
team can provide to other manufacturers and producers. Our
ability to produce at this sales level has resulted in our best
quarter in the last nineteen quarters and I am so very proud of our
team!"
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.