Earnings for the year a record high of $1.18 per share.
WINDSOR, ON, Oct. 6, 2016 /CNW/ - Reko International Group Inc. (TSX-V: REK) today announced results for its fourth quarter and year ended July 31, 2016.
Financial Highlights:
| | Three Months | Twelve Months |
| (unaudited) | (unaudited) |
| Fiscal | Fiscal | Fiscal | Fiscal |
| 2016 | 2015 | 2016 | 2015 |
| Sales | $13,882 | $10,868 | $50,599 | $48,296 |
| Net income | 4,107 | 2,340 | 7,601 | 4,127 |
| EPS basic | 0.64 | 0.36 | 1.18 | 0.64 |
| Working capital | | | 20,603 | 12,717 |
| Shareholders' equity | | | 41,896 | 34,228 |
| Shareholders' Equity per Share | | | 6.51 | 5.32 |
Consolidated sales for the year ended July 31, 2016, were $50.6 million, compared to $48.3 million in the prior year, an increase of $2.3 million or 4.8%. The increase in revenue was driven by the $3 million U.S. received in lieu of the portion of guaranteed volumes under our long-term agreement, partially offset by decreased demand in the oil and gas and transportation sectors.
Gross profit for the year ended July 31, 2016, was $15.6 million, or 30.8% of sales compared to a gross profit of $12.0 million, or 25.0% of sales in the prior year. The increase of 5.8% relates to the payment received from the long-term agreement as described in sales. Excluding this payment, gross profit is consistent when compared to the prior year.
Selling and administrative expenses for the year ended July 31, 2016, were $4.6 million, or 9.1% of sales, compared to $6.3 million, or 13.1% sales, in the prior year. The decrease in selling and administrative expenses related to the restructuring of certain administrative functions within the company, which resulted in decreased wages and sales commissions. Professional fees also declined.
Net income for the year ended July 31, 2016, was $7.6 million or $1.18 per share, compared to net income of $4.1 million, or $0.64 per share in the prior year.
"Earnings for the fiscal year increased 85% from the previous year," stated Diane Reko, Chief Executive Officer. "While adjusted profits from operations remained consistent with the prior year, a payment in lieu of a portion of the guaranteed volume under the supply agreement created an opportunity to sell newly available capacity in our machining facility. We are working diligently to secure new orders to utilize the available capacity."
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