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:
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Three Months
|
Six Months
|
|
(unaudited)
|
(unaudited)
|
|
Fiscal
|
Fiscal
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Fiscal
|
Fiscal
|
|
2018
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2017
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2018
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2017
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|
Sales
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$11,529
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$11,213
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$20,290
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$21,573
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|
Net income
|
420
|
789
|
675
|
1,425
|
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EPS basic
|
0.07
|
0.12
|
0.11
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0.22
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|
Working capital
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|
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13,982
|
19,104
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Shareholders' equity
|
|
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43,802
|
42,037
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Shareholders' Equity per Share
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|
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6.80
|
6.52
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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.
View original content: http://www.newswire.ca/en/releases/archive/March2018/01/c4721.html