WINDSOR, ON–(Marketwired – June 02, 2016) – Reko International Group Inc. (TSX VENTURE: REK) today announced results for third quarter ended April 30, 2016.
| Financial Highlights: | ||||||||
| Three Months | Nine Months | |||||||
| (unaudited) | (unaudited) | |||||||
| Fiscal | Fiscal | Fiscal | Fiscal | |||||
| 2016 | 2015 | 2016 | 2015 | |||||
| Sales | $12,572 | $13,519 | $36,717 | $37,428 | ||||
| Net income | 1,112 | 893 | 3,494 | 1,787 | ||||
| EPS basic | 0.17 | 0.14 | 0.54 | 0.28 | ||||
| Working capital | 16,019 | 10,294 | ||||||
| Shareholders’ equity | 37,782 | 31,861 | ||||||
| Shareholders’ Equity per Share | 5.87 | 4.96 | ||||||
Consolidated sales for the quarter ended April 30, 2016, were $12.6 million, compared to $13.5 million in the prior year, a decrease of $0.9 million or 7.0%. The decrease in sales was largely related to softer demand in many of the company’s major markets. Consolidated sales for the nine months ended April 30, 2016 were $36.7 million, compared to $37.4 million in the prior year, a decrease of $0.7 million, or 1.9%.
Gross profit for the quarter ended April 30, 2016, was $3.2 million, or 25.4% of sales, compared to a gross profit of $4.1 million, or 30.6% of sales in the prior year. The decrease in gross profit is consistent with the decrease in revenue. Gross profit for the nine months ended April 30, 2016 was $8.9 million, or 24.2% of sales, compared to a gross profit of $8.9 million in the prior year, or 23.8% of sales.
Selling and administrative expenses for the quarter ended April 30, 2016 were $1.1 million, or 8.6% of sales, compared to $2.3 million, or 16.9% of sales in the prior year. The decrease in SG&A relates primarily to non-recurring expenses in the prior year. Selling and administrative expenses for the nine months ended April 30, 2016 were $3.5 million, or 9.6% of sales, compared to $5.1 million in the prior year, or 13.7% of sales.
Net income for the quarter ended April 30, 2016 was $1.1 million or $0.17 per share, compared to net income of $0.9 million, or $0.14 per share in the prior year. Net income for the nine months ended April 30, 2016 was $3.5 million or $0.54 per share, compared to net income of $1.8 million or $0.28 per share in the prior year.
“Reko’s third quarter results continues to show consistent earnings,” stated Diane Reko, chief executive officer. “Our ability to manage costs during a period of lower demand, while having the benefit of being diversified across different markets has allowed us to report an increase in net income of 95% year over year. The ongoing commitment to strengthening Reko’s balance sheet has created an environment where we are well positioned to optimize strategic opportunities as we continue to grow our company.”
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. is a publicly traded, certified woman owned manufacturing company located in Southwestern, Ontario. Established in 1976, Reko International Group Inc. is a diverse value-added designer and manufacturer of customized machining and engineering solutions to OEMs and their Tier I suppliers in dynamic sectors as rail equipment, oil and gas distribution, mining, military, capital equipment, and automotive. For more information, visit www.rekointl.com, or contact Marilyn Crowley, Chief Financial Officer at (519) 727-3287.
SUBSIDIARIES/DIVISIONS:
Canada:
- Concorde Precision Machining Inc.
- Reko Manufacturing Group Inc.
United States:
- Reko International Sales Inc.
- Reko International Holdings Inc.
Marilyn Crowley
Chief Financial Officer
(519) 727-3287