Reko reports EPS of $0.09 in the quarter

WINDSOR, ON, June 1, 2017 /CNW/ - Reko International Group Inc. (TSX-V: REKO) today announced results for its third quarter ended April 30, 2017.

Financial Highlights:


Three Months

Nine Months


(unaudited)

(unaudited)


Fiscal

Fiscal

Fiscal

Fiscal


2017

2016

2017

2016

Sales

$11,699

$12,572

$33,272

$36,717

Net income

560

1,112

1,985

3,494

EPS basic

0.09

0.17

0.31

0.54

Working capital



16,850

16,019

Shareholders' equity



42,596

37,782

Shareholders' Equity per Share



6.61

5.87

 

Consolidated sales for the quarter ended April 30, 2017, were $11.7 million, compared to $12.6 million in the prior year, a decrease of $0.9 million or 6.9%. The decrease in sales was largely due to lower volumes in the transportation and oil and gas sectors.

Gross profit for the quarter ended April 30, 2017, was $1.9 million, or 16.5% of sales, compared to a gross profit of $3.2 million, or 25.4% of sales in the prior year. The decrease in gross profit was related to the decrease in sales and the product mix during the period.

Selling and administrative expenses for the quarter ended April 30, 2017, were $1.1 million, or 9.7% of sales, compared to $1.1 million, or 8.6% of sales in the prior year. The increase in SG&A is due to increases in administrative wages and benefits, and one time professional fees paid in the quarter.

Net income for the quarter ended April 30, 2017, was $0.56 million or $0.09 per share, compared to net income of $1.11 million, or $0.17 per share in the prior year.

"Reko delivered another consecutive profitable quarter," stated Diane Reko, chief executive officer. "The ongoing decline in volumes from our long-term machining contract has continued to negatively impact year over year sales and margins. As well, we have experienced higher than normal expenditures for outsourcing services, due to the reduced capacity and increased demand currently being experienced in the automotive market. In order to reduce some of these outsource costs, we look forward to the arrival of a new gun drill machine in the first quarter of fiscal 2018 and are reviewing other investments that would improve both our efficiency as well as our bottom line."

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.

For further information: visit www.rekointl.com, or contact Marilyn Crowley, Chief Financial Officer at (519) 727-3287.

RELATED LINKS
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