Reko Announces Third Quarter Results for Fiscal 2014
June 12 2014 - 11:20AM
Marketwired Canada
Reko International Group Inc. (TSX VENTURE:REK) today announced results for its
third quarter ended April 30, 2014.
Financial Highlights:
Three Months Nine Months
(unaudited) (unaudited)
-----------------------------------
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Fiscal Fiscal Fiscal Fiscal
2014 2013 2014 2013
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Sales $10,561 $10,871 $28,328 $32,112
Net income 151 224 247 1,187
EPS basic 0.02 0.03 0.04 0.18
Working capital 9,092 8,690
Shareholders' equity 27,978 27,219
Shareholders' Equity per Share 4.36 4.24
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Consolidated sales for the quarter ended April 30, 2014, were $10.6 million,
compared to $10.9 million in the prior year, a decrease of $0.3 million or 2.8%.
The decrease in sales was largely related to reductions in demand in the
automotive market, offset by an increase in demand in the capital equipment
market. Consolidated sales for the nine months ended April 30, 2014 were $28.3
million, compared to $32.1 million in the prior year, a decrease of $3.8
million, or 11.8%.
Gross profit for the quarter ended April 30, 2014, was $1.6 million, or 15.1% of
sales, compared to a gross profit of $1.7 million, or 15.6% of sales, in the
prior year. The decrease in gross profit relates to increases in fixed costs
associated with our manufacturing facility as demand in the automotive market
continues to be low, offset by improved overhead absorption from increase in
sales from the capital equipment market. Gross profit for the nine months ended
April 30, 2014 was $4.3 million, or 15.2% of sales, compared to a gross profit
of $5.1 million in the prior year, or 15.9% of sales in the prior year.
Selling and administrative expenses for the quarter ended April 30, 2014 were $
1.1 million, or 10.4% of sales, compared to $1.2 million, or 11.0% sales, in the
prior year. The decrease in SG&A relates to decreases in costs such as accounts
receivable insurance and sales commission as our sales volumes decreased.
Selling and administrative expenses for the nine months ended April 30, 2014
were $3.4 million, or 11.8% of sales, compared to $3.5 million in the prior
year, or 10.9% of sales.
Net income for the quarter ended April 30, 2014 was $0.2 million or $0.02 per
share, compared to net income of $0.2 million, or $0.03 per share in the prior
year. During the quarter, amortization increased by $200 ($0.03 per share) as a
result of a change in accounting estimate. Net income for the nine months ended
April 30, 2014 was $0.2 million or $0.04 per share, compared to net income of
$1.2 million or $0.18 per share in the prior year.
"We are pleased that Reko's third quarter results showed improvement over prior
quarters," stated Diane Reko, chief executive officer. "Income from operations
improved significantly, increasing 56% over quarter two results, primarily due
to higher demand in the capital equipment market. We are beginning to see signs
of improvement in our automotive market and expect this to positively impact
future quarters."
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.
REKO INTERNATIONAL GROUP INC.
469 Silver Creek Industrial Drive Lakeshore, Ontario
N8N 4W2
http://www.rekointl.com/
SUBSIDIARIES/DIVISIONS:
Canada:
- Concorde Precision Machining Inc.
- Reko Manufacturing Group Inc.
United States:
- Reko International Sales Inc.
- Reko International Holdings Inc.
- Reko Global Services, LLC
FOR FURTHER INFORMATION PLEASE CONTACT:
Reko International Group Inc.
Carl A. Merton
Chief Financial Officer
(519) 727-3287
www.rekointl.com
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