WINDSOR, ON, Dec. 7, 2017 /CNW/ - Reko International
Group Inc. (TSX-V: REKO) today announced results for its first
quarter ended October 31, 2017.
Financial Highlights:
|
Three
Months
|
|
(unaudited)
|
|
Fiscal
|
Fiscal
|
|
2018
|
2017
|
|
Sales
|
$8,761
|
$10,360
|
|
Net income
|
255
|
636
|
|
EPS basic
|
0.04
|
0.10
|
|
Working
capital
|
16,567
|
20,378
|
|
Shareholders'
equity
|
43,370
|
42,532
|
|
Shareholders' Equity
per Share
|
6.74
|
6.61
|
Consolidated sales for the quarter ended October 31, 2017, were $8.8 million, compared to $10.3 million in the prior year, a decrease of
$1.6 million or 15.4%. The decrease
in sales was related to timing of kickoffs in certain divisions as
well as lower volumes in certain sectors.
Gross profit for the quarter ended October 31, 2017, was $1.3
million, or 15.4% of sales, compared to a gross profit of
$1.8 million, or 17.4% of sales in
the prior year. The decrease in gross profit was reflective of a
change in product mix, with projects worked on during the quarter
experiencing lower margins than in prior quarters.
Selling and administrative expenses for the quarter ended
October 31, 2017 were $1.0 million, or 11.5% of sales, compared to
$1.1 million, or 10.6% of sales in
the prior year. The decrease in SG&A relates primarily relates
to decrease in costs associated with wages and non-recurring
professional fees.
Net income for the quarter ended October
31, 2017 was $0.3 million or
$0.04 per share, compared to net
income of $0.6 million, or
$0.10 per share in the prior
year.
"Reko's first quarter experienced lower volumes of work due to
delays in program kickoffs," stated Diane
Reko, chief executive officer. "Results were also impacted
by the investment in new talent required for the additional
capacity and opportunities associated with our expansion to be
completed in 2018."
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.