WINDSOR, ON, June 6, 2019 /CNW/ - Reko International Group
Inc. (TSX-V: REKO) today announced results for its third quarter
ended April 30, 2019.
Financial Highlights:
|
Three
Months
|
Nine
Months
|
(unaudited)
|
(unaudited)
|
Fiscal
|
Fiscal
|
Fiscal
|
Fiscal
|
2019
|
2018
|
2019
|
2018
|
Sales
|
$14,277
|
$11,776
|
$37,330
|
$32,066
|
Net income
|
610
|
647
|
1,052
|
1,322
|
EPS basic
|
0.10
|
0.10
|
0.17
|
0.21
|
Working
capital
|
|
|
16,025
|
15,714*
|
Shareholders'
equity
|
|
|
46,163
|
44,461
|
Shareholders' Equity
per Share
|
|
|
7.20
|
6.90
|
|
(*Calculation amended
as a result of reclassification previously discussed in July 31,
2018 financial statements.)
|
Consolidated sales for the quarter ended April 30, 2019, were $14.3
million, compared to $11.8
million in the prior year, an increase of $2.5 million or 21.2%. The increase in sales was
related to improved order volumes, improved throughput and a
continued strong exchange rate.
Gross profit for the quarter ended April
30, 2019, was $2.7 million, or
18.8% of sales, compared to a gross profit of $1.9 million, or 16.3% of sales in the prior
year. The increase in gross profit is consistent with the increase
in sales.
Selling and administrative expenses for the quarter ended
April 30, 2019 were $1.4 million, or 9.7% of sales, compared to
$1.2 million, or 10.0% of sales in
the prior year. The increase in SG&A relates to expenses such
as employee benefits and wages in conjunction with new hires since
the prior year's third quarter.
Operating income for the quarter ended April 30, 2019 was $1.3
million, compared to operating income of $0.7 million in the prior year, an increase of
86%.Net income was relatively flat for the quarter compared to the
quarter last year due to foreign exchange losses in 2019 versus
gains in 2018.
For the first nine months revenues increased 16.4% to
$37.3 million. Operating Income
increased 31.7% to $2 million, while
earnings per share were 17 cents
compared to 21 cents in the previous
year.
"The quarter ended April 30, 2019
was Reko's best so far this fiscal year," stated Diane Reko, chief executive officer. "With sales
at acceptable levels and start up costs largely behind us, we were
able to grow operating income significantly, although the impact of
foreign exchange resulted in the same $0.10 EPS as Q3 last year."
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.