WINDSOR,
ON, March 9, 2023 /CNW/ - Reko International
Group Inc. (TSXV: REKO) today announced results for its second
quarter ended January 31, 2023.
|
Three Months
(unaudited)
|
Six Months
|
(unaudited)
|
Fiscal
|
Fiscal
|
Fiscal
|
Fiscal
|
2023
|
2022
|
2023
|
2022
|
Sales
|
$11,666
|
$13,419
|
$25,462
|
$25,525
|
Net income
|
483
|
872
|
1,187
|
1,366
|
EPS basic
|
0.08
|
0.15
|
0.21
|
0.23
|
Working
capital
|
|
|
19,730
|
22,390
|
Shareholders'
equity
|
|
|
45,972
|
46,813
|
Shareholders' Equity
per Share
|
|
|
8.00
|
7.81
|
Consolidated sales for the quarter ended January 31, 2023, were $11.7 million, compared to $13.4 million in the prior year, a decrease of
$1.7 million or 13%. The decrease in
sales was largely related to a delay in project kick offs.
Year to date sales for fiscal 2023 were $25.4 million, compared to $25.5 million in the previous fiscal year.
Gross profit for the quarter ended January 31, 2023 was $2.2
million compared to a gross profit of $2.3 million in the prior year. Gross
profit as a percentage of sales averaged 19% for the three months
compared to 16.9% for the same period last year, and 17.5% for the
six months compared to 16% for the first half of last year.
The favourable increase in gross profit is related to a
decrease in material cost, which was partly offset by an increase
in internal labour costs.
Selling, general and administrative expenses (SG&A) for the
quarter ended January 31, 2023 were
$1.6 million compared to $1.3 million in the prior year. Wage
increases and recruitment expenses are mostly the reason for
increases in SG&A.
Net income for the quarter ended January
31,2023 was $0.5 million or
$0.08 per share, compared to
$0.9 million, or $0.15 per share in the prior year.
During the quarter, the company re-purchased 400 shares under
the normal course issuer bid which expires January 8, 2024, and paid a dividend to
shareholders of $0.25 per share.
"We are starting to see the impact of market uncertainty in some
project release delays," stated Diane
Reko, CEO. "While we faced increasing manufacturing
costs year over year in wages and purchased inputs, our focus on
innovative solutions for these increasing costs led to profitable
growth. The company is well-positioned to face a potential
recession with a strong balance sheet and capabilities to assist
with solutions to many current manufacturing and production
problems."
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.
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, and the precision machining of large critical
parts. 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.