REK

WINDSOR, ON, Feb. 22, 2017 /CNW/ - Reko International Group Inc. (TSX-V: REK) today announced results for its second quarter ended January 31, 2017.  

Financial Highlights:

Consolidated sales for the quarter ended January 31, 2017, were $11.2 million, compared to $13.8 million in the prior year, a decrease of $2.6 million or 18.9%. The decrease in sales was largely due to lower volumes in the transportation and oil and gas sectors.

Gross profit for the quarter ended January 31, 2017, was $2.0 million, or 18.0% of sales, compared to a gross profit of $2.9 million, or 20.9% 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 January 31, 2017, were $0.9 million, or 8.5% of sales, compared to $1.2 million, or 8.4% of sales in the prior year. The decrease in SG&A is primarily due to a decrease in wage costs and professional fees.

Net income for the quarter ended January 31, 2017, was $0.79 million or $0.12 per share, compared to net income of $1.18 million, or $0.18 per share in the prior year.

"We are pleased to report second quarter net income that is almost 24% higher than that reported in the first quarter," stated Diane Reko, chief executive officer. "The demand in the automotive portion of our business has been strong, and we have seen evidence of demand improvements in our other markets as well. We continue to implement business development strategies and improve efficiencies, while monitoring the potential risks and opportunities arising from a dynamic export market."

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:REK) 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.