WINDSOR, ON, Dec. 6, 2018 /CNW/ - Reko International Group
Inc. (TSX-V: REKO) today announced results for its quarter ended
October 31, 2018.
Financial Highlights:
(in 000's except for
per share amounts)
|
Three Months
ended October 31,
2018
|
(unaudited)
|
|
Fiscal
|
|
Fiscal
|
|
2019
|
|
2018
|
Sales
|
$
|
11,438
|
$
|
8,761
|
Net income
|
|
170
|
|
255
|
EPS basic
|
|
0.03
|
|
0.04
|
Working
capital
|
|
14,542
|
|
4,971*
|
Shareholders'
equity
|
|
45,392
|
|
43,370
|
Shareholders' Equity
per Share
|
|
7.02
|
|
6.74
|
|
|
|
|
|
(*Calculation amended as a result of reclassification previously
discussed in July 31, 2018 financial
statements.)
Consolidated sales for the first quarter of 2019 were
$11.4 million compared to
$8.8 million in the same period last
year, an increase of $2.6 million or
29.5%. This was largely due to the number of projects completed
during the quarter and an increase in the average foreign exchange
rate compared to the same period in the prior year.
Gross profit for the quarter ended October 31, 2018 was $1.8
million compared to $1.3
million for the same period in the prior year. Consistent
with sales, this was due to the timing of completion of a number of
successful projects. However, the improvement was offset by
additional ramp up costs associated with new projects. These
issues are now behind us.
Selling and administrative expenses for the first quarter of
fiscal 2019 totaled $1.3 million
compared to $1.0 million for the same
period in fiscal 2018 – an increase of $0.3
million or 30.0%. The increase in S&A relates
primarily to the addition of staff including a director of business
development and additional sales people as well as increased
commissions due to the higher sales level, offset by decreases in
certain group costs.
Net income for the three months ended October 31, 2018 was $0.2
million or $0.03 per share
compared to $0.3 million or
$0.04 per share for the same period
in the prior year. Losses from foreign exchange impacts in
the quarter reduced earnings per share by almost 2 cents compared to the same period in the prior
year.
"We are pleased with the year over year quarterly sales increase
and have taken steps to reduce the costs associated with some new
projects." noted CEO Diane
Reko. "Investment in the sales team should lead to
improvement in the quarterly awards and translate to increasing
profitability during the fiscal 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.