- Sales grows 14% over last year
- Year over year gross profit increases by 22%
- Continued commitment to research and development and market
diversification
WINDSOR, ON, Oct. 2, 2019 /CNW/ - Reko International
Group Inc. (TSX-V: REKO) today announced results for its year ended
July 31, 2019.
Financial Highlights:
(in 000's, except
for per share data)
|
|
|
|
Three
Months
|
Twelve
Months
|
(unaudited)
|
(unaudited)
|
Fiscal
|
Fiscal
|
Fiscal
|
Fiscal
|
2019
|
2018
|
2019
|
2018
|
Sales
|
$10,659
|
$10,206
|
$47,989
|
$42,272
|
Net income
|
526
|
713
|
1,577
|
2,035
|
EPS basic
|
0.08
|
0.11
|
0.25
|
0.32
|
Working
capital
|
|
|
17,182
|
13,482
|
Shareholders'
equity
|
|
|
46,418
|
45,181
|
Shareholders' Equity
per
Share
|
|
|
7.31
|
7.02
|
Consolidated sales for the fourth quarter of 2019 were
$10.6 million compared to
$10.2 million in the same period last
year, an increase of $0.5 or 4.4%.
The increase in sales was related to improved throughput and a
continued strong exchange rate. Consolidated sales for the year
ended July 31, 2019, were
$47.9 million, compared to
$42.2 million in the prior year, an
increase of $5.7 million or
13.5%.
Gross profit for the quarter ended July
31, 2019, was $2.1 million, or
19.8% of sales, compared to $1.9
million, or 18.6% of sales in the prior year. The increase
in gross profit is consistent with the increase in sales. Gross
profit for the year ended July 31,
2019, was $8.2 million, or
17.0% of sales, compared to a gross profit of $6.7 million, or 15.9% of sales in the prior
year
Selling and administrative expenses for the quarter ended
July 31, 2019, were $1.2 million, or 11.3% of sales, compared to
$1.4 million, or 13.7% of sales, in
the prior year. The decrease in SG&A relates to one-time
expenses associated with expansion in the prior year quarter.
Selling and administrative expenses for the year ended July 31, 2019, were $5.3
million, or 11.0% of sales, compared to $4.7 million, or 11.2% 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 fourth quarter.
Net income for the year ended July 31,
2019 was $1.6 million or
$0.25 per share, compared to net
income of $2.0 million, or
$0.32 per share in the prior year.
Foreign currency fluctuations, continued research and development
investment, and some proactive debt restructuring activities made
in the interest of strengthening our net cash position contributed
to the lower year over year net income.
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.
During the quarter, the company re-purchased 63,600 shares under
the normal course issuer bid which expires December 30, 2019. During fiscal 2019 the total
shares repurchased under all bids totaled 118,300.
"I am very proud of everyone on the Reko team for achieving 31%
increase in operating income over the prior year," stated
Diane Reko, chief executive officer.
"We have posted stronger revenue and gross margin gains and we
continue to invest in research and product development that will
open new opportunities down the road within diverse and growing
business sectors."
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.