WINDSOR, ON, June 4, 2020 /CNW/ - Reko International Group
Inc. (TSX-V: REKO) today announced results for its quarter ended
April 30, 2020.
Financial Highlights:
(in 000 's except for per share amounts)
|
Three
Months
|
Nine
Months
|
|
(unaudited)
|
(unaudited)
|
|
Fiscal
|
Fiscal
|
Fiscal
|
Fiscal
|
|
2020
|
2019
|
2020
|
2019
|
Sales
|
$9,985
|
$14,277
|
$28,873
|
$37,330
|
Net income
|
65
|
610
|
261
|
1,052
|
EPS basic
|
0.01
|
0.10
|
0.04
|
0.17
|
Working
capital
|
|
|
18,386
|
16,025
|
Shareholders'
equity
|
|
|
46,454
|
46,163
|
Shareholders' Equity
per Share
|
|
|
7.42
|
7.20
|
Consolidated sales for the third quarter of 2020 were almost
$10.0 million compared to
$14.3 million in the same period last
year, a decrease of $4.3 million, or
30%. The decrease is primarily a result of continued lower
volumes in certain sectors, as well as continued challenges with
breaking into diversified markets. Sales for the nine months
ended April 30, 2020 decreased 23% to
$28.9 million, compared to
$37.3 million in the same period in
the prior year.
Gross profit for the quarter ended April
30, 2020 was $0.7 million
compared to $2.7 million for the same
period in fiscal 2019. In the third quarter, gross profit
declined to 7% of revenue. The weakness was due to a
combination of lower levels of orders from traditional sources, and
additional costs associated with more specialized or unique
programs. For the nine-month period of the current fiscal
year, gross profit as a percentage of sales was 11% compared to 16%
in the previous year.
Selling and administrative expenses for the third quarter of
fiscal 2020 totaled $1.2 million
compared to $1.4 million for the same
period in fiscal 2019. The company continues to monitor its
expenses, with a focus on cost control and reduced spending where
possible.
Net income for the three months ended April 30, 2020 was $0.065
million or $0.01 per share
compared to $0.6 million or
$0.10 per share for the same period
in the prior year. For the nine months ended April 30, 2020, net income was $0.26 million or $0.04 per share, compared to $1.05 million or $0.17 per share in the same period last year.
Due to a change in strategy, the Company is also reporting the
departure of Mark Read, Director,
Automation Division on June 3,
2020. We appreciate his contributions and wish him success in
his future endeavours. In the interim, the position will be
covered by current team members who have proven skills and
experience, while the Company actively seeks an individual with
strong strategic sales experience.
"The third quarter of fiscal 2020 will always be remembered for
the COVID-19 isolation orders which were enacted near its
mid-point. Reko was committed to ensuring the safety of its
employees and was able to provide a safe work environment for its
team.", stated Diane Reko,
CEO. "I am so proud of how our employees were able to adapt
to the circumstance. By continuing to operate during the
depths of the pandemic, Reko was able to continue essential work on
orders which started in the early part of the quarter as well as
COVID-related manufacturing needs. While sales and net income
were significantly lower than the prior year's third quarter, we
were pleased to improve our working capital and cash position
significantly year over year. This will assist us to weather
the economic impact of the pandemic and take advantage of
opportunities which may present themselves. We will
continue to protect our team and adapt the way that we serve our
customers to ensure everyone's safety and the continued
satisfaction of our customers."
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.