WINDSOR, ON, Oct. 14, 2021 /CNW/ - Reko International
Group Inc. (TSXV: REKO) today announced results for its fourth
quarter and year ended July 31,
2021.
Financial Highlights:
(in 000's, except for per share data)
|
Three
Months
|
Twelve
Months
|
(unaudited)
|
(unaudited)
|
Fiscal
|
Fiscal
|
Fiscal
|
Fiscal
|
2021
|
2020
|
2021
|
2020
|
Sales
|
$8,957
|
$11,353
|
$39,196
|
$40,226
|
Net income
|
491
|
502
|
864
|
763
|
EPS basic
|
0.08
|
0.08
|
0.14
|
0.12
|
Working
capital
|
|
|
20,274
|
20,256
|
Shareholders'
equity
|
|
|
47,056
|
46,909
|
Shareholders' Equity
per Share
|
|
|
7.84
|
7.51
|
Consolidated sales for the fourth quarter of 2021 were
$9.0 million compared to $11.4 million in the same period last year, a
decrease of $2.4 million, or 21.1%.
Consolidated sales for the year ended July
31, 2021 were $39.2 million,
compared to $40.2 million in the
prior year, a decrease of $1.0
million or 2.5%. Continued border restrictions
impacted the ability to get customers in the facility to review and
sign off on their equipment. This impacted sales for the
quarter, as a portion of revenues shift to fiscal 2022,
rather than being recognized in fiscal 2021. We continue to
recognize the importance of diversifying sales and are actively
pursuing work that diversifies our customer base, while still
fitting our wheelhouse. Significant headway has been made in
that regard, particularly in recent months. The Company
strives to minimize volatility in our workload. Diversifying
our customer base while maintaining strong connections with current
customers will decrease the variability of the revenue
stream.
Gross profit for the quarter ended July
31, 2021 was $1 million, or
11.5% of sales, compared to $1.2
million, or 10.8% of sales in the prior year. Gross profit
for the year ended July 31, 2021 was
$4.8 million, or 12.3% of sales,
compared to $4.4 million, or 11.0% of
sales in the prior year. The Company continues to encourage
staff to work as efficiently as possible, while maintaining quality
and excellence. The organization restructuring that occurred
in the first quarter also contributed to an increase in gross
margin. As teams became busier, there was also a natural
tendency to find more efficient ways to get things done.
Securing the best pricing from our suppliers when possible has also
helped improve profitability.
Selling and administrative expenses ("SG&A") for the fourth
quarter were $1.2 million, or 13.7%
of sales, compared to $1.4 million,
or 12.3% of sales, in the prior year. SG&A for the year
ended July 31, 2021 were $5.4 million, or 13.8% of sales, compared to
$5.1 million, or 12.7% of sales in
the prior year. The increase in SG&A was due to the costs
associated with the restructuring that occurred during the
year. The Company continuously challenges its staff to be
mindful of discretionary spending and this has helped offset the
severance payments associated with the restructuring.
Net income for the year ended July 31,
2021 was $0.9 million, or
$0.14 per share, compared to net
income of $0.8 million, or
$0.12 per share, in the prior
year.
With the COVID-19 pandemic continuing to have its effect, the
Company has been eligible for Canada Emergency Wage Subsidy (CEWS).
During the fiscal, the Company has received $2.4 million in CEWS funding.
Reko ended the year with a strong balance sheet, with cash and
short-term investments totaling $10.7
million, and working capital totaling $20.2 million. This strong cash position
helps support some strategic capital expenditure commitments, most
notably a new APEC machine, robots and equipment for research and
development, as well as additional simulation software licenses to
increase capacity.
During the quarter ended July 31,
2021, the company purchased and subsequently cancelled
11,900 shares under the provision of the normal course issuer
bid. During the fiscal year ended July
31, 2021, a total of 238,800 shares were purchased and
cancelled at a cost of $0.8
million.
"I am pleased with our results considering the challenges that
we faced as a Canadian exporter in fiscal 2021", stated
Diane Reko, CEO. "The long
delay in the decision to allow fully vaccinated US citizens into
Canada cost us in many ways and
will have a long-term impact. We also incurred significant
additional costs in supporting our installed equipment due to
border restrictions and COVID-driven requirements.
Nonetheless, we continue to pursue new markets, innovate, and
control costs in order to improve profitability."
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, 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.