WINDSOR, ON, March 7, 2019 /CNW/ - Reko International Group
Inc. (TSX-V: REKO) today announced results for its quarter ended
January 31, 2019.
Financial Highlights:
(in 000 's except for per share amounts)
|
Three
Months
|
Six Months
|
|
(unaudited)
|
(unaudited)
|
|
Fiscal
|
Fiscal
|
Fiscal
|
Fiscal
|
|
2019
|
2018
|
2019
|
2018
|
|
Sales
|
$11,615
|
$11,529
|
$23,053
|
$20,290
|
|
Net income
|
272
|
420
|
442
|
675
|
|
EPS basic
|
0.04
|
0.07
|
0.07
|
0.11
|
|
Working
capital
|
|
|
14,773
|
13,982*
|
|
Shareholders'
equity
|
|
|
45,617
|
43,802
|
|
Shareholders' Equity
per Share
|
|
|
7.09
|
6.80
|
|
|
|
|
|
|
(*Calculation amended
as a result of reclassification previously discussed in July 31,
2018 financial statements.)
|
Consolidated sales for the second quarter of 2019 were
$11.6 million compared to
$11.5 million in the same period last
year, an increase of $0.1 million or
0.1%. Unfortunately, the impact of the expansion of manufacturing
capacity in the automation division and higher average exchange was
offset by lower volumes in certain sectors.
Gross profit for the quarter ended January 31, 2019 was $1.6
million compared to $1.5
million for the same period in the prior year. Consistent
with sales, this was due to the expansion in manufacturing capacity
in automation and a more favourable foreign exchange compared to
the prior year. However, the improvement was offset by
ongoing additional ramp up costs associated with new projects and
lower volumes in certain sectors.
Selling and administrative expenses for the second quarter of
fiscal 2019 totaled $1.4 million
compared to $1.1 million for the same
period in fiscal 2018 – an increase of $0.3
million or 27.3%. The increase in S&A relates
primarily to the addition of staff to create the infrastructure to
support future growth opportunities and diversification as well as
increased commissions due to the higher sales level within the
automation division.
Net income for the three months ended January 31, 2019 was $0.3
million or $0.04 per share
compared to $0.4 million or
$0.07 per share for the same period
in the prior year.
"While we are pleased with the year over year quarterly sales
increase achieved again this quarter, we are disappointed that
transitional costs related to new projects and customer
diversification exceeded budget." noted CEO Diane Reko. "We have implemented a number
of initiatives which should positively impact the remainder of
fiscal 2019."
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.