- Consolidated fourth quarter sales of $11.0 million compared to $15.0 in the prior year
- Quarterly Net Income of $0.08
million and EPS of $0.01
- Working capital increased $4.5M
after repayment of a mortgage $2.2
million
WINDSOR,
ON, Oct. 12, 2023 /CNW/ - Reko International
Group Inc. (TSXV: REKO) today announced results for its fourth
quarter and year ended July 31,
2023.
Financial Highlights:
(in 000's, except for per share data)
|
Three
Months
|
Twelve
Months
|
|
(unaudited)
|
(unaudited)
|
|
Fiscal
|
Fiscal
|
Fiscal
|
Fiscal
|
|
2023
|
2022
|
2023
|
2022
|
|
Sales
|
$10,982
|
$15,002
|
$46,751
|
$53,884
|
|
Earned
Revenue(1)
Net
Income
|
7,960
80
|
8,419
663
|
32,141
1,322
|
31,223
2,121
|
|
EPS
Basic
|
0.01
|
0.11
|
0.23
|
0.36
|
|
Working
Capital
|
|
|
23,291
|
18,757
|
|
Shareholders'
Equity
|
|
|
45,907
|
46,412
|
|
Shareholders' Equity
per Share
|
|
|
8.07
|
8.03
|
|
(1)
|
Earned revenue is a
non-IFRS measure and is calculated as sales less costs associated
with purchased material, subcontracting and inventory adjustments.
A reconciliation of this non-IFRS measure is included in the
MD&A.
|
Consolidated sales for the fourth quarter of 2023 were
$11.0 million compared to
$15.0 million in the same period last
year, a decrease of $4.0 million, or
26.8%. Consolidated sales for the year ended July 31, 2023 were $46.8
million, compared to $53.9
million in the prior year, a decrease of $7.1 million or 13.2%. The reduction
in sales was primarily attributed to lower volumes in
certain sectors and delays in program kick-offs. Orders
received during the quarter were at a high level, which resulted in
a backlog of $16.7 million by year
end.
Despite a decline in sales, earned revenue for the year has
increased $0.9 million or 2.9% over
the prior year as a result of a more selective go to market
strategy, which, in turn, generated operational efficiencies and
drove down the cost of materials purchased as percentage of
sales; 22.9% compared to 31.5% in the prior year.
Gross profit for the quarter ended July
31, 2023 was $1.4 million, or
12.6% of sales, compared to $2.6
million, or 17.4% of sales in Fiscal 2022. Gross profit for
the year ended July 31, 2023 was
$7.1 million, or 15.2% of sales,
compared to $8.7 million, or 16.2% of
sales in the prior year. The decline in sales along with the
inflationary pressures affecting wages, related labour expenses and
certain input costs had an adverse impact on gross
profit.
Selling and administrative expenses ("SG&A") for the fourth
quarter totaled $1.3 million, or
11.6% of sales, compared to $1.8
million, or 11.9% of sales, in the prior year.
SG&A for the year ended July 31,
2023 were $5.8 million, or
12.5% of sales, compared to $6.4
million, or 11.9% of sales in the prior year. The
year-over-year improvement in SG&A was largely due to
restructuring costs in the prior year.
Net income for the fourth quarter was $0.08 million or $0.01 per share compared to $0.7 million or $0.11 a share in the prior year. Net income
for the year ended July 31, 2023 was
$1.3 million, or $0.23 per share, compared to net income of
$2.1 million, or $0.36 per share, in the prior year.
The year ended with a strong cash and working capital position;
$12.1 million and $23.3 million, respectively, after the full
repayment of a mortgage totaling $2.2
million and investment activities which included
$3.4 million of capital asset
purchases which supports the Company's growth and efficiency
initiatives.
"While our sales level for the fourth quarter was disappointing,
we expect improvement over the coming quarters as our backlog is
completed," stated Diane Reko, CEO. "We continue to
pursue projects that will keep our workload more stable, and as
always, look for ways to improve our efficiency and cost
structure."
During the quarter, the company purchased and subsequently
cancelled 12,300 shares under the normal course issuer bid.
During the fiscal year ended July 31,
2023, a total of 114,837 shares were purchased and
cancelled.
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 company located in Southwestern Ontario, just minutes from the
U.S. border. With expertise in robotic automation equipment and
precision machining services, Reko is a "go-to" supplier for
companies in the automotive, aerospace, rail, power generation and
capital equipment industries. Reko strives to be a pillar and
protector of sustainable North American manufacturing and
production.
SOURCE Reko International Group Inc.
