Reko International Group Inc.

Reko International Group Inc.

October 14, 2005 17:14 ET

CORRECTION FROM SOURCE: Reko Announces Year-End Results For Fiscal 2005

WINDSOR, ONTARIO--(CCNMatthews - Oct. 14, 2005) - The following corrects and replaces the release sent on September 29, 2005 at 4:52 pm ET. The original figures provided as Sales from Continuing Operations were, in fact, Total Sales, and they have been adjusted to represent Continuing Operations only. The Net income from Continuing Operations was understated for the three months ended July 31, 2004 and restated from $398 to $1,130. All other amounts are the same.

Reko International Group Inc. (TSX:REK) announced today, the results for the quarter and year-ended July 31, 2005.

On August 8, 2005, the Company signed a non-binding letter of intent for the sale of its interest in Superior Plastics, Inc. and as well has formulated a plan to divest its interests in Superior's subsidiaries. It is expected that the sale will close in October and divestiture of its interest in the subsidiaries will follow. As a result of this pending sale, the Company has classified this business as a discontinued operation. The Company recorded a charge of $2.7 million in the fourth quarter. This charge resulted from a write down in inventory and equipment, together with the cumulative translation adjustment for Superior Plastics, Inc. and its subsidiaries.

Sales from continuing operations for the quarter ended July 31, 2005, were $19.9 million compared to $17.2 million in the prior year. Although sales denominated in U.S. currency were negatively affected by the strength of the Canadian dollar, the Company experienced increased sales volumes in all its major products during the period. During the fourth quarter, net income from continuing operations amounted to $231,000 compared to $1,130,000 in the previous year.

For the fiscal year ended July 31, 2005 revenues from continuing operations reached $79.4 million compared to $73.0 million in the prior year. Net losses from continuing operations increased to $777,000 compared to $312,000 in fiscal 2004.

"While the operating losses of the plastic part production has decreased year-over-year," stated Steve Reko, President and CEO, "this divestiture will allow the Company to focus on its core competencies, which is our expertise in engineering and machining, areas where we are experiencing continuing growth. We continue to focus our future growth on the successes of our leading Tier-1 customers to whom we market the products and services contained in the Reko Toolbox."

Founded in 1976, Reko International Group (TSX:REK) is a highly integrated, technology driven engineering and manufacturing firm providing engineered solutions for the plastic and metal forming segment of the automotive, aerospace and consumer product markets. In its twelve production facilities in Ontario and Michigan, Reko designs and manufactures precision moulds, dies, metal stampings and other related industrial tooling, in addition to its own proprietary line of CNC machining centres.

Financial Highlights:
Period Ended July 31,
(in $,000 except per share Three Months Fiscal Year
amounts) -------------------------------------------
Fiscal Fiscal Fiscal Fiscal
2005 2004 2005 2004
Sales from continuing
operations $19,942 $17,243 $79,357 $73,041
Sales from discontinued
operations 3,969 5,240 19,932 22,888
Net income (loss) from
continuing operations 231 1,130 (777) (312)
Net loss from
discontinued operations (3,031) (496) (3,737) (1,002)
EPS from continuing
operations $.03 $.14 $(.10) $(.04)
EPS from discontinued
operations $(.40) $(.06) $(.49) $(.13)
Shareholders' Equity 50,789 55,794
Shareholders' Equity
per Share 6.66 7.12

5390 Brendan Lane
Oldcastle, Ontario
N0R 1L0


- Reko Tool & Mould (1987) Inc.
- Reko Automation and Machine Tool Inc.
- Concorde Machine Tool Inc.

United States:
- Proto-Techniques, Inc.
- Superior Plastics Inc.
- Excel Decorating & Finishing Inc.
- Novi Laser Inc.

Contact Information

  • Reko International Group Inc.
    Michael Dunn
    Vice President Finance
    (519) 737-6974