Reko International Group Inc.
TSX VENTURE : REK

Reko International Group Inc.

December 05, 2013 12:37 ET

Reko Announces First Quarter Results for Fiscal 2014

WINDSOR, ONTARIO--(Marketwired - Dec. 5, 2013) - Reko International Group Inc. (TSX VENTURE:REK) today announced results for its first quarter ended October 31, 2013.

Financial Highlights:

Three Months
(unaudited)
Fiscal Fiscal
2014 2013
Sales $ 8,469 $ 10,737
Net income 42 751
EPS basic 0.01 0.12
Working capital 9,417 2,673
Shareholders' equity 27,756 26,783
Shareholders' Equity per Share 4.32 4.17

Consolidated sales for the quarter ended October 31, 2013, were $8.5 million, compared to $10.7 million in the prior year, a decrease of $2.2 million or 20.6%. The decrease in sales was largely related to decreases in demand in both the capital equipment and automotive markets.

Gross profit for the quarter ended October 31, 2013, was $1.3 million, or 15.3% of sales, compared to a gross profit of $1.7 million, or 17.1% of sales, in the prior year. The decrease in gross profit related to the decrease in sales.

Selling and administrative expenses for the quarter ended October 31, 2013 were $1.2 million, or 14.1% of sales, compared to $1.1 million, or 10.3% sales, in the prior year. The increase in SG&A relates to increases in wages and benefits as a result of hiring additional employees, increases in travel expenses related to pursuing new sales opportunities, and increase in sales commission as a result of change in our sales mix.

Net income for the quarter ended October 31, 2013 was $0.04 million or $0.01 per share, compared to net income of $0.8 million, or $0.12 per share in the prior year.

"Our first quarter results were impacted by low volumes in all our markets resulting in a direct impact to the bottom line," stated Diane Reko, chief executive officer. "Improvements to our cost structure allowed us to work through this period of slow demand, achieving breakeven results, and maintaining the strength of our balance sheet. We are hopeful that demand in the capital equipment market will improve so as not to negatively impact upcoming financial results."

About Reko International Group Inc.

Reko International Group Inc. is a publicly traded, certified woman owned manufacturing company located in Southwestern, Ontario. Established in 1976, Reko International Group Inc. is a diverse value-added designer and manufacturer of customized machining and engineering solutions to OEMs and their Tier I suppliers in dynamic sectors as rail equipment, oil and gas distribution, mining, military, capital equipment, and automotive.

REKO INTERNATIONAL GROUP INC.
469 Silver Creek Industrial Drive Lakeshore, Ontario
N8N 4W2
http://www.rekointl.com/

SUBSIDIARIES/DIVISIONS:

Canada:

  • Concorde Precision Machining Inc.
  • Reko Manufacturing Group Inc.

United States:

  • Reko International Sales Inc.
  • Reko International Holdings Inc.
    • Reko Global Services, LLC

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.

Contact Information

  • Reko International Group Inc.
    Carl A. Merton
    Chief Financial Officer
    (519) 727-3287
    www.rekointl.com