SOURCE: Reko International Group Inc.

Reko International Group Inc.

December 04, 2014 14:25 ET

Reko Announces First Quarter Results for Fiscal 2015

WINDSOR, ON--(Marketwired - December 04, 2014) - Reko International Group Inc. (TSX VENTURE: REK) today announced results for its first quarter ended October 31, 2014.

   
   
Financial Highlights:    
  Three Months
  (unaudited)
  Fiscal Fiscal
  2015 2014
Sales $10,586 $8,469
Net income  366  42
EPS basic  0.06  0.01
Working capital  8,516  9,417
Shareholders' equity  30,416  27,756
Shareholders' Equity per Share  4.73  4.32
     
     

Consolidated sales for the quarter ended October 31, 2014, were $10.6 million, compared to $8.5 million in the prior year, an increase of $2.1 million or 25%. The increase in sales was largely related to increases in demand in both the capital equipment and automotive market, as well as an increase in the US dollar exchange rate.

Gross profit for the quarter ended October 31, 2014, was $2.3 million, or 21.7% of sales, compared to a gross profit of $1.3 million, or 14.9% of sales, in the prior year. The increase in gross profit was related to increases in volumes, as well as increased efficiency as we maintained the prior year's cost structure.

Selling and administrative expenses for the quarter ended October 31, 2014 were $1.5 million, or 14.1% of sales, compared to $1.2 million, or 14.1% sales, in the prior year. The increase in SG&A relates to increases in professional fees tied to renewing our lending agreements, increases in wages and benefits as a result of hiring additional employees, increases in accounts receivable insurance as volumes increased, all offset by decreases in sales commission due to changes in our sales mix.

Net income for the quarter ended October 31, 2014 was $0.4 million or $0.06 per share, compared to net income of $0.04 million, or $0.01 per share in the prior year.

"The beginning of our new fiscal year was full of activity," stated Diane Reko, chief executive officer. "New orders from all our markets increased significantly. The additional work, combined with our ability to complete it without added costs, resulted in increased profitability. At the same time, our team worked diligently to complete the requirements in preparation for our upcoming contract."

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.

REKO INTERNATIONAL GROUP INC.

469 Silver Creek Industrial Drive Lakeshore, Ontario

N8N 4W2 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

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. For more information, visit www.rekointl.com, or contact Carl A. Merton, Chief Financial Officer at (519) 727-3287.

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