SOURCE: Reko International Group Inc.

Reko International Group Inc.

November 24, 2015 09:19 ET

Reko Announces First Quarter Results for Fiscal 2016

WINDSOR, ON--(Marketwired - November 24, 2015) - Reko International Group Inc. (TSX VENTURE: REK) today announced results for its first quarter ended October 31, 2015.

Financial Highlights:

      
   Three Months  
   (unaudited)  
   Fiscal  Fiscal  
   2016  2015  
 Sales $10,314  $10,586  
 Net income 1,206  366  
 EPS basic 0.19  0.06  
 Working capital 14,149  8,516  
 Shareholders' equity 35,438  30,416  
 Shareholders' Equity per Share 5.51  4.73  

Consolidated sales for the quarter ended October 31, 2015, were $10.3 million, compared to $10.6 million in the prior year, a decrease of $0.3 million or 2.8%. The decrease in sales was largely related to a decrease in timing of new awards in the automotive market, partly offset by the increase in the US dollar exchange rate, which increased the value of US denominated export volumes.

Gross profit for the quarter ended October 31, 2015, was $2.7 million, or 26.2% of sales, compared to a gross profit of $2.3 million, or 21.7% of sales in the prior year. The increase in gross profit was related to increased efficiency, as well as reducing our cost structure.

Selling and administrative expenses for the quarter ended October 31, 2015 were $1.3 million, or 12.6% of sales, compared to $1.5 million, or 14.2% of sales in the prior year. The decrease in SG&A relates to the elimination of certain professional fees, as well as decreases in costs associated with bad debts, office, travel and promotion.

Net income for the quarter ended October 31, 2015 was $1.2 million or $0.19 per share, compared to net income of $0.04 million, or $0.06 per share in the prior year.

"We are pleased with our results in the first quarter of our fiscal year," stated Diane Reko, chief executive officer. "The combined effects of a more favorable exchange rate and efficiency gains allowed us to report a significant increase to our bottom line."

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. 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 Marilyn Crowley, Chief Financial Officer at (519) 727-3287.

SUBSIDIARIES/DIVISIONS:

Canada:

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

United States:

  • Reko International Sales Inc.
  • Reko International Holdings Inc.

Contact Information

  • Reko International Group Inc.
    Marilyn Crowley
    Chief Financial Officer
    (519) 727-3287
    www.rekointl.com