Reko International Group Inc.
TSX : REK

Reko International Group Inc.

September 24, 2010 08:00 ET

Reko Announces Fourth Quarter Results for Fiscal 2010 and Its Intention to Apply for A Listing on the TSX Venture Exchange

WINDSOR, ONTARIO--(Marketwire - Sept. 24, 2010) - Reko International Group Inc. (TSX:REK) today announced that due to its limited public float, the Company has decided to seek a listing on the TSX Venture Exchange.

"Having our shares traded on the TSX Venture Exchange assures shareholders of continued liquidity," said Diane St. John, CEO.

Reko also announced results for the quarter and year ended July 31, 2010.
     
Financial Highlights:                
  Three Months     Twelve Months
  (unaudited)     (unaudited)
  Fiscal   Fiscal     Fiscal   Fiscal
  2010   2009     2010   2009
Sales $12,772   $10,128     $40,151   $55,277
Net (loss) income (2,156 ) (1,353 )   (7,469 ) 199
EPS basic (0.33 ) (0.20 )   (1.16 ) 0.03
Working capital           131   16,941
Shareholders' equity           36,156   43,617
Shareholders' Equity per Share           5.63   6.79

Consolidated sales for the quarter ended July 31, 2010, were $12.7 million, compared to $10.1 million in the prior year, an increase of $2.6 million or 25.7%. The increase in sales in the quarter relates primarily to a slower than normal quarter in the prior year. Consolidated sales for the year ended July 31, 2010 were $40.2 million, compared to $55.3 million in the prior year, a decrease of 27.3%.

The gross loss for the three months ended July 31, 2010, was $0.6 million, or 4.7% of sales, compared to a gross profit of $0.1 million in the prior year. The gross loss for the year ended July 31, 2010 was $1.0 million, or 2.5% of sales, compared to a gross profit of $8.9 million, or 16.1% of sales, in the prior year as a result of sales below our break-even levels.

Selling and administrative expenses for the three months ended July 31, 2010 were $1.6 million, or 12.6% of sales, compared to $1.5 million, or 14.8% of sales for the same period in the prior year. The increase in selling and administrative charges in the quarter relates primarily to increased sales commissions on the increased sales for the quarter. Selling and administrative expenses for the year ended July 31, 2010 were $6.0 million, or 14.9% of sales, compared to $7.1 million, 12.8% of sales, in the prior year, a 15.5% decline.

Net loss for the quarter was $2.2 million or $0.33 per share, compared to $1.4 million, or $0.20 per share, in the same period of the prior year. Net loss for the year ended July 31, 2010 was $7.5 million, or $1.16 per share, compared to income of $0.2 million, or $0.03 per share, in the same period of the prior year.

"The fourth quarter of 2010 marked the end of a very difficult year for Reko," said Diane St. John, CEO. "The Reko team faced many challenges in 2010, including an economic recession/recovery, a weakening U.S. dollar, a paradigm shifting automotive industry and the disappearance of the capital equipment market. If the saying 'What ever does not kill you only makes you stronger' is true then the Reko team has developed some great muscle this year! As the door to 2010 closes, we are opening a door to 2011. The prospects for 2011 show signs of improved sales levels, improved financial results and greater diversification of markets, ventures and products. 2011 should be an exciting time."

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

REKO INTERNATIONAL
GROUP INC.
5390 Brendan Lane
Oldcastle, Ontario
N0R 1L0
www.rekointl.com
 
 
SUBSIDIARIES/DIVISIONS:
 
Canada:
• Reko Tool & Mould (1987) Inc.
 
  Divisions –
 
  - Reko Automation and Machine Tool
  - Concorde Machine Tool
 
 
United States:
- Reko International Sales Inc.
- Reko International Holdings Inc.

Contact Information

  • Reko International Group Inc.
    Carl A. Merton
    Chief Financial Officer
    (519) 737-6974
    www.rekointl.com