SOURCE: Reko International Group Inc.

Reko International Group Inc.

March 05, 2015 11:28 ET

Reko Announces Second Quarter Results for Fiscal 2015

WINDSOR, ON--(Marketwired - March 05, 2015) - Reko International Group Inc. (TSX VENTURE: REK) today announced results for its second quarter ended January 31, 2015.

 
REKO INTERNATIONAL GROUP INC.
Second Quarter Report
Six Months Ended
January 31, 2015
 
 Financial Highlights:            
   Three Months  Six Months
   (unaudited)  (unaudited)
   Fiscal  Fiscal  Fiscal  Fiscal
   2015  2014  2015  2014
 Sales  $13,323  $9,298  $23,909  $17,767
 Net income  528  54  894  96
 EPS basic  0.08  0.01  0.14  0.02
 Working capital        6,208  8,682
 Shareholders' equity        30,945  27,819
 Shareholders' Equity per Share        4.81  4.33
         

Consolidated sales for the quarter ended January 31, 2015, were $13.3 million, compared to $9.3 million in the prior year, an increase of $4.0 million or 43.3%. The increase in sales related to increases in hourly rates earned, increases in purchased components as a percentage of our total sales, and an increase in foreign exchange rates. Consolidated sales for the six months ended January 31, 2015 were $23.9 million, compared to $17.8 million in the prior year, an increase of $6.1 million, or 34.6%.

Gross profit for the quarter ended January 31, 2015, was $2.5 million, or 18.5% of sales, compared to a gross profit of $1.5 million, or 16.0 % of sales, in the prior year. The increase in gross profit related to sales increases described above, offset by increased overhead costs. Gross profit for the six months ended January 31, 2015 was $4.8 million, or 19.9% of sales, compared to a gross profit of $2.8 million in the prior year, or 15.4% of sales in the prior year.

Selling and administrative expenses for the quarter ended January 31, 2015 were $ 1.3 million, or 10.0% of sales, compared to $1.1 million, or 11.6% sales, in the prior year. The increase in SG&A relates to increased professional fees related to renewing our banking agreement, increase in bad debts, accounts receivable insurance, and increase in wages. Selling and administrative expenses for the six months ended January 31, 2015 were $2.8 million, or 11.8% of sales, compared to $2.3 million in the prior year, or 12.8% of sales in the prior year.

Net income for the quarter ended January 31, 2015 was $0.5 million or $0.08 per share, compared to net income of $0.1 million, or $0.01 per share in the prior year. Net income for the six months ended January 31, 2015 was $0.9 million or $0.14 per share, compared to net income of $0.1 million or $0.02 per share in the prior year.

REKO ANNOUNCES SECOND QUARTER RESULTS FOR FISCAL 2015

"We are pleased to report second quarter earnings which are almost ten times the income earned in the same quarter last year," stated Diane Reko, chief executive officer. "All areas of our business were at capacity, and our ability to process this demand within our current cost structure has allowed us to improve our profitability from the previous quarter and prior year. Kickoffs during the first two quarters of this fiscal year in the automotive market were higher than anticipated, and we expect to return to more normal levels for the second half of the fiscal year. We also look forward to the start of our machining contract this quarter."

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 Carl A. Merton, Chief Financial Officer at (519) 727-3287.

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.

Contact Information

  • For more information:

    REKO INTERNATIONAL GROUP INC.
    Carl A. Merton
    Chief Financial Officer
    (519) 727-3287
    www.rekointl.com