SOURCE: Reko International Group Inc.

Reko International Group Inc.

March 03, 2016 13:15 ET

Reko Announces Second Quarter Results for Fiscal 2016

WINDSOR, ON--(Marketwired - March 03, 2016) - Reko International Group Inc. (TSX VENTURE: REK) today announced results for its second quarter ended January 31, 2016.

         
Financial Highlights:        
  Three Months Six Months
  (unaudited) (unaudited)
  Fiscal Fiscal Fiscal Fiscal
  2016 2015 2016 2015
Sales $13,831 $13,323 $24,145 $23,909
Net income 1,176 528 2,382 894
EPS basic 0.18 0.08 0.37 0.14
Working capital   15,802   6,208
Shareholders' equity   36,668   30,945
Shareholders' Equity per Share   5.70   4.81
         

Consolidated sales for the quarter ended January 31, 2016, were $13.8 million, compared to $13.3 million in the prior year, an increase of $0.5 million or 3.8%. The increase in sales was largely related to the increase in the US dollar exchange rate.

Gross profit for the quarter ended January 31, 2016, was $2.9 million, or 20.9% of sales, compared to a gross profit of $2.5 million, or 18.5% of sales in the prior year. The increase in gross profit was related to increased efficiency.

Selling and administrative expenses for the quarter ended January 31, 2016 were $1.2 million, or 8.4% of sales, compared to $1.3 million, or 10.0% of sales in the prior year. The decrease in SG&A relates to decreases in costs associated with selling and administrative wages and benefits in the quarter.

Net income for the quarter ended January 31, 2016 was $1.2 million or $0.18 per share, compared to net income of $0.5 million, or $0.08 per share in the prior year.

"We are pleased to report another solid quarter of earnings," stated Diane Reko, chief executive officer. "Our net income is more than double last year's based upon comparable sales levels. The focus on operational efficiencies, combined with a favorable US exchange rate, has made this possible. We continue to invest in people and processes to enhance productivity, to achieve growth in market share and in 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

  • Marilyn Crowley
    Chief Financial Officer
    (519) 727-3287