SOURCE: Reko International Group Inc.

Reko International Group Inc.

June 04, 2015 12:15 ET

Reko Announces Third Quarter Results for Fiscal 2015

Reports Earnings of $0.14 per Share in the Quarter; Year to Date Sales Increased 32%

WINDSOR, ON--(Marketwired - June 04, 2015) - Reko International Group Inc. (TSX VENTURE: REK) today announced results for its third quarter ended April 30, 2015.

Financial Highlights:

  Three Months Nine Months
  (unaudited) (unaudited)
  Fiscal Fiscal Fiscal Fiscal
  2015 2014 2015 2014
Sales $13,519 $10,561 $37,428 $28,328
Net income  893  151  1,787  247
EPS basic  0.14  0.02  0.28  0.04
Working capital        10,294  9,092
Shareholders' equity        31,861  27,978
Shareholders' Equity per Share        4.96  4.36

Consolidated sales for the quarter ended April 30, 2015, were $13.5 million, compared to $10.6 million in the prior year, an increase of $3.0 million or 28.0%. The increase in sales related to increase in foreign exchange rates, as well as increases in hourly rates earned. Consolidated sales for the nine months ended April 30, 2015 were $37.4 million, compared to $28.3 million in the prior year, an increase of $9.1 million, or 32.1%.

Gross profit for the quarter ended April 30, 2015, was $4.1 million, or 30.6% of sales, compared to a gross profit of $1.6 million, or 14.8 % of sales, in the prior year. The increase in gross profit related to sales increases described above, partly offset by increased overhead costs. Gross profit for the nine months ended April 30, 2015 was $8.9 million, or 23.8% of sales, compared to a gross profit of $4.3 million in the prior year, or 15.2% of sales in the prior year.

Selling and administrative expenses for the quarter ended April 30, 2015 were $2.3 million, or 16.9% of sales, compared to $1.1 million, or 10.6% sales, in the prior year. The increase in SG&A relates to increased professional fees and an increase in wages, offset by a decrease in our accounts receivable insurance as a result premiums by eliminating some now redundant coverages. Selling and administrative expenses for the nine months ended April 30, 2015 were $5.1 million, or 13.6% of sales, compared to $3.4 million in the prior year, or 12.0% of sales in the prior year.

Net income for the quarter ended April 30, 2015 was $0.9 million or $0.14 per share, compared to net income of $0.2 million, or $0.02 per share in the prior year. Net income for the nine months ended April 30, 2015 was $1.8 million or $0.28 per share, compared to net income of $0.2 million or $0.04 per share in the prior year.

"We are pleased to report third quarter results that are almost 70% higher than last quarter, and almost 500% higher than the same quarter last year," stated Diane Reko, chief executive officer. "Our ability to efficiently process a significant workload, combined with a strong U.S dollar allowed us to report a substantial increase in income compared to the previous year and prior quarters. We have experienced lower than normal awards during the current quarter, however, and expect that this will impact our ability to repeat these results in the final quarter of the year."

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.

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