WINDSOR, ON, March 5, 2020 /CNW/ - Reko International Group
Inc. (TSX-V: REKO) today announced results for its quarter ended
January 31, 2020.
Financial Highlights:
(in 000 's except for per share amounts)
|
Three
Months
(unaudited)
|
Six Months
(unaudited)
|
|
Fiscal
2020
|
Fiscal
2019
|
Fiscal
2020
|
Fiscal
2019
|
Sales
|
$9,538
|
$11,615
|
$18,888
|
$23,053
|
Net income
|
57
|
272
|
197
|
442
|
EPS basic
|
0.01
|
0.04
|
0.03
|
0.07
|
Working
capital
|
|
|
17,286
|
14,773
|
Shareholders'
equity
|
|
|
46,501
|
45,617
|
Shareholders' Equity
per Share
|
|
|
7.37
|
7.09
|
Consolidated sales for the second quarter of 2020 were
$9.5 million compared to $11.6 million in the same period last year, a
decrease of $2.1 million or
18%. The decrease was primarily the result of weak demand in
the automotive sector.
Gross profit for the quarter ended January 31, 2020 was $1.0
million compared to $1.6
million for the same period in the prior year. The decrease
in overall sales had an impact on gross profit. In the second
quarter, gross profit as a percentage of sales declined to 10.5%
compared to 13.6% in the previous year. For the six months,
the decline was far more muted with gross profit as a percentage of
sales of 13.3% compared to 14.6% in the prior year.
Selling and administrative expenses for the second quarter of
fiscal 2020 totaled $1.2 million
compared to $1.4 million for the same
period in fiscal 2019. The Company continues to monitor
spending and has implemented several cost reduction
initiatives.
Net income for the three months ended January 31, 2020 was $0.057 million or $0.01 per share compared to $0.272 million or $0.04 per share for the same period in the prior
year. For the six months ended January
31, 2020, net income was $0.197
million or $0.03 per share,
compared to $0.442 million or
$0.07 per share in the same period
last year.
"While profitable in the quarter, we felt the impact of global
uncertainty in the delay of awards in many of our markets." noted
CEO Diane Reko. "These delays
have impacted both our sales for the quarter and our backlog of
orders. We continue to focus on opportunities to increase sales,
while implementing programs to reduce costs."
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. (TSX-V: REKO) is a diversified,
technology-driven manufacturing organization located in
Southwestern Ontario, just minutes
from the U.S. border. Areas of expertise include robotic factory
automation solutions, the precision machining of large critical
parts, and plastic injection and low compression acoustic tooling.
Reko's family-oriented culture embraces past experience, fosters
innovation, and always ensures the highest standard of quality.
Reko believes in strengthening communities by advancing
manufacturing.
SOURCE Reko International Group Inc.