WINDSOR, ON, Dec. 2, 2021 /CNW/ - Reko International Group
Inc. (TSXV: REKO) today announced results for its first quarter
ended October 31, 2021.
Financial Highlights:
(in 000's, except for per share data)
|
Three
Months
|
(unaudited)
|
Fiscal
|
Fiscal
|
2022
|
2021
|
Sales
|
$12,106
|
$6,844
|
Net income
|
493
|
(896)
|
EPS basic
|
0.08
|
(0.14)
|
Working
capital
|
17,398
|
19,490
|
Shareholders'
equity
|
47,597
|
45,988
|
Shareholders' Equity
per Share
|
7.89
|
7.39
|
Consolidated sales for the quarter ended October 31, 2021, were $12.1 million, compared to $6.8 million in the prior year, an increase of
$5.2 million or 76.9%. Sales volumes
during the quarter showed a strong improvement, particularly
compared to those during the first quarter of the previous fiscal
year when the COVID-19 pandemic had a significant negative impact
on the Company's ability to secure new sales. The recent opening of
the Canada-U.S. border to
vaccinated individuals has permitted customers to attend the
Company's facilities for buy off of equipment, which has had a
positive effect on fiscal Q1 sales.
Gross profit for the quarter ended October 31, 2021 was $1.8
million compared to a gross profit of $0.3 million in the prior year. Last year's first
quarter was deeply affected by the pandemic, with lower sales
volumes and delayed project kick-offs. The improvement in this
year's first quarter gross profit was a result of increased sales
volumes, operational efficiencies, and a steady flow of project
kick-offs.
Selling and administrative expenses for the quarter ended
October 31, 2021 were $1.2 million compared to $2.0 million in the prior year. The decrease in
SG&A results from continuous cost reduction initiatives by the
Company and by the fact that the year-ago quarter was impacted by
reorganization costs.
Net income for the quarter ended October
31, 2021 was $0.5 million or
$0.08 per share, compared to net loss
of $0.9 million, or $0.14 per share in the prior year.
During the quarter, the company re-purchased 29,700 shares under
the normal course issuer bid which expires December 30, 2021. Reko also declared a dividend
of $0.25 per share, payable on
December 2, 2021.
"Our improved sales level combined with improved efficiency has
allowed for the significant improvement year over year in our
financial results for the quarter", stated Diane Reko, CEO. "As we see growth
opportunities with long term and new customers, we know that we are
getting closer to our vision of being the "go to" team for
manufacturers and producers. Current supply chain issues are
testing our ability to meet delivery times. However, I have faith
in our team's ability to continue finding creative solutions to all
challenges as we support other manufacturers and producers in their
important role in our economy."
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.
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.