WINDSOR,
ON, Dec. 1, 2022 /CNW/ - Reko International
Group Inc. (TSXV: REKO) today announced results for its first
quarter ended October 31, 2022.
Financial Highlights:
(in 000's, except for per share data)
|
Three
Months
|
(unaudited)
|
Fiscal
|
Fiscal
|
2023
|
2022
|
Sales
|
$13,796
|
$12,106
|
Net income
|
704
|
493
|
EPS basic
|
0.12
|
0.08
|
Working
capital
|
20,329
|
17,398
|
Shareholders'
equity
|
46,905
|
47,597
|
Shareholders' Equity
per Share
|
8.19
|
7.89
|
Consolidated sales for the quarter ended October 31, 2022, were $13.8 million, compared to $12.1 million in the prior year, an increase of
$1.7 million or 14.0%. The
increase in sales was largely related to persistent efforts by the
sales and estimating teams which resulted in a steady flow of
work. Increased pricing to help relieve some supply
chain costs helped, as did an increase in the average foreign
exchange rate.
Gross profit for the quarter ended October 31, 2022 was $2.2
million compared to a gross profit of $1.8 million in the prior year. Gross
profit as a percentage of sales increased to 16.1%, compared to
15.2% for the same period last fiscal year. The regular
attention by all levels within the organization to project
performance has contributed greatly to improvement in overall
efficiency, by allowing team members to react quickly to any
operational inefficiencies. Navigating a very tough cost
environment continues to be a daily challenge.
Selling and administrative expenses for the quarter ended
October 31, 2022 were $1.6 million compared to $1.2 million in the prior year. An increase
in recruiting costs to fill some positions contributed to the
increase in SG&A. Retaining skilled labour is also
crucial, particularly during these times when finding skilled
labour can be challenging. The company invested in its
workforce by offering wage increases and the opportunity to earn a
performance bonus.
Net income for the quarter ended October
31, 2022 was $0.7 million or
$0.12 per share, compared to
$0.5 million, or $0.08 per share in the prior year.
During the quarter, the company repurchased and cancelled 54,437
shares under the normal course issuer bid. Under the current
normal course issuer bid which commenced December 31, 2021, the Company was permitted to
purchase up to a total of 300,837 common shares. All shares
available under this current bid have now been repurchased and
cancelled at a net cost of $1.48
million.
Reko is please to announce the upcoming payment of a special
cash dividend of $0.25 per share to
all shareholders of record on December 15,
2022, with a payment date of January
13, 2023. Shareholders are asked to ensure that TSX
Trust Company has their up-to-date contact information, including
mailing address, in order to expediate the payment of the
dividend.
"Our bottom-line improvement for the quarter, year over year,
reflects the dedicated and
innovative efforts of many people on the Reko team", stated
Diane Reko, CEO. "Even with
the continued supply chain challenges in both pricing and delivery
of components, and with continued scarcity of skilled labour, we
managed to increase our year over year sales and net income.
We continue to seek innovative solutions to these new realities and
are demonstrating that our team is up to the
challenge."
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 and the precision machining of large critical
parts. 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. For more information, visit, or
contact Catia Longo, Chief
Financial Officer at (519) 727-3287.
SOURCE Reko International Group Inc.