WINDSOR,
ON, June 9, 2022 /CNW/ - Reko
International Group Inc. (TSXV: REKO) today announced results for
its quarter ended April 30, 2022.
Financial Highlights:
(in 000 's except for per share amounts)
|
Three
Months
|
Nine
Months
|
(unaudited)
|
(unaudited)
|
Fiscal
|
Fiscal
|
Fiscal
|
Fiscal
|
2022
|
2021
|
2022
|
2021
|
Sales
|
$13,357
|
$12,413
|
$38,882
|
$30,239
|
Net income
|
92
|
801
|
1,458
|
373
|
EPS basic
|
0.02
|
0.13
|
0.25
|
0.06
|
Working
capital
|
|
|
20,939
|
20,270
|
Shareholders'
equity
|
|
|
46,155
|
46,594
|
Shareholders' Equity
per Share
|
|
|
7.90
|
7.74
|
Consolidated sales for the third quarter of 2022 were
$13.4 million compared to
$12.4 million in the same period last
year, an increase of $0.9 million, or
7.6%. Year to date sales for fiscal 2022 were $38.9 million, a 29% increase from the year to
date sales of $30.2 million reported
in fiscal 2021. Sales volumes continue to climb and we are
experiencing a solid flow of work in all divisions.
Gross profit for the quarter ended April
30, 2022 was $2.0 million
compared to $2.4 million for the same
period in the prior year. Gross profit as a percentage of sales
averaged 14.6% for the three months, compared to 19.1% for the same
period last year. Due to contracted pricing negotiated prior to
recent inflationary cost increases, Reko's profit margin was
negatively affected on programs already underway.
Selling, general and administrative expenses ("SG&A") for
the third quarter of fiscal 2022 totaled $2.0 million compared to $1.1 million for the same period in fiscal 2021.
SG&A expenses for the nine months of the year totalled
$4.5 million, compared to
$4.2 million in the prior year. Near
the end of the quarter, the company made a strategic decision to
move from designing and building tooling to a more concentrated
effort on machining. This decision resulted in some permanent
layoffs; the cost for these layoffs was accrued for at the end of
the third quarter. An increase in wage costs contributed to the
remainder of the overall increase.
Net income for the three months ended April 30, 2022 was $0.09
million, or $0.02 per share
compared to $0.8 million, or
$0.13 per share, for the same period
in the prior year. For the nine months ended April 30, 2022, net income was $1.5 million, or $0.25 per share, compared to net income of
$0.4 million, or $0.06 per share, in the same period last
year.
During the quarter, the company re-purchased 153,900 shares
under the normal course issuer bid. Year-to-date, the company
re-purchased 218,700 shares.
"We are pleased to report sales for both the quarter and year to
date which exceed fiscal 2021 levels", stated Diane Reko, CEO. "Unfortunately, cost increases
in almost everything that we purchase have negatively impacted
profits on orders which were quoted and accepted before the full
impact of these cost increases was known. Additionally, the company
decided to pivot the sales focus of its mold division from building
tooling to providing machining services. As a result, the company
incurred restructuring costs of $0.3
million during the quarter. Future capacity resulting from
this decision will be used to support demand for our automation
equipment and is expected to improve overall profitability once the
transition is completed, later in calendar 2022."
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 automation
solutions for manufacturers and producers and the precision
machining of critical components for a variety of industries.
Reko's vision is to be the "go-to" team by using innovative
processes and providing creative solutions to any production
need.
SOURCE Reko International Group Inc.