- Consolidated first quarter sales of $13.7M relatively flat to prior year and
$2.7M or 24.8% favourable compared to
Q4 of prior fiscal
- Quarterly Net Income of $311 and
EPS of $0.06
- Strong financial position with working capital increase of
$2.7M over prior year
WINDSOR,
ON, Dec. 7, 2023 /CNW/ - Reko International
Group Inc. (TSXV: REKO) today announced results for its first
fiscal quarter of 2024.
Financial Highlights:
(in 000's, except for per share data)
|
Three months
ended October
31
|
(unaudited)
|
Fiscal
|
Fiscal
|
2024
|
2023
|
Sales
|
$13,703
|
$13,796
|
Earned
Revenue(1)
Net
Income
|
8,337
311
|
8,193
704
|
EPS
Basic
|
0.06
|
0.12
|
Working
Capital
|
23,009
|
20,329
|
Shareholders'
Equity
|
45,819
|
46,905
|
Shareholders'
Equity per Share
|
8.17
|
8.19
|
(1)
|
Earned revenue is a
non-IFRS measure and is calculated as sales less costs associated
with purchased material and subcontracting. A reconciliation of
this non-IFRS measure is included in the MD&A.
|
Consolidated sales in the first quarter were $13.7 million, reflecting a marginal decrease
from $13.8 million in the same
quarter of the prior year. Despite a year-over-year strengthening
in the US Dollar, the sales increase due to FX did not materialize
to the same extent observed in the previous fiscal as the
proportion of Canadian sourced revenue increased to 27% of total
sales, up from 17.5% in the prior year, driven by the timing of
customer kick-offs and project mix.
Earned revenue for the quarter improved $144 or 1.8% compared to the prior year through a
strategic reduction of subcontracting services and enhanced
procurement practices to counter ongoing inflation challenges.
Gross profit for the quarter ended October 31, 2023 was $2.0
million, or 14.4% of sales, compared to $2.2 million, or 16.1% in the preceding year.
Margins were impacted by various factors including project mix,
inflationary pressures affecting wages and a temporary decline in
efficiency attributed to the training of new employees. In
response, the company is actively addressing these challenges
through strategic cost management initiatives, streamlined
processes and innovative solutions for enhanced operational
efficiency and profitability.
Selling and administrative expenses ("SG&A") were
$1,540 or 11.2% of sales which is
slightly improved when compared to the same period of the prior
year; $1,572 or 11.4% of sales.
Net income for the quarter ended October
31, 2023 was $311 or
$0.06 per share compared to
$704 or $0.12 a share in the prior year. Included in net
income is $54 of losses relating to
the sale of redundant capital assets and a year-over-year decline
of $135 in net gains relating to
foreign exchange translation.
"I am encouraged by the improved sales level, net income and
shareholders' equity per share, compared to the fourth quarter of
last year," stated Diane Reko, CEO. "We will continue to seek
opportunities to improve margins via increased efficiency and
expansion into markets with high demand for our products and
services."
During the quarter, the company purchased and subsequently
cancelled 83,500 shares under the normal course issuer bid at a net
cost of $417.
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 company located in Southwestern Ontario, just minutes from the
U.S. border. With expertise in robotic automation equipment and
precision machining services, Reko is a "go-to" supplier for
companies in the automotive, aerospace, rail, power generation and
capital equipment industries. Reko strives to be a pillar and
protector of sustainable North American manufacturing and
production. For more information, contact Kim
Marks, Chief Financial Officer at (519) 727-3287.
SOURCE Reko International Group Inc.