Reko Announces First Quarter Results for Fiscal 2013
WINDSOR, ONTARIO--(Marketwire - Dec 6, 2012) - Reko International Group Inc. (TSX VENTURE:REK) today announced results for its first quarter ended October 31, 2012.
Financial Highlights: | ||
Three Months | ||
(unaudited) | ||
Fiscal | Fiscal | |
2013 | 2012 | |
Sales | $10,737 | $10,510 |
Net income (loss) | 751 | 160 |
EPS basic | 0.12 | 0.03 |
Working capital | 2,673 | 7,230 |
Shareholders'' equity | 26,783 | 24,932 |
Shareholders'' Equity per Share | 4.17 | 3.88 |
Consolidated sales for the quarter ended October 31, 2012, were $10.7 million, compared to $10.5 million in the prior year, an increase of $0.2 million or 2.0%. The increase in sales relates to increases in the amount earned per hour of work at all of our facilities, and volume increases in the capital equipment market.
Gross profit for the three months ended October 31, 2012, was $1.7 million, or 15.9% of sales, compared to a gross profit of $1.2 million, or 11.4% of sales, in the prior year. The increase in gross profit for the quarter relates to an increase in earned revenue during the period.
Selling and administrative expenses for the three months ended October 31, 2012 were $1.1 million, or 10.3% of sales, compared to $1.2 million, or 11.4% sales, in the prior year. The decrease in selling and administrative expenses in the quarter relates to reduced staffing and reductions in professional fees associated with IFRS.
Net income for the quarter was $0.8 million or $0.12 per share, compared to net income of $0.2 million, or $0.03 per share in the prior year.
The Company''s working capital at October 31, 2012 is $2.7 million; however, this calculation of working capital includes $4.3 million related to the final real estate mortgage payment due on our mortgage in the fourth quarter of 2013. Absent this final payment, the working capital calculation at October 31, 2012 would have been $7.0 million. The Company previously announced the signing of a Commitment Letter to refinance the mortgage payable, which is anticipated to close during the Company''s second quarter. At the end of October, Reko''s net debt amounted to $17.8 million compared to $20.3 million three months earlier.
REKO ANNOUNCES FIRST QUARTER RESULTS FOR FISCAL 2013
"Reko''s results are continuing to strengthen and show improvement," stated Diane Reko, chief executive officer. "While sales have effectively remained constant compared to the same period of the previous year, our profits have increased. The positive results are due to a better cost structure and improved focus on our key markets. We are pleased with the results from this quarter, but continually review our costs and processes in order to remain competitive in an uncertain global economic environment."
About Reko International Group Inc.
Reko International Group Inc. is a publicly traded, certified woman owned manufacturing company located in Southwestern, Ontario. Established in 1976, Reko International Group Inc. is a diverse value-added designer and manufacturer of customized machining and engineering solutions to OEMs and their Tier I suppliers in dynamic sectors as rail equipment, oil and gas distribution, mining, military, capital equipment, and automotive. For more information, visit www.rekointl.com.
REKO INTERNATIONAL GROUP INC. | ||
469 Silver Creek Industrial Drive | ||
Lakeshore, Ontario | ||
N8N 4W2 | ||
SUBSIDIARIES/DIVISIONS: | ||
Canada: | ||
• | Reko Tool and Mould (1987) Inc. | |
- | Concorde Machine Tool | |
• | Reko Manufacturing Group Inc. | |
United States: | ||
• | Reko International Sales Inc. | |
• | Reko International Holdings Inc. | |
- | Reko Global Services, LLC | |
