WINDSOR, ON, March 10, 2022 /CNW/ - Reko International Group
Inc. (TSXV: REKO) today announced results for its quarter ended
January 31, 2022.
Financial Highlights:
(in 000 's except for per share amounts)
|
Three
Months
|
Six Months
|
(unaudited)
|
(unaudited)
|
Fiscal
|
Fiscal
|
Fiscal
|
Fiscal
|
2022
|
2021
|
2022
|
2021
|
Sales
|
$13,419
|
$10,982
|
$25,525
|
$17,825
|
Net income
|
872
|
468
|
1,366
|
(428)
|
EPS basic
|
0.15
|
0.07
|
0.23
|
(0.07)
|
Working
capital
|
|
|
22,390
|
19,890
|
Shareholders'
equity
|
|
|
46,813
|
46,031
|
Shareholders' Equity
per Share
|
|
|
7.81
|
7.57
|
Consolidated sales for the second quarter of 2022 were
$13.4 million compared to
$11.0 million in the same period last
year, an increase of $2.4 million, or
22.2%. Sales for the first six months of the current fiscal
were 43% higher than sales for the first half of the prior year,
totaling $25.5 million, compared to
$17.8 million. The increase in
sales is attributable to a rebound from the negative effects the
COVID-19 pandemic had on sales efforts during the first half of
last year. Momentum has picked up, and our teams are busy
quoting and kicking off new work.
Gross profit for the quarter ended January 31, 2022 was $2.2
million compared to $1.1
million for the same period in the prior year. Gross
profit as a percentage of sales averaged 16.6% for the three
months, a significant improvement compared to 9.8% for the same
period last year. Improved sales volumes contributed to the
increase, as did a continued focus on operational
efficiencies. These increases were partly offset, however, by
continued increase in material and labour costs, as well as
shipping.
Selling, general and administrative expenses ("SG&A") for
the second quarter of fiscal 2022 totaled $1.3 million compared to $1.0 million for the same period in fiscal
2021. SG&A expenses for the six months of the year
totalled $2.5 million, compared to
$3.0 million in the prior year.
The decrease in year-to-date costs compared to last year's are
mostly due to severance payments accounted for in Q1 of last year
from the restructuring that took place at that time because of
reduced workloads.
Net income for the three months ended January 31, 2022 was $0.9
million, or $0.15 per share
compared to $0.5 million, or
$0.07 per share, for the same period
in the prior year. For the six months ended January 31, 2022, net income was $1.4 million, or $0.23 per share, compared to net loss
$0.4 million, or ($0.07) per share, in the same period last
year.
During the quarter, the company re-purchased 35,800 shares under
the normal course issuer bid. On December 2, 2021, Reko paid out a special cash
dividend of $0.25 per share to all
shareholders of record November 2,
2021.
"We are pleased with the sales improvement of over 40% over the
first half of fiscal 2021", stated Diane
Reko, CEO, "and even more pleased with the significantly
higher increases in gross profit and net income. Quoting is
robust and demand is much improved since the beginning of the
pandemic. Unfortunately, we continue to be challenged with
supply chain problems like component availability, significant
price increases and delivery delays. These challenges,
combined with inflationary pressures may impact margins on orders
which were awarded before these cost and timing delay effects were
evident."
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 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.