WINDSOR,
ON, Oct. 13, 2022 /CNW/ - Reko International
Group Inc. (TSXV: REKO) today announced results for its fourth
quarter and year ended July 31,
2022.
Financial Highlights:
(in 000's, except for per share data)
|
Three
Months
|
Twelve
Months
|
(unaudited)
|
(unaudited)
|
Fiscal
|
Fiscal
|
Fiscal
|
Fiscal
|
2022
|
2021
|
2022
|
2021
|
Sales
|
$15,002
|
$8,957
|
$53,884
|
$39,196
|
Net Income
|
663
|
491
|
2,121
|
864
|
EPS Basic
|
0.11
|
0.08
|
0.36
|
0.14
|
Working
Capital
|
|
|
18,757
|
20,274
|
Shareholders'
Equity
|
|
|
46,412
|
47,056
|
Shareholders' Equity
per Share
|
|
|
8.03
|
7.84
|
Consolidated sales for the fourth quarter of 2022 were $15.0 million compared to $9.0 million in the same period last year, an
increase of $6.0 million, or 67%.
Consolidated sales for the year ended July
31, 2022 were $53.9 million,
compared to $39.2 million in the
prior year, an increase of $14.7
million or 37.5%. The increase in sales volume is a
result of a number of our strategic actions. Investments in
machinery and in our new automation facility contributed to this
sales growth. Additionally, the development of innovative
flexible automation equipment allowed us to quote and win larger
projects, thus growing sales.
Gross profit for the quarter ended July
31, 2022 was $2.6 million, or
17.4% of sales, compared to $1.0
million, or 11.7% of sales in the prior year. Gross profit
for the year ended July 31, 2022 was
$8.7 million, or 16.2% of sales,
compared to $4.8 million, or 12.3% of
sales in the prior year. The increase in sales volumes had a
positive effect on the gross profit. However, increases in material
costs negatively impacted gross margin. At times, our teams
successfully managed these pricing challenges by better negotiating
with suppliers or buying in bulk. Other times, our contracted
pricing with customers was negotiated prior to significant cost
increases, and the company had to absorb the full impact of these
increases. To manage the effect of cost inflation, the teams
focused on operational efficiencies. Project financial performance
is reviewed frequently to help the Company manage potential
negative impacts to a project's bottom line. Overall, this
focus on project efficiency has helped to offset some of the
impacts of material cost increases .
Selling and administrative expenses ("SG&A") for the fourth
quarter totalled $1.8 million, or
11.9% of sales, compared to $1.2
million, or 13.9% of sales, in the prior year.
SG&A for the year ended July 31,
2022 were $6.4 million, or
11.8% of sales, compared to $5.4
million, or 13.8% of sales in the prior year.
Restructuring costs of $0.9
million during the year were the main reason for the
increase. Other costs have remained at similar levels
compared to the previous fiscal year.
Net income for the fourth quarter was $0.7 million or $0.11 per share compared to $0.5 million or $0.08 a share in the prior year. Net income
for the year ended July 31, 2022 was
$2.1 million, or $0.36 per share, compared to net income of
$0.9 million, or $0.14 per share, in the prior year.
Reko ended the year with a strong balance sheet, with cash of
$14 million, and working capital
totaling almost $19 million.
The Company has focused on maintaining a strong cash position in
support of several key strategic initiatives, including potential
corporate acquisitions.
During the quarter, the company purchased and subsequently
cancelled 72,600 shares under the normal course issuer
bid. During the fiscal year ended July
31, 2022, a total of 291,300 shares were purchased and
cancelled.
"We are pleased with the improvement of both sales level and
earnings per share over last fiscal year" stated Diane Reko, CEO. "Our strategic decision to
focus on robotic automation and machining services positively
impacts both cash flow and profitability."
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, along with 5 axis machining services. Reko's family-oriented
culture embraces past experience, fosters innovation, and always
ensures the highest standard of quality. For more
information, visit, or contact Catia
Longo, Chief Financial Officer at (519) 727-3287.
Net income for the fourth quarter was $0.7 million or $0.11 per share compared to $0.5 million or $0.08 a share in the prior year. Net income
for the year ended July 31, 2022 was
$2.1 million, or $0.36 per share, compared to net income of
$0.9 million, or $0.14 per share, in the prior year.
Reko ended the year with a strong balance sheet, with cash of
$14 million, and working capital
totaling almost $19 million.
The Company has focused on maintaining a strong cash position in
support of several key strategic initiatives, including potential
corporate acquisitions.
During the quarter, the company purchased and subsequently
cancelled 72,600 shares under the normal course issuer
bid. During the fiscal year ended July
31, 2022, a total of 291,300 shares were purchased and
cancelled.
"We are pleased with the improvement of both sales level and
earnings per share over last fiscal year" stated Diane Reko, CEO. "Our strategic decision to
focus on robotic automation and machining services positively
impacts both cash flow and profitability."
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, along with 5 axis machining services. Reko's family-oriented
culture embraces past experience, fosters innovation, and always
ensures the highest standard of quality.
SOURCE Reko International Group Inc.