Welcome!

News Feed Item

Reko Announces Third Quarter Results for Fiscal 2014

WINDSOR, ONTARIO -- (Marketwired) -- 06/12/14 -- Reko International Group Inc. (TSX VENTURE:REK) today announced results for its third quarter ended April 30, 2014.


                                                                            
Financial Highlights:                                                       
                                            Three Months      Nine Months   
                                            (unaudited)       (unaudited)   
                                         -----------------------------------
                                         -----------------------------------
                                           Fiscal   Fiscal   Fiscal   Fiscal
                                             2014     2013     2014     2013
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Sales                                     $10,561  $10,871  $28,328  $32,112
Net income                                    151      224      247    1,187
EPS basic                                    0.02     0.03     0.04     0.18
Working capital                                               9,092    8,690
Shareholders' equity                                         27,978   27,219
Shareholders' Equity per Share                                 4.36     4.24
----------------------------------------------------------------------------

Consolidated sales for the quarter ended April 30, 2014, were $10.6 million, compared to $10.9 million in the prior year, a decrease of $0.3 million or 2.8%. The decrease in sales was largely related to reductions in demand in the automotive market, offset by an increase in demand in the capital equipment market. Consolidated sales for the nine months ended April 30, 2014 were $28.3 million, compared to $32.1 million in the prior year, a decrease of $3.8 million, or 11.8%.

Gross profit for the quarter ended April 30, 2014, was $1.6 million, or 15.1% of sales, compared to a gross profit of $1.7 million, or 15.6% of sales, in the prior year. The decrease in gross profit relates to increases in fixed costs associated with our manufacturing facility as demand in the automotive market continues to be low, offset by improved overhead absorption from increase in sales from the capital equipment market. Gross profit for the nine months ended April 30, 2014 was $4.3 million, or 15.2% of sales, compared to a gross profit of $5.1 million in the prior year, or 15.9% of sales in the prior year.

Selling and administrative expenses for the quarter ended April 30, 2014 were $ 1.1 million, or 10.4% of sales, compared to $1.2 million, or 11.0% sales, in the prior year. The decrease in SG&A relates to decreases in costs such as accounts receivable insurance and sales commission as our sales volumes decreased. Selling and administrative expenses for the nine months ended April 30, 2014 were $3.4 million, or 11.8% of sales, compared to $3.5 million in the prior year, or 10.9% of sales.

Net income for the quarter ended April 30, 2014 was $0.2 million or $0.02 per share, compared to net income of $0.2 million, or $0.03 per share in the prior year. During the quarter, amortization increased by $200 ($0.03 per share) as a result of a change in accounting estimate. Net income for the nine months ended April 30, 2014 was $0.2 million or $0.04 per share, compared to net income of $1.2 million or $0.18 per share in the prior year.

"We are pleased that Reko's third quarter results showed improvement over prior quarters," stated Diane Reko, chief executive officer. "Income from operations improved significantly, increasing 56% over quarter two results, primarily due to higher demand in the capital equipment market. We are beginning to see signs of improvement in our automotive market and expect this to positively impact future quarters."

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. 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                                                                     
http://www.rekointl.com/                                                    
                                                                            
                                                                            
SUBSIDIARIES/DIVISIONS:                                                     
                                                                            
Canada:                                                                     
- Concorde Precision Machining Inc.                                         
- Reko Manufacturing Group Inc.                                             
                                                                            
United States:                                                              
- Reko International Sales Inc.                                             
- Reko International Holdings Inc.                                          
  - Reko Global Services, LLC                                               

Contacts:
Reko International Group Inc.
Carl A. Merton
Chief Financial Officer
(519) 727-3287
www.rekointl.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
Between the mockups and specs produced by analysts, and resulting applications built by developers, there exists a gulf where projects fail, costs spiral, and applications disappoint. Methodologies like Agile attempt to address this with intensified communication, with partial success but many limitations. In his session at 18th Cloud Expo, Charles Kendrick, CTO & Chief Architect at Isomorphic Software, will present a revolutionary model enabled by new technologies. Learn how business and devel...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
If there is anything we have learned by now, is that every business paves their own unique path for releasing software- every pipeline, implementation and practices are a bit different, and DevOps comes in all shapes and sizes. Software delivery practices are often comprised of set of several complementing (or even competing) methodologies – such as leveraging Agile, DevOps and even a mix of ITIL, to create the combination that’s most suitable for your organization and that maximize your busines...
Struggling to keep up with increasing application demand? Learn how Platform as a Service (PaaS) can streamline application development processes and make resource management easy.
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, will discuss how research has demonstrated the value of Machine Learning in delivering next generation analytics to im...
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists will dis...
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
Unless you don’t use the internet, don’t live in California, or haven’t been paying attention to the recent news… you should be aware that self-driving cars are on their way to becoming a reality. I have seen them – they are real. If you believe in the future reality of self-driving cars, then continue reading on. If you don’t believe in the future possibilities, then I am not sure what to do to convince you other than discuss the very real changes that will roll out with the consumer producti...