(Windsor, Ontario – October 4, 2017) – Reko International Group Inc. (TSX-V: REKO) today announced results for its fourth quarter and year ended July 31, 2017.
On July 4, 2016, Reko announced that the customer related to the long term supply agreement announced in 2014, had exercised its right to make an advance payment. This one time payment of $3.9 million increased sales, gross profit and net income in Q4 2016 by this amount and net income by $2.9 million. There was no comparable payment in fiscal 2017, and therefore variances must be viewed in the context of this difference.
Consolidated sales for the year ended July 31, 2017, were $43.0 million, compared to $50.6 million in the prior year, a decrease of $7.6 million or 15.1%. The decrease in sales was related to the receipt of a one time payment in lieu of guaranteed volume under the long term agreement in the prior year, noted above, as well as a decrease in volumes in certain types of work in transportation and oil and gas sectors.