(Windsor, Ontario – December 7, 2017) – Reko International Group Inc. (TSX-V: REKO) today announced results for its first quarter ended October 31, 2017.
Consolidated sales for the quarter ended October 31, 2017, were $8.8 million, compared to $10.3 million in the prior year, a decrease of $1.6 million or 15.4%. The decrease in sales was related to timing of kickoffs in certain divisions as well as lower volumes in certain sectors.
Gross profit for the quarter ended October 31, 2017, was $1.3 million, or 15.4% of sales, compared to a gross profit of $1.8 million, or 17.4% of sales in the prior year. The decrease in gross profit was reflective of a change in product mix, with projects worked on during the quarter experiencing lower margins than in prior quarters.
Selling and administrative expenses for the quarter ended October 31, 2017 were $1.0 million, or 11.5% of sales, compared to $1.1 million, or 10.6% of sales in the prior year. The decrease in SG&A relates primarily relates to decrease in costs associated with wages and non-recurring professional fees.
Net income for the quarter ended October 31, 2017 was $0.3 million or $0.04 per share, compared to net income of $0.6 million, or $0.10 per share in the prior year.
“Reko’s first quarter experienced lower volumes of work due to delays in program kickoffs,” stated Diane Reko, chief executive officer. “Results were also impacted by the investment in new talent required for the additional capacity and opportunities associated with our expansion to be completed in 2018.”