(Windsor, Ontario – March 5, 2020) – Reko International Group Inc. (TSX-V: REKO) today announced results for its quarter ended January 31, 2020.
Consolidated sales for the second quarter of 2020 were $9.5 million compared to $11.6 million in the same period last year, a decrease of $2.1 million or 18%. The decrease was primarily the result of weak demand in the automotive sector.
Gross profit for the quarter ended January 31, 2020 was $1.0 million compared to $1.6 million for the same period in the prior year. The decrease in overall sales had an impact on gross profit. In the second quarter, gross profit as a percentage of sales declined to 10.5% compared to 13.6% in the previous year. For the six months, the decline was far more muted with gross profit as a percentage of sales of 13.3% compared to 14.6% in the prior year.
Selling and administrative expenses for the second quarter of fiscal 2020 totaled $1.2 million compared to $1.4 million for the same period in fiscal 2019. The Company continues to monitor spending and has implemented several cost reduction initiatives.
Net income for the three months ended January 31, 2020 was $0.057 million or $0.01 per share compared to $0.272 million or $0.04 per share for the same period in the prior year. For the six months ended January 31, 2020, net income was $0.197 million or $0.03 per share, compared to $0.442 million or $0.07 per share in the same period last year.
“While profitable in the quarter, we felt the impact of global uncertainty in the delay of awards in many of our markets.” noted CEO Diane Reko. “These delays have impacted both our sales for the quarter and our backlog of orders. We continue to focus on opportunities to increase sales, while implementing programs to reduce costs.”