(Windsor, Ontario – June 6, 2019) – Reko International Group Inc. (TSX-V: REKO) today announced results for its third quarter ended April 30, 2019.
Consolidated sales for the quarter ended April 30, 2019, were $14.3 million, compared to $11.8 million in the prior year, an increase of $2.5 million or 21.2%. The increase in sales was related to improved order volumes, improved throughput and a continued strong exchange rate.
Gross profit for the quarter ended April 30, 2019, was $2.7 million, or 18.8% of sales, compared to a gross profit of $1.9 million, or 16.3% of sales in the prior year. The increase in gross profit is consistent with the increase in sales.
Selling and administrative expenses for the quarter ended April 30, 2019 were $1.4 million, or 9.7% of sales, compared to $1.2 million, or 10.0% of sales in the prior year. The increase in SG&A relates to expenses such as employee benefits and wages in conjunction with new hires since the prior year’s third quarter.
Operating income for the quarter ended April 30, 2019 was $1.3 million, compared to operating income of $0.7 million in the prior year, an increase of 86%.Net income was relatively flat for the quarter compared to the quarter last year due to foreign exchange losses in 2019 versus gains in 2018.
For the first nine months revenues increased 16.4% to $37.3 million. Operating Income increased 31.7% to $2 million, while earnings per share were 17 cents compared to 21 cents in the previous year.
“The quarter ended April 30, 2019 was Reko’s best so far this fiscal year,” stated Diane Reko, chief executive officer. “With sales at acceptable levels and start up costs largely behind us, we were able to grow operating income significantly, although the impact of foreign exchange resulted in the same $0.10 EPS as Q3 last year.”