(Windsor, Ontario – December 5, 2019) – Reko International Group Inc. (TSX-V: REKO) today announced results for its first quarter ended October 31, 2019.
Consolidated sales for the quarter ended October 31, 2019, were $9.4 million, compared to $11.4 million in the prior year, a decrease of $2.1 million or 18.0%. The decrease in sales was largely related to an overall decline in activity in the automotive industry.
Gross profit for the quarter ended October 31, 2019, was $1.5 million compared to a gross profit of $1.8 million in the prior year. The decrease in overall sales had an impact on gross profit. As a percentage of sales, however, gross profit remained relatively unchanged in the current period, compared to the same of last year, at 16% of sales. The decrease in cost of sales as a percentage of sales contributed to the favourable gross profit.
Selling and administrative expenses for the quarter ended October 31, 2019 were $1.2 million compared to $1.3 million in the prior year. The decrease in SG&A results from continuous cost reduction initiatives by the Company.
Net income for the quarter ended October 31, 2019 was $0.14 million or $0.02 per share, compared to net income of $0.17 million, or $0.03 per share in the prior year.
During the quarter, the company re-purchased 7,700 shares under the normal course issuer bid which expires December 30, 2019.
“Although the first quarter was challenging, Reko reported its 33rd consecutive profitable quarter,” stated Diane Reko, chief executive officer. “During the past months, we have experienced lower demand in the automotive sector and continue to work at industry diversification. While we worked diligently to improve our sales volume, we were able to maintain gross profit percentage year over year by paying close attention to costs.”