(Windsor, Ontario – December 6, 2018) – Reko International Group Inc. (TSX-V: REKO) today announced results for its quarter ended October 31, 2018.
Consolidated sales for the first quarter of 2019 were $11.4 million compared to $8.8 million in the same period last year, an increase of $2.6 million or 29.5%. This was largely due to the number of projects completed during the quarter and an increase in the average foreign exchange rate compared to the same period in the prior year.
Gross profit for the quarter ended October 31, 2018 was $1.8 million compared to $1.3 million for the same period in the prior year. Consistent with sales, this was due to the timing of completion of a number of successful projects. However, the improvement was offset by additional ramp up costs associated with new projects. These issues are now behind us.
Selling and administrative expenses for the first quarter of fiscal 2019 totaled $1.3 million compared to $1.0 million for the same period in fiscal 2018 – an increase of $0.3 million or 30.0%. The increase in S&A relates primarily to the addition of staff including a director of business development and additional sales people as well as increased commissions due to the higher sales level, offset by decreases in certain group costs.
Net income for the three months ended October 31, 2018 was $0.2 million or $0.03 per share compared to $0.3 million or $0.04 per share for the same period in the prior year. Losses from foreign exchange impacts in the quarter reduced earnings per share by almost 2 cents compared to the same period in the prior year.
“We are pleased with the year over year quarterly sales increase and have taken steps to reduce the costs associated with some new projects.” noted CEO Diane Reko. “Investment in the sales team should lead to improvement in the quarterly awards and translate to increasing profitability during the fiscal year.”