Reko Reports Strong Fiscal Year End
(Windsor, Ontario – October 2, 2019) – Reko International Group Inc. (TSX-V: REKO) today announced results for its year ended July 31, 2019.
Consolidated sales for the fourth quarter of 2019 were $10.6 million compared to $10.2 million in the same period last year, an increase of $0.5 or 4.4%. The increase in sales was related to improved throughput and a continued strong exchange rate. Consolidated sales for the year ended July 31, 2019, were $47.9 million, compared to $42.2 million in the prior year, an increase of $5.7 million or 13.5%.
Gross profit for the quarter ended July 31, 2019, was $2.1 million, or 19.8% of sales, compared to $1.9 million, or 18.6% of sales in the prior year. The increase in gross profit is consistent with the increase in sales. Gross profit for the year ended July 31, 2019, was $8.2 million, or 17.0% of sales, compared to a gross profit of $6.7 million, or 15.9% of sales in the prior year.
Selling and administrative expenses for the quarter ended July 31, 2019, were $1.2 million, or 11.3% of sales, compared to $1.4 million, or 13.7% of sales, in the prior year. The decrease in SG&A relates to one-time expenses associated with expansion in the prior year quarter. Selling and administrative expenses for the year ended July 31, 2019, were $5.3 million, or 11.0% of sales, compared to $4.7 million, or 11.2% 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 fourth quarter.
Net income for the year ended July 31, 2019 was $1.6 million or $0.25 per share, compared to net income of $2.0 million, or $0.32 per share in the prior year. Foreign currency fluctuations, continued research and development investment, and some proactive debt restructuring activities made in the interest of strengthening our net cash position contributed to the lower year over year net income.
