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Reko announces the payment of a special dividend and reports continuing profitable results for the first quarter of Fiscal 2017

Donnerstag, 01.12.2016 19:50 von PR Newswire

Canada NewsWire

WINDSOR, ON, Dec. 1, 2016 /CNW/ - Reko International Group Inc. (TSX-V: REK) is pleased to announce that the Board of Directors today has approved the payment of a special, one-time dividend of $0.20 cents per share to the holders of the Company's common shares. 

CEO, Diane Reko, stated that, "The payment of this special dividend is an appropriate way to include our shareholders in Reko's 40th anniversary celebration and to acknowledge the record setting results of $1.18 per share achieved by the Company in its 2016 fiscal year."

The Company also announced results for its first quarter ended October 31, 2016.

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Consolidated sales for the quarter ended October 31, 2016, were $10.4 million, compared to $10.3 million in the prior year, an increase of $0.05 million or 0.4%. The increase in sales was largely due to an increase in foreign exchange rates.

Gross profit for the quarter ended October 31, 2016, was $1.8 million, or 17.4% of sales, compared to a gross profit of $2.8 million, or 27.0% of sales in the prior year. The decrease in gross profit was related to a decrease in demand in the oil and gas and transportation sectors, and an increase in costs of materials on certain projects.

Selling and administrative expenses for the quarter ended October 31, 2016 were $1.1 million, or 10.6% of sales, compared to $1.3 million, or 12.4% of sales in the prior year. The decrease in SG&A is primarily due to a decrease in costs associated with wages and non-recurring professional fees.

Net income for the quarter ended October 31, 2016 was $0.64 million or $0.10 per share, compared to net income of $1.21 million, or $0.19 per share in the prior year.

"We are pleased to announce continuing profitability for the first quarter of our new fiscal year," stated Diane Reko, chief executive officer. "During the quarter, we experienced lower volumes of demand in certain sectors, and continued to seek opportunities to utilize the excess capacity resulting from the machining contract revision announced in July 2016. We also upgraded our capabilities with the acquisition of new equipment to enhance our competitive position and to drive sales."

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About Reko International Group Inc.

Reko International Group Inc. (TSX-V:REK) is a diversified, technology-driven manufacturing organization located in Southwestern Ontario, just minutes from the U.S. border. Areas of expertise include robotic factory automation solutions, the precision machining of large, critical parts, and plastic injection and low compression acoustic tooling. Reko's family-oriented culture embraces past experience, fosters innovation, and always ensures the highest standard of quality. Reko believes in strengthening communities by advancing manufacturing.

SOURCE Reko International Group Inc.