(Windsor, Ontario – June 5, 2018) – Reko International Group Inc. (TSX-V: REKO) today announced results for its third quarter ended April 30, 2018.
Consolidated sales for the quarter ended April 30, 2018, were $11.8 million, compared to $11.7 million in the prior year, an increase of $0.1 million or 0.7%. The increase in sales was related to increases in timing of program kickoffs in certain divisions.
Gross profit for the quarter ended April 30, 2018, was $1.9 million, or 16.3% of sales, compared to a gross profit of $1.9 million, or 16.5% of sales in the prior year.
Selling and administrative expenses for the quarter ended April 30, 2018 were $1.2 million, or 10.0% of sales, compared to $1.1 million, or 9.7% of sales in the prior year. The increase in SG&A relates to additional staff for expansion as well as one-time expenses associated with the new building.
Net income for the quarter ended April 30, 2018 was $0.6 million or $0.10 per share, compared to net income of $0.6 million, or $0.09 per share in the prior year. The increase in net profit and earnings per share can be attributed to a net foreign exchange gain in the latest quarter, partly offset by higher income taxes.
“We have created a strong foundation for the future, not only with our newly launched Automation facility, but with major investments in both machinery and people that together make Reko much more efficient,” stated Diane Reko, chief executive officer. “We are well poised to expand our market reach with our innovative offerings, team, and facilities.”