Reko Announces Third Quarter Results For Fiscal 2001
WINDSOR, Ontario--June 4, 2001--Reko International Group announced today the results for the three months ended April 30, 2001. For the period February 1 to April 30, sales were $12.2 million down from $18 million for the comparable quarter last year. The net loss for the period was $1,629,000 or $0.20 per share compared to $112,000 or $0.01 per share loss for last year.Due to the reduction in sales volume for our third quarter, the gross profit before depreciation was reduced to 15.9% from 24.8% for the same period last year.
Selling and administration expenses were reduced to $2.2 million, down from $2.4 million from last year. Interest expense for the three months decreased to $623,000 from $843,000 due to lower borrowing requirements for the quarter.
"The delays in the completion of the engineering and design requirements for new programs and model changes by the auto companies, continued to weaken our sales and margins during our latest quarter," stated Steve Reko, President and C.E.O. "In excess of 50% of sales orders were postponed to the fourth quarter of our fiscal year. These program delays will adversely affect our last quarter of the fiscal year ending July 31, 2001."
On June 30, 2000, the Company announced its intention to make a normal course issuer bid to re-purchase, at market prices, up to 5% or 412,560 common shares for cancellation. As of today's date, the Company has re-purchased and cancelled 283,600 shares at an average cost of $2.16.
Financial Highlights (complete statements follow)
---------------------------------------------------------------
Three Months Nine Months
Period Ended April 30, --------------- ---------------
(in $,000 except per Fiscal Fiscal Fiscal Fiscal
share amounts) 2001 2000 2001 2000
---------------------------------------------------------------
Sales $12,262 $18,004 $42,673 $53,714
Net Income (1,629) (112) (1,831) 1,284
EPS (basic) ($0.20) ($0.01) ($0.23) $0.16
Cash Flow from Operations (.17) .02 .13 .64
Working Capital 29,625 25,031
Shareholders' Equity 54,907 57,043
Shareholders' Equity per Share $6.88 $6.91
---------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
(in 000's except per share data)
---------------------------------------------------------------
As at April 30,
(unaudited)
2001 2000
---------------------------------------------------------------
ASSETS
Current assets $ 40,754 $ 57,844
Capital assets 58,248 60,502
Industrial Revenue Bond Proceeds -
restricted for capital expenditures 3,457 5,814
Goodwill 1,759 1,773
---------------------
$ 104,218 $ 125,933
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LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities $ 11,129 $ 32,813
Long-term debt 28,689 26,855
Future income taxes 7,575 6,753
Non-controlling interest 1,918 2,469
---------------------
49,311 68,890
Shareholders' equity 54,907 57,043
---------------------
$ 104,218 $ 125,933
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FINANCIAL POSITION HIGHLIGHTS
Working capital $ 29,625 $ 25,031
Capital assets $ 58,248 $ 60,502
Shareholders' equity $ 54,907 $ 57,043
Book value per Common Share $ 6.88 $ 6.91
=====================
CONSOLIDATED STATEMENT OF OPERATIONS
(in 000's except per share data)
---------------------------------------------------------------
For the three months For the nine months
ended April 30, ended April 30,
(unaudited) (unaudited)
2001 2000 2001 2000
---------------------------------------------------------------
Sales $ 12,262 $ 18,004 $ 42,673 $ 53,714
----------------------------------------
Costs and Expenses
Cost of sales 10,316 13,538 31,429 38,083
Depreciation and
amortization 1,459 1,355 4,317 3,908
----------------------------------------
11,775 14,893 35,746 41,991
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Gross Profit 487 3,111 6,927 11,723
Selling and administrative 2,181 2,377 7,245 7,228
----------------------------------------
(Loss) income from
operations before
the following (1,694) 734 (318) 4,495
----------------------------------------
Interest
Long-term debt 340 402 1,064 1,192
Other-net 283 441 1,119 1,007
----------------------------------------
623 843 2,183 2,199
----------------------------------------
(Loss) income before income
taxes and non-controlling
interest (2,317) (109) (2,501) 2,296
Income taxes (643) (16) (592) 917
----------------------------------------
(Loss) income before
non-controlling interest (1,674) (93) (1,909) 1,379
Non-controlling interest 45 (19) 78 (95)
----------------------------------------
Net (loss) income for
the period $ (1,629) $ (112) $ (1,831) $ 1,284
========================================
Basic (loss) earnings
per Common Share $ (0.20) $ (0.01) $ (0.23) $ 0.16
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CONSOLIDATED STATEMENT OF CASH FLOWS
(in 000's except per share data)
---------------------------------------------------------------
For the three months For the nine months
ended April 30, ended April 30,
unaudited (unaudited)
2001 2000 2001 2000
---------------------------------------------------------------
OPERATING ACTIVITIES
Net (loss) income for
the period (1,629) (112) $ (1,831) $ 1,284
Add non-cash items:
Depreciation and
amortization 1,459 1,355 4,317 3,908
Future income taxes (1,170) (1,071) (1,369) (27)
Non-controlling interest (45) 19 (78) 95
----------------------------------------
(1,385) 191 1,039 5,260
Net change in non-cash
working capital 8,860 3,246 16,905 (9,788)
----------------------------------------
Cash provided (used)
- operating activities 7,475 3,437 17,944 (4,528)
----------------------------------------
FINANCING ACTIVITIES
Net (payments)/proceeds
from bank indebtedness (6,087) (1,113) (15,455) 10,309
Net (payments)/proceeds
from long-term debt (712) (640) (2,145) 5,567
Net proceeds from issuance
of common shares - 47 - 114
Cost of repurchase of shares (311) - (613) -
----------------------------------------
Cash (used) provided-
financing activities (7,110) (1,706) (18,213) 15,990
----------------------------------------
INVESTING ACTIVITIES
Investment in capital assets (561) (2,150) (1,542) (5,620)
Proceeds on sale of
capital assets - - 4 28
Unused proceeds from
bond issue - restricted
for capital expenditures 258 464 1,763 (5,814)
----------------------------------------
Cash (used) provided
- investing activities (303) (1,686) 225 (11,406)
Effect of foreign exchange
rate changes on cash
and cash equivalents (62) (45) 44 (56)
-
Net change in cash and
cash equivalents
during the year - - - -
Cash and cash equivalents,
beginning of period - - - -
----------------------------------------
Cash and cash equivalents,
end of period $ - $ - $ - $ -
========================================
Basic cash flow per
Common Share $ (0.17) $ 0.02 $ 0.13 $ 0.64
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