Reko Announces First Quarter Results for Fiscal 2001
6 December 2000
Reko Announces First Quarter Results for Fiscal 2001
Business Editors
WINDSOR, Ontario--(BUSINESS EDITORS)--Dec. 5, 2000--Reko
International
Reko International Group announced today the results
for the three months ended October 31, 2000.
Sales for the quarter were $15.1 million compared to $18.7 million
for last year. Net income was $62,000 or $.01 per share as compared to
$1,392,000 or $.17 for last year.
"Fewer program releases from the automotive companies resulted in
excess capacity and continued downward pressure on prices during the
first quarter of the year," stated Steve Reko, President and CEO. "The
OEM's have deferred programs to 2001 as they continue to digest the
effect of interest rate costs and energy price increases on the
industry and how it will affect their marketing strategies going
forward to 2003 and beyond."
Although weak market conditions could adversely affect earnings
during our second quarter, new car model programs and design changes
for existing vehicles scheduled for release in early 2001 should
improve profitability during the third and fourth quarters. The
Company continues to reduce costs and concentrate on improving
operating efficiencies.
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 27,300 shares at an average
price of $2.83.
*T
Financial Highlights (complete statements follow)
---------------------------------------------------------------
Period Ended October 31,
(in $,000 except per share amounts) Three Months
fiscal 2001 fiscal 2000
---------------------------------------------------------------
Sales $15,144 $18,729
Net Income 62 1,392
EPS (basic) .01 .17
Cash Flow from Operations 1,632 3,842
Working Capital 29,714 25,721
Shareholders' Equity 57,266 57,012
Shareholders' Equity per Share 6.95 6.92
---------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
(in 000's except per share data)
---------------------------------------------------------------
As at October 31,
(unaudited)
2000 1999
---------------------------------------------------------------
ASSETS
Current assets $ 57,641 $ 58,629
Capital assets 60,058 58,842
Industrial Revenue Bond Proceeds -
restricted
for capital expenditures 5,258 -
Goodwill 1,824 1,836
------------------------
$ 124,781 $ 119,307
------------------------
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities $ 27,927 $ 32,908
Long-term debt 30,285 20,749
Future income taxes 7,315 6,282
Non-controlling interest 1,988 2,356
------------------------
67,515 62,295
Shareholders' equity 57,266 57,012
------------------------
$ 124,781 $ 119,307
========================
FINANCIAL POSITION HIGHLIGHTS
Working capital $ 29,714 $ 25,721
Capital assets $ 60,058 $ 58,842
Shareholders' equity $ 57,266 $ 57,012
Book value per Common Share $ 6.95 $ 6.92
=======================
CONSOLIDATED STATEMENT OF OPERATIONS
(in 000's except per share data)
---------------------------------------------------------------
For the three months
ended October 31,
(unaudited)
2000 1999
---------------------------------------------------------------
Sales $ 15,144 $ 18,729
-----------------------
Costs and Expenses
Cost of sales 10,213 12,171
Depreciation and amortization 1,421 1,251
-----------------------
11,634 13,422
-----------------------
Gross Profit 3,510 5,307
Selling and administrative 2,446 2,475
-----------------------
Income from operations before the
following 1,064 2,832
-----------------------
Interest
Long-term debt 392 396
Other-net 457 186
-----------------------
849 582
-----------------------
Income before income taxes and
non-controlling interest 215 2,250
Income taxes 143 864
-----------------------
Income before non-controlling interest 72 1,386
Non-controlling interest (10) 6
-----------------------
Net income for the period $ 62 $ 1,392
=======================
Basic earnings per Common Share $ 0.01 $ 0.17
=======================
CONSOLIDATED STATEMENT OF CASH FLOWS
(in 000's except per share data)
---------------------------------------------------------------
For the three months
ended October 31,
(unaudited)
2000 1999
---------------------------------------------------------------
OPERATING ACTIVITIES
Net income for the period $ 62 $ 1,392
Add non-cash items:
Depreciation and amortization 1,421 1,251
Future income taxes 139 1,205
Non-controlling interest 10 (6)
--------------------
1,632 3,842
Net change in non-cash working capital 610 (11,523)
--------------------
Cash (used) provided - operating
activities 2,242 (7,681)
--------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Net (payments)/proceeds from bank
indebtedness (1,034) 9,627
Net payments from long-term debt (501) (567)
Net proceeds from issuance of common shares - 22
Cost of repurchase of shares (77) -
---------------------
Cash provided- financing activities (1,612) 9,082
---------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in capital assets (667) (1,409)
Proceeds on sale of capital assets - 28
--------------------
Cash (used) - investing activities (667) (1,381)
Effect of foreign exchange rate changes on
cash and cash equivalents 37 (20)
--------------------
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 $ 0.20 $ 0.47
*T =====================