Reko Responds to Economic Headwinds in the Third Quarter of Fiscal 2025
WINDSOR, ON, June 5, 2025 /CNW/ - Reko International Group Inc. (TSXV: REKO) today announced results for its third quarter ended April 30, 2025.
Third Quarter Highlights:
Sales increase of $742 or 7.7% over the prior year
Gross profit improvement of $1.3M in third quarter and $1.8M year-to-date
EPS of ($0.06) unfavourably impacted by ($0.16) per share due to restructuring costs
Continued strong balance sheet with working capital improvement of $3.5M over prior year
Financial Highlights:
(in 000's,except for per share data)
(1)
Earned revenue is a non-IFRS measure and is calculated as sales less costs associated with purchased material and subcontracting. Earned revenue margin is an expression of earned revenue as a percentage of sales
A reconciliation of this non-IFRS measure is included in the MD&A
(2)
Adjusted EBITDA is a non-IFRS measure and is defined as adjusted earnings from operations excluding depreciation and amortization. A reconciliation of this non-IFRS measure is included in the MD&A.
Consolidated sales for the quarter ended April 30, 2025, increased by 7.7%, or $742, compared to the same period last year. Sales in certain areas of the business are influenced by the number of active projects, the value of awards, and the timing of project milestones, all of which can vary significantly by job, sector, and customer. Year-to-date sales are $31,372, representing an 11.0% decline compared to the prior year, reflecting reduced project volumes in the automotive sector and continued economic uncertainty, including tariff-related delays in project awards.
Gross profit increased to 17.1% of sales, compared to 4.4% in the prior-year quarter, driven by improved execution on fixed-price contracts and a more selective go-to-market strategy. A lower volume of projects and their stage of completion also contributed to reduced direct project costs, including materials and subcontracting. In addition, the Company continues to manage fixed labour costs through various measures to better align with current sales levels.
Net loss for the quarter ended April 30, 2025, was ($352), or ($0.06) per share, compared to a net loss of ($849), or ($0.15) per share, in the same quarter of the prior year. Results for the quarter include a net unfavourable impact of ($0.16) per share from non-operating items comprised of restructuring costs of ($0.16) per share, a write-down of assets totaling ($0.05) per share and a gain of $0.05 per share related to net insurance proceeds. In the same period last year, non-operating items resulted in a net expense of $0.04 per share.
"In response to continued economic headwinds, including political uncertainty and potential tariff impacts in our key U.S. markets, we undertook a strategic restructuring to align our cost base with current conditions," stated Diane Reko, CEO. "While we delivered improved sales and earnings compared to the same period last year, stabilization is still underway. We are focused on strengthening performance and executing our strategy to position the Company for sustained long-term growth."
During the quarter, the Company purchased and subsequently cancelled 5,700 shares under the normal course issuer bid that was announced on January 6, 2025 at a net cost of $ 21.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the 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: REKO) is a diversified, technology-driven manufacturing company located in Southwestern Ontario, just minutes from the U.S. border. With expertise in robotic automation equipment and precision machining services, Reko is a "go-to" supplier for companies in the automotive, aerospace, rail, mining, power generation, offsite construction, infrastructure and capital equipment industries. Reko strives to be a pillar and protector of sustainable North American manufacturing and production.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
7 hours ago
- Globe and Mail
Northern Shield Grants Stock Options
OTTAWA, ON , June 6, 2025 /CNW/ - Northern Shield Resources Inc. (" Northern Shield" or the " Company") (TSXV: NRN) announces that it has granted options to acquire a total of 2,220,000 common shares in the capital of the Company (" Common Shares") to its directors and officers and a further 210,000 to employees and consultants pursuant to its shareholder approved stock option plan (the " Stock Option Plan"). Each option entitles the holder to acquire one Common Share at an exercise price of $0.12 per Common Share until June 6, 2030 . Following such grant, Northern Shield now has outstanding under its Stock Option Plan, options to acquire Common Shares equal to just under 8% of Northern Shield's currently outstanding Common Shares. About Northern Shield Resources Northern Shield Resources Inc. is a Canadian-based company known as a leader in generating high-quality exploration targets that views greenfield exploration as an opportunity to find a mineable deposit, near surface, and at relatively low cost. We implement a model driven exploration approach to reduce the risk associated with early-stage projects for ourselves, our shareholders, and the environment. This approach led us to option the Root & Cellar Property from a Newfoundland prospector, who discovered the mineralization, and then its advancement to a large gold-silver-tellurium system. 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.
Cision Canada
8 hours ago
- Cision Canada
GLOBAL X ANNOUNCES SEMI-MONTHLY JUNE 2025 DISTRIBUTIONS FOR ITS SUITE OF ETFs Français
TORONTO, June 6, 2025 /CNW/ - Global X Investments Canada Inc. ("Global X") is pleased to announce the distribution amounts per security (the"Distributions") for its exchange traded funds (the " ETFs"), as indicated in the table below. (1) Distributions for Global X Bitcoin Covered Call ETF are declared and paid in Canadian dollars, including those listed under the U.S. dollar traded ticker BCCC.U. The approximate U.S. dollar equivalent distribution rate for BCCC.U is $0.10245 per security. For securityholders who hold the U.S. dollar traded BCCC.U, the securityholder's account holder will typically convert distribution payments to U.S. dollars. (2) Distributions for Global X Enhanced Bitcoin Covered Call ETF are declared and paid in Canadian dollars, including those listed under the U.S. dollar traded ticker BCCL.U. The approximate U.S. dollar equivalent distribution rate for BCCL.U is $0.12805 per security. For securityholders who hold the U.S. dollar traded BCCL.U, the securityholder's account holder will typically convert distribution payments to U.S. dollars. Distributions for the ETFs will vary from period to period. For further information regarding the Distributions, please visit About Global X Investments Canada Inc. ( Global X Investments Canada Inc. is an innovative financial services company and offers one of the largest suites of exchange traded funds in Canada. The Global X Fund family includes a broadly diversified range of solutions for investors of all experience levels to meet their investment objectives in a variety of market conditions. Global X has more than $41 billion of assets under management and 142 ETFs listed on major Canadian stock exchanges. Global X is a wholly-owned subsidiary of the Mirae Asset Financial Group, which manages more than $900 billion of assets across 19 countries and global markets around the world. Commissions, management fees, and expenses all may be associated with an investment in products (the "Global X Funds") managed by Global X Investments Canada Inc. The Global X Funds are not guaranteed, their values change frequently, and past performance may not be repeated. Certain Global X Funds may have exposure to leveraged investment techniques that magnify gains and losses which may result in greater volatility in value and could be subject to aggressive investment risk and price volatility risk. Such risks are described in the prospectus. The Global X Money Market Funds are not covered by the Canada Deposit Insurance Corporation, the Federal Deposit Insurance Corporation, or any other government deposit insurer. There can be no assurances that the money market fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the Funds will be returned to you. Past performance may not be repeated. The prospectus contains important detailed information about the Global X Funds. Please read the relevant prospectus before investing. The payment of distributions, if any, is not guaranteed and may fluctuate at any time. The payment of distributions should not be confused with an exchange traded fund's ("ETF") performance, rate of return, or yield. If distributions paid by the ETF are greater than the performance of the ETF, distributions paid may include a return of capital and an investor's original investment will decrease. A return of capital is not taxable to the investor but will generally reduce the adjusted cost base of the securities held for tax purposes. Distributions are paid as a result of capital gains realized by an ETF, and income and dividends earned by an ETF are taxable to the investor in the year they are paid. The investor's adjusted cost base will be reduced by the amount of any returns of capital. If the investor's adjusted cost base goes below zero, investors will realize capital gains equal to the amount below zero. Future distribution dates may be amended at any time. To recognize that these distributions have been allocated to investors for tax purposes the amounts of these distributions should be added to the adjusted cost base of the units held. The characterization of distributions, if any, for tax purposes, (such as dividends/other income/capital gains, etc.) will not be known for certain until after the ETF's tax year-end. Therefore, investors will be informed of the tax characterization after year-end and not with each distribution if any. For tax purposes, these amounts will be reported annually by brokers on official tax statements. Please refer to the applicable ETF distribution policy in the prospectus for more information. The Global X Bitcoin Covered Call ETF (BCCC) and the Global X Enhanced Bitcoin Covered Call ETF (BCCL) are each exchange traded alternative mutual funds that invest in other alternative mutual funds that invest, directly or indirectly, in Bitcoin. There are inherent risks associated with products linked to crypto assets, including Bitcoin Futures. While Bitcoin Futures are traded on a regulated exchange and cleared by regulated central counterparties, direct or indirect exposure to the high level of risk of Bitcoin Futures will not be suitable for all types of investors. Given the speculative nature of bitcoin and the volatility of the digital currency markets, there is no assurance that BCCC or BCCL will be able to meet their respective investment objectives. An investment in BCCC or BCCL is not intended as a complete investment program and is appropriate only for investors who have a sophisticated knowledge and understanding of Bitcoin and the capacity to absorb a loss of some or all of their investment. An investment in either BCCC or BCCL is considered high risk. Certain statements may constitute a forward-looking statement, including those identified by the expression "expect" and similar expressions (including grammatical variations thereof). The forward-looking statements are not historical facts but reflect the author's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. These and other factors should be considered carefully, and readers should not place undue reliance on such forward-looking statements. These forward-looking statements are made as of the date hereof and the authors do not undertake to update any forward-looking statement that is contained herein, whether as a result of new information, future events or otherwise, unless required by applicable law. This communication is intended for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase exchange traded products managed by Global X Investments Canada Inc. and is not, and should not be construed as, investment, tax, legal or accounting advice, and should not be relied upon in that regard. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies. These investments may not be suitable to the circumstances of an investor. Global X Investments Canada Inc. ("Global X") is a wholly owned subsidiary of Mirae Asset Global Investments Co., Ltd. ("Mirae Asset"), the Korea-based asset management entity of Mirae Asset Financial Group. Global X is a corporation existing under the laws of Canada and is the manager and investment manager of the Global X Funds. © 2025 Global X Investments Canada Inc. All Rights Reserved. SOURCE Global X Investments Canada Inc.
Cision Canada
8 hours ago
- Cision Canada
Northern Shield Grants Stock Options
OTTAWA, ON, June 6, 2025 /CNW/ - Northern Shield Resources Inc. (" Northern Shield" or the " Company") (TSXV: NRN) announces that it has granted options to acquire a total of 2,220,000 common shares in the capital of the Company (" Common Shares") to its directors and officers and a further 210,000 to employees and consultants pursuant to its shareholder approved stock option plan (the " Stock Option Plan"). Each option entitles the holder to acquire one Common Share at an exercise price of $0.12 per Common Share until June 6, 2030. Following such grant, Northern Shield now has outstanding under its Stock Option Plan, options to acquire Common Shares equal to just under 8% of Northern Shield's currently outstanding Common Shares. About Northern Shield Resources Northern Shield Resources Inc. is a Canadian-based company known as a leader in generating high-quality exploration targets that views greenfield exploration as an opportunity to find a mineable deposit, near surface, and at relatively low cost. We implement a model driven exploration approach to reduce the risk associated with early-stage projects for ourselves, our shareholders, and the environment. This approach led us to option the Root & Cellar Property from a Newfoundland prospector, who discovered the mineralization, and then its advancement to a large gold-silver-tellurium system. 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.
