Reconditioned Systems, Inc. News Release
2636 S. Wilson Street, Suite 105
Tempe, Arizona 85282 Contact: Investor Relations
(480) 968-1772 (Telephone)
(480) 894-1907 (Fax)
“RSI reports Third Quarter 2008 results”
Tempe, Arizona, February 8, 2008
Dear Fellow Shareholders:
I am happy to report that Reconditioned Systems, Inc. (“RSI”) was profitable again this quarter, although the environment remains very difficult for our industry. Our sales continue to lag last year’s for the reasons I discussed in last quarter’s letter. The consolidation of our two plants into one facility in Tempe was an excellent decision; the new facility has made us more efficient, which should help our margins. We still have sufficient capacity to handle sales growth for the next several years.
For the three months ended December 31 2007, RSI
made $168 thousand on sales of $4.9 million.
This compares to a profit of $163 thousand on sales of $4.7 million for
the quarter ending December 31, 2006.
The consumer is extremely leveraged and with little
wage gains and a slowing economy, I am not optimistic for much growth in our
sales. Even though we have made many changes to enhance our sales, it will be
difficult to grow sales without taking market share. While in the past, tough
economic environments helped our sales, the low cost systems continue to give
us tough price competition. However, I
believe that low cost imports will be less of a problem in the future,
primarily due to the weakness of the dollar.
In addition, quality and service issues have begun to have an impact on
import sales. Even so, I remain
cautious for the next year.
We are starting to make sales as a Maxon dealer, and
I am hopeful that new systems sales will become an important product line for us.
/S/ Scott W. Ryan
Scott W. Ryan
Chairman of the Board
Reconditioned Systems, Inc.
February 8, 2008
Page -2-
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Summary Statement of Operations |
||||
|
|
For The Three Months Ended |
For the Nine Months Ended |
||
|
|
December 31, 2007(Unaudited) |
December 31, 2006(Unaudited) |
December 31,
2007 (Unaudited) |
December 31,
2006 (Unaudited) |
|
Sales |
$4,943,370 |
$4,760,781 |
$13,051,919 |
$13,725,109 |
|
Net income before provision for income taxes |
$291,143 |
$269,458 |
$579,201 |
$768,159 |
|
Net income * |
$168,150 |
$163,501 |
$329,559 |
$466,317 |
|
Basic earnings per share |
$0.14 |
$0.13 |
$0.28 |
$0.37 |
|
Basic weighted average number of common shares
outstanding |
1,167,472 |
1,248,862 |
1,167,046 |
1,247,847 |
|
Diluted earnings per common and equivalent share |
$0.14 |
$0.13 |
$0.28 |
$0.37 |
|
Diluted weighted average number of common and
equivalent shares outstanding |
1,171,840 |
1,277,680 |
1,179,893 |
1,263,881 |
* Net of estimated income tax expense/benefit.
|
Summary Balance Sheet as
of |
|||||
|
|
December 31,
2007 (Unaudited) |
December 31,
2006 (Unaudited) |
|
December 31,
2007 (Unaudited) |
December 31,
2006 (Unaudited) |
|
Assets |
|
|
Liabilities
and Equity |
|
|
|
Cash |
$1,235,544 |
$1,449,220 |
Accounts payable |
$1,044,402 |
$1,117,310 |
|
Accounts receivable |
2,261,915 |
1,971,659 |
Customer deposits |
286,687 |
272,060 |
|
Inventory |
1,914,301 |
1,975,367 |
Other liabilities |
1,030,871 |
649,916 |
|
Property & equipment |
726,963 |
889,928 |
Stockholders’ equity |
4,636,278 |
4,598,109 |
|
Other assets |
859,515 |
351,221 |
|
|
|
|
Total |
$6,998,238 |
$6,637,395 |
Total |
$6,998,238 |
$6,637,395 |
Note: The
Company’s quarterly press releases are available on our website www.resy.net under Inventor Relations. Any shareholder who would like to sell
shares back to the Company should contact the Investor Relations Department
at 800-280-5000.