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 First Quarter
2009 results”
Tempe, Arizona, August 15,
2008
Dear Fellow Shareholders:
I regret to report that Reconditioned Systems, Inc. (“RSI”) lost money this quarter. There is still very tough price competition and margin pressure, but I am hopeful that we will be profitable for the full year ending March 31, 2009.
For the three months ending June 30, 2008, RSI lost $41 thousand on sales of $3.65 million. This compares to net income of $156 thousand on sales of $4.5 million for the quarter ending June 30, 2007. Clearly with the sales number down so much from last year, it is very difficult to show a profit. If we had not consolidated the two manufacturing plants, the numbers would have been much worse. I am hopeful that we will improve our sales to get back on budget and back to profitability. We have been careful with our expenses, but we may have to make even more cuts.
The economy is the worst it has been in years. With housing still declining, the consumer remains highly leveraged with little or no wage gains and virtually all of his expenses going up. Without the consumer, this economy is not going anywhere. Although international sales are a bright spot for our economy, it will not be sufficient to overcome our domestic woes.
We have paid annual dividends for the last three years. This year the board again voted to pay an annual dividend of $0.15 on August 29, 2008, to shareholders of record on July 7, 2008. This is lower than last year and reflects the lower earnings. As in the past, any future dividends will depend on our performance and financial position.
/S/ Scott W. Ryan
Scott W. Ryan
Chairman of the Board
Reconditioned Systems, Inc.
August 15, 2008
Page -2-
|
|
For The Three Months Ended |
|
|
|
June 30, 2008(Unaudited) |
June 30, 2007(Unaudited) |
|
Sales |
$3,650,723 |
$4,458,564 |
|
Net income (loss) before provision for income
taxes |
$(68,200) |
$260,270 |
|
Net income (loss) |
$(40,858) |
$155,645 |
|
Basic earnings per share |
$(0.03) |
$0.13 |
|
Basic weighted average number of common shares
outstanding |
1,159,137 |
1,166,499 |
|
Diluted earnings per common and equivalent share |
$(0.03) |
$0.13 |
|
Diluted weighted average number of common and
equivalent shares outstanding |
1,160,875 |
1,192,282 |
|
Summary Balance Sheet as
of |
|||||
|
|
June 30, 2008 (Unaudited) |
June 30, 2007 (Unaudited) |
|
June 30, 2008 (Unaudited) |
June 30, 2007 (Unaudited) |
|
Assets |
|
|
Liabilities
and Equity |
|
|
|
Cash |
$1,651,482 |
$1,653,227 |
Accounts payable |
$674,564 |
$878,133 |
|
Accounts receivable |
1,373,900 |
1,744,958 |
Customer deposits |
136,170 |
108,790 |
|
Inventory |
1,827,107 |
1,774,294 |
Dividend payable |
175,150 |
291,625 |
|
Property & equipment |
665,052 |
800,828 |
Other liabilities |
498,930 |
692,767 |
|
Other assets |
407,723 |
457,844 |
Stockholders’ equity |
4,440,450 |
4,459,836 |
|
Total |
$5,925,264 |
$6,431,151 |
Total |
$5,925,264 |
$6,431,151 |
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.