Reconditioned Systems, Inc. News
Release
444 West Fairmont
Tempe, Arizona 85282 Contact: Investor Relations
(480) 968-1772 (Telephone)
(480) 894-1907 (Fax)
“RSI reports Second Quarter
2005 results”
Tempe, Arizona, November 5,
2004
Dear Fellow Shareholders:
I am pleased to report that Reconditioned Systems, Inc. (“RSI”) had its best quarter in several years. Our sales have exceeded our forecast with all divisions contributing. We now need to improve our profits; this will be the focus of the board of directors for the rest of this fiscal year. Our wholesale division, led by Melissa Kimball continues to carry the day, and is responsible for keeping the company in the black. The retail division has shown improvement and I am hopeful it will begin to contribute to our profitability. We do not have pricing power yet, because the new systems are still being heavily discounted.
Our stock repurchase this past quarter left us with 1,053,069 shares outstanding held by 118 shareholders. We will continue to communicate with our shareholders via our website at www.resy.net under investor relations. As always we welcome your comments and suggestions.
For the three months ended September 30, 2004, RSI made $253 thousand on sales of $5.18 million. This compares to a loss of $173 thousand on sales of $3.5 million for the quarter ended September 30, 2003. Sales continue to be good and we hope to remain profitable for the year.
Scott W. Ryan
Chairman of the Board
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Summary Statement of Operations |
||||
|
|
For The Three Months Ended |
For the Six Months Ended |
||
|
|
September 30, 2004(Unaudited) |
September 30,
2003 (Unaudited) |
September 30,
2004 (Unaudited) |
September 30,
2003 (Unaudited) |
|
Sales |
$5,180,860 |
$3,536,687 |
$9,590,686 |
$6,874,968 |
|
Net income (loss) before provision for income
taxes |
$294,123 |
$(229,937) |
$325,652 |
$(404,573) |
|
Net income (loss) |
$253,005 |
$(172,916) |
$276,804 |
$(303,893) |
|
Basic earnings (loss) per share |
$0.20 |
$(0.12) |
$0.22 |
$(0.22) |
|
Basic weighted average number of common shares
outstanding |
1,155,331 |
1,455,868 |
1,261,243 |
1,392,648 |
|
Diluted earnings (loss) per common and equivalent
share |
$0.20 |
$(0.12) |
$0.21 |
$(0.22) |
|
Diluted weighted average number of common and
equivalent shares outstanding |
1,271,094 |
1,455,868 |
1,319,124 |
1,392,648 |
Reconditioned Systems, Inc.
New Release
November 5, 2004
Page -2-
|
Summary Balance Sheet as
of |
|||||
|
|
September 30, 2004(Unaudited) |
September 30,
2003 (Unaudited) |
|
September 30, 2004(Unaudited) |
September 30,
2003 (Unaudited) |
|
Assets |
|
|
Liabilities
and Equity |
|
|
|
Cash |
$685,310 |
$712,001 |
Accounts payable |
$900,709 |
$846,843 |
|
Accounts receivable |
2,057,164 |
1,201,884 |
Customer deposits |
397,426 |
411,768 |
|
Inventory |
1,612,630 |
1,973,168 |
Other current liabilities |
612,856 |
377,274 |
|
Property & equipment |
655,259 |
814,456 |
Treasury stock |
(1,502,740) |
(861,279) |
|
Other assets |
356,306 |
613,503 |
Common stock & retained
earnings/(accumulated deficit) |
4,958,418 |
4,540,406 |
|
Total |
$5,366,669 |
$5,315,012 |
Total |
$5,366,669 |
$5,315,012 |
The Company’s quarterly and annual are
available on our website www.resy.net under
Investor Relations.