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
2007 results”
Tempe, Arizona, November 16,
2006
Dear Fellow Shareholders:
I am pleased to report that Reconditioned Systems, Inc. (“RSI”) had another profitable quarter. This was a very difficult quarter during which we moved the Tempe manufacturing facility to a new building. Although the disruption to our business was minimal, the move had a definite negative effect on our costs and was an understandable distraction to our employees. We were able to design the space to be more efficient, and I am hopeful that the increase in productivity and moral will offset the increased costs.
For the three months that ended September 30, 2006, RSI made a profit of $50 thousand on sales of $3.9 million. This compares to a profit of $78 thousand on sales of $4.3 million for the quarter ending September 30, 2005. This is not a bad performance given the sales level. We are slightly behind our budget for this year, but current backlogs are strong and I am hopeful that we can make up the shortfall by yearend. Last year was a record year for the company and repeating it will not be easy.
The economy has started to slow and we still believe that higher energy prices will have a significant negative impact on consumer spending. Inflation will be difficult to contain as the energy price increases work their way through the economy and further interest rate increases are possible. We are hopeful that we can maintain our sales with our price and lead time advantage.
We paid our second annual common stock dividend on August 31, 2006. We hope to pay future annual dividends depending on our performance and what our cash needs are. We appreciate the continued support of our shareholders, and we are happy to finally be rewarding them for their forbearance.
/S/ Scott W. Ryan
Scott W. Ryan
Chairman of the Board
Reconditioned Systems, Inc.
November 16, 2006
Page -2-
|
Summary Statement of Operations |
||||
|
|
For The Three Months Ended |
For the Six Months Ended |
||
|
|
September 30, 2006(Unaudited) |
September 30, 2005(Unaudited) |
September 30,
2006 (Unaudited) |
September 30,
2005 (Unaudited) |
|
Sales |
$3,937,899
|
$4,304,455
|
$8,964,328 |
$10,200,103 |
|
Net income
before provision for income taxes |
$82,950 |
$135,978 |
$498,701 |
$678,190 |
|
Net income |
$50,375 |
$77,973 |
$302,816 |
$396,085 |
|
Basic earnings
per share |
$0.04 |
$0.06 |
$0.24 |
$0.31 |
|
Basic weighted average number of common shares
outstanding |
1,247,839 |
1,279,779 |
1,247,339 |
1,277,154 |
|
Diluted earnings
per common and equivalent share |
$0.04 |
$0.06 |
$0.24 |
$0.31 |
|
Diluted weighted average number of common and
equivalent shares outstanding |
1,265,982 |
1,279,779 |
1,256,981 |
1,277,154 |
|
Summary Balance Sheet as
of |
|||||
|
|
September 30,
2006 (Unaudited) |
September 30,
2005 (Unaudited) |
|
September 30,
2006 (Unaudited) |
September 30,
2005 (Unaudited) |
|
Assets |
|
|
Liabilities
and Equity |
|
|
|
Cash |
$1,453,274 |
$1,533,587 |
Accounts payable |
$849,228 |
$767,812 |
|
Accounts receivable |
1,314,573 |
1,485,636 |
Customer deposits |
258,426 |
566,978 |
|
Inventory |
2,265,168 |
1,967,046 |
Other current liabilities |
722,633 |
868,015 |
|
Property & equipment |
856,875 |
798,133 |
Stockholders’ equity |
4,431,228 |
3,965,993 |
|
Other assets |
371,625 |
384,396 |
|
|
|
|
Total |
$6,261,515 |
$6,168,798 |
Total |
$6,261,515 |
$6,168,798 |
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.