Reconditioned Systems, Inc. News
Release
444 West Fairmont
Tempe, Arizona 85282 Contact: Investor Relations
(480) 968-1772 (Telephone)
(480) 894-1907 (Fax)
“RSI reports Third Quarter
2005 results”
Tempe, Arizona, February 1,
2005
Dear Fellow Shareholders:
I am pleased to report that
Reconditioned Systems, Inc. (“RSI”) was profitable again this quarter. We are just slightly ahead of our budget for
sales and profits year to date and I expect that we will meet our forecasts for
the year. I am extremely proud of our
accomplishments so far this year.
We continue to lack pricing power
and the discounting is still heavy by Haworth and the other primary
manufacturers. However, we are beginning
to see the as-is market dry up and we see a general increase in demand for
furniture. This bodes well for the
future and I am hopeful that this will continue.
We still believe that RSI is the
only re-manufacturer that is approved as an authorized General Services
Administration (“GSA”) vendor. As you
may know, GSA is the purchasing arm of the federal government. We hope to be able to take advantage of this
as more government purchasing is for recycled products. We have seen a steady annual increase in GSA
sales.
For the three months ended
December 31 2004, RSI made $159 thousand on sales of $5.0 million. This compares to a profit of $150 thousand on
sales of $4.9 million for the quarter ending December 31, 2003. We continue to believe that the economy and
our business are steadily improving. We
remain cautiously optimistic for the next quarter and for our next fiscal
year.
We have not realized any substantial
savings from the merger and synergy between Beck Office Systems and our Tempe
manufacturing plants. While we continue
to be extremely pleased with the merger, we are currently exploring ways of
making this combination yield more profits for your company. This will be a focus of the Board of
Directors over the next year.
/S/ Scott W. Ryan
Scott W. Ryan
Chairman of the Board
Reconditioned Systems, Inc.
February 1, 2005
Page -2-
|
Summary Statement of Operations |
||||
|
|
For The Three Months Ended |
For the Nine Months Ended |
||
|
|
December 31, 2004(Unaudited) |
December 31, 2003(Unaudited) |
December 31,
2004 (Unaudited) |
December 31,
2003 (Unaudited) |
|
Sales |
$4,970,623
|
$4,889,799 |
$14,561,309 |
$11,764,767 |
|
Net income (loss) before provision for income
taxes |
$282,270 |
$199,854 |
$607,922 |
$(204,719) |
|
Net income (loss)* |
$159,118 |
$150,354 |
$435,922 |
$(153,539) |
|
Basic earnings (loss) per share |
$0.13 |
$0.11 |
$0.35 |
$(0.11) |
|
Basic weighted average number of common shares
outstanding |
1,189,398 |
1,354,670 |
1,237,294 |
1,379,989 |
|
Diluted earnings (loss) per common and equivalent
share |
$0.13 |
$0.10 |
$0.34 |
$(0.11) |
|
Diluted weighted average number of common and
equivalent shares outstanding |
1,189,398 |
1,462,144 |
1,275,882 |
1,379,989 |
* Net of estimated income tax expense/benefit.
|
Summary Balance Sheet as
of |
|||||
|
|
December 31,
2004 (Unaudited) |
December 31,
2003 (Unaudited) |
|
December 31,
2004 (Unaudited) |
December 31,
2003 (Unaudited) |
|
Assets |
|
|
Liabilities
and Equity |
|
|
|
Cash |
$1,019,095 |
$1,118,113 |
Accounts payable |
$976,935 |
$994,104 |
|
Accounts receivable |
1,756,940 |
1,708,901 |
Customer deposits |
428,044 |
615,241 |
|
Inventory |
1,923,547 |
1,903,765 |
Other current liabilities |
654,175 |
548,894 |
|
Property & equipment |
649,246 |
786,390 |
Stockholders’ equity |
3,814,454 |
3,829,481 |
|
Other assets |
524,780* |
470,551 |
|
|
|
|
Total |
$5,873,608 |
$5,987,720 |
Total |
$5,873,608 |
$5,987,720 |
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.