Reconditioned Systems, Inc. News
Release
444 West Fairmont
Tempe, Arizona 85282 Contact: Investor Relations
(480) 968-1772 (Telephone)
(480) 894-1907 (Fax)
“RSI reports First Quarter
2007 results”
Tempe, Arizona, August 14,
2006
Dear Fellow Shareholders:
I am pleased to report that Reconditioned Systems, Inc. (“RSI”) had another profitable quarter. We expect this year to be a challenging one, as we are projecting a slight increase in profits on essentially flat sales. The office furniture business has seen a slowdown in sales growth in the last few months. We are hopeful that we can continue to maintain our sales.
For the three months that ended June 30, 2006, RSI made $252 thousand on sales of $5 million. This compares to a profit of $318 thousand on sales of $5.9 million for the quarter ending June 30, 2005. Last year’s first quarter was the best in the history of your company. After a record year that ended March 31, 2006, we are pleased with this quarter and it gives us a good start for the fiscal year.
We are moving our Tempe manufacturing plant to a new building later this summer. Hopefully, our extensive planning will result in little or no disruption to our manufacturing and our business. The new facility will enable us to satisfy projected growth for some time, and although costs are likely to increase, the larger facility will enable us to be more efficient.
At this May’s board meeting, we declared our second annual common stock dividend in the amount of $0.33 per share to shareholders of record June 30, 2006; the dividend is payable August 31, 2006. We would hope to pay future annual dividends depending on our performance and what our cash needs are. Thank you for your continued support.
Scott W. Ryan
Chairman of the Board
Reconditioned Systems, Inc.
August 14, 2006
Page -2-
|
|
For The Three Months Ended |
|
|
|
June 30, 2006(Unaudited) |
June 30, 2005(Unaudited) |
|
Sales |
$5,026,429 |
$5,895,651 |
|
Net income before provision for income taxes |
$415,751 |
$542,216 |
|
Net income |
$252,441 |
$318,116 |
|
Basic earnings per share |
$0.20 |
$0.25 |
|
Basic weighted average number of common shares
outstanding |
1,246,839 |
1,274,528 |
|
Diluted earnings per common and equivalent share |
$0.20 |
$0.25 |
|
Diluted weighted average number of common and equivalent
shares outstanding |
1,248,070 |
1,274,528 |
|
Summary Balance Sheet as
of |
|||||
|
|
June 30, 2006 (Unaudited) |
June 30, 2005 (Unaudited) |
|
June 30, 2006 (Unaudited) |
June 30, 2005 (Unaudited) |
|
Assets |
|
|
Liabilities
and Equity |
|
|
|
Cash |
$2,343,397 |
$1,166,062 |
Accounts payable |
$1,490,731 |
$1,190,080 |
|
Accounts receivable |
1,628,306 |
2,665,847 |
Customer deposits |
235,903 |
380,800 |
|
Inventory |
1,859,454 |
1,788,382 |
Dividend payable |
411,783 |
255,826 |
|
Property & equipment |
737,495 |
811,275 |
Other current liabilities |
373,994 |
965,300 |
|
Other assets |
321,173 |
256,078 |
Stockholders’ equity |
4,377,414 |
3,895,638 |
|
Total |
$6,889,825 |
$6,687,644 |
Total |
$6,889,825 |
$6,687,644 |
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.