Revenue for the quarter was $51.2 million, up 4% from $49.2 million in the first quarter of 2020. The company's increase in sales levels is the result of increased export demand for its farm equipment.
Net Loss for the Quarter
The decrease in loss from operations was due to increased gross margin through increased sales, gain on forgiveness of debt through a loan forgiveness program and a gain on foreign exchange in the quarter due to a strengthening of the Canadian dollar, offset by an increase in spending on research and development.
Looking Forward
Sales increased 4% in the first quarter over the prior year quarter and projections for 2021 continue to be favorable as sales are expected to continue to grow during the year. The backlog has increased as order activity has strengthened. Inventory and accounts receivables are projected to increase to support the sales growth. In the past year, the company restructured its manufacturing capacity and made changes to reduce the overall cost of operations. The results of these changes will begin to be visible in 2021 and will see the full impact of these cost reductions in 2022.
