Revenue for the fifteen-month period was C$317.2 million ($253.5 million), up C$67.6 million ($50 million) from sales of $249.6 million ($199.5 million) in 2020. The Company’s increased sales growth for the period primarily results from the accounting change to a December year-end in 2021.
Net Income up for the Year
The net earnings for the fifteen-month period was C$8.9 million ($7.1 million), an improvement of C$34.7 million ($27.7 million) from the loss in the prior year. Increased gross profit of C$21.4 million ($17.1 million) drove most of the improvement over the prior year. In addition, the Company recorded a gain on sale of intellectual property of C$12.7 million ($10.2 million) and increased asset disposals of C$0.8 million ($0.6 million) when compared to the prior year. Exchange rate gains contributed C$3.1 million ($2.5 million) compared with the prior year. Finally, a gain on forgiveness of debt of C$1.5 million ($1.2 million) and reduced taxes of C$1.2 million ($1 million) were offset by increased spending on selling and administration costs of C$4.6 million ($3.7 million) and R&D of C$1.2 million ($1 million) due mostly to having five quarters in 2021 instead of four quarters in 2020.
Increased sales are projected for the year. The Company has a large backlog that continues to grow as a result of strong demand for agricultural machinery and equipment. Increased sales will require additional inventories and receivables to support the sales growth. The Company continues to experience supply chain challenges faced by the agricultural manufacturers as it works to improve shipments. The Company expects to see margin improvement stemming from increased customer demand and the reduction in manufacturing costs that were implemented in the prior year.