Revenue for the quarter was $55.2 million, down $9.4 million from the comparable quarter in the prior year. The Company’s decrease in sales levels is the result of supply chain issues experienced during the quarter and not a result from the lack of demand as it remains very high.

First Quarter Ending March 31, 2022

Net Income for the Quarter

Net income of $0.4 million achieved the same result as the prior year quarter. Contributing to the increase in profit was a reduction in interest expense of $0.4 million and increased income from joint ventures of $0.1 million offset by increased spending on research and development of $0.3 million, a reduction in income from operations of $0.1 million and a reduction of $0.1 million on the gain on disposal of assets from the prior year.

Looking Forward

Sales are expected to grow as the Company is able to resolve the supply chain issues. The backlog remains very high. Inventory is projected to decrease as the Company is able to reduce the supply chain issues. In the past year, the Company restructured its manufacturing capacity and made changes to reduce the overall cost of operations. The restructuring coupled with improved supply chain will increase the profitability of the Company.