In this Quarterly Report on Form 10-Q, the terms "Company," "we," "us," and
"our," refer to
Forward Looking Statements
This Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including statements regarding industry prospects or future results of operations or financial position, made in this Quarterly Report on Form 10-Q are forward-looking. We use words such as anticipates, believes, expects, future, intends, and similar expressions to identify forward-looking statements. Forward-looking statements reflect management's current expectations and are inherently uncertain. Actual results could differ materially for a variety of reasons, including, but not limited to, changes in general economic conditions, changing competition and our ability to market and sell our commercial and industrial balers. These risks and uncertainties, as well as other risks and uncertainties, could cause our actual results to differ significantly from management's expectations. The forward-looking statements included in this Quarterly Report on Form 10-Q reflect the beliefs of our management on the date of this Quarterly Report. We undertake no obligation to update publicly any forward-looking statements for any reason.
General
The following discussion should be read together with our unaudited condensed
financial statements and the related notes thereto included in Part I, Item 1
"Financial Statements". For further information, refer to the Company's Annual
Report on Form 10-K for the year ended
Results of Operations: Three Month Comparison
In the first quarter ended
Cost of sales increased to
The Company had a net loss of
The sales order backlog was approximately
Financial Condition and Liquidity:
Net working capital at
12
Average days sales outstanding (DSO) in the first three months of fiscal 2020 were 33.7 days, as compared to 23.0 days in the first three months of fiscal 2019. DSO is calculated by dividing the total of the month-end net accounts receivable balances for the period by three, and dividing that result by the average day's sales for the period (period sales ÷ 91.25).
During the three months ended
The Company has a
In the event that the Company's line of credit would not be available, the Company would pursue a line of credit from other sources, and take steps to minimize expenditures, such as delaying capital expenditures and reducing overhead costs.
The Company had cash deposits in banks of
Off-Balance Sheet Arrangements
As of
Critical Accounting Estimates
There have been no material changes to the critical accounting policies
disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended
Recent Accounting Pronouncements
See Note 1(f) to our Financial Statements for a discussion of recent accounting pronouncements.
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