Omni-Lite Industries Canada Inc. (the "Company" or “Omni-Lite”;
TSXV: OML) today reported results for the second quarter Fiscal
2023. Full financial results are available at sedar.com.
Second Quarter Fiscal 2023
Results
Revenue for the second quarter of fiscal 2023
was approximately US$3.0 million, an improvement of 24% as compared
to the second quarter of fiscal 2022. The increase in revenue was
due principally to increased demand for commercial aerospace
fasteners and electronic components, as well as the production of a
number of new product lines. Adjusted EBITDA (1) was US$168,000, an
improvement of approximately US$655,000 as compared to $(487,000)
in the second quarter of fiscal 2022 and the highest results since
March 2020. The year-over-year improvement in Adjusted EBITDA (1)
was a result of better utilization of fixed costs, including direct
labor, as well as a reduction in S,G&A and indirect labor
related expenses. The Company generated Free Cash Flow (1) (and,
Adjusted Free Cash Flow (1)) of US$162,000 in the second quarter of
fiscal 2023, as compared to Free Cash Flow (1) US$(555,000) in the
second quarter of fiscal 2022 and Adjusted Free Cash Flow (1)
US$5,000 in the second quarter of fiscal 2022.
Second quarter of fiscal 2023 bookings were
US$3.5 million, as compared to bookings of US$3.4 million in the
second quarter of fiscal 2022, an increase of 3%, and representing
a strong 1.16 book-to-bill ratio. Omni-Lite ended the second
quarter of fiscal 2023 with a backlog of US$4.7 million, an
increase of 27% over the second quarter of fiscal 2022.
The Company’s liquidity position remains strong
due to our disciplined approach to management of our cost
structure, working capital and capital spending. As a result, the
Company ended the second quarter of fiscal 2023 with approximately
US$1.3 million in cash and no indebtedness outstanding, which is
consistent with both the first quarter 2023 and the fourth quarter
of fiscal 2022.
Omni-Lite reported Other Income of US$374,000 in
the fiscal second quarter 2023 related to the increase in share
price of California Nanotechnologies Inc. (“Cal Nano”). Omni-Lite
owns 6,004,970 shares of Cal Nano, representing approximately 0.4
shares of Cal Nano for every Omni-Lite share outstanding. Cal Nano
recently reported record revenue for the quarter ended May 31,
2023, and its management indicated that it expects another record
revenue quarter for the period ending August 31, 2023.
Management
Comments
David Robbins, Omni-Lite’s CEO, stated
"Omni-Lite Industries continued fiscal 2023 with a solid second
quarter with a revenue increase of 24% year-over-year. We reported
our strongest Adjusted EBITDA in over two years, and we are hopeful
that the improvements in this critical performance measure will
continue over the balance of 2023. I am pleased with the
improvement in bottom-line performance driven by high efficiency in
metal forming fastener production and electronics products. We
expect to realize further improvements in our bottom line as
Casting components production in commercial aerospace and defense
components increases, along with ongoing increases in demand for
forming and electronic components. Our backlog of firm orders
continues to improve ending the second quarter of fiscal 2023 at
US$4.7 million, the majority of which we expect to convert to
revenue throughout the remainder of fiscal year 2023. Lastly, our
Q2’23 bookings performance of increases in mature products and new
engineered products is another indicator to us for continued
revenue growth.”
Financial
SummaryAll figures in (US$000) unless noted.
Investor Conference Call
Omni-Lite will host a conference call for
investors on August 3, 2023, beginning at 11:00 A.M. (EDT) to
discuss the Second Quarter Fiscal 2023 results and review of its
business and operations. To join the conference call, 888-437-3179
in the USA and Canada, or 862-298-0702 for all other countries.
Please call five to ten minutes prior to the scheduled start time.
A replay of the conference call will be available 48 hours after
the call and archived on the Company’s investors page of the
Company’s website at www.omni-lite.com for 12 months.
(1) Adjusted EBITDA is a non-IFRS financial
measure defined as earnings before interest, taxes, depreciation
(net of lease expense), amortization, stock- based compensation
provision, gains (losses) on sale of assets, and non-recurring
items, if any. Free Cash Flow is a non-IFRS financial measure
defined as cash flow from operations minus capital expenditures.
Adjusted Free Cash Flow is a non-IFRS financial measure defined as
Free Cash Flow excluding special items, among others, gains
(losses) on sale of assets and non- recurring items, net of tax
effects, if any. These are non-IFRS financial measures, as defined
herein, and should be read in conjunction with IFRS financial
measures and they are not intended to be considered in isolation or
as a substitute for, or superior to, financial information prepared
and presented in accordance with IFRS. The non-IFRS financial
measures used herein may not be comparable to similarly titled
measures reported by other companies. We believe the use of
Adjusted EBITDA, Adjusted Free Cash Flow and Free Cash Flow along
with IFRS financial measures enhances the understanding of our
operating results and may be useful to investors in comparing our
operating performance with that of other companies and estimating
our enterprise value. Adjusted EBITDA, Adjusted Free Cash Flow and
Free Cash Flow are also useful tools in evaluating the operating
results of the Company given the significant variation that can
result from, for example, the timing of capital expenditures and
the amount of working capital in support of our customer programs
and contracts. We also use Adjusted EBITDA, Adjusted Free Cash Flow
and Free Cash Flow internally to evaluate the operating performance
of the Company, to allocate resources and capital, and to evaluate
future growth opportunities.
Please see 2023 Management Discussion and
Analysis for additional notes and definitions.
About
Omni-Lite Industries
Canada Inc.
Omni-Lite Industries Canada Inc. is an
innovative company that develops and manufactures mission critical,
precision components utilized by Fortune 100 companies in the
aerospace, defense, industrial and energy industries.
For further
information, please contact:
Mr. David Robbins Chief Executive OfficerTel. No. (562) 404-8510
or (800) 577-6664Email: d.robbins@omni-lite.com Website:
www.omni-lite.com
Forward Looking Statements
Except for statements of historical fact, this
news release contains certain “forward-looking information” within
the meaning of applicable securities law. Forward-looking
information is frequently characterized by words such as “plan”,
“expect”, “project”, “intent”, “believe”, “anticipate”, “estimate”
and other similar words, or statements that certain events or
conditions “may” or “will” occur. Forward-looking information in
this press release includes, but is not limited to, the expected
future performance of the Company. Although we believe that the
expectations reflected in the forward-looking information are
reasonable, there can be no assurance that such expectations will
prove to be correct. We cannot guarantee future results,
performance, or achievements. Consequently, there is no
representation that the actual results achieved will be the same,
in whole or in part, as those set out in the forward- looking
information. Forward-looking information is based on the opinions
and estimates of management at the date the statements are made and
are subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ
materially from those anticipated in the forward-looking
information. Some of the risks and other factors that could cause
the results to differ materially from those expressed in the
forward- looking information include, but are not limited to:
general economic conditions in Canada, the United States and
globally; industry conditions, governmental regulation, including
environmental consents and approvals, if and when required; stock
market volatility; competition for, among other things, capital,
skilled personnel and supplies; changes in tax laws; and the other
risk factors disclosed under our profile on SEDAR at www.sedar.com.
Readers are cautioned that this list of risk factors should not be
construed as exhaustive.
The forward-looking information contained in
this news release is expressly qualified by this cautionary
statement. We undertake no duty to update any of the
forward-looking information to conform such information to actual
results or to changes in our expectations except as otherwise
required by applicable securities legislation. Readers are
cautioned not to place undue reliance on forward-looking
information.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
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