Omni-Lite Industries Canada Inc. (the "Company" or “Omni-Lite”;
TSXV: OML) today reported results for the fiscal first quarter
ending March 31, 2021. Full financial results are available at
sedar.com.
First Quarter Fiscal 2021
Results
Revenue for the first quarter of fiscal 2021 was
approximately US$1.3 million, a decrease of approximately 41% as
compared to the first quarter of fiscal 2020 and comparable to the
fourth quarter fiscal 2020. The decrease in revenue was due
principally to the impact of the COVID-19 pandemic on the
commercial aerospace and other markets offset by an incremental
increase in electronics products. Adjusted EBITDA(1) was
approximately US$(137,000) as compared to approximately US$197,000
in the year ago period, and on a quarterly sequential basis, an
improvement of 77%. The negative Adjusted EBITDA was the result of
the reduced revenue levels combined with a cost structure with a
high component of fixed overhead expenses. Free Cash Flow(1) was
approximately US$(126,000) in the fiscal first quarter as compared
to a US$(347,000) in the first quarter of fiscal 2020, representing
a 64% reduction in loss. The improvement in free cash flow in the
first quarter of fiscal 2021 as compared to year ago period was
due, principally, to working capital improvements and enhanced
process and cost control measures.
Management Comments
David Robbins, Omni-Lite’s President and CEO,
stated "Omni-Lite Industries continued to manage and respond
decisively to the impact of the COVID-19 pandemic. Our focus on
cash flow management resulted in increased cash flow generation
despite a significant decline in our revenue. We continue to be
highly focused on all aspects of operational performance and are
actively engaged in monetizing our real estate holding through a
sale-leaseback transaction that we expect to yield gross proceeds
in excess of 2x our carrying value, which will be deployed to fund
both organic and acquisition growth initiatives.”
“Lastly, we are beginning to see signs that
point to the early stages of a commercial aerospace recovery in the
second half of 2021 while the defense electronics market continues
to be steady and healthy and includes a number of growth
opportunities, notably electronic components for missile defense
systems upgrades,” remarked Mr. Robbins.
The Company’s liquidity position remains strong
as a result of our strict and disciplined approach to management of
our costs and spending. The Company ended the first quarter of
fiscal 2021 with approximately US$1.8 million in cash and
approximately US$1.5 million available under its revolving credit
facility.
In the first quarter of fiscal 2021, the Company
received approximately US$400,000 in funding under the Payroll
Protection Program 2 Loan Program, bringing our aggregate proceeds
under both programs to over US$1.2 million.
Financial SummaryAll figures in
(US$000) unless noted.
|
|
For the threemonths endedMarch 31, 2021 |
For the threemonths
endedDecember 31, 2020 |
For the threemonths endedMarch 31, 2020 |
|
|
Revenue |
$1,270 |
$1,285 |
$2,145 |
|
|
Adjusted EBITDA(1) |
(137) |
(615) |
197 |
|
|
Free Cash Flow(1) |
(126) |
221 |
(347) |
|
|
Net (Loss) |
(354) |
143 |
(87) |
|
|
Diluted EPS |
($0.03) |
$0.02 |
($0.01) |
|
(1) Adjusted EBITDA is a non-IFRS financial
measure defined as earnings before interest, taxes, depreciation,
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. 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 as used herein may not be comparable to
similarly titled measures reported by other companies. We believe
the use of Adjusted EBITDA 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 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 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 First Quarter 2021 Management Discussion and Analysis
for additional notes and definitions.
Investor Conference Call
Omni-Lite will host a conference call for
investors on Friday, May 21, 2021, beginning at 12 P.M. Eastern
Time to discuss the first quarter of fiscal 2021 results and review
of its business and operations. To join the conference call, (888)
428-7458 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.
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 and defense industries.
For further information, please contact:
Mr. David RobbinsPresident and Chief Executive OfficerTel. No.
(562) 404-8510 or (800) 577-6664Email:
d.robbins@omni-lite.comWebsite: www.omni-lite.comForward
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 expect
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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