Omni-Lite Industries Canada Inc. (the "Company" or “Omni-Lite”;
TSXV: OML; OTCQX: OLNCF) today reported results for the fiscal
second quarter ending June 30, 2022. Full financial results are
available at sedar.com.
- Second Quarter Fiscal 2022 Revenue of US$2.5 million, compared
to US$1.2 million in the Second Quarter Fiscal Year 2021: Organic
Growth Rate of approximately 45%.
- Year-to-Date Fiscal 2022 Revenue of $4.8 million, compared to
$2.5 million in the Year Ago Period; Organic Growth Rate of
approximately 26%
- Second Quarter Fiscal 2022 Bookings of US$3.4 million,
representing a 1.36 Book-to-Bill Ratio
- Positive Adjusted Free Cash Flow (1) for the Fiscal Second
Quarter 2022
- Backlog at US$3.7 million, an Increase of 38% from December 31,
2021
- Cash Balance of US$2.4 million and Debt-Free Balance Sheet
- Fiscal 2022 Q3 and Q4 Revenue Expected to Show Continued
Positive Momentum
Second Quarter Fiscal 2022 Results
Revenue for the second quarter of fiscal 2022
was approximately US$2.5 million, an improvement of 3% on a
quarterly sequential basis and an increase of approximately 105% as
compared to the second quarter of fiscal 2021. The increase in
revenue was due both to organic growth and the acquisition of
Designed Precision Castings Inc. (“DP Cast”) in December 2021.
Excluding the acquisition of DP Cast, revenue increased
approximately 45% as compared to the second quarter of fiscal 2021
principally due to increased demand for commercial aerospace
fasteners and electronic components. Adjusted EBITDA (1) was
US$(487,224), a decline of 30% on a quarterly sequential basis, and
a decline of 89% as compared to the second quarter of fiscal 2021.
The year-over-year decline in Adjusted EBITDA (1) was a result of
the acquisition of DP Cast and additional rent expense associated
with the sale and leaseback of the Company’s Cerritos facility. On
a pro forma basis (assuming the inclusion of DP Cast and
sale/leaseback transaction as of January 1, 2021), second quarter
fiscal 2022 Adjusted EBITDA (1) improved compared to the year ago
period by 126%, which was mainly attributed to sales volume and
better utilization of resources. Free Cash Flow (1) was
US$(554,752) in the fiscal second quarter, as compared to
US$(93,464) in the second quarter of fiscal 2021 and US$(183,440)
in the first quarter of fiscal 2022. The decrease in free cash flow
in the second quarter of fiscal 2022 as compared to year ago period
was due, principally, to a non-recurring capital gain tax payments
related to the 2021 sale of the Company’s Cerritos facility of
$560,000. Fiscal second quarter 2022 Adjusted Free Cash
Flow, as adjusted for the non-recurring items (“Adjusted Free Cash
Flow” (1)), generated US$5,248.
Fiscal second quarter 2022 bookings were US$3.4
million, representing a strong 1.36 book-to-bill ratio and an
increase of 25% over first quarter of fiscal 2022 bookings
excluding the impact of the DP Cast acquisition. Omni-Lite ended
the fiscal year second quarter with a backlog of US$3.7 million, an
increase from fiscal first quarter 2022. The Company expects the
majority of this backlog to ship within the remainder of the
current fiscal year.
The Company’s liquidity position remains strong
in part due to our disciplined approach to the management of our
cost structure, working capital and capital asset spending,
resulting in the Company ending the second quarter of fiscal 2022
with approximately US$2.4 million in cash and no indebtedness
outstanding.
Management Comments
David Robbins, Omni-Lite’s CEO, stated “the
second quarter sequential and year-over-year revenue increases are
a result of growth in existing product lines as well as new revenue
opportunities. We are also seeing growth from the contribution of
the newly-acquired DP Cast’s business and increased demand for
aerospace fasteners and defense electronics. We have made
significant progress integrating business systems and implementing
manufacturing automation initiatives at DP Cast, and we expect to
see improvements in both the top and bottom lines as we continue
our integration activities in the coming quarters.”
Financial SummaryAll figures in
(US$000) unless noted.
For the Three Months Ended June 30, |
|
|
2022 |
|
|
2021 |
|
% Increase/(Decrease) |
Revenue |
$ |
2,460 |
|
$ |
1,200 |
|
105 |
% |
Adjusted EBITDA (1) |
|
(487 |
) |
|
(258 |
) |
(89 |
)% |
|
|
|
|
Adjusted Free Cash Flow (1) |
|
5 |
|
|
(93 |
) |
N/A |
Non-recurring Items |
|
(560 |
) |
|
- |
|
N/A |
Free Cash Flow (1) |
|
(556 |
) |
|
(93 |
) |
N/A |
|
|
|
|
Net Income/(Loss) |
|
(480 |
) |
|
(448 |
) |
N/A |
Diluted EPS |
($ |
0.03 |
) |
($ |
0.04 |
) |
25 |
% |
For the Six Months Ended June 30, |
|
|
2022 |
|
|
2021 |
|
% Increase/(Decrease) |
Revenue |
$ |
4,840 |
|
$ |
2,470 |
|
96 |
% |
Adjusted EBITDA (1) |
|
(861 |
) |
|
(392 |
) |
(120) % |
|
|
|
|
Adjusted Free Cash Flow (1) |
|
(149 |
) |
|
(221 |
) |
N/A |
Non-recurring Items |
|
(589 |
) |
|
- |
|
N/A |
Free Cash Flow (1) |
|
(738 |
) |
|
(221 |
) |
N/A |
|
|
|
|
Net Income/(Loss) |
|
(1,183 |
) |
|
(802 |
) |
N/A |
Diluted EPS |
($ |
0.08 |
) |
($ |
0.07 |
) |
(9) % |
Please see Second Quarter 2022 Management Discussion and
Analysis for additional notes and definitions. Totals in both
tables expressed above are rounded values and may not foot.
(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. Adjusted Free Cash Flow is a non-IFRS
financial measure defined as Free Cash Flow excluding, if any,
gains (losses) on sale of assets and non-recurring items. 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, Free
Cash Flow and Adjusted 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, Free Cash Flow and Adjusted 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, Free Cash Flow and Adjusted Free Cash
Flow internally to evaluate the operating performance of the
Company, to allocate resources and capital, and to evaluate future
growth opportunities.
Investor Conference Call
Omni-Lite will host a conference call for
investors on Thursday August 18,
2022, beginning at 1:00 P.M. Eastern Time to
discuss the second quarter of fiscal 2022 results and review of its
business and operations. To join the conference call, (888)
437-3179 in the USA and Canada, or (404) 267-0369 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 RobbinsChief Executive OfficerTel. No. (562) 404-8510
or (800) 577-6664Email: d.robbins@omni-lite.comWebsite:
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 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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