- Fourth Quarter Fiscal 2018 Revenue of US$2.1 million, up 106%
over Fourth Quarter Fiscal 2017
LOS ANGELES, CALIFORNIA, April 30, 2019 - Omni-Lite Industries Canada Inc. (the "Company" or “Omni-Lite”; TSXV: OML) today reported results for its Fiscal Year 2018 ending December 31, 2018 and preliminary record results for the First Quarter of Fiscal 2019.
Fiscal Year 2018 Results
Revenue for the year ended December 31, 2018 was US$7.1 million, an increase of 8% or
US$0.5 million compared to US$6.5 million for Fiscal Year 2017. The increase in revenues was
primarily attributable to the contribution from the Monzite subsidiary that was acquired in
September 2018. Fiscal Year 2018 Adjusted EBITDA(1) was US$1.3 million, a US$0.4 million
decrease from the year ago period which was largely attributable to the Company’s significant
investments made in senior management, business development, manufacturing productivity
and systems.
For Fiscal Year 2018, Omni-Lite reported a net loss of US$4.5 million, or US($0.43) per diluted
share, as compared to net income of US$737,000 or US$0.07 per diluted share for Fiscal Year
2017. The net loss for Fiscal Year 2018 was primarily attributable to a non-cash impairment
charge of US$5.0 million, and non-recurring items associated with the acquisition of Monzite
Corporation and a discretionary write-off of obsolete inventory.
During Fiscal Year 2018, the Company sustained a decrease in its market capitalization, which
imputed a significant discount relative to our book value, compelling the Company, in
accordance with International Financial Reporting Standard (“IFRS”) IAS36 (impairment of
assets), to be tested using the value in use method as of December 31, 2018. Such testing
resulted in the Company recognizing a non-cash asset impairment charge of US$5.0 million.
This non-cash charge does not necessarily reflect management’s view of the utility or market
value of the Company’s assets nor the Company’s ability to generate returns and cash flow
from its assets on a go-forward basis.
First Quarter Fiscal 2019 Preliminary Revenue and Adjusted EBITDA(1)
Most notably, Omni-Lite is expected to deliver record revenue in the First Quarter of Fiscal 2019
of approximately US$2.4 million (unaudited), representing a significant increase over the $1.3
million First Quarter Fiscal 2018 revenue. The increase in revenue is attributable to the early
stages of management’s efforts to be highly focused and disciplined in the engagement with its
customers to satisfy their growing aerospace and defense requirements as well as converting
the bookings growth realized in 2018. On a preliminary basis, Adjusted EBITDA(1) is expected to
be approximately US$700,000 (unaudited), as compared to the First Quarter Fiscal 2018
Adjusted EBITDA of $227,000.
Management Comments
David Robbins, Omni-Lite’s CEO, stated that "while the impairment charge and non-recurring
items had a significant impact on our quarterly and year-end earnings, the lion's share of these
charges were non-cash in nature, and had no effect on the Company’s cash flow, liquidity, or
our ability to capitalize on our profitable growth opportunities. We generated very meaningful
Adjusted EBITDA in 2018 while concurrently making substantial investments in senior
leadership, market expansion through the acquisition of Monzite, new sales personnel and
factory floor infrastructure which, in the aggregate, should generate significant returns in the
future for our shareholders."
Mr. Robbins continued, "In response to increased marketplace demands in aerospace and
defense, we have taken steps to increase production capacity and diversifying into a broader
range of aerospace fasteners and additional military applications. Our continued research &
development investments are solely directed at tooling and design approach for high volume
manufacturing of aerospace fasteners."
Mr. Robbins concluded by stating, "Omni-Lite has a significant pipeline of opportunities from its
Tier 1 and Tier 2 aerospace and defense OEMs and we believe demand remains strong for
highly engineered fasteners for military and commercial air transport applications. To that end,
our First Quarter Fiscal 2019 performance points to our ability to convert our aerospace and
defense customers’ needs into profitable revenue growth and are positioned well to respond to
growing aerospace demands. We are also pleased to see profit margins increase with the
incremental revenues that resulted from operational efficiencies gained by utilizing production
capacity with investments made within last six months."
| For the year ended December 31, 2018 |
For the year ended December 31, 2017 |
% Increase (Decrease) |
|
|---|---|---|---|
| Revenue | $7,074,908 | $6,539,934 | 8% |
| Adjusted EBITDA(1) | 1,272,725 | 1,717,201 | (26%) |
| Net (loss) | (4,524,039) | 737,824 | N/A |
Investor Conference Call
Omni-Lite will host a conference call for investors on Thursday, May 2, 2019, beginning at 5 P.M.
Eastern Time to discuss the Fiscal 2018 and certain first quarter fiscal 2019 preliminary results
and review of its business and operations.
To join the conference call, dial 888-645-4404 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) Please see 2018 Management Discussion and Analysis for detailed notes and definitions.
Reconciliation of Non-IFRS Measures
EBITDA is a non-IFRS financial measure defined as earnings before interest, taxes, depreciation
and amortization. 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. 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 EBITDA and Adjusted EBITDA along with IFRS financial measures enhances the
understanding of our operating results and may be useful to investorsin comparing our operating
performance with that of other companies and estimating our enterprise value. EBITDA is also a
useful tool 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 EBITDA and Adjusted
EBITDA internally to evaluate the operating performance of the Company, to allocate resources
and capital, and to evaluate future growth opportunities.
Please refer to the 2018 Management Discussion and Analysis for detailed 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 and defense industries.
For further information, please contact:
Mr. David Robbins
President and Chief Executive Officer
Tel. No. (562) 404-8510 or (800) 577-6664
Email: 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. In particular, 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
otherthings, capital,skilled personnel and supplies; changesin 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
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reliance on forward-looking information
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