Mr. David Robbins reports

OMNI-LITE INDUSTRIES ANNOUNCES FIRST QUARTER FISCAL 2023 RESULTS AND CONFERENCE CALL FOR INVESTORS: MAY 18, 2023, AT 11:00 AM EDT

Omni-Lite Industries Canada Inc. has released its results for the first quarter fiscal 2023. Full financial results are available at SEDAR.

First quarter fiscal 2023 results

Revenue for the first quarter of fiscal 2023 was approximately $2.7-million (U.S.), an improvement of 15 per cent as compared with the first 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 (earnings before interest, taxes, depreciation and amortization) was approximately negative $79,000 (U.S.), an improvement of approximately $295,000 (U.S.) as compared with approximately negative $374,000 in the first quarter of fiscal 2022. The year-over-year improvement in adjusted EBITDA was a result of better utilization of fixed costs, including direct labour, as well as a reduction in SG&A (selling, general and administrative) expenses. The company generated free cash flow (and adjusted free cash flow) of approximately $210,000 (U.S.) in the first quarter of fiscal 2023, as compared with negative $154,000 (U.S.) and $125,000 (U.S.) in the first quarter of fiscal 2022 and fourth quarter of fiscal 2022, respectively.

First quarter of fiscal 2023 bookings were $3.2-million (U.S.), as compared with bookings of $2.5-million (U.S.) in the first quarter of fiscal 2022, an increase of 28 per cent. Bookings represented a strong 1.16 book-to-bill ratio. Omni-Lite ended the first quarter of fiscal 2023 with a backlog of $4.1-million (U.S.), an increase of 11 per cent from the first quarter of fiscal 2022.

The company's liquidity position remains strong due to its disciplined approach to management of its cost structure, working capital and capital spending. As a result, the company ended the first quarter of fiscal 2023 with approximately $1.3-million (U.S.) in cash and no indebtedness outstanding, which is consistent with the fourth quarter of fiscal 2022.

Management comments

David Robbins, Omni-Lite's chief executive officer, stated: "Omni-Lite Industries started fiscal 2023 with a solid first quarter, with an organic revenue increase of 15 per cent year-over-year. I am pleased with the improvement in production levels and bottom-line performance as we expect see to further improvements with the return of higher commercial aerospace and defense component needs, and as new products mature and convert from engineering to production. Our backlog is the strongest we have seen, ending the first quarter of fiscal 2023 at $4.1-million (U.S.), the majority of which we expect to convert to sales throughout the remainder of 2023. In recent years, we have taken steps to reduce our costs, which has allowed us to be near adjusted EBITDA break-even at our first-quarter revenue level. We believe that we now have strong operating leverage that allows us to achieve positive adjusted EBITDA levels as we can increase revenues. Our Q1 2023 bookings performance is a positive indicator as we make further progress in fiscal 2023."

Investor conference call

Omni-Lite will host a conference call for investors on May 18, 2023, beginning at 11 a.m. (ET) to discuss the first quarter fiscal 2023 results, and review of its business and operations. To join the conference call, dial 888-437-3179 in the United States and Canada, or 862-298-0702 for all other countries. Please call five to 10 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 for 12 months.

Please see the company's 2022 management discussion and analysis for additional notes and definitions.

About Omni-Lite Industries Canada Inc.

Omni-Lite Industries Canada is an innovative company that develops and manufactures mission critical, precision components utilized by Fortune 100 companies in the aerospace, defence, industrial and energy industries.

We seek Safe Harbor.