Omni-Lite Industries Canada Inc. (the “Company”) (TSXV: OML; OTCQX:
OLNCF) reported financial and operating results for the second
quarter of fiscal 2020, ended June 30, 2020, and information on
management actions and cost-saving initiatives completed in and
after the fiscal quarter.
Second Quarter Fiscal 2020
Results
Second quarter fiscal 2020 revenue was US$1.6
million, representing a 37% decrease compared to second quarter of
fiscal 2019 of US$2.6 million. The second quarter fiscal 2020
decrease was largely attributable to lower commercial aerospace
fastener component volume impacted by the COVID-19 pandemic.
Second quarter fiscal 2020 Adjusted EBITDA(1)
was US($142,621) compared to US$380,616 in the second quarter
fiscal 2019. The second quarter fiscal 2020 net loss was
US($263,414), or US$(0.02) per diluted common share, as compared to
second quarter 2019 net income of US$119,320 or US$0.01 per diluted
common share.
Second quarter fiscal 2020 Adjusted EBITDA and
net income were adversely affected by lower commercial aerospace
fastener component revenue related to the COVID-19 pandemic impact
on fastener demand for new commercial aircraft build rates,
adjustments in inventory levels at our commercial aerospace
customers as well as plant disruptions and shutdowns at certain of
our customers.
Free cash flow(1) was US$321,042 for the second
quarter of fiscal 2020, compared to US$5,507 in second quarter of
fiscal 2019. The year-over-year increase was driven primarily by
net working capital inflows resulting from collections on accounts
receivable and net inventory destocking.
Cash balance at the end of quarter was US$1.6
million, and outstanding debt(2) of US$1.5 million, resulting in
net cash of US$127,000. The Company had US$1.5 million undrawn
capacity under its revolving credit facility.
First Half Fiscal 2020 Results
First half fiscal 2020 revenue was $US3.7
million, or a 25% decrease as compared to US$5.0 million in the
first half of fiscal 2019. First half fiscal 2020 Adjusted
EBITDA(1) was US$54,063 compared to US$1.1 million in the first
half of fiscal 2019. First half fiscal 2020 net loss was
US($350,490), or US$(0.03) per diluted share as compared to net
income of US$354,332, or US$0.03 in the first half of fiscal
2019.
Free cash flow(1) was US$(25,743) for the first
half of fiscal 2020, compared to US$(428,113) in first half of
fiscal 2019. The approximately US$402,000 increase in free cash
flow generation was driven, in part, by net working capital inflows
resulting from collections on accounts receivable, tempered growth
in the build-for-stock inventory program, offset by reduced
accounts payable levels.
Management Actions
Operations at our California manufacturing
facility resumed as expected on August 4th after the previously
announced 10-day shutdown for cleaning and sanitizing procedures in
connection with COVID-19. During the shutdown period, additional
workflow procedures were put in place to further enhance social
distancing protocols. Additionally, the Company implemented and
substantially completed a repositioning and alignment plan that
will result in cost reductions and efficiencies at the facility.
These restructuring actions along with other cost saving
initiatives are expected to yield annual cost savings of
approximately US$600,000 and will accelerate margin expansion when
recovery in the commercial aerospace market takes hold.
Management Comments
David Robbins, Omni-Lite’s President and Chief
Executive Officer, said:
“Given the impact of COVID-19 on the commercial
aerospace sector, we are taking necessary and decisive action to
adjust the cost structure at our California operation to better
align with lower demand, and to position us to respond to new
ongoing demand for engineered fastener components for defense
aerospace applications.
During the quarter, we saw growth in demand for
our microelectronics products and contract manufacturing services
provided at our Monzite division, driven largely by continued
demand in the defense aerospace platforms Monzite supports.
I would like to thank all our employees for
their exceptional commitment and dedication demonstrated since the
start of this challenging time. We are considered critical
infrastructure providers by the Cybersecurity and Infrastructure
Security Agency (CISA).”
Summary of Financial HighlightsAll figures in
US dollars unless noted
For the three months ended June 30 |
Revenue |
$1,623,650 |
$2,573,509 |
Adjusted EBITDA(1) |
(142,621) |
380,616 |
Free Cash Flow(1) |
321,042 |
5,507 |
Net income |
(263,414) |
119,320 |
Diluted EPS |
($0.02) |
$0.01 |
For the three months ended June 30 |
|
2020 |
2019 |
Revenue |
$3,768,520 |
$5,018,034 |
Adjusted EBITDA(1) |
54,063 |
1,111,399 |
Free Cash Flow(1) |
(25,743) |
(428,113) |
Net income |
(350,490) |
354,332 |
(1) Adjusted EBITDA is a non-IFRS financial
measure defined as earnings before interest income, interest
expense, taxes, depreciation, amortization, stock-based
compensation, and non-recurring items, if any. Free Cash Flow is a
non-IFRS financial measure defined as cash flow from operations
minus capital expenditures.(2) Excludes US$819,700 Paycheck
Protection Program Loan pursuant to the CARES Act, subject to
pending application and approval for forgiveness in its
entirety.
Investor Conference Call
Omni-Lite will host a conference call for
investors on Monday, August 17, 2020, beginning at 1:00 P.M.
Eastern Time to discuss our second quarter and first half fiscal
2020 results. To join the conference call, dial 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.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.
Omni Lite Industries Can... (TSXV:OML)
Historical Stock Chart
From Apr 2024 to May 2024
Omni Lite Industries Can... (TSXV:OML)
Historical Stock Chart
From May 2023 to May 2024