LOS ANGELES, CALIFORNIA–(Marketwired – May 1, 2017) – Omni-Lite Industries Canada Inc. (TSX VENTURE:OML)(OTCQX:OLNCF) (the “Company”) is pleased to announce audited annual revenue of US $7,179,808 for the year ending December 31, 2016. In 2016, cash generated from operations increased to US $1,965,273 versus US $1,497,654 in 2015, a gain of 31%. EBITDA increased from US $1,959,409 in 2015 to US $2,056,566 in 2016, representing an increase of 5% and an EBITDA margin expansion of 245 basis points.
In 2016, the Company successfully negotiated two three-year contracts with major tier one aero-space customers. The initial total value of these contracts was approximately US $7.9 mm. These contracts allow additional components to be added at any time during their lifespan. “Sales with one of these customers is up 18% over last year and 32% from two years ago,” stated Allen Maxin, President. “The Company still sees significant growth in the aerospace division over the next several years.”
In addition, the Company received a number of military contracts in 2016 that continue the important U.S. Department of Defense programs that began in 2014. These are the third set of contiguous orders in this program. These aerospace and military contracts represent a tremendous vote of confidence in Omni-Lite’s state-of-the-art engineering and manufacturing facility and point to continued growth in 2017 and beyond as the Company becomes more strategic to its customers.
“To take the Company to the next level of technical achievement, while providing a major catalyst for growth, in 2015 Omni-Lite initiated a program to review the potential of converting an existing cold forming system to operate at elevated temperatures. The US $900,000 test bed developed in this program was intended to evaluate the potential for hot forging aircraft titanium and other super alloys. In April 2017, the Company successfully produced the first complete Ti 6Al-4V fully tubular component using this system. While the use of titanium is attractive due to its light weight and high strength, historically it has been challenging to create precision complex aerospace fasteners without expensive multi-stage operations. Omni-Lite’s hot forming system could eliminate many of these secondary operations, significantly reducing the cost and increasing the availability of these critical products. This technical breakthrough may lead to significant revenue opportunities within the aerospace, marine, medical, and sports and recreational markets,” stated Michael Walker, VP of R&D. “The Company has begun to interview Business Development candidates to develop and execute a worldwide sales and marketing strategy for this significant new and expanding marketplace.”
Financial Highlights
Revenue: For the year ended December 31, 2016, Omni-Lite reported revenue of US $7,179,808.
Sales by division are summarized below:
| Division | Aerospace | Military | Specialty Automotive |
Sport & Recreation |
||||
| 2016 | 40% | 15% | 34% | 11% | ||||
| 2015 | 34% | 30% | 23% | 13% | ||||
It is important to note that Omni-Lite is increasingly becoming a significant supplier to the aerospace industry in a period when the industry is forecasting significant growth over several years.
Earnings per share: Basic earnings per share were US $0.07 compared to US $0.08 in 2015. During the year, pursuant to a normal course issuer bid, the Company acquired 1,145,200 of its issued and outstanding common shares at a cost of US $1,450,745.
The diluted earnings per share were US $0.07 compared to US $0.07 in 2015.
At the end of 2016 the book value per share was approximately US $1.73 or CDN $2.32. This compares to the closing price on April 28, 2017 of CDN $1.77.
| SUMMARY OF FINANCIAL HIGHLIGHTS (US $) | ||||||
| All figures in US dollars unless noted. | ||||||
| For the year ended December 31, 2016 |
For the year ended December 31, 2015 |
% Increase (Decrease) |
||||
| Revenue | $7,179,808 | $7,479,958 | (4%) | |||
| Cash flow from operations (1) | 2,174,333 | 2,136,228 | 1% | |||
| EBITDA (1) | 2,056,566 | 1,959,409 | 5% | |||
| Net income | 762,595 | 884,975 | (14%) | |||
| EPS (US) | 0.07 | 0.08 | (8%) | |||
- Please see 2016 Management Discussion and Analysis for detailed notes and definition.
Omni-Lite Industries Canada Inc. is a rapidly growing high technology company that develops and manufactures mission critical, precision components utilized by Fortune 100 companies including Boeing, Airbus, Bombardier, Embraer, Alcoa, Ford, Borg Warner, Chrysler, John Deere, the U.S. Military and Nike.
Reader Advisory
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”, “intend”, “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 expected 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 regulation; unanticipated operating events or performance; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; 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.
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Mr. Mikel Damke
Executive Assistant to the CEO
(403) 660-7770
[email protected]
Omni-Lite Industries Canada Inc.
Mr. David Grant
CEO
(562) 404-8510 or (800) 577-6664
Cell. No. (714) 757-8863
[email protected]
Omni-Lite Industries Canada Inc.
www.omni-lite.com
