Mr. David Robbins reports

OMNI-LITE INDUSTRIES REPORTS THIRD QUARTER AND YEAR-TO-DATE FISCAL 2024 RESULTS

Omni-Lite Industries Canada Inc. has released its results for the third quarter ending Sept. 30, 2024. Full financial results are available on SEDAR+.

Third quarter fiscal 2024 results

Revenue for the third quarter of fiscal 2024 was approximately $3.8-million (U.S.), representing an increase of 14 per cent as compared with the third quarter of fiscal 2023. The increase in revenue was largely due to organic growth in the company's electronic components and fasteners businesses, offset by a reduction in casting components with further comments below.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) (1) for the third quarter of fiscal 2024 was approximately $187,000 (U.S.), as compared with approximately $278,000 (U.S.) in the third quarter of fiscal 2023. Adjusted EBITDA was impacted by an unexpected outage of certain automated casting equipment. The outage, while transitory and resolved, resulted in a manual-oriented manufacturing workaround that entailed extended operating hours and lost throughput that, in the aggregate, negatively impacted adjusted EBITDA (1) by an estimate of more than $150,000 (U.S.).

Free cash flow (1) was approximately $636,000 (U.S.), an increase of approximately $387,000 (U.S.) compared with the year-ago quarter. The company's balance sheet continued to strengthen with $2.6-million (U.S.) in cash, an increase of approximately $834,000 (U.S.) and $1.3-million (U.S.), compared with the third quarter of fiscal 2024 and third quarter of fiscal 2023, respectively, and no debt outstanding. Free cash flow (1) was approximately $636,000 (U.S.) or an increase of approximately $387,000 (U.S.) compared with the year-ago quarter.

Bookings in the third quarter of fiscal 2024 were approximately $3.9-million (U.S.) and, as a result, the backlog at Sept. 30, 2024, was approximately $5.0-million (U.S.), an increase of $335,000 (U.S.).

Management comments

David Robbins, Omni-Lite's chief executive officer, stated: "Our revenue reflected continuing favourable customer demand, particularly in the aerospace sector. The bookings in the quarter continued to trend towards customers' near-term critical needs at a strong level. We are hopeful that the company will be able to overlay some larger longer-term bookings as we head into 2025."

Investor conference call

Omni-Lite will host a conference call for investors on Nov. 7, 2024, beginning at 1 p.m. EDT, to discuss the third quarter 2024 results and review of its business and operations. To join the conference call, 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.

(1) Adjusted EBITDA is a non-IFRS (international financial reporting standards) 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 special items, among others, gains (losses) on sale of assets and non-recurring items, net of tax effects, 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 used herein may not be comparable with similarly titled measures reported by other companies. The company believes the use of adjusted EBITDA, adjusted free cash flow and free cash flow along with IFRS financial measures enhances the understanding of its operating results, and may be useful to investors in comparing the company's operating performance with that of other companies and estimating the enterprise.

Adjusted EBITDA, adjusted free cash flow and 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 the company's customer programs and contracts. The company also uses adjusted EBITDA, adjusted free cash flow and free cash flow internally to evaluate the operating performance of the company, to allocate resources and capital, and to evaluate future growth opportunities.

Please see the third quarter 2024 management's discussion and analysis for additional notes and definitions.

About Omni-Lite Industries Canada Inc.

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

We seek Safe Harbor.