Mr. David Robbins reports

OMNI-LITE INDUSTRIES REPORTS FOURTH QUARTER AND FISCAL 2024 RESULTS

Omni-Lite Industries Canada Inc. has released its results for the fourth quarter and fiscal year ending Dec. 31, 2024. Full financial results are available on SEDAR+.

Highlights:

• Record revenue for fiscal 2024 of $15.9-million (U.S.), a 28-per-cent increase over fiscal 2023;
• Omni-Lite achieves improved adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) (1) of $1.6-million (U.S.) in fiscal 2024;
• Strong cash generation: improves by $1.9-million (U.S.0 over fiscal 2023;
• Bookings for fiscal 2025 first quarter of $5.0-million (U.S.), a quarterly historical high.

Fourth quarter fiscal 2024 results

Revenue for the fourth quarter of fiscal 2024 was approximately $3.5-million (U.S.), an increase of 5 per cent as compared with the fourth quarter of fiscal 2023. The increase in revenue was due to organic growth largely in the company's fasteners and castings business. The fourth quarter is often factored by seasonality in production days and customers' desires to reduce shipments over the holiday period.

Adjusted EBITDA (1) was approximately negative $83,000 (U.S.), as compared with approximately $78,000 (U.S.) in the fourth quarter of 2023. Adjusted EBITDA (1) was impacted by sales mix and the sale of aged inventory at a loss of approximately $156,000 (U.S.).

Net income for the fiscal quarter was $21,000 (U.S.) or nil per diluted share.

The company's balance sheet remains strong, with $3.0-million (U.S.) in cash and no debt outstanding at the year-end. Cash increased by $430,000 (U.S.), with the receipt of Cal Nano loan proceeds during the quarter making a meaningful contribution.

Bookings in the fourth quarter of 2024 were approximately $3.2-million (U.S.) and the backlog at Dec. 31, 2024, was approximately $4.6-million (U.S.).

Fiscal year 2024 results

Revenue for the fiscal year ending Dec. 31, 2024, was approximately $15.9-million (U.S.), a historical record for the company and representing a 28-per-cent increase over the comparable year-ago period. Adjusted EBITDA (1) was approximately $1.6-million (U.S.), as compared with approximately $445,000 (U.S.) in the prior year. The increase of approximately $1.2-million (U.S.) in adjusted EBITDA (1) was primarily due to higher revenue and better utilization of labour. Adjusted free cash flow (1) was $1.8-million (U.S.), which was after capital expenditures of approximately $112,000 (U.S.), as compared with $530,000 (U.S.) in 2023.

Omni-Lite reported a fiscal 2024 net income of $615,000 (U.S.) or three U.S. cents per diluted share, as compared with a net income of $90,000 (U.S.) or one U.S. cent per diluted share in fiscal year ended Dec. 31, 2023.

Over the course of the year, Cal Nano paid off the entire outstanding balance of loans of $1.1-million (U.S.), including a senior secured note of $250,000 (U.S.) that had been fully reserved.

Bookings for the fiscal year were $13.4-million (U.S.).

Management comments

David Robbins, Omni-Lite's chief executive officer, stated: "Two thousand twenty-four performance reflected some of our important business themes as an aerospace and defence manufacturer of needed high performance components. We can respond to critical customer demands in months, not years, and can scale manufacturing throughput to deliver higher earnings given our structural operating leverage. Two thousand twenty-four was impacted by the ramping up of production quantities of components on two important missile programs, several new Inconel fastener component designs and new U.S. customers for engine castings.

"Bookings tailed off in Q4 due to program timing effects, but we are anticipating strong bookings in first half of 2025, notably from new fastener components qualified in early 2024, and from some electronic modernization efforts on certain high-profile U.S. DoD missile defence programs. To that end, Omni-Lite's bookings for the fiscal 2025 first quarter were over $5.0-million (U.S.), a record quarterly high."

Investor conference call

Omni-Lite will host a conference call for investors on April 22, 2025, beginning at 4 p.m. EDT, to discuss the fiscal 2024 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 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 its operating performance with that of other companies and estimating the enterprise.

Please see the 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.