Omni-Lite Announces Increasing 2016 Cash from Operations, Significant Shareholder Returns and Achieves Technical Breakthrough in Aerospace Industry
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."
Revenue: For the year ended December 31, 2016, Omni-Lite reported revenue of US $7,179,808.
1. 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.