Omni-Lite Industries Reports Third Quarter 2017 Results, New Orders and Updates on Hot Heading Project
Omni-Lite Industries Canada Inc. (the "Company" or "Omni-Lite") (TSXV:OML) (OTCQX:OLNCF) is pleased to announce that it has received new contracts worth over $1,049,962 US. Of these orders, 70% are in the Aerospace Division, 26% are in the Specialty Automotive Division, and 4% are in the Sports and Recreational Division. “This brings the total value of the new orders announced since the start of the year to approximately $5,850,000 US,” stated Allen W. Maxin, President. “At today's exchange rate this would be approximately $7,540,000 CDN.”
In addition to the four new aerospace projects announced in previous press releases, the Company is pleased to announce three additional new aerospace programs. These additional programs are with large current customers. "As the aerospace industry in Southern California continues to evolve, Omni-Lite has recently been approached to undertake several programs in addition to those noted above. The accelerating trend of large integrated tier one aerospace suppliers outsourcing to nimble, high technology companies like Omni-Lite is consistent with the need of our customers to maximize their internal resources to improve their efficiencies," stated Allen W. Maxin, President. “These aerospace industry trends toward outsourcing will play a key role in the Omni-Lite growth strategy for the next several years."
Of particular significance, the Company has been advised by one of its major military customers that upon completion of an important internal review the customer reaffirmed its commitment to continue outsourcing two major product lines currently manufactured by Omni-Lite. It is anticipated that this decision will have a positive contribution toward the Company's military endeavors.
Omni-Lite would also like to update on the progress on the hot heading test center. Since the completion of the system in the early second quarter of 2017, the research and development has focused on one critical, high volume family of components for the aerospace industry. Recent progress indicates that certain components in this family can be successfully manufactured on the hot heading test center. "Of particular significance the Company is seeing additional interest from other customers, for other new programs, as the hot heading development at Omni-Lite accelerates," stated Michael Walker, VP of R and D.
The Company would also like to note that the white reflective roof coating and the large solar system on the rooftop are almost completed. The Company plans to have the solar system operational in the next thirty days, at which time this system should produce 50% to 60% of the Company’s power requirements.
For the nine months ended September 30, 2017, Omni-Lite Industries Canada Inc. is pleased to report revenue of $5,496,097 US. In the first nine months of this fiscal year, cash flow from operations(1) was $1,706,646 US. EBITDA(1) was $1,640,665 US. Net income was $1,135,007 US, up 5% over the prior period. EPS increased 12 percent in Q3 2017 to $0.11 US. "Revenue in the nine months was lower than anticipated, in large part, due to significant procurement delays in customer supplied aerospace feedstock," stated Vern Brown, Manufacturing Manager. "The resolution of these issues should lead to higher production in the factory and faster turnaround to the customer."
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.
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Mr. David Grant, CEO
Tel. No. (562) 404-8510 or (800) 577-6664
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