Omni-Lite earns $433,180 (U.S.) in Q3
Omni-Lite Industries Canada Inc.
November 30, 2006
Omni-Lite Industries Canada Inc. is releasing its financial statements for the three-month period ended Sept. 30, 2006. Omni-Lite Industries Canada is pleased to report record revenue of $1,823,926 (U.S.) or $2,032,229 (Canadian). This represents an increase of 37 per cent over the third quarter of 2005. This quarter represents the first time that the company's quarterly revenue exceeded $2-million (Canadian). To take advantage of the continuing expansion in the aerospace, military and speciality automotive markets, that the company has developed, Omni-Lite has adopted an aggressive growth strategy detailed as the "vision 2010" program. Without the implementation of this plan in late 2005, and the continued execution of this policy, the company would not be in a position to take advantage of the growth occurring in these markets.
Of additional importance, the third quarter financial statements include the financial results of California Nanotechnologies Inc., a partially owned subsidiary of Omni-Lite. California Nanotechnologies has a mandate to focus on high-level research and development activities related to nanostructured materials. California Nanotechnologies has been identified as a potential qualifying transaction for a TSX Venture Exchange-listed firm known as Veritek Technologies Inc. Through California Nanotechnologies, Omni-Lite has the potential of developing a series of nanostructured materials as potential feedstocks for the cold-heading systems that the company operates. Success in this area would provide additional growth prospects for the company.
In summary, revenue for the nine months in the current fiscal year was $4,168,552 (U.S.) ($4,644,600 (Canadian)). This increase in revenue reflects a 28-per-cent gain over the same period in 2005. Cash flow from operations over the same period was $1,656,382 (U.S.) ($1,845,541 (Canadian)), up 8 per cent for the period. Net income was $1,151,434 (U.S.) ($1,282,434 (Canadian)). Gross margins for the period were 66 per cent and net margins were 28 per cent. The following table summarizes these results. Per-share results include the effects of the warrants exercised prior to August 8, 2006.
SUMMARY OF FINANCIAL HIGHLIGHTS (all figures in U.S. dollars, unless otherwise noted) For the nine For the nine months ended months ended Sept. 30, Sept. 30, 2006 2005 Change Revenue $4,168,552 $3,267,341 28% Cash flow from operations $1,656,382 $1,537,071 8% Net income $1,151,434 $1,146,389 - EPS (U.S.) (loss) $0.11 $0.12 (8%) EPS (Canadian) (loss) $0.12 $0.14 (14%)
The company has continued to add new products to enhance to its revenue stream. The research and development efforts for these programs continue to be significant. As a result, at the end of the third quarter, the aerospace division accounted for 29 per cent of revenue. The sports and recreation division reported 27 per cent of revenue and the military division reported 22 per cent. The automotive division represented 16 per cent of sales. Commercial activities accounted for 6 per cent of revenue.
For the three months ended Sept. 30, 2006, revenue was $1,823,936 (U.S.) ($2,032,229 (Canadian)), an increase of 37 per cent. Net income was $433,180 (U.S.) ($482,649 (Canadian)), a decrease of 7 per cent over the same period in 2005. Cash flow from operations decreased by 21 per cent over the same period in 2005 to $500,283.
SUMMARY OF FINANCIAL HIGHLIGHTS (all figures in U.S. dollars, unless otherwise noted) For the three For the three months ended months ended Sept. 30, Sept. 30, 2006 2005 Change Revenue $1,823,936 $1,332,953 37% Cash flow from operations (loss) $ 500,283 $ 634,018 (21%) Net income (loss) $ 433,180 $ 464,421 (7%) EPS (U.S.) (loss) $0.04 $0.05 (20%) EPS (Canadian) (loss) $0.04 $0.05 (20%)
The company's 37-per-cent revenue increase over the last three months demonstrates the growth that the company is experiencing. As reported in Stockwatch, the aerospace, military, automotive, and sports and recreational divisions have all received new orders that will continue to drive the growth at Omni-Lite. To sustain this growth in the very challenging engineering environment that the company operates in, and to maintain the customer satisfaction record that has become a company hallmark, Omni-Lite has addressed several key issues in the last few months. Firstly, the board of directors approved the vision 2010 plan at the December, 2005, board meeting. This allowed the purchase of approximately $8-million worth of new equipment to add to the world-class facility in Cerritos, Calif. The first $1.4-million worth of equipment arrived this year with an additional $2.3-million scheduled to arrive in 2007. To prepare for the additional projects planned for 2007, the company has increased its staff from 25 to 40 people. Many of these people are trainees who could become part of the backbone of the company's highly skilled workforce in the years to come. The company has added key management in the quality, production and tooling support areas with the plan of further increasing customer satisfaction and production efficiency. Without this large commitment by the company and the large investment that it is making in the current fiscal period, the growth aspirations of Omni-Lite will not be realized. If the company is successful in implementing this growth plan, the company's success in the aerospace, military and specialty automotive areas should match the rapid growth in these areas of the economy.
The following table summarizes the company's financial performance over the last eight quarters.
(all figures in U.S. dollars, unless otherwise noted) Sept. 30, June 30, March 31, Dec. 31, 2006 2006 2006 2005 Revenue $ 1,823,936 $ 1,330,936 $ 1,013,680 $ 1,092,705 Cash flow from operations 500,283 654,887 501,212 424,607 Net income 433,180 377,435 340,819 103,027 EPS (U.S.) 0.04 0.04 0.03 0.01 EPS (Canadian) 0.04 0.04 0.04 0.01 Sept. 30, June 30, March 31, Dec. 31, 2006 2006 2006 2005 Revenue $ 1,322,953 $ 1,010,728 $ 923,660 $ 709,803 Cash flow from operations 634,183 474,129 428,924 319,717 Net income 464,421 372,812 309,156 38,994 EPS (U.S.) 0.05 0.04 0.03 0.00 EPS (Canadian) 0.05 0.05 0.04 0.00
Except for historical information contained herein this document contains forward-looking statements. These statements contain known and unknown risks and uncertainties that may cause the company's actual results or outcomes to be materially different from those anticipated and discussed herein.
THE TSX VENTURE EXCHANGE NEITHER APPROVES NOR DISAPPROVES OF THE
INFORMATION CONTAINED HEREIN.
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