Omni-Lite revenue for 2008 increases 33%, cash flow increases 45% and EBITDA increases 20% in Cdn dollar terms
Omni-Lite Industries Canada Inc.
May 1, 2009
For the year ended Dec. 31, 2008, Omni-Lite Industries Canada Inc.'s revenue increased 33 per cent over fiscal 2007. Total revenue reported was $9,115,151 over $6,858,136 reported in 2007. In 2008, the military and aerospace divisions accounted for approximately 73 per cent of revenue, up from 68 per cent in 2007. In the 2008 fiscal period, cash flow increased 45 per cent and EBITDA (earnings before interest, taxes, depreciation and amoritization) increased 20 per cent. In 2008, gross margins were 71.3 per cent, an increase from 69.8 per cent in fiscal 2007. Over the period, the Canadian dollar changed from 0.9804 to the U.S. dollar to 1.2228 to the U.S. dollar.
"In 2008, the company undertook 18 new programs that include components for the U.S. Army, U.S. Marine Corps, John Deere, Caterpillar, Ford, Bosch and several other Fortune 100 customers. Many of these projects will go into production in 2009 or early 2010. The revenues expected from these programs will guide the company's growth in the near future," stated David F. Grant, chairman and chief executive officer. "The company is working 17 hours per day to complete these tasks. Our customers are in varying stages the testing and evaluation these new components. Of particular significance, several customers have completed the multimonth testing cycles required and are moving toward first-article approval and production."
Consistent with the company's vision 2015 growth strategy, the company added three new progressive forging systems in 2009. An additional seven systems will be installed in 2009. The value of these new machines is approximately $5.3-million. As a capital equipment-intensive company, these investments will provide an additional benefit to Omni-Lite. In these difficult financial times worldwide, the company's cash position has been aided by the accelerated depreciation allowed under the U.S. Economic Recovery Act of 2008. This stimulus will result in reducing the current U.S. taxes (actual taxes) that the company will pay in 2008 and 2009. The stimulus program will have the immediate effect of triggering a substantial refund on taxes prepaid for the 2008 fiscal year. It is anticipated that the stimulus package will also substantially reduce the current taxes paid in 2009. The majority of the future taxes (a non-cash item) associated with the stimulus package have been expensed on the income statement in the fourth quarter. As a capital equipment-intensive company, Omni-Lite's management and board of directors will continue to measure the performance of the company by the metrics of cash flow from operations and EBITDA.
Revenue in the fiscal 2008 period was $9,115,151 ($7,454,327 (U.S.)) up from $6,858,136 ($6,983,845 (U.S.)) in 2007. Cash flow from operations over the same period was $3,488,143 ($2,852,587 (U.S.)) up from $2,414,863 ($2,459,127 (U.S.)), an increase of 45 per cent for the year. EBITDA was $3,657,590 ($2,991,160 (U.S.)) up from $3,049,419 ($3,105,315 (U.S.)), an increase of 20 per cent year over year. Net income after current and future taxes was $1,069,995 ($875,037 (U.S.)), a reduction from $1,554,869 ($1,583,370 (U.S.)) in 2007. Gross margins for the year were 71.3 per cent versus 69.8 per cent in fiscal 2007.
2008 FINANCIAL HIGHLIGHTS For the year ended Increase Dec. 31, 2008 Dec. 31, 2007 (Decrease) Revenue $ 9,115,151 $ 6,858,136 33% Cash flow from operations (1) $ 3,488,143 $ 2,414,863 45% EBITDA $ 3,657,590 $ 3,049,419 20% Net income $ 1,069,995 $ 1,554,869 (31%) EPS $ 0.10 $ 0.14 (28%) EPS (U.S.) $ 0.08 $ 0.14 (44%)
Note: At Dec. 31, 2008, $1 (U.S.) equalled $1.2228 (Canadian); at Dec. 31, 2007, $1 (U.S.) equalled 98.20 cents (Canadian).
(1) Cash flow from operations is a non-GAAP term requested by the oil and gas investment community that represents net earnings adjusted for non-cash items including depreciation, depletion and amortization, future income taxes, asset writedowns and gains (losses) on sale of assets, if any.
Basic earnings per share were 10 cents (eight U.S. cents) compared with 14 cents (14 U.S. cents) in 2007 based on the number of weighted average shares outstanding of 10,872,011. In 2008, Omni-Lite repurchased 614,400 (238,400 in 2007) common shares through the normal course issuer bid. In the year, the weighted average number of shares decreased from 11,059,967 to 10,872,011.
In the fourth quarter of 2008, revenue was $1,670,591 (1,366,201 (U.S.)). Cash flow over the period was $352,707 ($288,442 (U.S.)). Largely due to the expense of future tax in the quarter, net loss for the quarter was six cents (five U.S. cents).
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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