First quarter results
Omni-Lite Industries Canada Inc
Friday May 1 1998
Mr. Barry Lee reports
Revenues in the first quarter, ended Mar. 31, 1998 were approximately $513,500. This represents a 380 per cent increase from the three month period ended Mar. 31, 1997. Cash flow before amortization, depreciation and taxes exceeded $354,200. Total revenue for calendar 1997 exceeded $1,210,000; an increase of over 250 per cent from calendar 1996. Cash flow for the 1997 calendar year before amortization, depreciation and taxes exceeded $599,000. These results are driven by continuing demand for the company's automotive, military and recreational product lines.
Omni-Lite has received two new contracts in the automotive area. These components are being used in the airbag systems of two European automotive manufacturers. To meet this demand, Omni-Lite has placed an order for an additional machine to be delivered in August 1998. By Aug. 31, 1998 Omni-Lite will have five computer controlled production systems under management.
Omni-Lite has completed the acquisition of Formed Fast Inc. of Cerritos, California. Formed Fast has been a customer of Omni-Lite's automotive components since July 1996. This transaction considerably broadens Omni-Lite's potential in the automotive industry. The consideration paid was 526,000 Omni-Lite shares presently delivered, plus an additional 1,500,000 Omni-Lite shares placed in escrow, under the control of the ASE, pending active realization of benefits expected to flow to Omni-Lite as a result of the acquisition. The outstanding shares could be reduced should the value of the Formed Fast acquisition prove to be less than anticipated.
Omni-Lite's sports and recreation division has delivered several new products in 1998. Some of these products are being tested in preparation for the Olympic Games in Sydney, Australia. Of particular note, Athletics Manitoba has notified all potential users of the Pan American Games facility at the University of Manitoba that only Omni-Lite style spikes can be used on the new Mondo surface. The patented compression style of these spikes prolongs the useful life of the track as they do not penetrate the track surface. The Pan American Games will be held at this facility in 1999.
For further information, please contact:
David F. Grant
President & CEO
Tel. No. (562) 404-8510
Fax. No. (562) 926-6913
E-Mail Address: firstname.lastname@example.org
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