Third Quarter Results|
Omni-Lite Industries Canada Inc.
December 3, 2002
December 2, 2002 - Financial results for the three months ended Sept. 30, 2002, nine months ended Sept. 30, 2002, and the comparative periods to Sept. 30, 2001, and Dec. 31, 2001, are as follows
All figures are in U.S. dollars except as noted.
FINANCIAL HIGHLIGHTS Three months ended Sept. 30 2002 2001 Revenue $ 673,822 $ 926,167 EBITDA $ 213,243 $ 661,605 Cash flow from operations $ 199,463 $ 622,406 Net income (loss) $ 25,600 $ 532,214 Earnings per share $ 0.003 $ 0.05 FINANCIAL HIGHLIGHTS Nine months ended Sept. 30 2002 2001 Revenue $ 1,787,077 $ 1,909,725 EBITDA $ 701,879 $ 1,291,329 Cash flow from operations $ 649,891 $ 1,191,150 Net income (loss) $ 242,147 $ 921,295 Earnings per share $ 0.03 $ 0.09
During the third quarter, revenue was $673,822 US or approximately $1,063,028 CDN, a decrease of 27% over the same period in 2001. During this time frame, cash flow decreased by 70% to $199,463 US or approximately $314,852 CDN. The Company reported net income for the three-month period of $25,600 US or approximately $40,410 CDN.
Over the nine-month period to September 30, 2002 revenue was $ 1,787,077 US, a decrease of 6% over the previous period. Over the same period cash flow decreased to $649,891 US, a decrease of 45% over the same period in 2001. Net income decreased to $242,147 or 74% below that achieved in the January to September period in 2001.
Sales in the Military division were disrupted by changes in the distribution channel when a customer's business was sold to another company. The transfer of technology from one company to another has caused delays and a substantial backlog. It is estimated that full production will resume by second quarter 2003 and that the customer's inventory of Omni-Lite's component will be depleted around that time. Omni-Lite anticipates a surge in orders when the customer's production problems are solved and this in turn will return revenue numbers back to their prior levels.
In the Automotive Division, Omni-Lite restructured the transmission component program and began supplying Borg-Warner directly. This restructuring has allowed the unit price of this product line to double. To become a supplier to Borg-Warner, many new support services have been added to Omni-Lite's capabilities. The production costs at Omni-Lite have also risen as requirements for inspection of the components have increased. Some of these costs will be minimized as the new processes are fully integrated into production. It is anticipated that other opportunities with BorgWarner will arise from Omni-Lite's dedication to customer service and quality.
As the number of services provided by Omni-Lite increase and quality requirements rise, staffing levels have increased. The additional people and equipment have enabled Omni-Lite to expand its product line and to focus more on negotiating new sales contracts. New equipment has been used to manufacture components for Fairchild that were previously not attempted.
Amortization expenses rose due to the value added improvements made on the building and from new equipment. The increased amortization of deferred R&D costs reflects a more conservative approach taken by the Company.
In October 2002, the Company leased out approximately 5800 square feet of unused office space for a period of three years. Omni-Lite has secured lines of credit totaling $3,000,000 from a major US bank. This allows the Company to meet any foreseeable obligations.
|| Main Page | Investor Info | Profile / Divisions | Online Store | Contact Us | | Follow @OmniLiteInd ||