- Omni-Lite Industries (OML) is reporting positive revenue in the first quarter of 2021
- Revenue was US$1.3 million, a decrease of 41 per cent compared to Q1 2020 due to the COVID-19 pandemic
- The company ended Q1 2021 with US$1.8 million in cash and US$1.5 million available under its revolving credit facility
- Omni-Lite Industries Canada develops and manufactures mission critical precision components for the aerospace and defense industries
- Omni-Lite Industries (OML) is trading flat at $0.72 per share
Omni-Lite Industries (OML) is reporting positive revenue in the first quarter of 2021.
Revenue was US$1.3 million, a decrease of 41 per cent compared to Q1 2020. The decrease, due to the COVID-19 pandemic, was partially offset by an incremental increase in electronics products.
Adjusted EBITDA was US$(137,000) compared to US$197,000 in Q1 2020, but increased 77 per cent compared to Q4 2020. The result was due to reduced revenue levels combined with high fixed overhead expenses.
Free cash flow was US$(126,000) compared to US$(347,000) in Q1 2020, representing a 64 per cent reduction in loss. The improvement was due to working capital improvements and enhanced process and cost control measures.
The company ended Q1 2021 with US$1.8 million in cash and US$1.5 million available under its revolving credit facility.
Omni-Lite received US$400,000 under the 2nd Payroll Protection Program, bringing its aggregate proceeds under both programs to over US$1.2 million.
David Robbins, Omni-Lite’s President and CEO, commented,
“Omni-Lite Industries continued to manage and respond decisively to the impact of the COVID-19 pandemic. Our focus on cash flow management resulted in increased cash flow generation despite a significant decline in our revenue.
We continue to be highly focused on all aspects of operational performance and are actively engaged in monetizing our real estate holding through a sale-leaseback transaction that we expect to yield gross proceeds in excess of 2x our carrying value, which will be deployed to fund both organic and acquisition growth initiatives.
Lastly, we are beginning to see signs that point to the early stages of a commercial aerospace recovery in the second half of 2021 while the defense electronics market continues to be steady and healthy and includes a number of growth opportunities, notably electronic components for missile defense systems upgrades.”
Omni-Lite Industries Canada develops and manufactures mission critical precision components for the aerospace and defense industries.
Omni-Lite Industries (OML) is trading flat at $0.72 per share as of 2:38 pm ET.
