OMNI-LITE INDUSTRIES CANADA INC.
OML-TSX VENTURE
CERRITOS, CA, Nov. 30 /CNW/ - For the three month period ended September
30, 2006, Omni-Lite Industries Canada Inc. is pleased to report record revenue
of $1,823,926 US or $2,032,229 CDN. This represents an increase of 37% over
the third quarter of 2005. This quarter represents the first time that the
Company's quarterly revenue exceeded $2,000,000 Cdn. 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-V listed firm known as Veritek Technologies
Inc. (VTK.P). 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 ($4,644,600 CDN). This increase in revenue reflects a 28% gain over
the same period in 2005. Cash flow from operations over the same period was
$1,656,382 ($1,845,541 CDN), up 8% for the period. Net income was
$1,151,434 ($1,282,434 CDN). Gross margins for the period were 66% and net
margins were 28%. The following table summarizes these results. Per share
results include the effects of the warrants exercised prior to August 8, 2006.
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SUMMARY OF FINANCIAL HIGHLIGHTS (US $)
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Weighted Average For the nine For the nine
Shares Issued And months ended months ended %
Outstanding: September 30, September 30, Increase
10,557,149 2006 2005 (Decrease)
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Revenue $4,168,552 $3,267,341 28%
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Cash flow from
operations(1) $1,656,382 $1,537,071 8%
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Net Income $1,151,434 $1,146,389 -
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EPS (US) $0.11 $0.12 (8%)
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EPS (CDN) $0.12 $0.14 (14%)
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(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 write-downs and gains (losses) on sale of
assets, if any.
Note: At Sept. 30, 2005, $1 (U.S.) equalled $1.1142 (Canadian). At Sept.
30, 2005, $1 (U.S.) equalled $1.1713 (Canadian).
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% of revenue. The Sports and Recreation division
reported 27% of revenue and the Military division reported 22%. The Automotive
division represented 16% of sales. Commercial activities accounted for 6% of
revenue.
For the three months ended September 30, 2006, revenue was $1,823,936
($2,032,229 CDN), an increase of 37%. Net income was $433,180 ($482,649 CDN),
a decrease of 7% over the same period in 2005. Cash flow from operations
decreased by 21% over the same period in 2005 to $500,283.
ALL FIGURES IN US DOLLARS UNLESS OTHERWISE NOTED
SUMMARY OF FINANCIAL HIGHLIGHTS (US $)
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Weighted Average For the three For the three
Shares Issued And months ended months ended %
Outstanding: September 30, September 30, Increase
10,836,256 2006 2005 (Decrease)
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Revenue $1,823,936 $1,332,953 37%
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Cash flow from
operations(1) $500,283 $634,018 (21%)
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Net Income $433,180 $464,421 (7%)
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EPS (US) $0.04 $0.05 (20%)
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EPS (CDN) $0.04 $0.05 (20%)
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(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 write-downs and gains (losses) on sale of
assets, if any.
>>
The Company's 37% revenue increase over the last three months
demonstrates the growth that the Company is experiencing. As mentioned in
previous press releases, 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 $8,000,000 worth of new equipment
to add to the world-class facility in Cerritos, California. The first
$1,400,000 worth of equipment arrived this year with an additional $2,300,000
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 work force 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.
<<
Quarterly Information
The following table summarizes the Company's financial performance over
the last eight quarters.
ALL FIGURES IN US DOLLARS UNLESS NOTED
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Sep 30, June 30, Mar 31, Dec 31,
2006 2006 2006 2005
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Revenue 1,823,936 1,330,936 1,013,680 1,092,705
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Cash Flow from operations 500,283 654,887 501,212 424,607
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Net Income 433,180 377,435 340,819 103,027
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EPS(US) .04 .04 .03 .01
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EPS(CDN) .04 .04 .04 .01
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Sep 30, June 30, Mar 31, Dec 31,
2005 2005 2005 2004
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Revenue 1,322,953 1,010,728 923,660 709,803
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Cash Flow from operations 634,183 474,129 428,924 319,717
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Net Income 464,421 372,812 309,156 38,994
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EPS(US) .05 .04 .03 .00
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EPS(CDN) .05 .05 .04 .00
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>>
Omni-Lite is a rapidly growing high technology company that develops and
manufactures precision components utilized by 100 companies including Boeing,
Airbus, Alcoa, Daimler-Chrysler, the U.S. Military, Nike, adidas and Reebok.
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.
