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Operator
Good day, ladies and gentlemen, and welcome to Omni Light Industries Canada Incorporated first quarter conference call. All lines have been placed on the listen-only mode, and the floor will be open for questions and comments following the presentation. If you should require assistance throughout the conference, please press star zero on your telephone keypad to reach a live operator. At this time, it is my pleasure to turn the floor over to your host. Call leaders, sir. The floor is yours.
Carl
Thank you very much. Good morning, and thank you for joining us. With me today is our Chief Executive Officer, Dave Robbins. Our call is being recorded and will be available for playback, the details of which are contained in our press release issued this morning, Friday, May 21st. The purpose of this call is to provide an update on ONI Light's financial performance and operations as we filed our first quarter 2021 results this morning. After our remarks, we'll open up the line for Q&A. If you've not received or seen a copy of our press release, which we issued this morning, you can find it on our website at www.omnilight.com or email us at d.robbins at omnilight.com or cleaders at omnilight.com, c.leaders. Before we get started, I'd like to remind you that today's discussion will or may include forward-looking statements, including information regarding OmniLight's performance based on our views of the company's business and the environments in which they operate, our future plans, objectives, business prospects, and anticipated financial performance. These forward-looking statements are subject to future risks and uncertainties that could cause our actual results or performance to differ materially. We are also mindful of the risks and impacts of changes in the health of the general economy, including the effects of the current COVID-19 pandemic, U.S. and global commercial aerospace markets, and the U.S. Department of Defense budgets. All forward-looking statements should be considered in conjunction with the cautionary statements contained in our press release and the risk factors included in OmniLight's CDAR filings. The company disclaims any obligation to update any forward-looking statements that may be discussed during this call. I'd also like to mention that in addition to reporting financial results in accordance with International Financial Reporting Standards, or IFRS, during our call, we may discuss or reference non-IRFS financial measures, specifically adjusted EBITDA, pro forma adjusted EBITDA, and free cash flow. A reconciliation of these non-IFRS metrics, if applicable, is included in our applicable CDAR filings and press releases. Unless noted, any reference or discussion of our financial results or metrics are in U.S. dollars. I would now like to turn the call over to Dave. Dave?
Dave Robbins
Thanks, Carl. Good day, everyone, and thank you for joining us on today's first quarter fiscal 2021 investor call. Our agenda for today's call is as follows. First, I'll make a few comments about our fourth quarter results, followed by some remarks about our current business and strategy. And then Carl will conclude our portion of the call with a review of our recently reported results. Our Q1 2021 financial performance results reflect the effect of our operational strategy, which is closely focused on all aspects of operational efficiency and cash generation. Our fiscal 2021 first quarter revenue of $1.3 million was essentially flat compared to 2020 fourth quarter revenue and a decrease of 41% on a year-over-year basis, largely offset by an increase in defense-related electronic revenue. The decrease in year-over-year revenue was principally due to declines in the commercial aerospace market driven by COVID-19-affected air transport production reduction. The increase in defense electronics was a naval-based missile defense production expansion. Adjusted EBITDA improved 478,000, or 77%, to a negative $137,000 on a quarterly sequential basis from Q4 2020. Cash on hand increased $218,000 to $1.76 million. Cash management initiatives, including working capital improvements, enhanced process and cost controls, and PPP funding. For our look, we see the signs pointing towards the start of a commercial aerospace recovery in the second half of 2021. Most evidence from our current funded backlog of approximately 1.7 million, up from 1.1 million at year end. There are also several ongoing growth initiatives in the defense and industrial pipeline, including electronic components for missile defense upgrades, titanium engineer caster components, and high-strength engine components under development with close coordination with our customers. And lastly, we're looking to fund our investment in new growth, both organic and through acquisition, by our active engagement in the monetization of our real estate holdings through a sale-leaseback transaction. With that, I'd like to turn the call back over to Carl. Carl?
Carl
Thanks, Dave. First quarter revenue, as Dave mentioned, approximately $1.3 million, as compared to $1.3 million in the fourth quarter of 2020 and $2.1 in the first quarter of 2020. Sequentially, we are at the same level and down, as Dave mentioned, 41% as compared to the first quarter of last year. Adjusted EBITDA defined as earnings before interest taxes, depreciation, amortization, stock compensation, and non-recurring items was a loss of $137,000 as compared to a loss of $615,000 in the fourth quarter of 2020 and a positive $197,000 in the first quarter of 2020. While at the current level of revenue, we are still experiencing unabsorbed manufacturing costs associated with lower production volumes, we are realizing the efficiencies related to our third quarter 2020 restructuring, which enable us to minimize the adverse effect of lower sales. Pre-cash flow, defined as cash flow from operations minus capital expenditures, was a use of approximately $126,000. That's compared to a positive $221,000 in the fourth quarter of 2020 and a use of approximately $347,000 in the first quarter of 2020. The fourth quarter 2020 positive free cash flow was driven by working capital improvements, which did not repeat in the first quarter of 2021. We held approximately even with working capital in the first quarter and are pleased that we are in this position. In the first quarter of 2021, we received an additional $400,000 in PPP-2 funding, bringing our total funding to approximately $1.2 million. We have been notified by the SBI that we have met the requirements for forgiveness of the full $820,000 received under the PPP-1 program. This completes our prepared remarks, and we'd now like to open up the call for questions.
Operator
Thank you. The floor is now open for questions. If you do have a question, you may press star 1 on your telephone keypad at this time. If your question has been answered, you can remove yourself from the queue by pressing 1. Again, ladies and gentlemen, it's star 1. Please hold while we poll for questions.
spk03
Again, ladies and gentlemen, it's star one.
Operator
And our first question comes from Emmanuel Kramer. Go ahead, Emmanuel.
Emmanuel Kramer
Yes, thanks very much for a nice quarter. Hopefully we have better over pandemic. Can you please... Take out how much is in the sales in the United States and how much is overseas?
Dave Robbins
Yeah, all of the fastener business is domestic, so a large percentage. So it's probably 10% close, you know, approximately 10% is international.
spk03
Thank you. Again, ladies and gentlemen, it's Star 1 to ask a question on the phone. And our next question comes from Pat Taylor. Go ahead, Pat.
Carl
Just a quick question on the monetization of real estate. Could you give a little bit more background or more color, more information on that?
spk03
Thank you.
Dave Robbins
I think the background could be is that it's a very valuable piece of real estate, which we own. And we're looking to capitalize the company to really fund some growth opportunities. So I think that's the really the gist of it.
spk02
All right. Thank you. It's just something I wasn't watching too carefully, and maybe I should, but I appreciate that information. Thank you.
spk03
Again, ladies and gentlemen, it's Star 1. And there seem to be no further questions at this time. Okay. Well, thank you all for joining us. Have a great rest of the day and a great weekend.
Operator
Thank you. This does conclude today's conference. We thank you for your participation. You may disconnect your lines at this time and have a wonderful day.
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