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spk03: Good day, ladies and gentlemen, and welcome to your Omni Light Industries Incorporated second quarter 2022 investor conference call. All lines have been placed in a listen-only mode, and the floor will be open for your questions and comments following the presentation. If you should require assistance throughout the conference, please press star zero. At this time, it is my pleasure to turn the floor over to your host, Amy Vetrano-Palmer. Ma'am, the floor is yours.
spk02: Thank you so much. Good afternoon 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 in our press release issued. The purpose of this call is to provide an update on OmniLight's operations as we recently filed our second quarter 2022 results. After our remarks, we will open up the line for any Q&A. If you have not received or seen a copy of our press release we issued on Wednesday, you can find it on our website, www.omnilight.com. Before we get started, I would 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 risk and uncertainties that could cause our actual results or performance to differ materially. We are also mindful of the risk and impacts of the changes in the health of our general economy, the U.S. and global commercial aerospace markets, and the U.S. Department of Defense budget. All forward-looking statements should be considered in conjunction with the cautionary statements contained in our press release and the risk factors included in OmniLite CDAR filing. 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 the reporting financial results in accordance to International Financial Reporting Standards, or IFRS, during our call, We may also discuss or reference non-IFRS financial measures, including adjusted EBITDA, adjusted free cash flow, free cash flow, and organic revenue. A reconciliation of these non-IFRS measures is included in the applicable CDAR filings and press releases. Lastly, unless noted, any reference or discussion of our financial results are in U.S. dollars. At this time, I'd like to turn the call over to Dave.
spk00: Thanks, Amy. Good afternoon, everyone, and thanks for joining us. I'd like to make a few comments about our second quarter 2022 performance, followed by comments on our current business. Second quarter 2022 revenue, $2.46 million margin increase from first quarter 2022, and continues our signs of growth for the remainder of 2022. Hookings of organic business And Q2 was sequentially up nearly 25%, and our ending backlog of 3.7 million, with the majority shippable in fiscal 22, represents another sequential increase and points towards continued revenue growth. Supply chain and logistics pressures for raw material continues to slow some of our production throughput in the second quarter, but it's starting to be offset by long-lead raw material purchases made months ago that are covering our production capacity. We expect this tough supply chain environment to continue, but we are purposely managing advanced raw material purchase where we have visible demand. Our positive outlook is not only in the bookings and backlog numbers, but what they are composed of. The bookings growth is coming from several new engineered products and competitive takeaways across all of our technologies, metal forming, metal casting, and microelectronics. Two important themes persist of these new wins. Our ability to engineer a custom product solution that solves a technological problem or shifting work to us from another source due to our ability to respond quickly and reliably. Some examples that are driving our new backlog is a new engineered nut and a highly demanded titanium faster components used in commercial aerospace. There's a new engineered electronic component designed into a radar for a European produced mobile missile defense platform for use in both Europe and US militaries. Another win were several new cast components for industrial automation platform that were transferred from a large casting company due to non-performance on shipping schedule and quantity. And lastly, a new engineered cast component was designed for electrical vehicle structural application where we were the design originator. We expect that these themes will continue to gain traction as we respond to solving system and platform problems with engineered components and in certain areas, replacing large footprint manufacturers where our agility and responsiveness have value. With that, I'd like to turn the call over to Amy.
spk02: Thanks, Dave. Dave has addressed revenue, so I will make a few comments regarding cash and EBITDA for the second quarter. Adjusted free cash flow, which is defined as cash flow from operations minus capital expenditures and also minus a one-time capital gains tax related to the sale of Tritos facility last year of about $560,000. When we adjust for these amounts, the adjusted free cash flow did generate approximately $5,000 in cash as compared to a use of cash of $93,000 in the second quarter of 2021. We continue to maintain a strong cash balance and be debt-free on the balance sheet. We did see a decline in EBITDA in the quarter of about 113,000 compared to first quarter 2022, but we do expect to continue to see improvement in revenues throughout the year, which should fall to the bottom line. Cash from operations was a use of 368,000 compared to a use of 178,000 in the second quarter of 2021. However, if we do remove that one-time cash payment, we did generate approximately $192,000 in cash. We continue to reduce our WIP and finished goods inventory and saw a reduction of approximately $183,000 in inventory as a whole in the quarter. This completes our prepared remarks. We would like to now open up the call for any questions.
spk03: Thank you. If you'd like to ask a question, please signal by pressing star 1 on your telephone keypad If you're using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, press star 1 to signal for a question. And we'll pause briefly to assemble the queue. And we do take our first question or comment from the line of Emmanuel Kramer, a private investor. Please go ahead.
spk01: Thanks, Dave, for the quarter. Looks like we're on the right track recovering from COVID. I just wonder if you can break down the revenue between the three divisions, the Monzite and the CP Cast and the California division.
spk00: Well, we don't have exact numbers, but it's roughly 40% and 20%. So Monsite being the 20% and the other two is 40%, roughly. Okay, thanks.
spk03: Again, ladies and gentlemen, if you do have a question or comment, please signal at this time by pressing star 1 on your telephone keypad, and we will pause again briefly to assemble the queue. At this time, we have no further signals. We turn back to Amy Vitrano Palmer for closing remarks.
spk02: All right. Well, thank you, everyone, for joining us today, and we hope you have a wonderful afternoon.
spk03: Thank you. This concludes today's teleconference. We thank you for your participation. You may disconnect your lines at this time. Have a great day.
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