Omni-Lite Industries Canada Inc.

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.

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.

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.