Omni-Lite Industries Canada Inc.

Good day, ladies and gentlemen, and welcome to the OmniLight Industries Investor Conference Call. Our lines have been placed on a 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 call over to your host, Chief Financial Officer Amy Vetrano-Palmer. Ma'am, the floor is yours.

Thank you. 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 is in our press release issued yesterday. The purpose of this call is to provide an update on OmniLight's financial performance and operations as we filed our first quarter 2023 results yesterday morning, May 17th. After our remarks, we will open up the line for Q&A. If you have not received or seen a copy of our press release, which was issued yesterday morning, you may find it on our website at www-omni-light.com or email either of us at d.robbins at omni-light.com or a.vetrano-palmer at omni-light.com to request a copy. Before I 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 can cause our actual results or performance to differ materially. We are also mindful of the risks and impacts and the changes to the health of the general economy, including the U.S. and global commercial aerospace market 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 in the risk factors, including an OmniLite CDAR filing. The company disclaims any obligation to update any forward-looking statements that may be discussed during this call. I also like to mention that in addition to reporting financial results in accordance to the International Financial Reporting Standards, or IFRS, During our call, we may also discuss or reference some non-IFRS financial measures, including adjusted EBITDA, pro forma adjusted EBITDA, free cash flow. A reconciliation of all of these metrics is available and included in our applicable CDAR filings and press releases. Lastly, and less noted, any reference or discussion of our financial results or metrics are in U.S. dollars. I would like to now turn the call over to Dave.

Thanks, Amy. Good morning, everyone, and thanks for joining us. I'd like to make a few comments about our first quarter 2023 performance and follow comments on current business. First quarter 2023 revenue of $2.7 million marks an increase of 15% from our first quarter 2022. Growth in the quarter was driven by a combination of increase in commercial air transport, fastener products, defense electronics, and initial production of some new industrial casting products. Suggested EBITDA for the first quarter of 2023 is up over 295K over Q1 2022, which is a significant improvement and indication of our ongoing improvements in fixed costs and product pricing. Bookings for the first quarter increased to 3.2 million, up from 2.5 million year-over-year Q1 2022. and sequentially up from 2.9 million in Q4 2022. Backlog at quarter end was a strong 4.1 million, and expect the majority of the backlog to shift in 2023. The makeup of the bookings and backlog mirrors our growth profile and goals. 90% of that backlog is program or platform related, and 10% is new engineering development in a pre-production stage. This 10% revenue we expect can convert to initial and then mature production in 9 to 18 months at a 2 to 3x value. Notably, three new titanium structural fasteners, a development phase high efficiency missile sensor electronic component family, and some new castings for defense airborne sensors are in the mix, new and pre-production stage. In all of these examples, our ability to engineer a process to reliably produce products with exacting specification in months, not years, was the heart of winning these orders and our competitive mode business model. With that, I'd like to turn the call over to Amy. Amy?