Omni-Lite Industries Canada Inc.

Good day, ladies and gentlemen, and welcome to the Omni Light Industries investor call. Our host for today's call is Amy Vetrano Palmer. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session. I would now like to turn the call over to your host, Ms. Vetrano Palmer. You may begin.

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 in our press release issued. The purpose of today's call is to provide an update of OmniLight's financial performance and operations as we did file our year-end 2023 results yesterday, April 18th. Our remarks after will be open for Q&A. If you have not received a copy of the press release, which was issued yesterday morning, you may find it on our website, www.omni-light.com, or email at d.robbins at omni-light.com to request a copy. Before we get started, I would like to remind everyone 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 it operates. our future plans, objectives, business perspectives, and anticipated financial performance. These forward-looking statements are subject to future risk and uncertainties that could cause our results or performance to differ materially. We are also mindful of the risk and impacts and the changes in the health of the U.S. economy, including the effects of the U.S. financial market, U.S. global commercial aerospace markets, and the U.S. Department of Spends 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 the 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 to the International Financial Reporting Standards or IFRS during our call, we may also discuss or reference non-IFRS measures. such as adjusted EBITDA, pro forma adjusted EBITDA, free cash flow, or adjusted free cash flow. A reconciliation of these items or metrics, if applicable, is included in the available CDAR filings and press releases. Lastly, unless noted, any reference or discussion of financial results or metrics are in U.S. dollars. I would like now to turn the call over to Dave. Dave?

Thanks, Amy. Good morning, everyone, and thanks for joining us. I'd like to make a few comments about our fourth quarter 2023 in-year performance, followed by comments on current business. Fourth quarter 2023 revenue of $3.3 million and $12.4 million for the full year marks an increase of 11% from fiscal year 2022, a 6% increase over the fourth quarter of 2022. Adjusted EBITDA for the fourth quarter 2023 was $78,000. which is the third quarter we have produced positive EBITDA this year, and a continued improvement, an indication of our ongoing efforts of managing and planning our fixed cost allocations and product rationalization and pricing. Our fourth quarter adjusted EBITDA, although positive, and a significant improvement year over year, still had some residual poor product mix, which is nearing its end, heading into Q1 2024. We invested in inventory buildup in the quarter and year of over $1 million in preparation for anticipated product demand heading into 2024. Bookings for the fourth quarter was $4.3 million, up 48% year over year, which resulted in a record-breaking backlog at quarter end of $7.0 million, a 91% increase from 2022 backlog of $3.7 million. These bookings and growing backlog numbers are significant in that they reflect strong demand for some aerospace and defense platform products and initial production bookings for newly designed products that happened at the end of 2022 and early 2023. Additionally, we expect this backlog has an improved product mix, which points to us a continued upward trajectory of revenue growth and profitability. Specific new products that are getting some traction are in-canal fasteners for high-temperature applications, gallium nitride sensor electronics for missile applications, and jet engine casting components. We are expecting sequential revenue growth over Q4 and Q1 of 2024 of over 30% from the $7 million backlog and new product production starts. With that, I'd like to turn the call over to Amy. Amy?