Omni-Lite Industries Canada Inc.

Hey, ladies and gentlemen, and welcome to the OmniLight Industries Investor Call. Our host for today's call is OmniLight's CFO, Amy Petrano 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. Petrano Palmer. You may begin.

Thank you, and good afternoon, and thank you for joining us. With me today is our Chief Executive Officer, David Robbins. Our call is being recorded and will be available for playback. The details which are in our press release issued yesterday. The purpose of this call is to provide an update on OmniRate's financial performance and operation as we filed our 2024 year-end results yesterday, April 21st. After the remarks, we will open up the line for Q&A. If you have not received a copy of our press release, which was issued yesterday morning, you can find it on our website at www.omni-light.com or email us at d.robbins 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 about OmniRate's performance based on our views of the company's business and the environment 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 on the health of the general economy, including the effects of this. current U.S. financial market, the U.S. global commercial aerospace market, the U.S. defense budgets, as well as the U.S. and international markets. All forward-looking statements should be considered in conjunction with the cautionary statements contained in our pressure dates and the risk factors in OmniLite email filings. The company disclaims any obligation to update any forward-looking statements that may be discussed during this call. I also would like to mention that in addition to the reported financial results and according to International Financial Reporting Standards, or IFRS, during a call we may discuss or reference non-IFRS financial measures, specifically EBITDA, adjusted EBITDA, and free cash flow. A reconciliation of these metrics is available in our QDAR filings. Lastly, unless noted, any reference or discussions of our financial metrics is in U.S. dollars. I would like to now turn the call over to Dave. Dave?

Thanks, Amy. Good afternoon, everyone, and thanks for joining us. I'd like to share a few highlights from our fourth quarter 2024 performance and provide an update on our current business momentum. Revenues for the fourth quarter is $3.5 million, bringing full-year revenues to a record $15.9 million, a 29 increase, 29% increase over fiscal 2023 and a 5% improvement over Q4 last year. Growth during the quarter was driven by continued expansion in commercial air transport fasteners and jet engine casting programs. One important dynamic in Q4 was our product mix. Approximately 20% of revenue came from engineering and new product development. While this mix typically carries lower margins, it does reflect strategic investments in new programs. We took advantage of customer demand to qualify a new high-performance fastening type, which we believe will translate into repeat orders. Our usual target is closer to 10% for engineered related revenue, but this was a timely opportunity we chose to accelerate. We also made a proactive decision to convert slow-moving inventory to cash. ahead of planned write-downs. We also hired new manufacturing staff in our metal forming operations to support increased production capacity. Bookings for Q4 totaled $3.2 million, resulting in a $4.6 million backlog at year end. While these bookings primarily reflect ongoing programs, several larger orders did not convert until early Q1. One of these was a major contributor for a record-breaking in excess of $5 million bookings in Q1 of 2025. Other expected large bookings are driven by demand for U.S. missile defense modernization efforts and newly qualified FASNA components. For the full year, adjusted EBITDA reached $1.6 million, up from $445,000 in 2023, a gain of more than 1.1 million. The improvement came from stronger operating leverage and a disciplined focus on product rationalization and pricing, a strategy we intend to carry forward in 2025. All right. Back to you, Amy.