Omni-Lite Industries Canada Inc.€¦ · Omni-Lite Industries Canada Inc. ... •Established...

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Transcript of Omni-Lite Industries Canada Inc.€¦ · Omni-Lite Industries Canada Inc. ... •Established...

Omni-Lite Industries Canada Inc.

Headquarters in Cerritos, CA

“Leadership in Material Science for Mission Critical Applications”

June 2017

WORLD CLASS ENGINEERING, MATERIAL SCIENCE

AND NETWORKED PRECISION MANUFACTURING

MISSION CRITICAL APPLICATIONS

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• Revenues and Cash Flow in U.S. Dollars

• Business model of delivering sophisticated engineering, advanced

material and precision manufacturing expertise validated by

historical results

• Established position as leader in progressive hot and cold forging

• New U.S. Military and Aerospace programs driving growth

• Expansion of Automotive division through new contracts and

industry expansion

• Creating shareholder value as reported in Q1 2017. Revenue up

16%, cash flow up 55%, EBITDA up 70%, and earnings per share

up 135%.

Introduction

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• World recognized design and material engineers

• State-of-the-art engineering and manufacturing techniques using advanced networked (AVATAR) equipment

• $50MM US invested in equipment, facilities and R&D

• Rapid prototypes with all equipment in-house

• Metallurgical test lab including access to Field Emission Scanning Electron Microscope

• California Nanotechnologies Corp. (CNO-TSXV) spun off Feb. 1, 2007. Omni-Lite retains 19% ownership. Development of nanostructured wire as feedstock for Omni-Lite. Cal Nano has four divisions and customers that include microchip manufacturers, Boeing, the U.S. Armed Forces, NASA, and the National Laboratories in the U.S.

CORECOMPETENCIES

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Strategy

• Initiation of several new aerospace and military programs to drive growth• Completion of key projects leading to continued growth of approximately

20% annually• Implementation of Vision 2020 Growth Plan• Development of $900,000 US, hot heading testbed with a focus on

aerospace Titanium• New capital equipment purchase (7 Station OD plus system installed in

October 2016) with value over $825,000 US, to support future programs• Continue IP protection with new patents to cover R&D in new materials,

processes and product areas (8 patents granted to date)• Continue to add staff including new business development manager,

engineering manager, and key production and administrative staff• Continue to augment in-house tooling and die making capability• Increased production by 10% in 2016 as required for the implementation of

key military, aerospace, and automotive programs

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OUR CUSTOMERS

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OUR MARKETS

•Military

•Aerospace

•Specialty Automotive

•Sports and Recreation

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MILITARYPRODUCTSDIVISION

• In First Quarter 2016, Omni-Lite receives contracts worth

$1.03 MM US with deliveries in 2016

• Omni-Lite initiates production of two new components for the

US Military

• The 2nd generation coupling developed by the Company was

one of the top 10 achievements for the U.S. Army in 2010

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AEROSPACEPRODUCTSDIVISION

• Approximately 45 million components produced annually for all modern

aircraft

• New 3 year contract with major Customer in Q1 2016, valued at $3.1 MM US

• Additional 3 year contract with a second major customer in Q3 2016, valued

at $4.8 MM US

• Aerospace orders growing 20% annually with long term upside projections

based on an aggressive expansion model

• Several new programs underway to support Arconic, Monogram Aerospace,

Lisi and other Tier 1 customers

• Over 70 components developed and in production for Arconic, Monogram

Aerospace, Clickbond, Lisi, GKN, John Hassal, Shur Lok, Wesco and UPP.

Products utilized by Airbus, Boeing, Bombardier, Embraer, Gulfstream and

other airframe manufacturers

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SAFRAN NACELLES

AIRBUS SPAINHORIZONTAL TAIL PLANE

RUDDERS

AIRBUS GERMANY VERTICAL TAIL PLANE

FLAP TRACKS

AEROSPACEPRODUCTSDIVISION

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• Components utilized in approximately 35% of all vehicles produced

annually in North America

• Organic industry growth accelerating expansion

• Ford Super Duty Diesel (Scorpion) Program in production and ramping up

• New components for John Deere and Navistar in production

• Development and production of 18 components for green diesel engines

• Reputation as leading manufacturer of high precision transmission

components utilized in Chrysler automobiles

SPECIALTYAUTOMOTIVEDIVISION

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• Over 260 MM components sold in last 23 years

• Omni-Lite ultra-lite compression track spikes now considered industry standard and utilized in approximately 50% of new products sold annually

• Utilized in most track and field gold medal victories during the Summer Olympics in Atlanta, Sydney, Athens, Beijing, London and Rio

• The only product recommended by Mondo, the manufacturer of the Super X track utilized in all modern Olympic venues

SPORTS ANDRECREATIONDIVISION

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• Uses extremely high pressure to forge metal parts from

round wire feedstock

• Computer control allows precise production of each

part. Networking allows rapid review of engineering

criteria

• No wastage of materials occurs during process

• Tolerances of 0.0005 inch

• Built by robot, inspected by robot

HOT AND COLDFORGING PROCESS

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COLD FORGING EQUIPMENT

• Currently 35 forging systems including custom built hot forging testbed

• Seven systems have been customized with the “OD” option designed by Omni-Lite. Omni-Lite has the worldwide rights to this technology.

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MST606OD PLUS (PATENTED)

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COLD FORGING EQUIPMENT (7 DIE)

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3D COMPUTER AIDED TOOLING DESIGN

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ADVANCED TOOL MAKING CAPABILITIES

AUTOMATED EDM SYSTEM18

ADVANCED MACHINING TECHNIQUES

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100% INSPECTION CAPABILITIES

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SCANNING ELECTRON MICROSCOPE

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0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

2013 2014 2015 2016 2017 (est)

Revenue 2013 – 2017 (est.)

Sports and Rec Automotive Aerospace Military

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Financial Highlights (US)

3/31/2017 12/31/2016 12/31/2015 12/31/2014

Revenue ($) 1,724,239 7,179,808 7,479,958 5,850,318

Gross Margin ($) 1,057,571 4,344,116 4,283,293 3,214,034

Cashflow From Operations ($)

529,264 2,174,333 2,136,228 1,269,725

EBITDA 511,415 2,560,566 1,959,409 1,255,133

Net Income ($) 368,195 762,595 884,975 469,238

EPS ($US) 0.04 0.07 0.08 0.04

Book Value 18,283,888 17,941,085 18,351,589 18,114,851

Total Assets ($) 22,043,589 22,667,500 21,983,721 21,846,710

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Market Comparables

Public Comparable Market and Financial Analysis(US Dollars In Millions)

(Dated as of 04/28/15)

Market Enterprise P/E EV/ EBITDA

Company Name Ticker Price Value Value LTM CY15E CY16E LTM CY15E CY16E

Omni-Lite OML $1.15 $13.8 $11.3 18.0x 11.6x 9.0x 8.0x 4.2x 3.49x

Chicago Rivet & Machine CVR $30.46 $29.4 $29.2 15.1x NA NA 7.1x NA NA

Eastern Co. EML $19.51 $123.8 $112.3 15.9x NA NA 7.4x NA NA

Kreisler Manufacturing KRSL $10.60 $19.9 $16.9 NM NA NA NM NA NA

RBC Bearings Inc. (a) ROLL $76.01 $1,777.1 $2,167.0 23.8x 23.9x 21.1x 14.2x 13.6x 12.9x

SIFCO Industries Inc. SIF $14.78 $80.9 $107.8 20.2x NA NA 8.5x NA NA

Trimas Corp. TRS $30.53 $1,428.1 $2,075.9 15.7x 14.2x 12.5x 8.8x 8.5x 7.8x

Summary

Mean 18.1x N/A N/A 9.2x N/A N/A

Median 15.9x N/A N/A 8.5x N/A N/A

High 23.8x N/A N/A 14.2x N/A N/A

Low 15.1x N/A N/A 7.1x N/A N/A

Average US value of an aerospace/military company of Omni-Lite’s size and capabilities is 9.2 times Trailing EBITDA.

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Exchange Listing

Trading Symbol

Shares Outstanding

Current Price (on June 20, 2017)

Market Capitalization

52-week range

TSX Venture

OML

10,369,120

$1.76

$18,249,651

High $2.00

Low $1.38

Securities Information

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• Business model of delivering sophisticated engineering, advanced

material and precision manufacturing expertise validated by

historical results

• Adept move to green/futuristic programs including aggressive

steps in the military, aerospace, and specialty automotive

markets

• Established position as leader in progressive hot and cold forging

• Continuing to purchase new equipment to meet customer

requirements

• Continued development of production and engineering teams

• Creating shareholder value thru increased revenue, cash flow,

EBITDA, and net income

Summary

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Except for historical information contained

herein this document contains forward-

looking statements. These statements contain

known and unknown risks and uncertainties

that may cause the Company’s actual results

or outcomes to be materially different from

those anticipated and discussed herein.

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