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