Omni-Lite Industries Canada Inc.

Transcription

1 Omni-Lite Industries Canada Inc. Leadership in Material Science for Mission Critical Applications June 2017 Headquarters in Cerritos, CA

2 MISSION CRITICAL APPLICATIONS WORLD CLASS ENGINEERING, MATERIAL SCIENCE AND NETWORKED PRECISION MANUFACTURING 2

3 Introduction 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 Q Revenue up 16%, cash flow up 55%, EBITDA up 70%, and earnings per share up 135%. 3

4 CORE COMPETENCIES 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, 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. 4

5 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 5

6 OUR CUSTOMERS 6

7 OUR MARKETS Military Aerospace Specialty Automotive Sports and Recreation 7

8 MILITARY PRODUCTS DIVISION 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 2 nd generation coupling developed by the Company was one of the top 10 achievements for the U.S. Army in

9 AEROSPACE PRODUCTS DIVISION 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 9

10 AEROSPACE PRODUCTS DIVISION AIRBUS SPAIN HORIZONTAL TAIL PLANE RUDDERS AIRBUS GERMANY VERTICAL TAIL PLANE FLAP TRACKS SAFRAN NACELLES 10

11 SPECIALTY AUTOMOTIVE DIVISION 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 11

12 SPORTS AND RECREATION DIVISION 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 12

13 HOT AND COLD FORGING PROCESS 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 inch Built by robot, inspected by robot 13

14 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. 14

15 MST606OD PLUS (PATENTED) 15

16 COLD FORGING EQUIPMENT (7 DIE) 16

17 3D COMPUTER AIDED TOOLING DESIGN 17

18 ADVANCED TOOL MAKING CAPABILITIES AUTOMATED EDM SYSTEM 18

19 ADVANCED MACHINING TECHNIQUES 19

20 100% INSPECTION CAPABILITIES 20

21 SCANNING ELECTRON MICROSCOPE 21

22 9,000,000 Revenue (est.) 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000, (est) Sports and Rec Automotive Aerospace Military 22

23 Financial Highlights (US) 3/31/ /31/ /31/ /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, , , ,238 EPS ($US) Book Value 18,283,888 17,941,085 18,351,589 18,114,851 Total Assets ($) 22,043,589 22,667,500 21,983,721 21,846,710 23

24 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 $ x 11.6x 9.0x 8.0x 4.2x 3.49x Chicago Rivet & Machine CVR $30.46 $29.4 $ x NA NA 7.1x NA NA Eastern Co. EML $19.51 $123.8 $ x 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, x 23.9x 21.1x 14.2x 13.6x 12.9x SIFCO Industries Inc. SIF $14.78 $80.9 $ x NA NA 8.5x NA NA Trimas Corp. TRS $30.53 $1,428.1 $2, x 14.2x 12.5x 8.8x 8.5x 7.8x Average US value of an aerospace/military company of Omni-Lite s size and capabilities is 9.2 times Trailing EBITDA. 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 24

25 Securities Information 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 $

26 Summary 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 26

27 Except for historical information contained herein this document contains forwardlooking 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. 27