News Release Omni-Lite Industries Reports Second Quarter and First Half Fiscal 2020 Results and Announces Conference Call for Investors to Be Held on August 17, 2020

Second Quarter Highlights Include:

• Revenue of US$1.6 million, a 37% decline compared to prior year period
  
• Free Cash Flow⁽¹⁾ of approximately US$320,000, representing a US$315,000 increase over the prior year period
• Liquidity of US$3.1 million⁽²⁾, including US$1.5 million of Revolver Undrawn Capacity
• Net Cash⁽²⁾ of US$127,000
• Management Actions to Reposition and Align Company to Current Market Conditions

TSXV: OML
OTCQX: OLNCF

CERRITOS, Calif., Aug. 13, 2020 (GLOBE NEWSWIRE) -- Omni-Lite Industries Canada Inc. (the “Company”) (TSXV: OML; OTCQX: OLNCF) reported financial and operating results for the second quarter of fiscal 2020, ended June 30, 2020, and information on management actions and cost-saving initiatives completed in and after the fiscal quarter.

Second Quarter Fiscal 2020 Results

Second quarter fiscal 2020 revenue was US$1.6 million, representing a 37% decrease compared to second quarter of fiscal 2019 of US$2.6 million. The second quarter fiscal 2020 decrease was largely attributable to lower commercial aerospace fastener component volume impacted by the COVID-19 pandemic.

Second quarter fiscal 2020 Adjusted EBITDA⁽¹⁾ was US($142,621) compared to US$380,616 in the second quarter fiscal 2019. The second quarter fiscal 2020 net loss was US($263,414), or US$(0.02) per diluted common share, as compared to second quarter 2019 net income of US$119,320 or US$0.01 per diluted common share.

Second quarter fiscal 2020 Adjusted EBITDA and net income were adversely affected by lower commercial aerospace fastener component revenue related to the COVID-19 pandemic impact on fastener demand for new commercial aircraft build rates, adjustments in inventory levels at our commercial aerospace customers as well as plant disruptions and shutdowns at certain of our customers.

Free cash flow⁽¹⁾ was US$321,042 for the second quarter of fiscal 2020, compared to US$5,507 in second quarter of fiscal 2019. The year-over-year increase was driven primarily by net working capital inflows resulting from collections on accounts receivable and net inventory destocking.

Cash balance at the end of quarter was US$1.6 million, and outstanding debt⁽²⁾ of US$1.5 million, resulting in net cash of US$127,000. The Company had US$1.5 million undrawn capacity under its revolving credit facility.

First Half Fiscal 2020 Results

First half fiscal 2020 revenue was $US3.7 million, or a 25% decrease as compared to US$5.0 million in the first half of fiscal 2019. First half fiscal 2020 Adjusted EBITDA⁽¹⁾ was US$54,063 compared to US$1.1 million in the first half of fiscal 2019. First half fiscal 2020 net loss was US($350,490), or US$(0.03) per diluted share as compared to net income of US$354,332, or US$0.03 in the first half of fiscal 2019.