Ladies and gentlemen, and welcome to the Omni Lite Industries Investor Conference Call. All lines have been placed on a listen-only mode, and the floor will be open for questions and comments following the presentation. If you should require assistance throughout the conference, please press star zero on your telephone keypad to reach a live operator. At this time, it is my pleasure to turn the floor over to your host, Amy Vetrano-Palmer, CFO. Ma'am, the floor is yours.
Good afternoon, and thank you for joining us. With me today is our Chief Executive Officer, Dave Robbins. Our call is being recorded and will be available for playback, the details of which were in our press release issued yesterday. The purpose of this call is to provide an update on Omni Lite's financial performance and operation as we filed our first quarter 2025 results yesterday, May 21st. After our remarks, we will open up the line for Q&A. If you have not received or seen a copy of our press release, which was issued yesterday morning, you can find a copy of it on our website at www.omnitelite.com or email at d.robbins@omnitelite.com to request a copy.
Before we get started, I'd like to remind you that today's discussion will and may include forward-looking statements, including information regarding Omni Lite's performance based on our views of the company's business and the environments in which it operates, 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 and the changes in the health of the general economy, including the effects on the current U.S. financial market, U.S. and global commercial aerospace markets, tariffs, and the U.S. Department of Defense budget. All forward-looking statements should be considered in conjunction with the cautionary statements contained in our press release and the risk factors, including an Omni Lite SEDAR filing.
The company disclaims any obligation to update any forward-looking statements that may be discussed during this call. I'd also like to mention that in addition to financial results in accordance to International Financial Reporting Standards, or IFRS, during our call, we may also discuss or reference non-IFRS financial measures, specifically adjusted EBITDA and free cash flow. The reconciliation of these non-IFRS metrics, if applicable, is included in our SEDAR filing and press releases. Last and last noted, any reference or discussion of our financial results or 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 make a few comments about our first quarter 2025 performance, followed by comments on current business and outlook. First quarter 2025 revenue was $3.3 million, which was dominated by high production level quantities of aerospace fastener components and a weaker electronics revenue compared to Q1 2024, which had included high levels of electronics business. The strong fastener revenue was driven by broad demand for aerospace fastener components and two new aerospace fastener components designed and qualified in 2024. Adjusted EBITDA for the first quarter 2025 was $408,000, which is a sequential increase over Q4 2024 and a decrease compared to Q1 2024. The sequential increase in EBITDA, most notably driven from operating leverage from good mix and high throughput of fastener components, and the Q1 2025 over Q1 2024 decrease was from reduced contribution from electronics.
The Q1 2025 EBITDA level also marks another quarter that all locations have made a contribution to the positive EBITDA. Bookings for the first quarter was $5.7 million, which puts the backlog at $7.1 million as we go into second quarter. The outlook for aerospace fastener component delivery looks strong, anchored by firm order backlog that extends out to the end of 2025 and good demand signals for near-term spot buying. Demand for aerospace casting components has been and projected to continue to have single-digit percentage point higher increases. The focus on casting components continues to be streamlining its portfolio around components that have margin profile, pricing adjustments, and manufacturing efficiency versus high revenue growth in order for margin expansion.
Electronics revenue and bookings have tempered some in between expected significant reorders for missile defense-related microelectronic sensor components and a new electronic system modernization switching component used on naval-based missile defense applications. With that, I'd like to turn the call over to Amy. Amy?
Thanks, Dave. Dave addressed the revenue and outlook, so I'll make a few comments regarding cash. Adjusted free cash flow, defined as cash flow from operations minus any capital expenditures, is a source of approximately $341,000. We did use approximately $14,000 for CapEx improvements in the manufacturing process during the quarter, and we do expect to continue to see a positive source of cash as we go through the year as receivables turn into cash. We finished the quarter with $3.1 million in cash and no debt, which is up $2 million over Q1 of 2024. This does complete our prepared remarks, and we would like to now open the call up for questions.
Thank you. The floor is now open for questions. If you do have a question, please press star one on your telephone keypad at this time. If your question has been answered, you could remove yourself from the queue by pressing one. Again, ladies and gentlemen, that's star one. Please hold while we pull. Our first question comes from Peter Imhoff. Go ahead, Peter. Your line is now live.
Oh, hi, guys. Can you maybe just expand a little bit just on the acquisition you guys made? If I look through, it looks like they already had deals with, and I'm not sure if this is referring to you guys, with Lockheed, General Dynamics, and Raytheon, but it looks like maybe they sell stuff through to Honeywell, and you guys don't have that exposure at this point in time, I believe. Can you just talk about it in terms of the timing or the reasoning behind it? What do you think the upside is of it in terms of revenues and margins and stuff through that acquisition?
Sure. So it's an electronic component thing for EComp. It's an electronics distribution that has very strong relationships, in particular, with several divisions of General Dynamics and Lockheed and Raytheon and some other defense primes. Their primary business is in satisfying hard-to-find components, either through obsolescence or vanishing suppliers, and has a profile similar to our electronics business on an OEM level in terms of margin. It's hard to find parts, high-end performance parts, through a distribution model. The calculus for the acquisition was the strong relationships can be leveraged into new product designs that Omni Lite would deliver to help in the largest scope of delivering modern electronic systems and satisfying their needs, not through necessarily distribution, but as an OEM, you know. Having said that, we're looking to continue to expand their footprint even as a distributor.
There's ongoing needs to fulfill as a lot of our aging electronic systems or just systems in general need to be deployed and upgraded and sustained. There's lots of needs for niche electronics and subsystems and a diminishing source of suppliers that know the regulations, the flow downs to be able to put advanced electronic or other components on these systems. It is a growing area in and of itself.
And.
Yeah.
Sorry, just to add in, I think in the news release, you seem fairly confident in terms of possible orders. I do not know if you can give us any more clarity on that. Through that acquisition? Is that things that they have been working on? I am just curious of the timing of it. Was it something where they did not have the balance sheet or in terms of distribution, or you felt like they were close on a few things, and then you guys would help them push them along to get them to the finish line because you have a better balance sheet? I am just curious on that.
ECOMP has been a customer of Monzite. There is a prior business relationship. It was not necessarily deep on all levels, but there was a relationship, and there had been and has and continues to be a joint effort on a couple of major programs that we expect to materialize. In that sense, it is a win both for the distribution side because they are the channel, but also Monzite will be designing and building the product. In a sense, it is a dual win. There are at least one of those that we expect to deliver in 2025.
Okay. Okay. In terms of, you just mentioned the two new design wins that you kind of worked on in 2024 that you've seen some revenue from. Are those in nature like one-time orders, or do you think those are follow-on orders, or how do you depict those two new design wins?
Yeah. We expect those to be follow-on orders and become kind of a portfolio, ongoing portfolio of aerospace fasteners. That does not always happen. Some of them, well, we tend to not by design do any that are one-time in nature, but some have cycles that do not—they are not ongoing every year, year in and year out. They might have a cycle of an on-year and then an off-year. These two particular ones, we expect to have ongoing, continuing production levels. It is a new product family. It is very similar to some of the historical parts we have made, but they are themselves a distinct new product. In that sense, we expect them to blend in and become part of that legacy product portfolio that we have ongoing deliveries of.
Okay. Would one of those have been one of the larger contracts in this recent quarter? Just because you had a bit of a customer concentration in this quarter. I'm just wondering, is that one of the new wins, or is that just something like just in time order and stuff that was a larger contract in the quarter?
These were developed in 2024. As I've mentioned earlier in other calls in general, the time from qualifying to low rate of initial production or small levels to production levels can be anywhere from 18 months down to maybe as little as six months, or it could be a little longer. This one was a little faster, but it was a 2024 event. I would put it right in the mix of what can happen from a development phase.
Okay. Okay. That's it from me.
Thank you. Again, ladies and gentlemen, that's star one to ask a question. Please hold while we poll. At this time, we have no further questions. I would now like to turn it back to Amy Vetrano-Palmer for any closing remarks.
Thank you so much, and we appreciate everyone joining us today. Have a great afternoon. Bye-bye.
Thank you. This does conclude today's conference. We thank you for your participation. You may disconnect your lines at this time and have a wonderful day.