FLYHT Reports First Quarter Results - Revenue of $2.6M and growth in unearned revenue
Calgary, Alberta – May 10, 2016 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) a leading provider of real-time data communications technology for the aviation industry today reported financial results for its first quarter ended March 31, 2016.
“FLYHT reported the second-highest revenue on record and made shipments that we anticipate will position FLYHT for a strong second quarter,” stated Thomas R. Schmutz, Chief Executive Officer of FLYHT. “The value of AFIRS units that we shipped during the first quarter was a new record high for the Company.”
First Quarter Results Include:
- Revenue of $2,611,331 in the first quarter, a 1.6% increase from Q1 2015.
- Recurring revenue (voice and data services) of $1,067,707 showed an increase of 10.8% over the first quarter of 2015, and parts sales of $1,028,412 was an increase of 22.4% from the first quarter of 2015.
- Net loss for the quarter at $1,242,942 after a $540,450 charge on settlement of an OEM customers’ warrant claim, compared to a loss of $60,414 in the same period last year.
- Modified Working Capital at the end of Q1 2016 of negative $3,640,257 compared to negative $3,306,055 at December 31, 2015.
- Customer deposits of $698,561 at quarter end, an 18.0% decrease over the first quarter of 2015; payments received of $913,448, were 92.0% higher than the same quarter of 2015 and the value of deposits moved to unearned revenue increased 198% compared to Q1 2015.
- Unearned revenue increased to $1,953,012 or 45.1% higher than the first quarter of 2015 or 70.5% higher than December 2015; revenue recognized on AFIRS units shipped was lower than in Q1 2015 as units shipped late in 2015 were lower than late in 2014 resulting in clients installing nine kits in Q1 2016 compared to 15 in the prior year quarter. AFIRS sales shipped not accepted in the first quarter exceeded the fourth quarter 2015 by $821,162 or 198.2%.
- Administration expenses increased to $638,427 or 15.8% compared to the first quarter of 2015.
- R&D expense increased to $638,427 in Q1 2016, after inclusion of $540,450 settlement of an OEM customer’s warranty claim, from $551,471 in the first quarter 2015.
- Distribution expense increased $368,953 due to additional resources compared to the prior year.
- In the first quarter of 2016 FLYHT signed a strategic partnership contract with Flight Data Services and a sales representation agreement with Tri-Wing Aviation Resources.
- In April 2016, subsequent to the end of the first quarter, FLYHT received the first US $1.5M milestone payment from the Intellectual Property License agreement. The remaining milestone of US$1.0M is expected in the second quarter after transfer and training.
For detailed information, FLYHT’s 2016 First Quarter Report containing the CEO’s Message, Management Discussion and Analysis and Financial Statements has been posted to the Company’s website and can be accessed at http://www.flyht.com/investors/financial-reports-results-centre/. The MD&A and Financial Statements have also been sent to SEDAR and will be accessible at www.sedar.com.
FLYHT will not host a live conference call as the first quarter results will be discussed at the Annual General Meeting (AGM) on May 11, 2016 at 10:00 AM (MT) at Fort Calgary – JOW Gallery 750 – 9 th Avenue SE, Calgary, Alberta.
The archive of the AGM, which will include the first quarter review, will be posted on the Presentations and Webcasts section of FLYHT’s website http://flyht.com/investors/videos/ as soon as it is available.
Questions can be forwarded in advance of the meeting to email@example.com.
About FLYHT Aerospace Solutions Ltd.
FLYHT is a leading provider of real-time aircraft intelligence and cockpit communications for the aerospace industry. More than 50 customers, including airlines, leasing companies and original equipment manufacturers, have installed our systems in order to increase safety, improve operational efficiencies and enhance profitability. FLYHT’s proprietary technology, the Automated Flight Information Reporting System (AFIRSTM), operates on multiple aircraft types and provides functions such as safety services voice and text messaging, data collection and transmission, and on-demand streaming of flight data recorder (black box), engine and airframe data. AFIRS sends this information through the Iridium Satellite Network to FLYHT’s UpTimeTM ground-based server, which routes the data to customer-specified end points and provides an interface for real-time aircraft interaction. AFIRS has flown over 2 million aggregate flight hours and 1.5 million flights on customers’ aircraft. FLYHT holds supplemental type certificates (STC) which allow for the installation of AFIRS on 95% of transport category aircraft.
FLYHT Aerospace Solutions Ltd.
Nola M. Heale, CPA, CA
Chief Financial Officer
The Howard Group Inc.
(888) or (403)-221-0915
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