FLYHT Reports Fourth Quarter and Year End 2018 Results
Calgary, Alberta – April 10, 2019 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today reported financial results for the fourth quarter and full year ended December 31, 2018.
“In 2018, we made improved operational progress at FLYHT as we laid the proper groundwork for growth in 2019 and beyond,” said CEO Thomas R. Schmutz. “The annualized doubling of our SaaS revenues in October 2018 and the growth of our sales order backlog to over $60 million at year end demonstrates continued improvement in our financial performance.”
Fourth Quarter 2018 Results
- Revenues and Other Income increased 71% to $5,894,876 compared to the fourth quarter of 2017 (restated during the conversion to IFRS15). This included:
- SaaS revenue of $2,261,211, an increase of 97% from the fourth quarter of 2017;
- Hardware revenue of $1,464,475, a decrease of 11% from the fourth quarter of 2017;
- Licensing revenue of $249,833, a decrease of 6% from the fourth quarter of 2017; and
- Other Income of $1,861,050 associated with Bargain Purchase and Subsidy Recovery from Panasonic Weather Solutions (PWS).
- Gross margin was 55% of revenue compared to 76% in the fourth quarter of 2017.
- Operating expenses increased 37% from the fourth quarter of 2017, with the addition of PWS expenses to FLYHT’s operations. Distribution expenses increased by 78%, Administration expenses increased by 68%, and Research and Development expenses decreased by 28%.
- Positive EBITDA totaled $53,845 in the quarter compared to an EBITDA loss of $364,182 in the same quarter of 2017.
- Net income was $217,954, compared to a net loss in Q4 2017 of $437,318.
- The effect of PWS can be seen in several areas on the balance sheet by comparing Q3 2018 balances to year-end 2018, including:
- Receivables increasing by 140% due to increased SaaS revenues billed in Q4 2018 from the addition of PWS’s customer contracts;
- Inventory levels increasing by 14%;
- Property and equipment increasing by 34%;
- Trade payables increasing by 44%; and
- Contract liabilities balance was $1,524,894, which reflects the subsidy recovery received related to future periods.
Full-Year 2018 Results
- Revenue and Other Income for the full year was $15,451,566, representing an increase of 13% compared to full-year 2017 revenue of $13,694,888 (restated for IFRS15). This included:
- SaaS revenue of $5,528,822, a 28% increase year-over-year; and
- Licensing revenue of $1,487,039, a 40% decrease compared to the comparable period last year.
- Other Income of $1,861,050 associated with Bargain Purchase and Subsidy Recovery from PWS.
- Gross Margin decreased 12% from the prior year to $8,065,820.
- Operating expenses increased 12% year-over-year to $11,876,289. This included a 21% increase in Distribution expenses, a 3% increase in Administration expenses, and a 4% increase in Research & Development expenses.
- EBITDA loss was $1,787,930 in 2018, which compares to an EBITDA loss of $1,371,416 for the full-year 2017.
- Net loss for the year increased 8% to $1,966,748 from a net loss $1,836,735 in 2017.
FLYHT’s balance sheet ended the year with:
- Cash of $2,406,769 at the end of 2018, which was an increase from the 2017 and Q3 2018 ending balances of $2,014,135 and $2,065,242, respectively; and
- Customer deposits decreased 61% year-over-year, as the last few months of 2017 saw unusually high levels of customer deposits being received, due to the majority of related shipments of Hardware occurring in the first quarter of 2018.
FLYHT’s 2018 Annual Report, which contains more detailed information including 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://flyht.com/financial-reports/. The MD&A and Financial Statements have also been filed with SEDAR and will be accessible at www.sedar.com.
FLYHT will host a live conference call to discuss its fourth quarter and full year 2018 financial results on Thursday, April 11, 2019 at 7 am MDT (9 am EDT, 6 am PDT). The conference call will include a brief presentation about FLYHT’s fourth quarter and full year financial results followed by a question and answer period with management.
To access the conference call by phone within Canada and the U.S.A., the toll-free number is 1-800-319-4610. Outside Canada and the U.S.A., dial 1-604-638-5340. (Callers should dial in five to 10 minutes prior to the scheduled start time).
Management will accept questions by telephone and e-mail. Individuals wishing to ask a question during the call, can do so by pressing *1. Questions can be emailed in advance or during the conference call to firstname.lastname@example.org.
An archive of the conference call will be posted on the Presentations and Webcasts section of FLYHT’s website as soon as it is available from the conference call provider.
About FLYHT Aerospace Solutions Ltd.
FLYHT’s mission is to improve aviation safety, efficiency and profitability. Globally, and for more than 20 years, airlines, leasing companies, fractional owners and original equipment manufacturers have installed FLYHT’s differentiated aircraft and enterprise-based solutions to deliver real-time, flight-deck, satellite connectivity for tracking, health monitoring, and streaming of operational, maintenance and weather data. FLYHT is publicly traded as FLY in Canada on the TSX.V; and as FLYLF in the USA on the OTCQX. FLYHT is based in Calgary, Canada with an office in Littleton, Colorado and is an AS9100 Quality registered company. For more information visit www.flyht.com.
Chief Financial Officer
|Canada Investor Relations:
Adelaide Capital Markets Inc.
|USA Investor Relations:
Matt Glover or Charlie Schumacher
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1 EBITDA: defined as earnings before interest, income tax, depreciation and amortization (a non-GAAP financial measure).