FLYHT Reports Third Quarter 2018 Results
Calgary, Alberta – November 7, 2018 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”), the leading provider of real-time data streaming and communication technologies in the aerospace industry, has reported financial results for the third quarter ended September 30, 2018.
“FLYHT is demonstrating quarterly organic growth in our Software as a Service (SaaS) revenue category,” remarked Tom Schmutz, CEO of FLYHT. “Moving forward, this organic growth will be augmented with service contracts acquired from Panasonic Weather Solutions (“PWS“) (see press release dated October 10, 2018 announcing PWS assets acquisition (the “PWS Assets Acquisition”)), allowing for faster SaaS growth.”
FLYHT’s next quarter results will include, among other things, the financial impact from the PWS Asset Acquisition, being: FLYHT having received one-third of the USD$3.3 million Panasonic Avionics Corporation subsidy payment as at the acquisition close date, an immediate increase in SaaS revenues from the 10 PWS airline service contracts, SaaS revenue from a USD$2 million per year contract for weather data from the National Oceanic and Atmospheric Administration via Synoptic Data PBC, and the assets and associated expenses from the acquisition.
Schmutz went on to say, “Further revenue growth will come in 2019 from hardware shipments and SaaS additions as additional aircraft are placed into service from the $20 million backlog acquired in the PWS Assets Acquisition.”
Following this acquisition, FLYHT’s contracted backlog of undelivered Hardware and SaaS stands at just over $44 million.
Third Quarter financial results include:
- Revenue of $3.1 million, which represents a 4% decrease from the third quarter of 2017, including:
- Software as a Service (SaaS) of $1.1 million, an increase of 15% over the third quarter of 2017. This is the first quarterly increase year-over-year since Q2 of 2017.
- AFIRS Hardware of $1.7 million, a decrease of 2% over the third quarter of 2017. Revenue was recognized on 18 installation kits in Q3 2018 compared to 23 in the third quarter of 2017. This is the third best quarterly performance in this category in the past three years.
- Licensing revenue of $265 thousand. As there was no Licensing revenue projected for Q3 2018, this unexpected revenue was welcomed.
- Gross profit was 57% of revenue compared to 53% for the third quarter of 2017.
- Operating expenses totalled $2.6 million in Q3 2018, an increase of 11% over Q3 2017, including:
- Distribution expenses increased 20% to $1.4 million due primarily to an increase in staffing expenses, increased equipment and maintenance cost and a change in stock-based compensation plans.
- Administration expenses increased 14% to $781 thousand compared to the third quarter of 2017, primarily due to legal expenses associated with acquisition of Panasonic Weather Solutions.
- Research and development expenses were $398 thousand or 13% lower than in the same quarter of 2017, due mainly to decreased hours involved in the quarter’s R&D activities and a lower number of components used in research activities.
- Net loss of $953 thousand was an increase of $194 thousand from the third quarter of 2017’s net loss of $759 thousand.
- EBITDA was negative $793 thousand in the quarter compared to negative $576 thousand in the same quarter of 2017.
Detailed information in FLYHT’s 2018 Third 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://flyht.com/financial-reports/. The MD&A and Financial Statements have also been filed with SEDAR and will be accessible at www.sedar.com.
Join the FLYHT Third Quarter Conference Call
FLYHT will host a live conference call to discuss third quarter results on Thursday, November 8, 2018 at 7 am MST (9 am EST, 6 am PST). The conference call will include a brief presentation about FLYHT’s third quarter 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 email@example.com.
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. http://flyht.com/presentation-and-webcast/.
About FLYHT Aerospace Solutions Ltd.
2018 marks FLYHT’s 20th anniversary as a leader in real-time aircraft data streaming. FLYHT’s mission is to improve aviation safety, efficiency and profitability (located in Calgary, Canada; publicly traded as: FLY:TSX.V; FLYLF:OTCQX). Airlines, leasing companies, fractional owners and original equipment manufacturers have installed the Automated Flight Information Reporting System (AFIRS™) on their aircraft. The solution is used to capture, process and stream aircraft data providing real-time alerts. AFIRS sends this information through satellite networks to FLYHT’s UpTime™ Cloud data center, which gives aircraft operators direct insight into the operational status and health of their aircraft, which in turn enables them to take corrective action to maintain the highest standard of operational control. The company recently acquired the assets of Panasonic Weather Services, including FlightLink™ Iridium Satellite Data Unit and Tropospheric Airborne Meteorological Data Reporting (TAMDAR™) sensor. For more information visit flyht.com.
|FLYHT Aerospace Solutions Ltd.
Chief Financial Officer
|Adelaide Capital Markets Inc.
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 EBITDA: defined as earnings before interest, income tax, depreciation and amortization (a non-GAAP financial measure).