FLYHT Reports Third Quarter Results - Second Consecutive Profitable Quarter and Record Revenue
Calgary, Alberta – November 8, 2016 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) a leading provider of real-time data communication technology and services for the aerospace industry today reported financial results for its third quarter ended September 30, 2016.
“FLYHT again set a record for traditional revenue and for the first time in its history logged back-to-back profitable quarters,” stated Thomas R. Schmutz, Chief Executive Officer of FLYHT. “I am very pleased with the Company’s performance.”
Third Quarter Results Include:
- Traditional revenue of $4,054,368 in the third quarter, a 60.9% increase from Q3 2015, bringing the nine-month result to $10,203,364, 52.6% ahead of the prior year.
- AFIRSTM sales of $1,353,021 showed an increase of 120.6% over the third quarter of 2015, and parts sales of $1,561,816 increased 128.8%. These revenue categories are 71.2% and 105.5%, respectively, ahead of the prior year in the first nine months. Recurring revenue (voice and data services) of $1,122,965 increased 2.1% over the prior year quarter or 9.8% ahead of the prior year three quarters.
- Net profit for the quarter was $303,888 compared to a loss of $683,224 in the same period last year. This brings the year to a net profit of $1,633,009, a $4,320,571 increase in profitability over the prior year.
- Distribution expense decreased 2.9% in the quarter ($32,797) compared to the prior year mainly because decreased contract labour and share based remuneration cost offset higher salaries and benefits.
- Salaries and benefits, which offset decreases in investor relations and travel expense, increased Q3 administration expense 1.8% to $618,763 compared to the third quarter of 2015.
- Research, Development and Certification Engineering expenses decreased $87,660 in Q3 2016 and $237,867 in the first nine months of 2016; mainly as a result of changing people cost and office expenditure.
- Modified Working Capital at the end of Q3 2016 was positive $2,879,375 compared to negative $3,306,055 at December 31, 2015.
- Customer deposits of $508,224 at quarter end, were a 3.1% decrease from Q3 2015; payments received of $242,260 were 70.6% lower than the same quarter of 2015 although the year to date was 35.7% higher than the comparable period in 2015. The value of deposits moved to unearned revenue reciprocally decreased $620,146 compared to Q3 2015 but increased $817,131 on the year-to-date.
- Unearned revenue decreased to $747,511 or 61.1% lower than the third quarter of 2015 and 31.2% lower than December 2015 as Q3 revenue recognized increased 185.2% compared to Q3 2015;
- Revenue recognized on AFIRS units shipped was higher than in Q3 2016. 25 kits were recognized in 2016 compared to eight in the third quarter of 2015 and 61 in total in 2016 compared to 30 in the first nine months of 2015.
- AFIRS units shipped, not yet recognized in revenue in 2016 exceeded 2015 by $817,131 or 43.8%.
For detailed information, FLYHT’s 2016 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 sent to SEDAR and will be accessible at www.sedar.com.
FLYHT will host a live conference call to discuss third quarter results on Wednesday, November 9, 2016 at 9 am MDT (11 am EDT, 8 am PDT). 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 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.
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 2.3 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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