FLYHT Shares Strategic Response to COVID-19 Challenge
Calgary, Alberta – March 25, 2020 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) is sharing details of the actions the Company is taking to protect the health of its employees and fortify its operations during the COVID-19 pandemic.
To safeguard its employees during this pandemic, FLYHT has instituted a company-wide travel ban and is isolating all employees who recently travelled internationally. Many of the Company’s employees are continuing their work remotely, which not only mitigates the risk of potential exposure to the virus but ensures all FLYHT’s systems and services continue to function seamlessly for customers.
While most industries have felt the effects of COVID-19, the pandemic has substantially impacted commercial aviation. Since early January, daily departures from major airports have declined 28% to 91% depending upon the country. International travel has been severely curtailed, and airlines are taking extraordinary measures to preserve cash. Industry layoffs and furloughs have been accelerating, accounts payable have been pushed out, and capital equipment orders have been delayed or restructured.
Due to the equity raise in November 2019, which improved the Company’s working capital, and the operational progress made throughout 2019, FLYHT entered 2020 with a relatively robust cash position. However, the Company anticipates reduced revenues in the near-term as a result of customers rescheduling orders and decreases in air traffic, which will impact the Company’s corresponding SaaS revenues. Despite current headwinds, FLYHT does expect to continue receiving uninterrupted revenues from other sources during this challenging period. Additionally, the Company is discussing with customers the possibility of accelerating installations on aircraft that have been or will be grounded.
To preserve FLYHT’s liquidity through this period of commercial aviation uncertainty, the Company is undertaking the following measures:
- Instituting a company-wide travel ban to protect employees and reduce associated costs
- Postponing new hires (with minimal exceptions)
- Initiating internal cost cutting measures
- Pursuing small business disaster loan assistance in the United States
- Pursuing business credit programs through Export Development Canada (EDC) and/or the Business Development Bank of Canada (BDC)
- Pursuing work-share programs from the government of Canada and the state of Colorado
- Engaging suppliers for extended payment terms
FLYHT will continue to monitor the industry conditions and implement these measures, as well as consider additional cash saving efforts, as the current situation dictates.
About FLYHT Aerospace Solutions Ltd.
FLYHT improves aviation safety, efficiency and profitability by providing airlines, leasing companies, owners, operators and original equipment manufacturers with real-time insights into how their aircraft are performing. The company’s products include AFIRS™ (Automated Flight Information Reporting System), a satellite communications (Satcom) aircraft interface device (AID) which enables real-time streaming of flight information, aircraft tracking and health monitoring, fuel management, and black box data streaming, as well as TAMDAR™ (Tropospheric Airborne Meteorological Data Reporting), which aggregates and streams airborne weather data in real-time. FLYHT is headquartered in Calgary, Canada with an office in Littleton, Colorado and is an AS9100 Quality registered company. For more information, visit www.flyht.com.
|FLYHT Aerospace Solutions Ltd.
Chief Financial Officer
Adelaide Capital Markets Inc.
|USA Investor Relations:
Gateway Investor Relations
Matt Glover or Charlie Schumacher
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes”, an or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to anticipated revenues and financial results of the Company. This forward-looking information reflects the Company’s current beliefs and is based on information currently available to the Company and on assumptions the Company believes are reasonable. These assumptions include, but are not limited to the anticipated effects of COVID-19 on the aviation industry and the world as a whole. Forward looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the global pandemic related to COVID-19, general business, economic, competitive, political and social uncertainties; general capital market conditions and market price for securities; and the delay or failure to receive board, shareholder, court or regulatory approvals (as applicable). Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned that the foregoing list of factors is not exhaustive. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, the Company does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change. The forward-looking statements contained in this news release are made as of the date of this news release. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made, by third parties in respect of the matters discussed above.