Navtech, Inc.
OTC Bulletin Board : NAVH

Navtech, Inc.

January 29, 2007 17:21 ET

Navtech Reports Fiscal 2006 Results

WATERLOO, ONTARIO--(CCNMatthews - Jan. 29, 2007) -

Attention: Business Editors

Navtech, Inc. (OTCBB:NAVH), a leading international provider of flight operations software and services, today announced its financial results for its fiscal year ended October 31, 2006.

Financial Highlights (USD)

Financial results for fiscal 2006 include the operating results of European Aeronautical Group AB ("EAG") from November 22, 2005, the date of acquisition by Navtech, to October 31, 2006 (approximately 11 1/3 months).

Year ended October 31,
2006 2005
Revenue $ 36,823,000 $11,143,000
Operating expenses 34,255,000 10,530,000
Income from operations 2,568,000 613,000
Net earnings 438,000 673,000
End of period stock price $3.05 $2.80

Revenue for the 2006 fiscal year increased to $36.8 million compared to $11.1 million in the prior year primarily as a result of the inclusion of results from EAG. Service fees, which are primarily subscription-based recurring revenues, accounted for over 90% of total revenues in fiscal 2006, compared with approximately 73% in fiscal 2005.

Income from operations for the fiscal 2006 was $2.6 million after $2.4 million of depreciation and amortization expense.

"2006 was a very exciting year for Navtech", said David Strucke, Navtech's President and CEO. "The acquisition of EAG, and associated financing, has significantly enhanced the financial position of our business with a dramatic increase in revenues as well as cash flow and income from operations."

"We have had a very positive response from the market to our newly broadened product offering", Mr. Strucke added, "We are undertaking a number of initiatives in fiscal 2007 to capitalize on this response and leverage the strength provided by the acquisition of EAG."

Cash flow from operating activities for fiscal 2006 was $3.9 million, contributing to a year end cash balance of $6.8 million.

Earnings per share for the 2006 fiscal year was a loss of $0.15 as a result of the inclusion of a non-cash one-time deemed preferred stock dividend ($0.9 million) in the first quarter of fiscal 2006. The deemed dividend represents a calculated beneficial conversion feature on the convertible preferred stock issued in conjunction with the acquisition of EAG. The non-cash preferred stock deemed dividend did not have an effect on net earnings or cash flows for the 2006 fiscal year and did not have an impact on total stockholders' equity as of that date. Based on the existing agreements, no additional non-cash deemed dividend will be recorded as part of the Series A Convertible Preferred Stock issuance. Series A Convertible Stock dividends of approximately $0.2 million were accrued during fiscal 2006 and were paid in cash following the end of the fiscal year. Such cash dividends do not have an effect on net earnings but do impact earnings per share.

About Navtech, Inc.

Navtech creates and supports superior flight operations software and services for airlines. With more than 250 airline customers around the world, Navtech's products directly support millions of flights around the globe each year. Navtech's product portfolio includes aeronautical charts, navigation data, flight planning, crew planning, runway analysis, and weight & balance systems. Navtech has more than 250 employees with offices in the United States, Canada, Sweden, the United Kingdom and Singapore. For more information, please go to

FORWARD-LOOKING STATEMENTS: This release may include forward-looking statements concerning the Company's intent, belief or current expectations with respect to, among other things, trends affecting its financial condition or results of operations and its business and growth strategies. Such forward-looking statements are based upon assumptions that may not be correct, are not guarantees of future performance and involve risks and uncertainties that may cause actual results to differ materially from those projected, expressed or implied. The Company does not undertake any obligation to update or revise any forward-looking statements. All forward-looking statements are subject to the risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission, including those set forth under "Other Considerations" in the "Management's Discussion and Analysis or Plan of Operation" section of the Company's Annual Report on Form 10-KSB for the year ended October 31, 2006.

Contact Information