SOURCE: FLYHT Aerospace Solutions Ltd.

FLYHT Aerospace Solutions Ltd.

April 05, 2016 18:07 ET

FLYHT Releases Record Setting 2015 Year End Results

CALGARY, AB--(Marketwired - April 05, 2016) - FLYHT Aerospace Solutions Ltd. (TSX VENTURE: FLY) (OTCQX: FLYLF) (the "Company" or "FLYHT"), a leading provider of real-time data communications technology for the aviation industry, today reported financial results for the fourth quarter and its year ended December 31, 2015.

Thomas R. Schmutz, CEO stated: "FLYHT had a strong financial year that ended with a record revenue quarter; this fourth quarter was 47% higher than the previous Q1 2015 record. In the year we enhanced our board of directors, advanced many business opportunities, contracted our largest customer fleet to date, and made changes to our executive team. We are hard at work on our goals and plans for 2016 and beyond."

Fourth Quarter Highlights Include:

  • Revenue of $3,769,267, which represents 69.9% increase over the fourth quarter of 2014.
  • Recurring revenue (voice and data services) of $1,067,894, an increase of 16.6% over the fourth quarter of 2014.
  • Gross profit was 64.4% of revenue compared to 61.7% for the fourth quarter of 2014.
  • Net loss of $1,203,998 which included research and development (R&D) costs of $689,195, which if removed would have resulted in a net loss of $514,803. The net loss decreased $101,714 over the fourth quarter of 2014, and the loss before R&D decreased $18,183 over the fourth quarter of 2014.
  • Distribution expenses were $1,084,443 representing an increase of $93,793 compared to the fourth quarter of 2014, attributable mainly to higher people costs offset by a decrease in bad debt reserve.
  • Administration expenses increased to $1,573,796 in the quarter; an increase of $793,757 compared to the same quarter in 2014 due to costs associated with staff retirement, variable compensation for the change in key management positions and offset by cost savings in the other expense categories.
  • Cash increased approximately $5,000 in the quarter.

Year Highlights Include:

  • Three record revenue quarters for the company (Q4, Q1 and Q3)
  • Revenue of $10,457,125, which represents an increase of 51.9% over 2014 owing to a significant increase in parts sales and AFIRS units, and an increase in recurring revenue.
  • Recurring revenue (voice and data services) was $3,986,813, an increase of 9% over 2014, and AFIRS sales $3,372,421, an increase of 64.2%.
  • Gross profit for 2015 was 69.3% of revenue compared to 62.9% in 2014.
  • Net loss for the year was $3,891,560. If research and development costs were removed the loss would have been $1,089,008, an improvement (lower loss) of 9.1% on net loss and 68.9% lower loss before research and development than in 2014.
  • Distribution expenses were $3,977,633, an increase of $584,642 from 2014.
  • Administration expenses increased to $3,676,953 from $3,548,518 for 2014, or an increase of $128,435 due to costs associated with staff retirement, variable compensation for the change in key management positions and offset by cost savings in all other expense categories.
  • Research and development expenses were $2,804,187, an increase of 160% from 2014 due mainly to the recovery on settlement of the dispute with Sierra Nevada Corporation accounted for in 2014; if the recovery is excluded in 2014 the 2015 expenditure has increased 2.7%.
  • Net finance costs decreased 24.4% or $218,271 in 2015 from the previous year to $673,279.
  • Cash burn was $2.3M for 2015; however, it reduced significantly as the year progressed. Q1 activities reduced cash by $1.7M; Q2 and Q3 cumulatively reduced cash by $0.6M and Q4 was slightly cash flow positive.
  • In the 2015 year FLYHT signed contracts:
    • With new customers that had AFIRS 220 units previously installed on their aircraft. One was with an African operator on a Bombardier DHC-8; the other a Caribbean carrier on a Boeing 767-300.
    • With an African Airline for the AFIRS 228 on a fleet of four A320 aircraft.
    • With Avmax Group Inc. to install the AFIRS 228 on the two airlines Avmax owns, as well as its current and future leased fleet, for a total fleet size of 146 aircraft over a seven-year term.
    • Directly with airlines and sales through partners, with five airlines in China for a total of 18 aircraft.

Detailed information in FLYHT's 2015 Annual 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://www.flyht.com/investors/financial-reports-results-centre/. 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 fourth quarter and year end results on Wednesday, April 6, 2016 at 9 am MDT (11 am EDT, 8 am PDT). The conference call will include a brief presentation about FLYHT's fourth quarter and year end results followed by a question and answer period with management.

To access the conference call by phone within Canada and the U.S. the toll-free number is 1-800-319-4610. Outside Canada and the U.S., 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 investors@flyht.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/investors/videos/

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 (AFIRS™), 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 UpTime™ 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 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.

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Contact Information

  • Contact Information

    FLYHT Aerospace Solutions Ltd. 
    Nola M. Heale, CPA, CA
    Chief Financial Officer
    403-291-7425
    nheale@flyht.com 

    Investor Relations
    The Howard Group Inc.
    Dave Burwell
    Vice President
    (888) or (403)-221-0915
    dave@howardgroupinc.com