CALGARY, AB--(Marketwired - July 27, 2016) - FLYHT Aerospace Solutions Ltd. (TSX VENTURE: FLY) (OTCQX: FLYLF) (the "Company" or "FLYHT"), a leading provider of real-time data communication technology and services for the aviation industry, today reported financial results for its second quarter ended June 30, 2016.
"FLYHT is excited to share our second quarter results. The Company reported the highest sales revenue on record at $6.7 million for the quarter, which includes our traditional revenue and a previously disclosed sale of intellectual property," stated Thomas R. Schmutz, Chief Executive Officer of FLYHT. "We signed several contracts in the quarter, raised equity, retired a mature debenture and ended the first six months of the year with total revenues of $9.4 million, a figure close to the $10.5 million we achieved in the full year of 2015."
Second Quarter Results Include:
- Traditional revenue of $3,537,665 in the second quarter, a 121% increase from Q2 2015, bringing the six-month result to $6,148,996, 48% ahead of the prior year.
- Recurring revenue (voice and data services) of $1,014,725 showed an increase of 18.7% over the second quarter of 2015, and parts sales of $1,126,542 increased 294.6%. These revenue categories are 14.5% and 91.4%, respectively, ahead of the prior year in the first six months.
- Net profit for the quarter was $2,572,061 compared to a loss of $1,943,924 in the same period last year, a $4,515,985 increase in profitability and contributes to a $1,329,119 profit at the half-year.
- Distribution expense increased $261,453 (26.5%) due mainly to higher people costs compared to the prior year.
- Salaries and benefits increased administration expense 16.9% to $1,103,399 compared to the second quarter of 2015.
- Research, Development and Certification Engineering cost decreased $336,871 in Q2 2016 and $150,206 in the half-year; mainly as a result of changing salaries and benefits.
- Modified Working Capital at the end of Q2 2016 was positive $4,070,452 compared to negative $3,306,055 at December 31, 2015.
- Customer deposits of $810,234 at quarter end, was a 6.3% decrease compared to Q2 2015; payments received of $1,014,022 were 239.3.0% higher than the same quarter of 2015 and the value of deposits moved to unearned revenue increased 215.2% compared to Q2 2015.
- Unearned revenue increased to $1,561,020 or 26.2% higher than the second quarter of 2015 and 43.6% ahead of December 2015;
- Revenue recognized on AFIRS units shipped was higher than in Q2 2015 as clients have installed 27 kits in Q2 2016 compared to seven in the second quarter of 2015 and 36 in total in 2016 compared to 22 in the first half of 2015.
- AFIRS sales shipped, not accepted in 2016 exceeded 2015 by $1,437,277 or 205.1%.
- A private placement offering was closed for $5,086,512 in May 2016 and in June a debenture matured and was redeemed for $2,321,000.
For detailed information, FLYHT's 2016 Second 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://www.flyht.com/investors/financial-reports-results-centre/. 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 second quarter results on Thursday, July 28, 2016 at 9 am MDT (11 am EDT, 8 am PDT). The conference call will include a brief presentation about FLYHT's second 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/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 2.2 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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