FLYHT Aerospace Solutions Ltd.
TSX VENTURE : FLY

FLYHT Aerospace Solutions Ltd.

November 13, 2013 16:10 ET

FLYHT Reports Third Quarter Results

Revenues Continue to Grow - Up 41% vs. Q3 2012

CALGARY, ALBERTA--(Marketwired - Nov. 13, 2013) - FLYHT Aerospace Solutions Ltd. (TSX VENTURE:FLY) (the "Company" or "FLYHT") a leading provider of real-time data communications technology for the aviation industry today reported financial results for its third quarter ended September 30, 2013.

"The FLYHT team continued the work of the previous quarters," stated Bill Tempany, President and Chief Executive Officer of FLYHT. "Revenue has continued to grow quarter over quarter while research and development costs are decreasing as predicted. Progress continues on the certification activities related to the AFIRS™ 228."

Third Quarter Highlights Include:

  • Revenue of $2,183,037, which represents an increase of 40.9% over the same period last year.
  • Recurring revenue (UpTime usage) of $881,903, an increase of 10.3% over the third quarter of 2013.
  • Gross profit was 56.9% of revenue compared to 60.1% for the third quarter of 2012.
  • Net loss of $615,950 which included research and development costs of $440,963, which if removed would have resulted in a net loss of $174,987, an increase of $482,848 and a decrease of $115,576 respectfully over the third quarter of 2012.
  • Distribution expenses were $681,515 representing a decrease of $73,321 from the third quarter of 2012.
  • Administration expenses increased to $573,132 versus the third quarter of 2012 or an increase of $70,720.
  • Research and development expenses were $440,963 or $598,424 lower than the third quarter of 2012.
  • Signed a contract with a Nigerian airline to install AFIRS 220 on four Boeing 737 model aircraft.
  • Received activation STC for AFIRS™ 228 on Boeing 767 - 200/300 model aircraft from Transport Canada
  • Received certification from the Iridium Communication System ("Iridium") for the commercial use of AFIRS™ 228S on the Iridium system.
  • Hired a senior aviation professional for customer delivery and product development department.
  • AFIRS™ 228S was approved for use on the SITA network which was the result of completion of SITA's VHF AIRCOM Qualification testing.
  • Approval received for AFIRS™ 228S usage on the ARINC network to provide ACARS over Iridium messages. The approval was the result on the completion of ARINC's GLOBALink/Iridium Phase 3 AQP testing

Nine Months Highlights Include:

  • Revenue of $6,063,607, which represents an increase of 42.7% over the first nine months of last year.
  • Recurring revenue (UpTime usage) of $2,544,215, an increase of 9.8% over the first nine months of 2012.
  • Gross profit for the first nine months of 2013 was 58.8% of revenue compared to 52.6% for the same period of 2012.
  • Net loss of $2,624,369 which included research and development costs of $1,486,876, which if removed would have resulted in a net loss of $1,137,493, a reduction of 38.4% and 53.3% respectfully over the first nine months of 2012.
  • Distribution expenses were $2,122,118 representing a decrease of $504,443 from the first nine months of 2012.
  • Administration expenses increased to $2,053,607 versus $1,856,739 for the first nine months of 2012 or an increase of 10.6%.
  • Research and development expenses were $1,486,876 or $339,851 lower than the first nine months of 2012.
  • Net finance costs increased $341,440 from the same nine month period of 2012 to $720,313 in the first nine months of 2013.

For detailed information FLYHT's 2013 Third Quarter Report containing the President and 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 third quarter results on Thursday, November 14 at 2 pm MST (4 pm EST, 1 pm PST).

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. Also questions can be forwarded 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 (www.flyht.com) as soon as it is available.

About FLYHT Aerospace Solutions Ltd.

FLYHT provides proprietary technological products and services designed to reduce costs and improve efficiencies in the airline industry. The Company has patented and commercialized three products and associated services currently marketed to airlines, manufacturers and maintenance organizations around the world. Its premier technology, AFIRS™ UpTime™, allows airlines to monitor and manage aircraft operations anywhere, anytime, in real time. If an aircraft encounters an emergency, FLYHT's triggered data streaming mode, FLYHTStream™, automatically streams vital data, normally secured in the black box, to designated sites on the ground in real time. The Company has been publically traded on the TSX Venture Exchange since 2003.

AFIRS, UpTime, FLYHT, FLYHTStream and AeroQ are trademarks of FLYHT Aerospace Solutions Ltd.

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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.

Contact Information

  • FLYHT Aerospace Solutions Ltd.
    Thomas R. French, CGA
    VP Finance and CFO
    403-291-7427
    tfrench@flyht.com

    The Howard Group Inc. - Investor Relations
    Dave Burwell
    Senior Associate
    (888) or (403) 221-0915

    Bristol Institutional Relations
    Glen Akselrod
    President
    (905) 326-1888