FLYHT Reports First Quarter 2019 Results

CALGARY, Alberta, May 08, 2019 (GLOBE NEWSWIRE) -- FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today reported financial results for the quarter ended March 31, 2019.

“Objectively this was the best financial quarter in the Company’s history,” said CEO Tom Schmutz, “we demonstrated excellent organic growth and more than doubled our SaaS revenues from Q1 2018.”

First Quarter 2019 Results

• Revenues and Other Income increased 101% to $6,658,729 compared to the first quarter of 2018. This included:
  • SaaS revenue of $2,405,232, an increase of 131% from the first quarter of 2018 partially driven by a doubling of SaaS revenues in Q4 2018 resulting from the acquisition of PWS customer contracts (see press release Oct 10, 2018);
  • Hardware revenue of $2,374,901, an increase of 52% from the first quarter of 2018;
  • Licensing revenue of $377,760, a decrease of 40% from the first quarter of 2018; and
  • Other Income of $1,316,977 associated with Subsidy Recovery from Panasonic Avionics Corporation (PAC).
     
• Gross margin was 55% of revenue compared to 60% in the first quarter of 2018.
   
• Operating expenses increased 49% from the first quarter of 2018, with the addition of expenses from the PWS assets acquisition/integration into FLYHT’s operations. Distribution expenses increased by 67%, Administration expenses increased by 80%, and Research and Development expenses decreased by 4%.
   
• Positive EBITDA¹ totaled $676,349 in the quarter compared to an EBITDA loss of $487,431 in the same quarter of 2018.
   
• Net income was $206,658, compared to a net loss in Q1 2018 of $582,375.

FLYHT’s balance sheet ended the quarter with:

• Cash of $2,692,777, which was an increase from 2018 year-end and Q1 2018 ending balances of $2,406,769 and $629,650, respectively; and
   
• The effect of the PWS assets acquisition can be seen in several areas on the balance sheet by comparing Q1 2019 balances to Q1 2018, including:
  • Receivables increasing by 153% due to increased SaaS revenues from the addition of PWS’s customer contracts effective October 2018 and billing of the related Subsidy Recovery from PAC;
  • Property and equipment increasing by 18%;
  • Trade payables increasing by 102%; and
  • Contract liabilities balance of $1,134,566, which reflects Subsidy Recovery received relating to future periods.

FLYHT adopted the requirements of IFRS 16 – Leases effective January 1, 2019 using the modified retrospective approach, which can be seen in several areas of the Q1 2019 financial statements, including:

• Leased assets of $1,369,419
• Current Lease liability of $625,955
• Non-current Lease liability of $853,459

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¹ EBITDA: defined as earnings before interest, income tax, depreciation and amortization (a non-GAAP financial measure).

FLYHT’s Q1 2019 Report, which contains more detailed information including 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://flyht.com/financial-reports/. The MD&A and Financial Statements have also been filed with SEDAR and will be accessible at www.sedar.com.

FLYHT’s Annual and Special Meeting will be held on May 9, 2019 at 2:00 PM (MDT) at Telus Convention Centre - Room GLEN05, 120 – 9th, Avenue SE, Calgary, Alberta T2G 0P3.

FLYHT will not host a live conference call to discuss the first quarter results, however, will provide an update through a live video feed of the Company’s Annual and Special Meeting. The video will be available on the Presentations and Webcasts section of FLYHT’s website http://flyht.com/presentation-and-webcast/AGM2019 starting at approximately 2:15 pm MDT. An archive video of the meeting will also be posted on the Presentations and Webcasts section of FLYHT’s website as soon as it is available http://flyht.com/presentation-and-webcast/.

Questions submitted to management by e-mail before 1:00 pm (MDT) on May 9 will be answered during the meeting. Questions can be emailed to investors@flyht.com.

About FLYHT Aerospace Solutions Ltd.

FLYHT’s mission is to improve aviation safety, efficiency and profitability. Globally, and for more than 20 years, airlines, leasing companies, fractional owners and original equipment manufacturers have installed FLYHT’s differentiated aircraft and enterprise-based solutions to deliver real-time, flight-deck, satellite connectivity for tracking, health monitoring, and streaming of operational, maintenance and weather data. FLYHT is publicly traded as FLY in Canada on the TSX.V; and as FLYLF in the USA on the OTCQX. FLYHT is based in Calgary, Canada with an office in Littleton, Colorado and is an AS9100 Quality registered company. For more information visit www.flyht.com.

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