FLYHT Reports Second Quarter 2019 Results

CALGARY, Alberta, Aug. 07, 2019 (GLOBE NEWSWIRE) -- FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today reported financial results for the quarter ended June 30, 2019.

”The second quarter was the best financial quarter in the Company’s history,” said Tom Schmutz, CEO. “We are very pleased to have posted three consecutive positive income quarters.”

Second Quarter 2019 Results

• Revenues and Other Income increased 151% to $7,895,105 compared to the second quarter of 2018. This included:
  - SaaS revenue of $2,480,880, an increase of 130% from the second quarter of 2018;
  - Hardware revenue of $1,754,672, an increase of 105% from 2018’s second quarter;
  - Licensing revenue of $1,501,513, an increase of 34% from the second quarter of 2018,
  - A Technical Services revenue total of $613,284, which is an increase of 583% from the second quarter of 2018; and
  - Other Income of $1,544,756 associated with Subsidy Recovery from Panasonic Avionics Corporation (PAC).
   
• Gross margin was 66% of revenue, unchanged from the second quarter of 2018.
   
• Operating expenses increased 66% from the second quarter of 2018, with the addition of Panasonic Weather Solutions expenses to FLYHT’s operations from October 2018 onward. Distribution expenses increased by 79%, Administration expenses increased by 64%, and Research and Development expenses increased by 45%.
   
• Positive EBITDA¹ totaled $1,511,634 in the quarter compared to an EBITDA loss of $561,791 in the same quarter of 2018.
   
• Net income was $1,037,326, compared to a net loss in Q2 2018 of $649,293.

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

FLYHT’s balance sheet ended the quarter with:

• A cash balance of $2,260,662, which was a decrease from 2018 year-end’s balance of $2,406,769 and an increase from Q2 2018’s balance of $896,642; and
   
• 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 Q2 2019 financial statements, including:
  - Leased assets of $1,212,208
  - Current lease liability of $623,298
  - Non-current lease liability of $731,307

An issue experienced with the system used to calculate FLYHT’s backlog number resulted in an error in the backlog numbers previously reported at the end of Q1 and Q2 2019. Those numbers have been updated to $59.0 and $54.8 million CAD from $61.9 and $58.0 million CAD respectively.

FLYHT’s Q2 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 will host a live conference call to discuss its second quarter financial results on Thursday, August 8, 2019 at 7 am MDT (9 am EDT, 6 am PDT). The conference call will include a brief presentation about FLYHT’s second quarter and will be 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 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.

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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