CALGARY, Alberta, Nov. 07, 2018 (GLOBE NEWSWIRE) -- FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”), the leading provider of real-time data streaming and communication technologies in the aerospace industry, has reported financial results for the third quarter ended September 30, 2018.
“FLYHT is demonstrating quarterly organic growth in our Software as a Service (SaaS) revenue category,” remarked Tom Schmutz, CEO of FLYHT. “Moving forward, this organic growth will be augmented with service contracts acquired from Panasonic Weather Solutions (“PWS“) (see press release dated October 10, 2018 announcing PWS assets acquisition (the “PWS Assets Acquisition”)), allowing for faster SaaS growth.”
FLYHT’s next quarter results will include, among other things, the financial impact from the PWS Asset Acquisition, being: FLYHT having received one-third of the USD$3.3 million Panasonic Avionics Corporation subsidy payment as at the acquisition close date, an immediate increase in SaaS revenues from the 10 PWS airline service contracts, SaaS revenue from a USD$2 million per year contract for weather data from the National Oceanic and Atmospheric Administration via Synoptic Data PBC, and the assets and associated expenses from the acquisition.
Schmutz went on to say, “Further revenue growth will come in 2019 from hardware shipments and SaaS additions as additional aircraft are placed into service from the $20 million backlog acquired in the PWS Assets Acquisition.”
Following this acquisition, FLYHT’s contracted backlog of undelivered Hardware and SaaS stands at just over $44 million.
Third Quarter financial results include:
- Revenue of $3.1 million, which represents a 4% decrease from the third quarter of 2017, including:
-- Software as a Service (SaaS) of $1.1 million, an increase of 15% over the third quarter of 2017. This is the first quarterly increase year-over-year since Q2 of 2017.
-- AFIRS Hardware of $1.7 million, a decrease of 2% over the third quarter of 2017. Revenue was recognized on 18 installation kits in Q3 2018 compared to 23 in the third quarter of 2017. This is the third best quarterly performance in this category in the past three years.
-- Licensing revenue of $265 thousand. As there was no Licensing revenue projected for Q3 2018, this unexpected revenue was welcomed.
- Gross profit was 57% of revenue compared to 53% for the third quarter of 2017.
- Operating expenses totalled $2.6 million in Q3 2018, an increase of 11% over Q3 2017, including:
-- Distribution expenses increased 20% to $1.4 million due primarily to an increase in staffing expenses, increased equipment and maintenance cost and a change in stock-based compensation plans.
-- Administration expenses increased 14% to $781 thousand compared to the third quarter of 2017, primarily due to legal expenses associated with acquisition of Panasonic Weather Solutions.
-- Research and development expenses were $398 thousand or 13% lower than in the same quarter of 2017, due mainly to decreased hours involved in the quarter’s R&D activities and a lower number of components used in research activities. - Net loss of $953 thousand was an increase of $194 thousand from the third quarter of 2017’s net loss of $759 thousand.
- EBITDA1 was negative $793 thousand in the quarter compared to negative $576 thousand in the same quarter of 2017.
Detailed information in FLYHT’s 2018 Third 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://flyht.com/financial-reports/. The MD&A and Financial Statements have also been filed with SEDAR and will be accessible at www.sedar.com.
Join the FLYHT Third Quarter Conference Call
FLYHT will host a live conference call to discuss third quarter results on Thursday, November 8, 2018 at 7 am MST (9 am EST, 6 am PST). The conference call will include a brief presentation about FLYHT’s third 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 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/presentation-and-webcast/.
About FLYHT Aerospace Solutions Ltd.
2018 marks FLYHT’s 20th anniversary as a leader in real-time aircraft data streaming. FLYHT’s mission is to improve aviation safety, efficiency and profitability (located in Calgary, Canada; publicly traded as: FLY:TSX.V; FLYLF:OTCQX). Airlines, leasing companies, fractional owners and original equipment manufacturers have installed the Automated Flight Information Reporting System (AFIRS™) on their aircraft. The solution is used to capture, process and stream aircraft data providing real-time alerts. AFIRS sends this information through satellite networks to FLYHT’s UpTime™ Cloud data center, which gives aircraft operators direct insight into the operational status and health of their aircraft, which in turn enables them to take corrective action to maintain the highest standard of operational control. The company recently acquired the assets of Panasonic Weather Services, including FlightLink™ Iridium Satellite Data Unit and Tropospheric Airborne Meteorological Data Reporting (TAMDAR™) sensor. For more information visit flyht.com.
| Contact Information: | |
| FLYHT Aerospace Solutions Ltd. Alana Forbes Chief Financial Officer 403-291-7437 aforbes@flyht.com | Adelaide Capital Markets Inc. Deborah Honig 647-203-8793 deborah@adelaidecapital.ca |
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Reader Advisory
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to the terms of the PWS Assets Acquisition, integrations, anticipated financial reporting (including projected revenues and expenses) and related matters. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made and are founded on the basis of expectations, assumptions and hypotheses made by the Company, including, but not limited to, the following: projected costs, future plans, projected revenues, objectives of management for future operations, trends in the airline industry, the global financial outlook, expanding markets, foreign exchange rate outlooks, sales projections, cost increases and/or decreases as related to marketing, R&D, administration expenses. The forward-looking information included in this news release has been prepared using assumptions (all of which are supportable and reflect the Company’s planned courses of action for the next 12 months) as to the most probable set of economic conditions. Such assumptions are consistent with the purpose of the information but are not necessarily the most probable in management’s judgement. Such forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada, the United States and globally; industry conditions, the failure of certain business integrations between the parties, the failure to attract new business and reduce expenses, delays in product installation schedules, the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; liabilities inherent in operations; competition for, among other things, capital and skilled personnel and other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. The forward-looking information has been provided to the readers of this news release to assist in assessing the impact of the news disclosed herein on the Company and such forward-looking information may not be appropriate for other purposes. Readers are cautioned not to place undue reliance on forward-looking information.
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.
1 EBITDA: defined as earnings before interest, income tax, depreciation and amortization (a non-GAAP financial measure).