CALGARY, Alberta, May 16, 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 first quarter ended March 31, 2018.
“FLYHT is very pleased with the increasing AFIRS Hardware sales, which increased 46% over the same quarter last year,” stated Thomas R. Schmutz, Chief Executive Officer of FLYHT. “We believe this trend of increasing hardware sales will yield increasing Software as a Service revenues over time as the equipment is installed and the software services are enabled. As expected, Licensing revenues for the quarter were down significantly from last year, but were consistent with the forecast we have received.”
In tandem with adopting the requirements of International Financial Reporting Standards (IFRS) 15, the Company re-assessed its revenue categories to isolate licensing from other parts purchases, to establish one category for all hardware sales, and to rename revenue from recurring voice and data services.
- Software as a Service (SaaS) is the recurring revenue from customers’ usage of data they receive from AFIRS and use of functions such as the satellite phone. These revenues are recognized from invoices based on actual customer usage each month.
- AFIRS Hardware includes the income from AFIRS hardware sales and related parts required to install the unit, spare AFIRS units, spare installation parts, and Underfloor Stowage Units.
- Licensing includes sales of modems with a related manufacturing license fee.
- Technical Services includes all labour driven services offered by the Company, including repairs and other expertise.
First Quarter financial results include:
- Revenue of $3,318,311, which represents a 12.3% decrease from the first quarter of 2017, including:
• SaaS of $1,043,030, a decrease of $111,443 or 9.7% over the first quarter of 2017.
• AFIRS Hardware of $1,566,270, an increase of $496,206 or 46.4% over the first quarter of 2017. Revenue was recognized on 31 installation kits in Q1 2018 compared to 11 in the first quarter of 2017.
• Licensing of $626,962, a decrease of $86,489 or 58.9% compared to the first quarter of 2017.
• Technical Services of $82,049, an increase of $48,918 or 147.7% over the first quarter of 2017.
- Gross profit was 59.9% of revenue compared to 68.7% for the first quarter of 2017.
- Operating expenses totalled $2,509,882 in Q1 2018, an increase of $115,410 over Q1 2017, including:
• Distribution expenses increased 3.8% to $1,240,609 due primarily to an increase in bad debt reserve, less a decrease in marketing expenses.
• Administration expenses decreased 16.9% to $530,037 compared to the first quarter of 2017.
• Research and development expenses were $739,236, or 31.7% higher than in the same quarter of 2017, due mainly to increased staffing effort involved in R&D activities.
- Net loss of $582,375 was a reversal of $701,779 over the first quarter of 2017’s net income of $119,404.
- EBITDA1 of negative $487,431 in the quarter compared to positive $224,220 in the same quarter of 2017.
- The balance of $838,560 in Customer deposits at quarter end was an increase of $137,004 over Q1 2017 but a decrease of $849,411 from Q4 2017, as many deposits received in Q4 were applied to Q1 2018 customer shipments.
Detailed information in FLYHT’s 2018 First 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.
FLYHT will host a live conference call to discuss first quarter results on Thursday, May 17, 2018 at 7 am MDT (9 am EDT, 6 am PDT). The conference call will include a brief presentation about FLYHT’s first 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/presentation-and-webcast/
About FLYHT Aerospace Solutions Ltd.
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 (AFIRSTM) on their aircraft to capture, process and stream aircraft data with real-time alerts. AFIRS sends this information through satellite networks to the UpTimeTM cloud-based data center, which provides aircraft operators with direct insight into the operational status and health of their aircraft and enables them to take corrective action to maintain the highest standard of operational control.
1 EBITDA: defined as earnings before interest, income tax, depreciation and amortization (a non-GAAP financial measure).
FLYHT Aerospace Solutions Ltd.
Chief Financial Officer
Adelaide Capital Markets Inc.
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