FLYHT Aerospace Solutions Ltd. Announces Updates Including New Airline Contracts and IP Sales Update

Calgary, Alberta – April 25, 2016 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today announced the receipt of the first of two milestone payments of the aggregate $2.5 million USD license fee due from a technology company (the “Licensee”) (see press release dated December 21, 2015).  Further agreement terms, including payment of the final milestone, transfer of the intellectual property (the “IP”) and training of Licensee personnel, will be completed during the second quarter.  The licensed IP includes core satellite communication technology but does not include those elements of the FLYHT AFIRS solution that make it truly unique within the industry.

FLYHT has also received an order from an OEM partner for $1.2 million USD of parts with related license fees, for immediate delivery, and has signed its third Chinese airline customer of the year to contract. The undisclosed airline will commence receipt of Automated Flight Information Reporting System (“AFIRSTM”) equipment in May, 2016; aggregate revenue will be approximately $1 million USD provided FLYHT completes all installations.

“China continues to be a great growth area for FLYHT and our OEM relationships are outstanding,” remarked Thomas R. Schmutz, Chief Executive Officer, “The combined revenue elements in this press release amount to $6 million Canadian at today’s exchange rates and they are high margin.”

About FLYHT Aerospace Solutions Ltd.

FLYHT is a leading provider of real-time aircraft intelligence and cockpit communications for the aerospace industry. More than 50 customers, including airlines, leasing companies and original equipment manufacturers, have installed our systems in order to increase safety, improve operational efficiencies and enhance profitability. FLYHT’s proprietary technology, the Automated Flight Information Reporting System (AFIRS™), operates on multiple aircraft types and provides functions such as safety services voice and text messaging, data collection and transmission, and on-demand streaming of flight data recorder (black box), engine and airframe data. AFIRS sends this information through the Iridium Satellite Network to FLYHT’s UpTime™ ground-based server, which routes the data to customer-specified end points and provides an interface for real-time aircraft interaction. AFIRS has flown over 2 million aggregate flight hours and 1.5 million flights on customers’ aircraft. FLYHT holds supplemental type certificates (STC) which allow for the installation of AFIRS on 95% of transport category aircraft.

Contact Information

FLYHT Aerospace Solutions Ltd.
Nola Heale, CPA (CA)
Chief Financial Officer
403-291-7425
nheale@flyht.com 

Investor Relations
The Howard Group Inc.
Dave Burwell
Vice President
(888) or (403)-221-0915
dave@howardgroupinc.com

Join us on social media!

www.facebook.com/flyht
www.twitter.com/flyhtcorp
www.slideshare.net/flyhtcorp
www.youtube.com/flyhtcorp
www.flyht.com

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.

FLYHT Aerospace Solutions Ltd. Announces Private Placement

Calgary, Alberta – April 25, 2016 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Corporation” or “FLYHT”) today reported that the Corporation is proposing a private placement offering of up to $5,000,000 (up to maximum of 33,333,333 common shares (“Common Shares“) of the Corporation).  The Common Shares are to be issued under a unit offering whereby up to a maximum of 33,333,333 units (“Units“) at a subscription price of $0.15 per Unit are to be offered.  Each Unit shall consist of one (1) Common Share of the Corporation and one-half of one (1/2) share purchase warrant (the “Warrant“) (each full Warrant shall entitle the holder thereof to purchase one (1) additional Common Share of the Corporation for a period of 24 months from the issuance of the Units at a price of $0.25) (the “Offering“).

The net proceeds will be used to: (i) repay the Corporation’s outstanding debentures due in June 2016 (approx. $2.5M); (ii) assist in new product development; and (iii) increase FLYHT’s working capital.

All of the Common Shares and Warrants issued pursuant to the private placement are subject to a 4-month hold period. Completion of the private placement is subject to the final approval of the TSX Venture Exchange.

About FLYHT Aerospace Solutions Ltd.

FLYHT is a leading provider of real-time aircraft intelligence and cockpit communications for the aerospace industry. More than 50 customers, including airlines, leasing companies and original equipment manufacturers, have installed our systems in order to increase safety, improve operational efficiencies and enhance profitability. FLYHT’s proprietary technology, the Automated Flight Information Reporting System (AFIRS™), operates on multiple aircraft types and provides functions such as safety services voice and text messaging, data collection and transmission, and on-demand streaming of flight data recorder (black box), engine and airframe data. AFIRS sends this information through the Iridium Satellite Network to FLYHT’s UpTime™ ground-based server, which routes the data to customer-specified end points and provides an interface for real-time aircraft interaction. AFIRS has flown over 2 million aggregate flight hours and 1.5 million flights on customers’ aircraft. FLYHT holds supplemental type certificates (STC) which allow for the installation of AFIRS on 95% of transport category aircraft.

Contact Information

FLYHT Aerospace Solutions Ltd.
Nola Heale, CPA (CA)
Chief Financial Officer
403-291-7425
nheale@flyht.com 

Investor Relations
The Howard Group Inc.
Dave Burwell
Vice President
(888) or (403)-221-0915
dave@howardgroupinc.com

Join us on social media!

www.facebook.com/flyht
www.twitter.com/flyhtcorp
www.slideshare.net/flyhtcorp
www.youtube.com/flyhtcorp
www.flyht.com

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.

Alex Ruus On BNN – FLYHT – “We’re Actually Looking For A Big Breakout In 2016”

FLYHT Aerospace became a topic of discussion during last night’s (April 21st) appearance by Alex Ruus, Portfolio Manager at Arrow Capital Management on Business News Network’s (BNN) show Market Call Tonight. Below are his comments in response to a caller who inquired about FLYHT.

  • “I still own the stock, and I quite like the stock. This is probably one of the multibagger potential stocks in the portfolio.”
  • “What they are doing is quite revolutionary. They are penetrating the commercial aerospace market.”
  • “The reason the stock hasn’t done well, things have taken longer to develop in terms of revenue and earnings than we would have thought a couple of years ago. They just reported their fourth quarter and they made a slight profit, not a lot. Revenues are up 60 plus percent and we’re actually looking for a big breakout this year in 2016. There’s going to be a lot of growth.”
  • “They’re on the production line as an option on the Airbus A320. Also, Bombardier installs them. Those rollouts are slowly happening and increasing at a pace. As well China has some regulations where they are starting to install the FLYHT boxes, that again has taken longer than expected. But last quarter we started to see accelerated adoption in China.”
  • “We think it’s inevitable that they get on the Boeing production line and the Embraer production line.  It’s such a good product, it saves money for the airlines and we think as it becomes better understood, we think insurance companies will start demanding it.”
  • “I encourage you to hold on, as the year rolls out finally we’ll probably get some research coverage on the stock. Once people see that this is a great longer term free cash flow generator you’re going to see a lot of appreciation.”

To watch the full segment, please click here.

 

MicroCapClub Hosting CEMATRIX Presentation

CEMATRIX CEO, Jeff Kendrick will be presenting the CEMATRIX opportunity to a mostly U.S. based audience through Ian Cassel and his MicroCapClub tomorrow, April 21st, at 11:00 am ET.

The call is open to members only and information on becoming a member can be found by clicking here.

Founded in 2011, MicroCapClub is an exclusive forum for experienced microcap investors focused on microcap companies (sub $300m market cap) trading on United States and Canadian markets. MicroCapClub was created to be a platform for experienced microcap investors to share and discuss stock ideas. MicroCapClub’s mission is to foster the highest quality microcap investor community, produce educational content for investors, and promote better leadership in the microcap arena. MicroCapClub was founded by full-time microcap investor Ian Cassel and is co-owned by full-time microcap investor Mike Schellinger (aka MikeDDKing).

CEMATRIX – Top Companies To Watch, CEO Jeff Kendrick Interviewed

CEMATRIX reached an all time high share price this past Friday, closing at $0.44 on the heels of CEO, Jeff Kendrick’s appearance at a highly attended Microcap Conference in Toronto. It is an understatement that he was well received by hundreds of potential new shareholders from both Canada and the U.S. over the two day event.

CVX_160418a

While in Toronto, SmallCapPower.com was kind enough to interview Mr. Kendrick in the short attached video where he shares why now is the time to take a close look at CEMATRIX and why he believes it is undervalued. CEMATRIX is coming off a record 2015 where revenues exceeded $15 million and EBITDA was $2.8 million with only slightly more than 34 million shares issued.

Since the start of 2016, management has announced new contracts that have already reached a total of $8.4 million.

To watch the interview, please click here.

FLYHT Q4 2015 Conference Call Now Available Online

FLY:TSX-V

FLYHT hosted its yearend earnings conference call yesterday. Tom Schmutz, CEO of FLYHT discussed the company’s strong financial performance in 2015, which was capped off with record revenues in Q4 2015 with revenues of ~ $3.8MM representing an increase of 69% increase over Q4 2014.

Here are some highlights the call:

  • Select financial results:
    • FLYHT had three quarters in 2015 with record revenues – Q4, Q1 and Q3.
    • 2015’s revenue of ~ $10.5MM represents an increase of 51.9% over 2014.
    • Recurring revenue (voice and data services) was ~ $4MM, an increase of 9% over 2014, and AFIRS sales ~ $3.4MM, an increase of 54%
    • Gross profit for 2015 was 69.3% of revenue compared to 62.9% in 2014.
    • Cash flow breakeven in Q4 2015.
  • Mr. Schmutz touched on some of the company’s accomplishments during the past year which included:
    • Signing the largest deal in company history with Avmax Group.
    • Effectively transitioned executive control of the company.
    • Appointment of industry veteran David Perez to revitalize and lead the sales team.
    • Expanded sales team and standardized sales processes and materials.
    • Won awards in the industry and in the community.
    • Enhancing its board of directors with the appointment of retired USAF Major General Mark V. Rosenker, former chairman of the National Transportation Safety Board (NTSB).
    • Participated in several International Civil Aviation Organization (ICAO) and IATA conferences and continues to monitor industry discussions on aircraft monitoring.
    • Significant amount of time invested in R&D completing safety services TSO on AFIRS product and continue expansion of STC’s for AFIRS 228
    • Signed a non-exclusive technology licensing agreement with an unnamed technology company.
    • Continued sales growth in China.
  • He acknowledged the on-going challenges and opportunities in the industry such as:
    • Industry regulation.
    • Increasing demand for air travel in China and Southeast Asia.
    • Aviation industry still slow to adopt change.
    • Opportunity to significantly grow the company’s licensed OEM revenue.
  • Mr. Schmutz shared some of the company’s goals for 2016 such as:
    • Significant investment in the development of cloud based suite of products in R&D with a targeted late 2016 roll out.
    • Launch of a 24/7 call center.
    • Establish aggressive sales goals and control expenditures.
    • Continue sales growth and relationship building in China.
    • Engage in several conversations to satisfy the obligations on the June debentures.

To listen to the conference call in its entirety, please click here.

FLYHT Releases Record Setting 2015 Year End Results

Calgary, Alberta – April 5, 2016 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) a leading provider of real-time data communications technology for the aviation industry today reported financial results for the fourth quarter and its year ended December 31, 2015.

Thomas R. Schmutz, CEO stated: “FLYHT had a strong financial year that ended with a record revenue quarter; this fourth quarter was 47% higher than the previous Q1 2015 record. In the year we enhanced our board of directors, advanced many business opportunities, contracted our largest customer fleet to date, and made changes to our executive team. We are hard at work on our goals and plans for 2016 and beyond.”

Fourth Quarter Highlights Include:
  • Revenue of $3,769,267, which represents 69.9% increase over the fourth quarter of 2014.
  • Recurring revenue (voice and data services) of $1,067,894, an increase of 16.6% over the fourth quarter of 2014.
  • Gross profit was 64.4% of revenue compared to 61.7% for the fourth quarter of 2014.
  • Net loss of $1,203,998 which included research and development (R&D) costs of $689,195, which if removed would have resulted in a net loss of $514,803. The net loss decreased $101,714 over the fourth quarter of 2014, and the loss before R&D decreased $18,183 over the fourth quarter of 2014.
  • Distribution expenses were $1,084,443 representing an increase of $93,793 compared to the fourth quarter of 2014, attributable mainly to higher people costs offset by a decrease in bad debt reserve.
  • Administration expenses increased to $1,573,796 in the quarter; an increase of $793,757 compared to the same quarter in 2014 due to costs associated with staff retirement, variable compensation for the change in key management positions and offset by cost savings in the other expense categories.
  • Cash increased approximately $5,000 in the quarter.
Year Highlights Include:
  • Three record revenue quarters for the company (Q4, Q1 and Q3)
  • Revenue of $10,457,125, which represents an increase of 51.9% over 2014 owing to a significant increase in parts sales and AFIRS units, and an increase in recurring revenue.
  • Recurring revenue (voice and data services) was $3,986,813, an increase of 9% over 2014, and AFIRS sales $3,372,421, an increase of 64.2%.
  • Gross profit for 2015 was 69.3% of revenue compared to 62.9% in 2014.
  • Net loss for the year was $3,891,560. If research and development costs were removed the loss would have been $1,089,008, an improvement (lower loss) of 9.1% on net loss and 68.9% lower loss before research and development than in 2014.
  • Distribution expenses were $3,977,633, an increase of $584,642 from 2014.
  • Administration expenses increased to $3,676,953 from $3,548,518 for 2014, or an increase of $128,435 due to costs associated with staff retirement, variable compensation for the change in key management positions and offset by cost savings in all other expense categories.
  • Research and development expenses were $2,804,187, an increase of 160% from 2014 due mainly to the recovery on settlement of the dispute with Sierra Nevada Corporation accounted for in 2014; if the recovery is excluded in 2014 the 2015 expenditure has increased 2.7%.
  • Net finance costs decreased 24.4% or $218,271 in 2015 from the previous year to $673,279.
  • Cash burn was $2.3M for 2015; however, it reduced significantly as the year progressed. Q1 activities reduced cash by $1.7M; Q2 and Q3 cumulatively reduced cash by $0.6M and Q4 was slightly cash flow positive.
  • In the 2015 year FLYHT signed contracts:
    • With new customers that had AFIRS 220 units previously installed on their aircraft. One was with an African operator on a Bombardier DHC-8; the other a Caribbean carrier on a Boeing 767-300.
    • With an African Airline for the AFIRS 228 on a fleet of four A320 aircraft.
    • With Avmax Group Inc. to install the AFIRS 228 on the two airlines Avmax owns, as well as its current and future leased fleet, for a total fleet size of 146 aircraft over a seven-year term.
    • Directly with airlines and sales through partners, with five airlines in China for a total of 18 aircraft.

Detailed information in FLYHT’s 2015 Annual 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://www.flyht.com/investors/financial-reports-results-centre/. 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 fourth quarter and year end results on

Wednesday, April 6, 2016 at 9 am MDT (11 am EDT, 8 am PDT). The conference call will include a brief presentation about FLYHT’s fourth quarter and year end results followed by a question and answer period with management.

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. 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/investors/videos/

About FLYHT Aerospace Solutions Ltd.

FLYHT is a leading provider of real-time aircraft intelligence and cockpit communications for the aerospace industry. More than 50 customers, including airlines, leasing companies and original equipment manufacturers, have installed our systems in order to increase safety, improve operational efficiencies and enhance profitability. FLYHT’s proprietary technology, the Automated Flight Information Reporting System (AFIRS™), operates on multiple aircraft types and provides functions such as safety services voice and text messaging, data collection and transmission, and on-demand streaming of flight data recorder (black box), engine and airframe data. AFIRS sends this information through the Iridium Satellite Network to FLYHT’s UpTime™ ground-based server, which routes the data to customer-specified end points and provides an interface for real-time aircraft interaction. AFIRS has flown over 2 million aggregate flight hours and 1.5 million flights on customers’ aircraft. FLYHT holds supplemental type certificates (STC) which allow for the installation of AFIRS on 95% of transport category aircraft.

Contact Information

FLYHT Aerospace Solutions Ltd.
Nola Heale, CPA (CA)
Chief Financial Officer
403-291-7425
nheale@flyht.com 

Investor Relations
The Howard Group Inc.
Dave Burwell
Vice President
(888) or (403)-221-0915
dave@howardgroupinc.com

Join us on social media!

www.facebook.com/flyht
www.twitter.com/flyhtcorp
www.slideshare.net/flyhtcorp
www.youtube.com/flyhtcorp
www.flyht.com

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.