FLYHT Aerospace Notches Two Profitable Back To Back Quarters – Growth Continuing

FLY:TSX-V

On the heels of very positive third quarter (September 30th) results, CEO Tom Schmutz and CFO Nola Heale hosted FLYHT’s quarterly conference call, which was noted to be the first money making quarter based on what the company calls “traditional” revenue. In the second quarter, the company sold Intellectual Property for $2.5 million USD which drove it to profitability.

fly161109chart  Here are some key points from Mr. Schmutz during the conference call.

  • “Total revenue for the quarter was $4.1 million, our largest revenue quarter ever from traditional revenue sources and 61% larger than Q3 of last year. More importantly, the third quarter was our second consecutive positive income quarter in a row, the first back to back, money-making quarters in the company’s history!”
  • “Through September, FLYHT has posted a $1.6 million-dollar year to date profit.”
  • “As a company, we are growing our top line, especially through our operations in China and OEM sales, while we are controlling costs through initiatives in our “Achieve Excellence” high-level strategic plan.”
  • “The (Chinese) launch customer that is currently using our real-time data services is also a reference customer for other operators which allows FLYHT to demonstrate the capabilities of our system to these other Chinese operators.”
  • “We also recently announced a contract for $4.26 million USD for AFIRS hardware to an information technology company that serves aviation operators in China…we are hopeful we will conclude a follow-on service contract for these real-time data services relatively soon.”
  • “FLYHT now has signed 19 Chinese Airline Operators and has signed seven new contracts for hardware and one new contract for services during 2016.”
  • “We are working other regions of the world with the same vigor to augment these sales in China and we hope to be able to discuss these prospects soon as well.”
  • “FLYHT’s other growth area is the OEM license fees which show up in our Parts Sales revenue. We added $1.6 million in parts during Q3 2016 which brings this revenue component to $3.7 million through September. This is already more than we achieved last year (which was $2.9 million) and is growing faster than we had anticipated.”
  • “The voice and data services component of revenue is growing and is approximately 10% higher than this time in 2015. There have been challenges growing this element due to economic challenges around the world, but we continue to see expansion.”
  • “AFIRS sales revenue through September is 71% ahead of last year at the end of September… We are building a significant backlog of AFIRS sales which is allowing FLYHT more opportunities to ship and install product.”
  • “Our revenue from traditional sources year to date is $10.2 million, or just shy of all of 2015 at $10.5 million. This does not include the license fee of $3.3 million we received in 2Q.”

An archive of the full conference call is available below or on FLYHT’s website by clicking here.