This morning, FLYHT CEO Tom Schmutz and CFO Nola Heale hosted the company’s 2016 year end conference call. The key takeaways from the year end numbers are that the company has, in the fourth quarter, registered its third profitable quarter in a row and the year over year revenue growth was very strong at 37%.
Here are some of the highlights from Tom Schmutz on the conference call:
- “We accomplished nearly all the goals for the year, we signed significant sales contracts and grew our backlog and we retired a significant amount of debt.”
- “There is significant excitement within the Company resulting from our continually improving revenue performance, our maturing processes within the company, the sales wins we have been announcing and the remaining potential within the sales funnel.”
- “The resulting $14.3M annual revenue for 2016 was also a record; it was 37% better than 2015 which had been the Company’s previous best year.”
- “The exciting growth areas for FLYHT remained our OEM contract to forward fit and retrofit Airbus A320 and A330 with Satcom equipment and our direct sales into China.”
- “FLYHT announced approximately $9M in new contract sales in China in 2016. We continue to spend a great deal of energy in this market and will continue to do so over the coming years.”
- “We have developed a significant backlog of sales in China and this will be core to our future growth…”
- “Our STC creation continues to be a market differentiator for FLYHT. This is a real barrier to entry for potential competition and we keep an excellent accounting on our web site for customers to quickly review and understand where we are in the process of achieving installation approvals. Right now, we can install on 95% of the aircraft used for commercial air transport.”
- “Our FLYHT Plan for 2017 includes growing overall and monthly recurring revenue by at least 25% and remaining EBITDA positive for the year.”
- “We also want to continue to diversify the customer base, so we target contracts in Southeast Asia, Europe and the Middle East in 2017.”
- “We will continue our efforts to secure business with a new OEM position. Finally, we will continue to grow public value through strategic business initiatives, including increasing the share price and growing our working capital.”
- “This year, 2017, has started very strong on the sales front. Please understand I am now discussing sales and not revenues. FLYHT has made several announcements in the first quarter of this year and I want to place them into context relative to last year. Last year, 2016, we had a fantastic year for AFIRS hardware unit sales contracts, booking $10.6M and exceeding our budgeted goals for sales booked. This first quarter, FLYHT has already announced $5.7M in AFIRS hardware bookings, or more than half of last year. Also, we announced sales of $2M through the Parts OEM channel in this first quarter. This total compares very favorably with 2016 where total sales in this channel was $5.4M. Much of the Parts sale will become first quarter revenue for 2017. The AFIRS sales booked in the first quarter will add to our backlog and start adding to our revenues within this year. We continue to pursue an exciting sales funnel, so I am hopeful that FLYHT will be able to release more sales news as we proceed through this year.”
Listen to the conference call in its entirety below or click here.