Calgary, Alberta – August 16, 2017 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLD) (the “Company” or “FLYHT”), the leading provider of real-time data streaming technology that enhances the efficiency and safety of aircraft, has reported financial results for the second quarter ended June 30, 2017.
“Overall FLYHT had a good quarter and we are well positioned at this point in the year, ahead of budget, and ahead of last year’s revenue at this reporting period by 16%,” stated Thomas R. Schmutz, Chief Executive Officer of FLYHT. “We have announced over USD $10.5 million in sales in the first half of this year.” Schmutz added, “We also signed trial agreements with Boeing and another industry major to demonstrate Autonomous Distress Tracking and Timely Access to Flight Data using the FLYHT solution on both the Iridium and Inmarsat satellite constellations.”
Second Quarter highlights include:
- Revenue of $3,388,030, which represents 4.2% decrease over the second quarter of 2016. Revenue for the six months ended June 30 was $7,117,112, an increase of 15.7% from 2016.
- Net loss of $742,102 compared to the second quarter loss of 2016 of $651,105 excluding the sale of intellectual property in 2016 included as other income of $3,223,166.
- Expenses in the second quarter included a non-cash share based compensation charge of $411,408 compared to$ 340,990 in 2016 or an increase of $70,418.
- Gross profit was 66.8% of revenue compared to 63.9% for the second quarter of 2016, with the increase being consistent for the six months ended June 30.
- Recurring revenue (voice and data services) of $1,158,340, an increase of 14.2% over the first quarter of 2016, and parts revenue of $1,479,402, an increase of 30.8%.
- Distribution expenses were $1,420,236 representing an increase of $171,453 compared to the second quarter of 2016, attributable mainly to higher costs associated with sales activities.
- Administration expenses were comparable to the same quarter of 2016 with a decrease of $14,690 to $1,088,709 in the quarter.
- Research and development expenses were $399,920, or 18.7% higher than in the same quarter of 2016, principally due to higher labour and contract labour costs for the quarter that were partially offset by recoveries from government programs.
- Customer deposits of $909,318 at quarter end were slightly increased from Q2 2016, and payments received in the quarter were $224,050 lower than the same quarter last year.
- The value of deposits moved to unearned revenue was $582,210, an increase of $320,139 compared to Q2 2016.
- Unearned revenue decreased in the quarter to $656,844 from $1,561,020 at the end of Q2 2016. This was 57.9% lower than June 2016, and was due to sales being recognized in periods subsequent to June 30 in 2016.
- Revenue recognized on AFIRS units shipped was $561,725 lower than in Q2 2016 but were only lower by $72,059 year-to-date. Revenue was recognized on 17 installation kits in Q2 2017 compared to 27 in the second quarter of 2016.
Detailed information in FLYHT’s 2017 Second 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 has scheduled a live conference call to discuss its second quarter results on Thursday, August 17, 2017 at 7 am MDT (9 am EDT, 6 am PDT).
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 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 (AFIRS™) on their aircraft to capture, process and stream aircraft data with real-time alerts. AFIRS sends this information through satellite networks to the UpTime™ 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.
Interim Chief Financial Officer
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