Bob McWhirter Talks FLYHT On BNN

Strength In Share Price Comes From Optimism Around Chinese Opportunity

On Friday (January 6) afternoon, long time FLYHT follower and proponent Bob McWhirter, Portfolio Manager at Selective Asset Management fielded a caller’s question while appearing on Canada’s Business News Network (BNN). The caller was enthusiastic with his question, stating, “I’ve been sitting on it for six months and it’s finally starting to pop.”

Mr. McWhirter provided a quick overview of the technology and its functionality. In regards to the recent strength in the stock price, he sights optimism around FLYHT’s opportunity in China and how Chinese airlines are embracing the company’s technology.

To view the clip from BNN, please click here.

Technical Analyst Keith Richards Discusses FLYHT On BNN – Is FLYHT Primed For A Break Out?

Over the holidays (December 30, 2016), Keith Richards, technical analyst and portfolio manager at ValueTrend Wealth Management of Worldsource Securities, discussed FLYHT on Business News Network’s (BNN’s) Market Call Tonight. He fielded a question on FLYHT Aerospace and here’s the key takeaway.

“FLYHT Aerospace was in a downtrend and has most definitely begun quite a nice little base there. So what you’re looking for with this stock is you want to see a breakout past the base. It’s very difficult to gain on these charts, it’s a little hard to see. It looks to me to be in the mid-to high 20’s; if the stock broke out to that area, then you probably have some significant upside ahead of you. Right now it is in the base and that is a healthy development, a base is a good thing.”

To view the clip on BNN click here.

Fortune Magazine Features FLYHT Aerospace

This morning (December 8th) Fortune.com, the online version of Fortune Magazine, featured a commentary by FLYHT board member and former Chairman of the U.S. National Transportation Safety Board, Mark Rosenker.

fly_161208pic1In the commentary, Mr. Rosenker declares “The technology is available.” He was referring to FLYHT Aerospace’s Automated Flight Information and Reporting System (AFIRS™) and its ability to stream recorder data from the flight data recorder (FDR) of an aircraft while in flight.

In the article he states, “This (AFIRS) offers the value of not only providing the actual location of the aircraft, but also an understanding of how it is – its real-time status. Data can be streamed as a result of a “trigger” that might occur during a flight incident. Or, data could simply be streamed throughout the flight for routine flight status information.”

In conclusion he declares, “We have the technology to make airline travel even safer – and we need to use it.”

To read the full article, please click here.

Alex Ruus on BNN: We Argue It (FLYHT) Should Be Trading Substantially Higher

Arrow Capital Portfolio Manager, Alex Ruus, was more than positive in his response to a caller who asked about FLYHT Aerospace during last night’s (December 5th) appearance on Canada’s Business News Network (BNN). This was his response:

We like it very much and good timing. I actually sat down and had dinner with the CEO of FLYHT last week. Things are just going great. The business continues to develop. The Chinese business has been a particularly bright area in the last year and is growing strongly; looks to potentially even accelerate some more next year. Meanwhile, they continue to work with a number of global OEMs on doing business. They are on the production lines at Airbus and up on Bombardier, and we think that there are opportunities in other areas.

Meanwhile, there is increasing pressure for increased regulation in terms of flight following. At some point in the next two to three years, you could see something happen that accelerates adoption of a lot of their solutions. This is like an internet of things type company. People never talk about it that way. But it really fits into that increasing data off of industrial machinery, which in this case is airplanes. Again really critical information, which helps them fine tune the operation of the plane, prevents accidents and if there is an accident give you immediate information to know what’s happening.

We think at some point this thing is really going to take off, it has been a frustrating stock. It kind of flat lined over the last year, despite becoming profitable in the summer, it’s likely going to finish the year profitable and growing at almost 50% a year rate. So, we are scratching our head a little bit as to why the stock is trading at the 20 cent area, we argue it should be trading substantially higher.   

To watch the segment, please click here.

FLYHT Receives $2.35 Million Interest-Free Government Loan

Wednesday (November 9th) was a good news day for FLYHT as management discussed its second consecutive profitable quarter with shareholders only to be followed that afternoon by a presentation where  the company  received a $2.35 million interest-free loan from the Western Innovation (WINN) Initiative.

The WINN funding will be used to “support plans for technology development in the air and ground components of FLYHT’s satellite/aircraft communications systems” up to December 2018. The loan is to  re-paid between January 2020 and December 2024.

This is most welcome news as investors are waiting to see how the company addresses  $3.2 million in convertible debenture coming due on December 23, 2016. The conversion price of the debentures is $0.25 per share. The WINN funds provide the company with considerable breathing room as this loan meets much of the future capital required for ongoing projects.

CEO Tom  Schmutz has publicly stated that the company is on track to grow a minimum of 30% this year independent from the IP sale made in the second quarter. Next year’s organic growth is expected to be in the same range before new larger opportunities, that management believes it will secure.  The last financial report showed that the company has over $3.8 million in cash and $1.5 million in receivables.

Even though the company has been showing growth and executing on its business plan the stock has continued to trade in a very narrow range of $0.18 to $0.22 since the summer of 2015.

To read the news release on the WINN interest-free loan to FLYHT, please click here.

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.


FLYHT Featured In Calgary Economic Development Marketing Campaign

FLYHT was recently selected by Calgary Economic Development as one of a handful of companies to promote its national “Be Part of the Energy” marketing campaign.

The Canada-wide campaign launches this weekend and runs through late November. There will be full print and social media advertising associated with the campaign, which focuses on non-oil and gas or “countercyclical business opportunities in Calgary.”  

Specifically, look for a “teaser” on FLYHT in today’s (October 14th)  Globe and Mail and the National Post and again in the Globe and Mail on Friday, November 4th.

To see the feature on FLYHT please click here

Alex Ruus On BNN – FLYHT “If You Don’t Own It, Own It Here.”

FLY:TSXV

FLYHT shareholders have seen a massive surge in volume this morning. We believe the catalyst was last evening’s appearance by Alex Ruus, Portfolio Manager at Arrow Capital Management on Canada’s Business News Network (BNN). In response to a caller’s question, Mr. Ruus outlined why he thinks FLYHT “is really cheap and a great buy going forward here.”

Here are some of his key points:

  • “The stock has been in a bottoming process for the last six months now. Despite the last couple of quarters they are hitting new record sales.”
  • “The market is completely ignoring this. I think it has to do with the stock has been around for ten years and things have taken longer to develop than was expected.”
  • “We think it’s really really cheap and we think it is a great buy from here going forward.”
  • “They brought in a new high-profile CEO in the last year. They just had their first profitable quarter in history and we think things are getting better going forward.”
  • “We think this could be a really good performer over the next year and I would own it.”

To watch the full interview, please click here.


Shares Outstanding: 207,393,766
Options: 11,087,067
Warrants: 20,127,792
Shares Fully Diluted: 238,608,625

FLYHT CEO Speaks To Momentum On Heels Of Record Shattering Quarter

FLY:TSX-V

As of this writing, FLYHT volume had reached approximately three quarters of a million shares following news of a record revenue $6.7 million second quarter and CEO Tom Schmutz speaking with investors regarding ongoing corporate progress and performance.

The quarter received a major boost with a one-time Intellectual Property sale as outlined by CFO Nola Heale. Here are some of the highlights from the conference call:

  • FLY)160728a

    (click to enlarge)

    “Second quarter was an outstanding revenue quarter for FLYHT. Total revenue was $6.7 million, which is nearly 80% larger than our best previous quarter. This revenue result was helped by a $3.3 million intellectual property deal. Even without that, we brought in $3.5 million from our traditional sources of revenue, which would be a close second to the fourth quarter last year for best revenue.”

    “The OEM licence fees which show up in our parts sales for the company remains strong and continue to grow year over year. We are significantly ahead of last year’s revenue from this source at this time. Nearly doubling the first half of 2015.”

  • “We place significant internal focus on growing our recurring revenue sources more quickly and I expect to have some exciting news in this revenue area in the near future.”
  • “When we look at our revenues year to date, we find that the $9.3 million figure that we bought in quarters one and two of this year, is approaching the $10.5 million that we did in all of 2015.”
  • “Our company has demonstrated record revenues successfully in five of the last six quarters. So there is significant optimism within the company resulting from this improved revenue performance and the strong feedback we are receiving from OEM and solution partners that we have a unique offering for the market.”
  • “We are focused on accomplishing the goals we set out to do in 2016. We are increasing our revenues and will continue to shepherd that very important indicator. We are very focused on closing a new OEM opportunity and we continue to see interest in the market for our solution.”

Please click below to listen to the full conference call or click here.

Interview With FLYHT CEO Tom Schmutz

“There Is A Real Awakening In The (Airline) Business And FLYHT’s Well Positioned”

FLY:TSX-V

In a recent interview with U.S.-based Uptick Newswire, FLYHT CEO Tom Schmutz covered a number of topics including:

  • The company’s charitable sponsorship of Laval St. Germain and his heroic efforts to raise money for cancer
  • The company’s year over year rising revenues
  • The successful recent private placement
  • How the Automated Flight Information System (AFIRS™) saves airlines money through various services
  • How it enhances aircraft safety by being able to stream black box data during an emergency event during a flight

In closing, Mr. Schmutz summarized the company’s current focus and outlined the opportunities that lay ahead.

“Right now we are focused on a couple different areas. We are focused on getting additional OEMs, in addition to the A320 and A330. We have a very strong business in China right now. There is a Chinese mandate that requires satellite communications to be on aircraft and inspected by 2017. I just got back from China and I continue to be excited about that portion of our market. And we’re looking for opportunities to support flight tracking requirements as they come out. Those requirements have been pushed out to 2018 and 2021. But we think the aircraft community is becoming more enlightened about wanting to understand where their assets are and making sure they move from old 1950’s style technologies and into the 21st century where you can understand where your equipment is at any time and talk to it in real time.”

To listen to the full interview, please click here.

Shares Outstanding: 173,477,635
Options: 8,736,300
Fully Diluted: 182,213,935

 

FLYHT Featured In Avionics Magazine – AFIRS Saves Time And Money

FLY:TSX-V

Avionics Magazine writer, Woodrow Bellamy III, recently penned an article called “FLYHT is Expanding Real Time Aircraft Monitoring to the Cloud” after interviewing CEO, Tom Schmutz and CTO Derek Graham. Key points that were detailed included how the technology saves airlines money and how it is helping customers identify potential mechanical issues before they occur.

In the piece, they discuss how the company’s Automated Flight Information Reporting System (AFIRS™) is moving its servers from the ground to the cloud.

To read the full article, please click here.

About Avionics Today
Avionics is the leading source for global aviation technology intelligence, covering the latest developments with the connected aircraft, NextGen, avionics innovation and global air traffic management modernization. More than a magazine, this is the platform for in-depth analysis on the global aircraft electronics market, used by top avionics executives, engineers, pilots and professionals throughout the value chain. All this is backed by a Qualified Circulation of 27,000.


Shares Outstanding: 173,477,635
Options: 8,736,300
Fully Diluted: 182,213,935


U.S. Judge Draws “Line In The Sand To Would-Be Patent Infringers”

In an article published in the Financial Post on Tuesday, June 14, 2016, Kristine Owram reported on Florida U.S. District Judge Beth Bloom, who ordered BRP (Bombardier Recreational Products), the maker of Ski-Doos and Sea-Doos, to pay Arctic Cat $46 million for patent infringement.

We felt this judgement was well worth commenting on as Intellectual Property (IP) is of particular importance for two of The Howard Group’s clients and is a key reason why we are invested in both companies, being Clean Seed (CSX.V) and FLYHT Aerospace (FLY.V).

Clean SeedWhen we first introduced Clean Seed in July 2014, the theme of the commentary was a belief that what would determine the company’s ultimate value was the IP portfolio, which has also grown over the past two years.  If we are correct, the IP will be THE reason for a major farm equipment manufacturer to take a serious look at Clean Seed. The company has incorporated multiple technologies into its CX-6 Smart Seeder that allow a field to be “painted” on a square foot basis with the simultaneous and optimum mixture of seed, nutrients and fertilizer. Very recently, the first CX-6 SMART Seeders were delivered to Rocky Mountain Dealerships (TSX – RME).

To read The Howard Group’s introduction to Clean Seed, click here.

FLYHT Aerospace SolutionsFLYHT Aerospace lives and breathes technology and has a number of patents and patents pending. It’s the attributes of the technology that has attracted more than 50 customers being airlines, leasing companies and original equipment manufacturers. Total flight hours using the Automated Flight Information Reporting System (AFIRS™) system now exceed 2.2 million. As promoted by FLYHT, the proprietary technology increases safety, improves operational efficiencies and enhances profitability, 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.”  

CEO Tom Schmutz was recently interviewed on CNBC:
https://howardgroupinc.com/2016/06/flyht-ceo-tom-schmutz-interviewed-cnbc/

In the Arctic Cat case, the jury found that BRP willfully infringed on two patents related to a safer steering system for personal watercraft and therefore awarded Arctic Cat initial damages of US$15 million. However, because the infringement was found to be willful, the judge tripled the damages owing.

The article quoted Arctic Cat lawyer, Nicholas Boabel of law firm Hagens Berman, “Judge Bloom’s final judgement in this case is not only a major victory for our client, Arctic Cat, but a testament to the importance of upholding IP law and punishing wilful patent infringement.”

It’s expected that BRP will appeal.

To view the full Financial Post article, please click here

FLYHT CEO Tom Schmutz Interviewed on CNBC

FLY:TSX-V

Investors in FLYHT were happy to see the volume in the stock jump to over 2 million shares and the share price rose to over $0.20 on Friday afternoon. Tom Schmutz, FLYHT CEO appeared on CNBC’s Power Lunch. He used the opportunity to discuss the fact that FLYHT offers an affordable solution to the airline industry that is capable of streaming airplane data via the Iridium satellite network. He expressed that this solution would have helped investigators immediately understand exactly what happened with the recent Egypt Air incident.

To view the interview, please click here.

FLY:TSX:V
Shares Outstanding: 173,477,635

Fully Diluted: 182,213,935

 

U.S. Investor Explains Why FLYHT “Is At A Significant Inflection Point In Its Business Model”

FLY:TSX-V

Walter Winnitzki, an investment professional with over 25 years experience as a research analyst, recently published a sixteen page report introducing FLYHT Aerospace to investors at a leading and influential investment club.

Mr. Winnitzki was first introduced to FLYHT a number of years ago, while he worked for a large institution based in New York City. That institution continues to be supportive and still owns a sizable position in FLYHT Aerospace today.

The title of his piece summarizes his belief that the company is  “Ready For Takeoff.” It lays out Mr. Winnitzki’s thesis on why he believes FLYHT’s share price “could be positioned to appreciate 2X – 3X over the next 12 – 18 months.”

Click here to view the full report.

FLYHT’s 2016 AGM and Q1 Results Video Now Available Online

On Wednesday, May 11th FLYHT hosted its AGM in Calgary. FLYHT CEO Tom Schmutz led the presentation with an overview of the company’s accomplishments over the last year. Nola Heale, CFO then discussed the financial performance from the first quarter. Following Ms. Heale, David Perez, VP Sales and Marketing outlined the various strategies and sales initiatives the company is focused on, and finally Mat Plamondon, VP Operations & Customer Fulfillment provided attendees with an overview of the specialized products and services available to FLYHT customers.

To view the AGM presentation and video recording, please click here.