Alex Ruus Discusses FLYHT On BNN – “We Think It’s Quite Undervalued Here”

Late yesterday, long-time supporter and shareholder Alex Ruus, Portfolio Manager at Arrow Capital Management, was upbeat in his response to a question on FLYHT Aerospace while appearing on Canada’s Business News Network (BNN).

Mr. Ruus closed the segment by stating, “It’s taken a while to develop the market, but it’s now turned profitable in the last year. We think the stock’s actually quite undervalued here, and if you bought it today I think if you look 12 to 24 months out, you’ll be very, very happy owning this stock.”

To watch the full segment, please click here.

LAFARGE and CEMATRIX Demo Day a Huge Success

A joint LAFARGE/CEMATRIX demo day was held at the LAFARGE Caledon Aggregate facility in Caledon, Ontario on April 27th, 2017.

Over 120 engineers from provincial and regional municipalities and cities, transportation consulting engineering firms from Southern Ontario, including the GTA, as well as some local shareholders attended a special BBQ luncheon.

CEMATRIX demonstrated the production and placement of cellular concrete behind MSE retaining walls, culvert backfill and culvert relines, as well as road base insulation and support.

Positive feedback has been received from many participants including a couple of long-term shareholders that had never actually seen the product used up close. CEMATRIX management noted that investors were impressed with the discussions around prospective future engineering customers and the numerous applications for CEMATRIX and its cellular concrete solutions.

CEMATRIX Wet Mix Unit – up to 75 cu. m. per hr.

MSE Lightweight Backfill – large volume projects.

Attendees witnessing the backfill of an abandoned culvert. Complete MSE panel pour in picture foreground.

Cellular Concrete makes the re-line of culverts of all diameters and lengths easy.

 

Trakopolis Is Accelerating Its Growth – How Does It Stack Up?

With yesterday’s (May 3rd)  news that Honeywell and Trakopolis have closed their first major enterprise sale of the ConneXt Lone Worker, future growth indicators are starting to line up, which is beneficial to any investor thinking about what company to buy in a particular sector. The new four year-year deal is worth a minimum of $4.79 million (USD) and carries a tidy recurring revenue stream for TRAK.  While those numbers are important, its not be to missed that this was the first material deal with its partner, Honeywell, which is THE global leader in this area.    

To summarize:
Based on recently reported financial results from various companies in the IoT (Internet of Things) space, we constructed a comparable chart to see how Trakopolis stacks up against its peers on the TSX Venture exchange.

 

TrackX BeWhere Blackline Trakopolis
Stock Price $0.44 $0.26 $3.55 $1.14
Shares Outstanding 55.6 million 50.2 million 28.8 million 23 million
Market Cap $24.5 million $13 million $102.2 million $26.6 million
Revenue
(Trailing based on last reported quarter)
$6.5 million $351,000 $10 million $5.8 million
Multiple of revenue 3.8 X Revenue 37 X Revenue 10.2 X Revenue 4.5 X Revenue
Profitability No No No No
Cash On Hand $1.4 million $1.8 million $1.4 million $3.2 million
Major Distributing Partner Unnamed partners Small resellers Small resellers Honeywell just starting


As you can see, revenue  multiples vary widely, which suggests investors have different expectations about future growth potential.  However, apples to apples, Trakopolis has a tighter share structure, one of the lowest revenue multiples and has the most cash on hand amongst the peer group. These facts in combination with Trakopolis’ news on the first Honeywell deal as well as the company’s fundamental results suggest that  Trakopolis is well positioned and should   stand out amongst its peers.

TRAK has only been trading since last November. 

Trakopolis Announces Multi-Million Dollar Sale Of Honeywell’s ConneXt Lone Worker

Trakopolis announced this afternoon that that it has received a significant purchase order from a major U.S. based energy company for 1,500 units of its co-created product the Honeywell ConneXt Lone Worker gas detector.

Trakopolis’ industry leading software will deliver this solution as “software as a service” and thus each unit will carry a monthly recurring data fee for the contracted four-year period. The minimum total contract value is expected to be USD$4.79 Million, with an estimated USD$2.82 Million (inclusive of hardware revenue) expected in fiscal 2017.

With this announcement investors can now start to model what capturing even a small percentage of the gas detector market would mean to TRAK. Fifteen hundred units represents only 1% of the North American market and just last week, TRAK and Honeywell announced that they are expanding their sales efforts worldwide. See news release here.

When asked, management acknowledged that this sale came with some first customer discounts and made clear that there is a significant pipeline building for the company. This is understandable considering Honeywell is the largest manufacturer and supplier of industrial gas detectors in the world.

The revenue impact of this deal provides clear visibility into the achievement of TRAK management’s stated revenue milestones, which according to the company’s corporate presentation is a $10 million run rate by Q4 2017.

Of note, the “large US-based oil and gas company” that made this initial order reserved an option to order an additional 1,000 units, on the same terms, during the first 18 months of the term.

To view the full news release, please click here.

Bob McWhirter Lays Out (Some) Opportunities For FLYHT On BNN

Yesterday on Canada’s Business News Network, Selective Asset Management’s Bob McWhirter took a question from a caller on FLYHT Aerospace.  As a long-time follower and investor in FLYHT he made the following key points:

  •  “They just announced a new contract with a Chinese airline. China really is the key for the company, because China is building out a massive increase in their fleets and actual airports.”
  • “The real key at the moment is the device by FLYHT is added as an option on the Airbus line, which is one of the large airframe makers.”
  • “There is speculation that Boeing would end up doing the same. The question becomes if Boeing were to do that, then it would be quite significant.”
  • “So, they have two pieces of the puzzle at the moment. One is will Boeing end up certifying and offering their clients and customers, the ability to end up like Airbus, having installed as an option initially, as well as can they end up getting further penetration in China.”

To view full segment, go to: http://www.bnn.ca/video/robert-mcwhirter-discusses-flyht-aerospace~1109362

QYOU CEO Presents At New York MicroCap Conference

Curt Marvis, CEO of QYOU Media Inc., presented the newly trading company to buy-side investors through a series of one-on-one meetings followed by a formal presentation to attendees at the annual MicroCap Conference in New York City.

Mr. Marvis delivers a compelling 23-minute presentation summarizing QYOU and its global opportunity of curating, programming and packaging premium short form web video.

To access the presentation, please click here.

Curt Marvis presenting at The MicroCap Conference on April 4, 2017

 

Trakopolis And Honeywell Expand Partnership To Tackle The World

This morning Trakopolis and Honeywell announced a renewal of their exclusive agreement, whereby the two companies will expand their joint sales and marketing efforts globally. Initial market research indicated a total addressable market in North America of approximately 150,000 units, the expansion to a global market clearly expands the total opportunity. The overall hardware and recurring revenue potential of this one product, the ConneXt Loneworker, is hundreds of millions of dollars.

Bottom line, Honeywell Analytics is the largest manufacturer and distributor of gas detectors in the world. Trakopolis’ IoT platform has enabled them to offer the market a new and unique, next generation product.

Also of note, the news release outlines a collaboration on utilizing the Trakopolis IoT Platform with other Honeywell connected safety products.  Management is pleased with the potential for furthering the revenue opportunities in the future.

To view today’s news release, please click here.

FLYHT’s 2016 Year End Conference Call Now Available Online

FLY:TSX-V

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.

Trakopolis’ Webinar on Advanced Analytics and Internet of Things Now Available Online

On March 23rd, Trakopolis’ Chief Revenue Officer Ted Duffield hosted a webinar on “connecting mobile assets to drive visibility and operational efficiency for businesses.” The 48 minute presentation profiled Honeywell’s ConneXt Lone Worker gas detector, which is powered by Trakopolis.

Here are some key highlights from the presentation:

  • Trakopolis has transitioned traditional asset tracking to an “Internet of Things” platform. Utilizing advanced analytics and providing business intelligence in real time to an organization.
  • Learn how connecting assets delivers a Return On Investment through either operations, safety and in many cases a combination of both.
  • Learn how Trakopolis and Microsoft can improve your business operations through the connectivity of your mobile assets, to provide real business intelligence you can make actionable decisions from
  • Demonstration of Power BI (Business Intelligence) transforms data into rich visuals that collects and organizes information on a desktop or mobile dashboard.
  • Key strategic (and exclusive) partnership with Honeywell in the development and commercialization of ConneXt Lone Worker solution.
  • ConneXt Lone Worker uniquely provides real-time visibility on the safety and productivity of remote workers.

To view the full webinar, please click here.

CEMATRIX – What $1.5 Million Of Tunnel Grouting Looks Like

CVX:TSX-V

CEMATRIX and its specialized cellular concrete solutions have many infrastructure applications.

Over the coming months, we will highlight various applications, shed more light on its countless possibilities, and add some colour to how cellular concrete is used.

Completed Tunnel

Recently, CEMATRIX completed a project for a new Canadian client. The $1.5 million project was for tunnel grouting at a hydroelectric facility outside of Pemberton, British Columbia. This was originally scheduled for completion in 2016, however it was pushed forward into early this year due to a forest fire in the Pemberton area last fall which resulted in an evacuation of the site.

Cellular concrete is a superior solution for grouting a tunnel for a myriad of reasons. This project took three weeks for CEMATRIX to pour with one of its high volume dry mix units, whereas traditional grouting would have taken months to complete because it is pumped slowly into the tunnel under high pressure and does not flow well. Cellular concrete, on the other hand, is produced and placed under low pressure and flows like lava because it is largely made up of trillions of tiny cement coated air bubbles that act like frictionless ball bearings.

Pouring Cellular Concrete

The project took place in the worst winter conditions in February/March, proving CEMATRIX is capable of working in extreme conditions year round.

CEMATRIX has been growing this application across Canada and the United States and sees tunnel grouting as a large part of its expected growth for years to come.

FLYHT VP Sales David Perez Talks About Success in China and Sales Growth

It has been almost two years since David Perez joined FLYHT as the VP Sales and Marketing, and Grant Howard, President of the Howard Group first spoke with him about the company’s opportunities.

It was time for an update on FLY’s progress on the sales and marketing front. Recently, Mr. Howard conducted a follow up interview and below are the topics that were discussed during the nearly 12 minute conversation:

  • Sales growth and reasons for growth since Mr. Perez joined the company,
  • FLYHT’s success in China and how the airline market is growing there,
  • FLYHT’s diversification into other regions of the world,
  • The company’s efforts in landing a large order from a tier 1 airline,
  • An overview of the overall realizable market for FLYHT’s technology.

To hear the full interview, see below or click here.

Trakopolis Featured in Canaccord’s Morning Coffee

This morning (March 1st 2017), Trakopolis was featured in Canaccord’s daily popular newsletter “Morning Coffee.” The publication focused on TRAK because of its recent strength in share price. In just two weeks shares of TRAK have risen 35% from $0.68 to where it sits today in the $0.90 range.

Below is the full article:

Trakopolis* (TRAK : TSX-V : $0.88), Net Change: 0.02, % Change: 2.33%, Volume: 80,450
TRAK-ING HIGHER. JOHN ARE YOU WATCHING?

Trakopolis, the telematics company, provides a user-friendly platform enabling location-based connectivity and cloud-based analytics. It is used by customers across multiple vertical markets to manage fixed and mobile assets (e.g., vehicles, workers, equipment) more efficiently and maximize operational performance and safety. The platform is cloud-based and powered by Microsoft (MSFT) Azure.

What differentiates TRAK is its scalability, the customizability/configurability of its platform, the ease in which new devices can be on-boarded and its carrier/hardware agnostic nature. The company offers a tailored solution at comparable prices to competitors’ standard offering.

In order to grow its market share at a faster pace, the company has partnered with large enterprises such as Microsoft, Bell (BCE), Honeywell (HON) and TELUS (T). The channel enablement program remains a strategic focus for TRAK, as part of its effort to benefit from the secular growth trends in the Internet Of Things (IoT) market. The company now has 340 customers, including several heavyweight reference customers in their respective sectors. The company has publicly stated near-term targets of driving to 500 customers, 25,000 subscriptions (from 11,000 today) and $10M in revenue (effectively doubling the trailing rate).

Click here to access the newsletter online.

CEMATRIX and Lafarge To Co-Develop Regional Cellular Concrete Markets

The CEMATRIX – Lafarge relationship has moved a couple of notches higher with today’s news that the companies have signed regional five-year agreements to develop mutually beneficial business opportunities.

This follows the signing last June of a five-year joint marketing agreement with the world’s largest cement company.

Since last year’s announcement, the two companies have been focused on growing business across Canada. CEMATRIX management has been training and educating Lafarge’s sales and marketing groups on the multiple applications and uses of cellular concrete. Today’s announcement of the new regional five-year agreement between Lafarge and CEMATRIX sheds some light on how this growth is expected to occur.

The two companies plan to place CEMATRIX equipment in a specific regional market where Lafarge has a sales force and physical presence and CEMATRIX does not. Lafarge will lease a ready mix unit from CEMATRIX, ancillary equipment and the needed staff for each project sold in that specific region. The plan is to roll out multiple regional agreements across the country as well as developing sales previously announced on larger supplied projects on a national basis.

Jeff Kendrick, CEO of CEMATRIX, stated, “It’s important to note that there is no technology transfer under either of the agreements.  The focus of both parties is to increase the sales of Lafarge cement and ready mix products by increasing sales of CEMATRIX cellular concrete across the country.”

To view news release, please click here.

Alex Ruus on FLYHT: “This Will Become, Over Time, a Global Standard for the Industry.”

FLY:TSXV

Arrow Capital Management portfolio manager Alex Ruus was very upbeat in response to a question regarding FLYHT Aerospace during yesterday’s appearance on BNN’s Market Call Tonight. FLYHT was selected as a “Top Pick” on an earlier episode of the show.

Here are some key points Mr. Ruus made about FLYHT during the segment.

  • “FLYHT is an ‘Internet of Things’ company for the aircraft industry.”
  • “They provide critical data streaming from planes to the ground.”
  • “I would argue that they are the leaders in that segment. They’ve done a deal with Airbus. I would argue that this will become, over time, a global standard for the industry.”
  • “After three or four years of struggling from a stock perspective. The stock has recently perked up and we think that that is just the start of great things to come.”
  • “Things are progressing there, we think there’ll be good news this year and we think the stock will go significantly higher.”

Please click here to watch the full segment.