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.

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.

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.

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

TMX Group Interviews LGC Capital Co-Chairman Mazen Haddad

QBA:TSX-V

The TMX Group very recently posted an interview with Mazen Haddad, Co-Chairman of LGC Capital in which he provides a compelling business case overview for the multi-strategy Cuban focused investment company.

Here are some key highlights from the interview.

  • “We see a lot of potential in Cuba. It will allow investors a chance to get exposure to Cuba because there isn’t really another place to go for that type of exposure.”
  • “The major growth opportunities are driven by the warming of relations between the U.S. and Cuba. The U.S. consumer and tourists coming to the island are driving a lot of new growth opportunities in Cuba.”
  • “Our investors have a lot to look forward to in the next year, year and a half. There’s going to be a lot of events for sports, and it’ll be exposure to multi-national events in Cuba on sports. We already announced the October 7 friendly between the U.S.A and Cuba, in a few months there will probably be a baseball game as well and go on and on from there. The other opportunity that we are very excited about is developing the coffee crop with Cuba Mountain Coffee and Nespresso. Nespresso has expressed a deep interest in progressing with Cuba Mountain Coffee, specifically to supply the North American market.”

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

KeyStone Initiates Coverage On CEMATRIX With A SPEC BUY

Keystone Financial has been following CEMATRIX closely for some time. Based on financial results from a stellar 2015, analyst’s Ryan Irvine and Aaron Dunn believe the inflection point has come and it was time to introduce CEMATRIX to its audience of investors.

We quote from the report, “CEMATRIX’s 2015 was a record for the company both in terms of revenues and profitability. The company earned $0.046 per share and with its current trading price in the $0.37 range, its trailing PE is a multiple of around 8. Given the growth the company is forecasting in terms of a potential revenue bump to the $25 million range, the stock would appear cheap. Having said this, the revenue growth will not come without near-term costs and the forecasts are not without risk.

The initial research report recommends that its readers should acquire a starting position in CEMATRIX at current prices  with the intention of filling a full position over the course of the next 3-12 months.

CEMATRIX continues to focus its sales efforts in the ever growing infrastructure market and KeyStone believes that if success in this market continues, then 2017 sets up as a “breakthrough” year.

To read the full report, please click here.