FLYHT Aerospace Solutions Ltd. (TSX-V: FLY)
(OTCQX: FLYLF) (the “Company” or “FLYHT”) today reported financial
results for the first quarter ended March 31, 2021.
“The first quarter results reflect what we expect to be the
worst of the pandemic's impact on travel and our business,” said
Bill Tempany, Interim CEO. “We are already observing many of our
customers actively readying their operations for the expected
return of passengers to the skies. FLYHT will be there to support
their recovery with existing and new solutions, executing on our
exciting strategic initiatives. We expect to show significantly
improved financial performance over the coming quarters as
vaccinations unleash pent-up demand for travel, and as airlines
recover their ability to deliver services to their customers. The
impact of trained pilots, suitable aircraft configurations and
government regulations all will continue to be factors.
Tempany continued, “As has been the case in prior quarters, we
saw mixed performance across geographies, customer categories and
service lines. This is likely to continue even in recovery and
reflects the strategic diversification of our global business and
uneven pace of the recovery. Strength in cargo and specialty
carriers, which collectively represent approximately 19% of our
business, was more than offset by a lack of international and
business travel which remain restricted due to closed borders and
continued social distancing. Despite this, we shipped 17 AFIRS
hardware kits in the first quarter which was up from only 3 in Q1
2020; licensing improved sequentially from the prior two quarters;
and even with these headwinds, we held the line on cash compared to
last year.”
"There is a lot of excitement in the halls at FLYHT. We are
launching new products and services within our Actionable
Intelligence suite and the AFIRS family of products which cover a
wide spectrum of aircraft, communication methods, and geographies.
As we announced on May 4 we have also recently signed on a new
customer, Waltzing Matilda."
Concluded Tempany, “We are well-positioned, given our cash
reserves and current recovery trends, to see a significant
improvement in our operating results as we move through 2021 and
2022 as the vaccination rollout continues and pandemic related
travel restrictions dissipate.”
First Quarter 2021 Financial Overview
Total revenue decreased by 49% to $2,691,275 compared to the
first quarter of 2020. This decline was attributable to decreases
in SaaS and Licensing revenue partially offset by increases in
Hardware and Technical Services revenue. SaaS revenue decreased by
44% from a record high in Q1 2020 to $1,539,825 and Licensing
revenue decreased by 92% from Q1 2020 to $182,181. Hardware revenue
increased 265% from Q1 2020 to $831,704 and Technical Services
revenue increased by 111% from Q1 2020 to $137,565.
Gross margin was 57% of revenue compared to 75% in the first
quarter of 2020. The decrease in gross margin was due primarily to
changes in the mix of revenue sources during the quarter, as Q1
2021 revenue included a larger contribution from Hardware, which
has the lowest gross margin among revenue sources, compared to Q1
2020.
Operating expenses decreased by 49% from the first quarter of
2020, with all categories contributing to the decrease.
Distribution expenses by 52%, Administration expenses by 30%, and
Research and Development and certification engineering expenses by
1%. This decrease reflects the Company’s cost containment
efforts.
Negative EBITDA1 totaled $1,000,616 in the quarter compared to
positive EBITDA of $729,438 in the first quarter of 2020.
Net Loss was $912,068, compared to a net profit of $686,022 in
Q1 2020.
Balance Sheet and Liquidity
FLYHT’s balance sheet ended the quarter with cash and short-term
investments balances of $3,871,741, a decrease from 2020’s ending
balance of $5,127,963, and comparable to Q2 2020’s ending cash
balance of $3,702,824.
Trade and other receivables increased by 14% from 2020 year-end,
and customer deposits increased by 75% since December 31, 2020.
Conference Call Information
FLYHT will discuss its first quarter 2021
financial results at its Annual and Special Meeting to be held
virtually at 2:00 pm MT (4:00 pm ET) on Thursday, May 6, 2021. The
meeting will be held online, accessible at:
-
Webcast:
https://us02web.zoom.us/j/81230661488?pwd=UTFqM2xTbUVJU2NtaXE1UENxTGlaQT09
- Webinar
ID: 812 3066 1488
-
Password: 426805
The meeting is also accessible by phone at:
- Dial-in
(Canada): +1 647 558 0588 or +1 778 907 2071 or
+1 438 809 7799 or +1 587 328 1099 or +1 647 374 4685
- Dial-in
(U.S.): +1 312 626 6799 or +1 346 248 7799 or +1
669 900 6833 or +1 929 205 6099 or +1 253 215 8782 or +1
301 715 8592
-
International numbers available:
https://us02web.zoom.us/u/kclfqexD5
An archived video of the meeting will be posted
on the Investor Communications section of FLYHT’s website,
following the meeting.
Questions submitted to investors@flyht.com before 1:00 pm MT
(3:00 pm ET) on May 6, 2021 will be answered during the
meeting.
Additional Information
FLYHT’s Q1 2021 Report, which contains more detailed information
including the CEO’s Letter to Shareholders, Management Discussion
and Analysis and Financial Statements, can be accessed on the
Company’s website. The MD&A and Financial Statements have also
been filed with SEDAR and will be accessible
at www.sedar.com.
About FLYHT Aerospace Solutions
Ltd.
FLYHT provides airlines with Actionable
Intelligence to transform operational insight into immediate,
quantifiable action, delivering industry leading solutions to
improve aviation safety, efficiency and profitability. This unique
capability is driven by FLYHT’s patented aircraft certified
hardware products including AFIRS™, a satcom aircraft interface
device which enables real-time streaming of flight information,
cockpit voice and black box data streaming and TAMDAR™, which
aggregates and streams airborne weather data in real-time. FLYHT is
headquartered in Calgary, Canada with an office in Littleton,
Colorado, and is an AS9100 Quality registered company. For more
information, view our latest presentation here, or
visit www.flyht.com
Cautionary Note Regarding
Forward-Looking Statements
Except for statements of historical fact, this
news release contains certain "forward-looking information" within
the meaning of applicable securities law. Forward-looking
information is frequently characterized by words such as "plan",
"expect", "project", "intend", "believe", "anticipate", "estimate"
and other similar words, or statements that certain events or
conditions "may" or "will" occur. In particular, forward-looking
information in this press release includes, but is not limited to,
statements with respect to the anticipated/projected revenues and
related matters. Although we believe that the expectations
reflected in the forward-looking information are reasonable, there
can be no assurance that such expectations will prove to be
correct. We cannot guarantee future results, performance or
achievements. Consequently, there is no representation that the
actual results achieved will be the same, in whole or in part, as
those set out in the forward-looking information.
Forward-looking information is based on the
opinions and estimates of management at the date the statements are
made and are founded on the basis of expectations, assumptions and
hypotheses made by the Company, including, but not limited to
projected revenues. Such forward-looking information is subject to
a variety of risks and uncertainties and other factors that could
cause actual events or results to differ materially from those
anticipated in the forward-looking information. Some of the risks
and other factors that could cause the results to differ materially
from those expressed in the forward-looking information include,
but are not limited to: general economic conditions in Canada, the
United States and globally; industry conditions, and supply chain
delays. Readers are cautioned that this list of risk factors should
not be construed as exhaustive.
The forward-looking information contained in
this news release is expressly qualified by this cautionary
statement. We undertake no duty to update any of the
forward-looking information to conform such information to actual
results or to changes in our expectations except as otherwise
required by applicable securities legislation. Readers are
cautioned not to place undue reliance on forward-looking
information.
Contact Information:
FLYHT Aerospace Solutions
Ltd. Alana
Forbes
Chief
Financial Officer
403.291.7437
aforbes@flyht.com investors@flyht.com
FNK IR LLCMatt Chesler,
CFAInvestor Relations646.809.2183flyht@fnkir.com
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Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
1 EBITDA: defined as earnings before interest, income tax,
depreciation and amortization (a non-GAAP financial measure).
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