CALGARY, Alberta, April 10, 2018 (GLOBE NEWSWIRE) -- FLYHT Aerospace Solutions Ltd. (TSX-V:FLY) (OTCQX:FLYLF) (the “Company” or “FLYHT”), a leader in real-time data and communication technologies in the aerospace industry has reported financial results for the quarter and year ended December 31, 2017.
“FLYHT had a strong 2017 shipping AFIRS hardware kits which helped to offset significantly lower license fees collected in the Parts revenue category,” stated Thomas R. Schmutz, Chief Executive Officer of FLYHT. “Our overall revenue in the past two years was essentially the same. The profitability difference was largely decided by the one-time IP license income in 2016 which was absent in 2017.”
Fourth Quarter Results Include:
- Revenue of $3,579,296, which represents a 13% decrease over the fourth quarter of 2016.
- AFIRS hardware revenue of $1,502,910, an increase of 76% over the fourth quarter of 2016, and parts sales $1,045,075, a decrease of 50.0%.
- Gross profit was 57% of revenue compared to 75% for the fourth quarter of 2016.
- EBITDA1 of negative $396,707 in the quarter compared to positive $243,017 in the same quarter of 2016.
- Net loss of $520,428, which was a decrease of $600,137 over the $79,709 net income in the fourth quarter of 2016.
- Distribution expenses were $1,170,695 representing a decrease of $253,516 compared to the fourth quarter of 2016, attributable mainly to staffing costs.
- Administration expenses increased by 2% to $745,423 in the quarter; an increase of $26,236 due to license costs associated with the enterprise resource planning software.
- Customer deposits of $1,687,971 at quarter end were a 431% increase from Q4 2016 and payments received were $1,289,346 higher than the same quarter last year as large prepayments were received in Q4 2017 for installation kit deliveries planned for Q1 2018. The value of deposits moved to unearned revenue was $1,219,644, an increase of $517,062 compared to Q4 2016.
- Unearned revenue decreased in the quarter to $413,809 from $827,235 or 50% lower than the fourth quarter of 2016.
- Revenue recognized on AFIRS units shipped was $742,317 higher than in Q4 2016. Revenue was recognized for 27 installation kits in Q4 2017 compared to 12 in the fourth quarter of 2016. In 2017, revenue was recognized for 81 kits, compared to 73 in 2016.
- The value of AFIRS units shipped in Q4 2017 was a 74% increase from 2016.
Year Results Include:
1 EBITDA: defined as earnings before interest, income tax, depreciation and amortization (a non-GAAP financial measure).
- Revenue of $14,018,750 which represents a decrease of 2% compared to 2016. Revenue was flat mainly because the decrease in parts sales was offset by an increase in AFIRS unit sales in 2017.
- AFIRS sales were $4,600,520, an increase of 17% and recurring revenue (voice and data services) was $4,312,701, a decrease of 1% over 2016.
- Gross profit for 2017 was 66% of revenue compared to 68% in 2016.
- EBITDA of negative $1,239,711; a $3,743,321 decrease from the $2,503,610 positive EBITDA in 2016, mainly due to the one-time income of an IP license fee of $3,223,166 in 2016.
- Net loss for the year was $1,755,615 compared to an income of $1,712,718 in 2016, a decrease of 203%.
- Distribution expenses were $4,951,471 which was a 1% increase of $44,432 from 2016 due to higher marketing costs and bad debt reserves required, partially offset by lower people cost due to an increased allocation to research and development activities.
- Administration expenses increased by 2% to $3,158,529 from $3,087,656 in 2016, due to license costs associated with the enterprise resource planning software and depreciation, offset by a decrease in legal fees.
- R&D expenses totalled $2,519,274, a decrease of 3% from 2016 due mainly to a settlement of warranty claim in 2016, funding received from WINN which offset higher people costs in this category as R&D activities increased into 2017.
- Net finance costs decreased 49% in 2017 to $363,506, as the debentures redeemed in 2016 had no financial effect on 2017 results.
- Cash increased throughout 2017, with a net used in operating activities of $159,891, and a net overall increase of $1,383,941. Q1 operating activities absorbed cash of $292,087, Q2 generated cash of $1,162,445, Q3 absorbed $401,053 and Q4 absorbed $24,124. WINN contributions totalled of $1,080,658 was received in the year.
- At year end, current assets exceeded current liabilities by $1,761,003 (30%) and total assets exceeded total liabilities by 29% ($1,119,563). In 2016, these were $1,724,190 and $1,877,359 respectively.
Detailed information in FLYHT’s 2017 Annual 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 will host a live conference call to discuss fourth quarter results on Wednesday, April 11, 2018 at 7 am MDT (9 am EDT, 6 am PDT). The conference call will include a brief presentation about FLYHT’s fourth quarter and year end results followed by a question and answer period with management.
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 in advance or during the conference call 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 (AFIRSTM) on their aircraft to capture, process and stream aircraft data with real-time alerts. AFIRS sends this information through satellite networks to the UpTimeTM 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.
FLYHT Aerospace Solutions Ltd.
Chief Financial Officer
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Source: FLYHT Aerospace Solutions Ltd.