— Cash Balance Steady with Last Year Due to Disciplined Cost Control —
— SaaS Revenue Represented 57% of Total, Driving 57% Gross Margins —
— Preparing for “Go Live” with First Actionable Intelligence Launch Partner —
CALGARY, Alberta, May 05, 2021 (GLOBE NEWSWIRE) — 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:
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 [email protected] before 1:00 pm MT (3:00 pm ET) on May 6, 2021 will be answered during the meeting.
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.
FNK IR LLC
Matt Chesler, CFA
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1 EBITDA: defined as earnings before interest, income tax, depreciation and amortization (a non-GAAP financial measure).