Scott Chambers named VP Sales and Marketing and Murray Skelton named VP Business Development

Calgary, Alberta – August 11, 2022 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today announced two additions to its leadership team effective September 1, 2022. Both additions bring significant experience and expertise to its commercial organization and improve the Company’s go-to-market position.

  • Scott Chambers has been named Vice President Sales and Marketing. Scott brings over a quarter of a century of aviation sales and market experience, most recently as Director of Sales, Americas at Teledyne Controls.
  • Murray Skelton has been named Vice President Business Development. Murray adds 23 years of aviation product development, marketing and direct sales experience. He formerly served as Senior Director of Business Development and headed the EMEA (Europe, Middle East, Africa) sales effort for the last two years at Teledyne Controls. He brings a wealth of customer and market knowledge to FLYHT through more than two decades of aviation experience in product development, direct marketing and a proven sales record.

Bill Tempany, Chief Executive Officer of FLYHT, stated, “Attracting the caliber of individuals such as Scott and Murray to our organization is important, occurring at a critical time as the aviation industry continues to recover and as FLYHT asserts its growing prominent position. As we execute on our U.S. and European sales growth strategy, we are building a team of highly experienced industry executives and these two new team members are an invaluable addition.”

Mr. Chambers commented, “FLYHT has tremendous potential, between its technology, products and people, and I look forward to collaborating with the entire team to convert that potential into a reality.”

Mr. Skelton added, “The team at FLYHT are innovative, motivated and with new products launching in the market very soon, I am excited about the prospects. It is also going to be great working with former colleagues again.”

Derek Taylor will transition from VP Sales and Marketing to VP Strategic Opportunities. This change for Mr. Taylor will allow him to focus more directly on the types of opportunities that he has so successfully closed for FLYHT in the past. “As FLYHT expands our Sales team, working closely with Scott and Murray represents an opportunity for FLYHT to engage the industry in a powerful way. I am excited to welcome them to our team and to begin working together.”

In keeping with previous practice, FLYHT has granted incentive options for an aggregate of 40,000 common shares, subject to regulatory approval under the stock option plan approved at the Annual and Special Meeting held on May 4, 2022. The stock options are exercisable at a price of $0.82 per share. These options will vest 1/3 on each of August 10, 2023, 2024 and 2025, and will expire on August 10, 2026. A maximum of 10% of the issued and outstanding shares are reserved under the Company’s stock option plan. The options, and any common shares issued upon exercise of the stock options, are subject to a four-month resale restriction.

About FLYHT Aerospace Solutions Ltd.

FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, and delivers industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by a suite of patented aircraft certified hardware products. These include AFIRS™, an aircraft satcom/interface device, which enables cockpit voice communications, real-time aircraft state analysis, and the transmission of aircraft data while inflight. The AFIRS Edge is a state-of-the-art 5G Wireless Quick Access Recorder (WQAR), Aircraft Interface Device (AID), and Aircraft Condition and Monitoring System (ACMS). The Edge can be interfaced with FLYHT’s TAMDAR probe or the FLYHT-WVSS-II relative humidity sensor to deliver airborne weather and humidity data in real-time.

CrossConsense, FLYHT’s wholly owned subsidiary, offers highly skilled services to the commercial aviation industry and provides preventative maintenance solutions. These include Aircraft Fleet View, a native application that gives a real-time view of airline fleet status; AviationDW, a managed data warehouse for enhanced business intelligence; and ACSIS, a visualization and predictive maintenance alerting tool.

FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. CrossConsense, located in Frankfurt, Germany, is an ISO9001 certified operation. For more information, visit www.flyht.com.

Contact Information:

FLYHT Aerospace Solutions Ltd.                FNK IR LLC                       

Alana Forbes                                                  Matt Chesler, CFA

Chief Financial Officer                                   Investor Relations

403.291.7437                                                    646.809.2183

aforbes@flyht.com                                         flyht@fnkir.com

investors@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 FLYHT believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. FLYHT 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: global economic conditions; 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. FLYHT undertakes 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.

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.

SaaS Growth of 49%; Sale Contracted in May 2022 to Fund Business Plan to Cash Flow Positive

Calgary, Alberta – August 10, 2022 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today reported financial results for the second quarter ended June 30, 2022 (“Q2 2022”). All figures are Canadian dollars unless otherwise stated.

Financial Summary

 

Three Months Ended June 30

 

Six Months Ended June 30

 20222021Inc./ Dec. 20222021Inc./ Dec.
Revenue$4,881,372$2,926,12266.8%$9,912,029$5,617,39776.5%
  SaaS2,155,9121,446,22149.1%3,830,9842,986,04528.3%
  Hardware912,6821,404,193-35.0%3,022,2802,235,89735.2%
  Licensing1,399,9037,92417566.6%2,534,609190,1051233.3%
  Technical Services412,87567,784509.1%524,156205,350155.3%
Gross Margin55.8%52.4%340 bps55.2%54.4%80 bps
EBITDA(905,780)(980,611)NM(1,843,412)(1,981,227)NM
Net Income (Loss)(1,141,140)(1,395,889)NM(2,425,487)(2,307,957)NM
EPS – Basic & Diluted(0.03)(0.05)0.02(0.07)(0.08)0.01

 

Management Commentary

“FLYHT delivered improved results quarter over quarter, demonstrating the increasing traction we have in our business as well as the unfolding recovery of our airline customers,” said Bill Tempany, Interim CEO. “We delivered the second highest revenue quarter in two years driven by growth in SaaS, Licensing and Technical Services, as well as the first full quarter including CrossConsense in our financial results. Revenue of $4.9 million would have been even stronger without licensing shipment delays resulting from short-term supply chain issues at quarter end. Shipments of licensing revenue in the first week of Q3 which were originally scheduled for Q2 amounted to another $900k and likely would have pushed revenue closer to record territory. With the momentum and visibility we have, I am confident that we are on track for a solid year in 2022.”

Added Tempany, “Delivery in Q2 of the first few shipments of modems and associated licenses under the purchase order for $5.65 million USD announced on May 4, 2022 contributed to our Q2 increases in the Licensing revenue category. We anticipate delivering on the full purchase order requirements over the remaining quarters of 2022, which will more than provide the funding for FLYHT to execute on our business plan.

Concluded Tempany, “The AFIRS Edge is without a doubt the biggest opportunity that FLYHT has had in years. Driven by the demise of 2G and 3G networks, there is a massive replacement cycle ahead of the global aviation industry, which we think favors FLYHT since we have the only multi-function 3G, 4G and 5G capable solution to serve the estimated 15,000 aircraft around the world. We are making good progress in order to be able to realize this opportunity: the first manufactured AFIRS Edge units have been received from our supplier and are undergoing the final testing and certification steps, while development on the A320 and B737 Supplemental Type Certificates (STC’s) is well underway.”

Operating Results

Revenue increased by 67% to $4,881,372 in Q2 2022 compared to Q2 2021, driven by growth in SaaS, Licensing and Technical Services, including $1,144,590 of contribution from CrossConsense which was consolidated into FLYHT’s results beginning March 17, 2022. Excluding CrossConsense, revenue increased 28% compared to Q2 2021.

SaaS revenue increased by 49% to $2,155,912 in Q2 2022. The addition of a full quarter of CrossConsense SaaS revenues more than offset a decrease of 5.1% in AFIRS SaaS revenues resulting from a drop in customers’ flight hours and active aircraft in some geographies with recent waves of the pandemic. Licensing revenue increased from $7,924 to $1,399,903 due to increases in the number of modems and associated license fees ordered for delivery in comparative periods, as the Company began delivering on an order received in mid-Q2 2022 for US$5.65 million. Technical Services revenue increased by 509% to $412,875 with contributions from CrossConsense services offsetting a decrease of 32.9% from traditional services. Hardware revenue decreased by 35% to $912,682 offsetting a portion of the large increases in hardware shipments seen in Q1 2022. A total of 46 installation kits were shipped YTD 2022 compared withing to 41 shipped YTD 2021.

Gross margin was 56% of revenue in Q2 2022 compared to 52% in Q2 2021. The increase in gross margin was due primarily to changes in the mix of revenue sources during the quarter.

Operating expenses increased by 40% from Q2 2021, driven by a 50% increase in Distribution expenses by 50% and an 84% increase in Administration expenses Research and Development and certification engineering expenses were flat compared to Q2 2021. These increases were largely driven by the Q2 2022 inclusion of a full quarter of CrossConsense’s contributions.

EBITDA[1] loss totaled $905,780 in Q2 2022 compared to EBITDA loss of $980,611 in Q2 2021.

Net loss was $1,141,140 in Q2 2022 compared to Net loss of $1,395,889 in Q2 2021.

Balance Sheet and Liquidity

Cash and short-term investments were $2,431,920 at June 30, 2022, compared to $4,520,591 at December 31, 2021.

Trade and other receivables increased by 102% to $3,216,068 compared to YE 2021, and Trade payables and accrued liabilities increased by 68% to $2,855,923 compared to YE 2021. The combination of the addition of CrossConsense working capital balances calculated as part of the acquisition purchase price allocation, in tandem with increased sales in Q2 and associated costs resulted in an increase in both the receivables and payables balances.

Conference Call Information

FLYHT will host a conference call to discuss its second quarter 2022 financial results on Thursday, August 11, 2022, at 7:30am MT (9:30 am ET). The conference call will include a brief presentation from FLYHT’s Interim CEO Bill Tempany and CFO Alana Forbes followed by a question-and-answer session. To access the conference call by phone within Canada and the U.S., the toll-free number is 1-800-319-4610. Outside Canada and the U.S., dial 1-604-638-5340. Callers should dial in five to ten 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 toinvestors@flyht.com. An archive of the conference call will be posted on the Investor Communications section of FLYHT’s website following the meeting.

Additional Information

FLYHT’s Q2 2022 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.

Incentive Options Granted

FLYHT has granted incentive options for an aggregate of 135,000 common shares, subject to regulatory approval, to consultants under the stock option plan approved at the Annual and Special Meeting held on May 4, 2022.

The stock options are exercisable at a price of $0.82 per share. A total of 15,000 options will vest 1/3 on each of August 10, 2023, 2024 and 2025, and will expire on August 10, 2026. A total of 120,000 options will vest quarterly on each of November 10, 2022, February 10, May 10 and August 10, 2023 and will expire August 10, 2026. A maximum of 10% of the issued and outstanding shares are reserved under the Company’s stock option plan. The options, and any common shares issued upon exercise of the stock options, are subject to a four-month resale restriction.

 

About FLYHT Aerospace Solutions Ltd.

FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, and delivers industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by a suite of patented aircraft certified hardware products. These include AFIRS™, an aircraft satcom/interface device, which enables cockpit voice communications, real-time aircraft state analysis, and the transmission of aircraft data while inflight. The AFIRS Edge is a state-of-the-art 5G Wireless Quick Access Recorder (WQAR), Aircraft Interface Device (AID), and Aircraft Condition and Monitoring System (ACMS). The Edge can be interfaced with FLYHT’s TAMDAR probe or the FLYHT-WVSS-II relative humidity sensor to deliver airborne weather and humidity data in real-time.

CrossConsense, FLYHT’s wholly-owned subsidiary, offers highly skilled services to the commercial aviation industry and provides preventative maintenance solutions. These include Aircraft Fleet View, a native application that gives a real-time view of airline fleet status; AviationDW, a managed data warehouse for enhanced business intelligence; and ACSIS, a visualization and predictive maintenance alerting tool.

FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. CrossConsense, located in Frankfurt, Germany, is an ISO9001 certified operation. For more information, 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.                            FNK IR LLC

Alana Forbes                                                              Matt Chesler, CFA

Chief Financial Officer                                               Investor Relations

403.291.7437                                                               646.809.2183

aforbes@flyht.com                                                     flyht@fnkir.com

investors@flyht.com

 

Join us on social media!

www.twitter.com/flyhtcorp

https://www.linkedin.com/company/flyht/

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). EBITDA is provided to aid in analysis and profitability comparisons among companies and industries, by segregating operating results from the effects of financing and capital expenditures.

Calgary, Alberta – August 3, 2022 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today announced that it will host a conference call to discuss results for its second quarter ended June 30, 2022, on Thursday, August 11, 2022, at 7:30 a.m. MT (9:30 a.m. ET). The conference call will include a brief presentation followed by a question-and-answer session with Bill Tempany, Interim CEO, and Alana Forbes, CFO.

To access the conference call by phone within Canada and the U.S., the toll-free number is 1-800-319-4610. Outside Canada and the U.S., dial 1-604-638-5340. Callers should dial in five to ten 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 investors@flyht.com.

An archive of the conference call will be posted on the Investor Relations section of FLYHT’s website as soon as it is available from the conference call provider.

About FLYHT Aerospace Solutions Ltd.

FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, and delivers industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by a suite of patented aircraft certified hardware products. These include AFIRS™, an aircraft satcom/interface device, which enables cockpit voice communications, real-time aircraft state analysis, and the transmission of aircraft data while inflight. The AFIRS Edge is a state-of-the-art 5G Wireless Quick Access Recorder (WQAR), Aircraft Interface Device (AID), and Aircraft Condition and Monitoring System (ACMS). The Edge can be interfaced with FLYHT’s TAMDAR probe or the FLYHT-WVSS-II relative humidity sensor to deliver airborne weather and humidity data in real-time.

CrossConsense, FLYHT’s wholly owned subsidiary, offers highly skilled services to the commercial aviation industry and provides preventative maintenance solutions. These include Aircraft Fleet View, a native application that gives a real-time view of airline fleet status; AviationDW, a managed data warehouse for enhanced business intelligence; and ACSIS, a visualization and predictive maintenance alerting tool.

FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. CrossConsense, located in Frankfurt Germany, is an ISO9001 certified operation. For more information, visit www.flyht.com.

Contact Information:

FLYHT Aerospace Solutions Ltd.                                 FNK IR LLC

Alana Forbes                                                                   Matt Chesler, CFA

Chief Financial Officer                                                    Investor Relations

403.291.7437                                                                    646.809.2183

aforbes@flyht.com                                                          flyht@fnkir.com

investors@flyht.com

 

Join us on social media!

www.twitter.com/flyhtcorp

https://www.linkedin.com/company/flyht/

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.

Calgary, Alberta – June 30, 2022 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) announced today that it has granted incentive stock options for an aggregate of 300,000 common shares, subject to regulatory approval, to employees under the stock option plan approved at the Annual and Special Meeting held on May 4, 2022.

The stock options are exercisable at a price of $0.64 per share. The options will vest immediately and will expire June 30, 2023. A maximum of 10% of the issued and outstanding shares are reserved under the Company’s stock option plan. The options, and any common shares issued upon exercise of the stock options, are subject to a four-month resale restriction.

About FLYHT Aerospace Solutions Ltd.

FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, and delivers industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by a suite of patented aircraft certified hardware products. These include AFIRS™, an aircraft satcom/interface device, which enables cockpit voice communications, real-time aircraft state analysis, and the transmission of aircraft data while inflight. The AFIRS Edge is a state-of-the-art 5G Wireless Quick Access Recorder (WQAR), Aircraft Interface Device (AID), and Aircraft Condition and Monitoring System (ACMS). The Edge can be interfaced with FLYHT’s TAMDAR probe or the FLYHT-WVSS-II relative humidity sensor to deliver airborne weather and humidity data in real-time.

CrossConsense, FLYHT’s wholly-owned subsidiary, offers highly skilled services to the commercial aviation industry and provides preventative maintenance solutions. These include Aircraft Fleet View, a native application that gives a real-time view of airline fleet status; AviationDW, a managed data warehouse for enhanced business intelligence; and ACSIS, a visualization and predictive maintenance alerting tool.

FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. CrossConsense, located in Frankfurt, Germany, is an ISO9001 certified operation. For more information, visit www.flyht.com.

Contact Information:

FLYHT Aerospace Solutions Ltd.                           FNK IR LLC

Alana Forbes                                                             Matt Chesler, CFA

Chief Financial Officer                                              Investor Relations

403.291.7437                                                               646.809.2183

aforbes@flyht.com                                                    flyht@fnkir.com

investors@flyht.com

 

Join us on social media!

www.twitter.com/flyhtcorp

https://www.linkedin.com/company/flyht/

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.