Calgary, Alberta – November 12, 2014 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) a leading provider of real-time data communications technology for the aviation industry today reported financial results for its third quarter ended September 30, 2014.
“Revenue for the quarter was the highest of the 2014 financial year,” stated Bill Tempany, Chief Executive Officer of FLYHT. “We feel strongly that FLYHT is uniquely positioned to make major inroads in our market as the industry strives to put systems in place to better track and monitor aircraft. Our relationships are strong, our presence in the industry well known and our technical and client servicing capabilities are ever improving. While the anticipation of regulations has slowed decisions by some airlines; our list of prospects and the pipeline of business we have built has never been stronger. AFIRS is poised to become the leader in meeting future real-time communication mandates as they emerge. As an example, we already have the process and products in place to meet the 2017 mandate for SatCom technology in China.”
Third Quarter Results Include:
– Revenue of $1,808,794 which represents the best quarter of the 2014 financial year. AFIRS Uptime usage increased 4% compared to Q3 2013 and now accounts for 51% of revenue.
– Net loss for the quarter at $1,653,147, compared to a Q2 loss of $46,925 and $615,950 loss in Q3 2013.
– Normalized net loss for the quarter was $1,132,162 (before $520,985 one-time charges for severance, recruitment and relocation costs incurred in the quarter), compared to $1,909,782 loss in Q2 (before the SNC litigation settlement and one-time charges).
– Modified Working Capital at the end of Q3 of $2,961,070 compared to $760,174 at December 31, 2013.
– Customer deposits of $1,070,854, an increase of 41.9% over the third quarter of 2013; payments received of $452,449 a decrease of 35.3% compared to the same quarter of 2013.
– Unearned revenue decreased to $1,272,206 or 14.9% from the third quarter of 2013 as revenue recognized has more closely matched sales shipped not installed and activated by customers.
– Recurring revenue (AFIRSTM UpTimeTM usage) of $927,117, an increase of 4.9% over the third quarter of 2013.
– Administration expenses increased to $985,756 versus the third quarter of 2013, or an increase of $412,624 consequent on recruitment costs and a separation payment for the retiring CFO.
– Net finance costs decreased $61,562 to $166,207 in the third quarter of 2014 due to additional foreign exchange gains.
– In July, FLYHT announced that its partner L-3 Aviation Recorders received Airbus’ formal notification of certification for the L-3 AFIRS 228S for the Airbus A320 family of aircraft.
– In July, FLYHT signed a contract with a national carrier of an African airline for the AFIRS 220 on three Boeing 737-500 aircraft and the AFIRS 228 for DHC-8-Q400, B737-700 and the ERJ190 aircraft.
– Also, in July, FLYHT received a re-issued STC for the Hawker Beechcraft 700/800/900 model aircraft from the FAA for the AFIRS 228.
– In August, FLYHT announced the appointment of Mr. John Belcher and Mr. Barry Eccleston to the board of directors.
– In September, FLYHT appointed Ms. Nola Heale, CA as the new CFO upon the retirement of Mr. Thomas French.
For detailed information FLYHT’s 2014 Third Quarter 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://www.flyht.com/investors/financial-reports-results-centre/. The MD&A and Financial Statements have also been sent to SEDAR and will be accessible at www.sedar.com.
FLYHT will host a live conference call to discuss third quarter results on Thursday, November 13 at 9 am MDT (11 am EDT, 8 am PDT).
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 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. Also questions can be forwarded 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 (www.flyht.com) as soon as it is available.
As part of the formal stock option plan approved at the Annual General Meeting held in June 2014, the senior operations manager, Mr. Matieu Plamondon, has been granted incentive stock options of the Corporation at a price of $0.40 per share for a period of three years, subject to regulatory approval. A maximum of 10% of the issued shares are reserved for issuance for the Corporation’s Stock Option Policy. The options vest immediately and are subject to a four month hold period.
About FLYHT Aerospace Solutions Ltd.
FLYHT provides proprietary technological products and services designed to reduce costs and improve efficiencies in the airline industry. The Company has patented and commercialized three products and associated services currently marketed to airlines, manufacturers and maintenance organizations around the world. Its premier technology, AFIRS™ UpTime™, allows airlines to monitor and manage aircraft operations anywhere, anytime, in real time. If an aircraft encounters an emergency, FLYHT’s triggered data streaming mode, FLYHTStream™, automatically streams vital data, normally secured in the black box, to designated sites on the ground in real-time. The Dragon is FLYHT’s latest product, a revolutionary light weight portable satellite communications device that blends existing FLYHT technology with that of the iPad.
AFIRS, UpTime, the Dragon, FLYHTStream and AeroQ are trademarks of FLYHT Aerospace Solutions Ltd.
FLYHT Aerospace Solutions Ltd.
Nola Heale, CA
Chief Financial Officer
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