Returns to Topline Growth, Completes Financing of $5,000,000
CALGARY, AB / ACCESSWIRE / May 29, 2024 / FLYHT Aerospace Solutions Ltd. (TSXV:FLY)(OTCQX:FLYLF) (the "Company" or "FLYHT") today reported financial results for the first quarter ended March 31, 2024 ("Q1 2024"). All figures are Canadian dollars unless otherwise stated.
| Three Months Ended March 31 | ||||||||||||
| 2024 | 2023 | Variance | ||||||||||
Revenue | 4,790,594 | 4,757,230 | 1 | % | ||||||||
SaaS | 2,763,716 | 2,413,200 | 15 | % | ||||||||
Hardware | 663,532 | 1,771,445 | -63 | % | ||||||||
Licensing | 79,159 | 8,737 | 806 | % | ||||||||
Technical Services | 1,284,187 | 563,848 | 128 | % | ||||||||
Gross Margin | 64.0 | % | 57.3 | % | +670 bps | |||||||
EBITDA | (594,005 | ) | (1,343,914 | ) | NM | |||||||
Net Income (Loss) | (794,382 | ) | (1,657,114 | ) | NM | |||||||
EPS - Basic & Diluted | (0.02 | ) | (0.04 | ) | 0.02 | |||||||
Financial Summary
"FLYHT is off to a good start in 2024 as we returned to growth in the first quarter," said Kent Jacobs, President and Interim CEO. "Our SaaS revenues are continuing to increase at double-digit rates, representing over half of the company revenue, and earning attractive 60%+ gross margins. Additionally, growing traction by CrossConsense drove continued strength in Technical Services revenue, which increased 128% to $1.3 million making it our highest ever quarter for that revenue category. We significantly narrowed our EBITDA loss to $594,000 despite investing behind development and commercialization of our new products, demonstrating the operating leverage potential of our revenue model as we bring these products to market."
Jacobs added, "With the receipt of the Supplemental Type Certificate ("STC") for the AFIRS Edge™ on Airbus A320 aircraft during the first quarter, the flange version Edge is now being installed on our customer's fleet. Our expanded relationship with Once Stop Systems, Inc. (NASDAQ:OSS) to manufacture our 5G enabled AFIRS Edge solution, including the new AFIRS Edge+, ensures that FLYHT can meet the market demand for this solution."
Continued Jacobs, "FLYHT moves into the commercialization phase of our newest product set with a large pipeline of opportunity, and, per the loan agreement announced today, expanded financial resources to support our growth plans. Both Captain Mary Millian, who has been working by my side on optimizing our go to market strategy and execution path since assuming the Executive Chairman position last fall, and myself are confident in our strategy and our ability to bring our innovative aviation and weather solutions to market - so that we can generate value for our customers, our team and our loyal shareholders."
Operating Results
Revenue increased by 1% to $4,790,594 in Q1 2024 compared to Q1 2023, driven by growth in SaaS, Licensing and Technical Services. Excluding hardware, revenue would have increased 38% during the quarter.
SaaS revenue increased by 15% to $2,763,716 in Q1 2024, driven by an increase in key customers' fleet size, as well as growth in weather related software services. Licensing revenue increased by 806% to $79,159 due to the differences in the associated license fees realized in comparative periods. Hardware revenue decreased by 63% to $663,532, with a total of 6 installation kits shipped in Q1 2024 compared to 32 kits shipped in Q1 2023. Technical Services revenue increased by 128% to $1,284,187 as a result of AMOS data migration work delivered and an increase in customer requests for certification services.
Gross margin was 64% of revenue in Q1 2024 compared to 57.3% in Q1 2023. The increase in gross margin was due primarily to changes in the mix of revenue sources during the quarter.
Operating expenses decreased by 10% from Q1 2023, driven by a 15% decrease in Research and Development and Certification Engineering expenses, an 11% decrease in Distribution expenses and a 1% decrease in Administration expenses. The decreases were largely driven by lower staffing costs across all three expense categories.
EBITDA1 loss totaled $594,005 in Q1 2024 compared to an EBITDA loss of $1,343,914 in Q1 2023, due to lower operating expenses in Q1 2024 as compared to Q1 2023.
Net loss was $794,382 in Q1 2024 compared to a Net loss of $1,657,114 in Q1 2023.
Balance Sheet and Liquidity
Cash and short-term investments were $1,482,457 at March 31, 2024, compared to $2,042,203 at December 31, 2023.
Trade and other receivables increased by 5% to $3,050,224 compared to YE 2023. Trade payables and accrued liabilities decreased by 3% to $2,994,744 compared to YE 2023. During the quarter, the Company used $1,175,000 of its credit facility for working capital purposes.
Conference Call Information
FLYHT will host a conference call to discuss its financial results for Q1 2024 on Thursday, May 30, 2024, at 7:30 a.m. MT (9:30 a.m. ET). The conference call will include a brief presentation from FLYHT's President & Interim CEO Kent Jacobs 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 1-844-763-8274. Outside Canada and the U.S., dial 1-647-484-8814.
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 protected]. An archive of the conference call will be posted on the Investor Communications section of FLYHT's website following the meeting.
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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.
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, AFIRS™. Solutions include an aircraft satcom/interface device that enables cockpit voice communications, transmission of aircraft data both while inflight via satellite and post-flight via 5G, real-time aircraft state and fleet status analysis, and preventative maintenance solutions. FLYHT's hardware products can also be interfaced with FLYHT's proprietary relative humidity sensors to deliver airborne weather and humidity data in real-time.
FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. 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 |
| [email protected] | [email protected] |
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.
SOURCE: FLYHT Aerospace Solutions Ltd.
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