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FLYHT Aerospace Solutions Ltd. (the “Company” or “FLYHT”) a leading provider of real-time data communications technology for the aviation industry has reported financial results for its first quarter ended March 31, 2014.
“Q1 was a mixed emotions type of quarter. We received the first payment for shipments to China on the order out of the 218 units announced in November. Those payments don’t show up in revenue in accordance with our revenue recognition policies, so Q1 revenues are below where we would have liked them. On the other hand, costs were also lower so the modified working capital improved and that is very significant for us. We intend to keep the pressure on decreasing costs while increasing our focus on sales and now that our products are certified and being delivered to our customers, we are confident the revenues will grow and costs will remain in check to provide the kind of returns our shareholders expect,” stated Bill Tempany, chief executive officer of FLYHT.
First Quarter Highlights Include:
- Revenue of $1,348,786 which represents a decrease of 21.5 per cent over the same period last year.
- Customer deposits of $1,304,721 an increase of 100.2 per cent over the first quarter of 2013.
- Recurring revenue (AFIRS UpTime usage) of $921,116, an increase of 12.9 per cent over the first quarter of 2013.
- Net loss of $1,273,101 which included research and development costs of $434,695, which if removed would have resulted in a net loss of $838,406, an increase of 31.2 per cent and an increase of 197.7 per cent respectfully over the first quarter of 2013.
- Distribution expenses were $780,050, representing an increase of $99,185 from the first quarter of 2013.
- Administration expenses increased to $663,344 versus the first quarter of 2013 or an increase of $61,972 or 9 per cent.
- Research and development expenses were $434,695 or $253,871 lower than the first quarter of 2013 a reduction of 36.9 per cent.
- Net finance costs increased $96,554 from the same quarter of 2013 to $303,678 in the first quarter of 2014.
- In January, FLYHT announced the delivery of the AFIRS 228S to L-3 Aviation Recorders as planned and on schedule.
- In February, FLYHT announced a realignment of officer roles and named Matt Bradley as president, Derek Graham as the chief technical officer and Jeff Brunner as VP Certification Engineering and China Operations.
- FLYHT was recognized as a top ten performer in the Technology & Life Sciences Category of the 2014 TSX Venture 50. The list is a ranking of strong performing companies trading on the TSX Venture Exchange.
- In March, FLYHT signed a contract with an Asian Charter Airline for the AFIRS 220 on four Bombardier CRJ aircraft.
- Also in March, FLYHT signed a contract with the Middle Eastern Operations group of an International Cargo Airline for the AFIRS 228 on four Boeing 757 aircraft.
- FLYHT received certification for its AFIRS 228 on the ATR 42/72 aircraft from the National Civil Aviation Agency (“ANAC”) of Brazil.
For detailed information FLYHT’s 2014 First 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 here. The MD&A and Financial Statements have also been sent to SEDAR and will be accessible at www.sedar.com.
