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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 the fourth quarter and its year end Dec. 31, 2013.
Bill Tempany, CEO stated: “2013 was a year of milestones for FLYHT during which we grew year over year revenues by 23.7 per cent to over $8.0M. New contract wins, new customers, new certifications and more trials positioned FLYHT for considerable growth in the years to come.”
“As we geared up to service the Chinese install in Q4, our expenses increased in order to deal with associated documentation and marketing costs. Furthermore in Q4, there were associated expenses for releasing our new product, the Dragon.”
“Our progress and anticipated ramp-up in our business did not go unnoticed by our supportive and loyal shareholders, many of whom participated in exercising warrants in order to assist FLYHT with the need for growth capital. We took in over $6.1M during Q4 and at year end had a cash position of $5.2M, which is more than sufficient to meet our financial needs for planned growth in 2014 and beyond.”
Fourth Quarter Highlights Include:
- Revenue of $1,936,757, which represents a decrease of 12.8 per cent over fourth quarter of 2012.
- Recurring revenue (UpTime usage) of $1,080,503, an increase of 39.5 per cent over the fourth quarter of 2012.
- Gross profit was 60.4 per cent of revenue compared to 54.8 per cent for the fourth quarter of 2012.
- Net loss of $1,438,795 which included research and development costs of $693,351, which if removed would have resulted in a net loss of $745,444, an increase of $817,349 and $705,008 respectfully over the fourth quarter of 2012.
- Distribution expenses were $834,328 representing an increase of $99,684 from the fourth quarter of 2012.
- Administration expenses increased to $805,515 versus the fourth quarter of 2012 or an increase of $165,486.
- Research and development expenses were $693,351 or $112,340 higher than the fourth quarter of 2012.
- Signed a contract with an eastern European airline for AFIRS 220 on four Boeing 737 aircraft.
- Signed a contract with a South American cargo airline for AFIRS on 12 Boeing 737 – 400 and 12 ATR – 200 aircraft.
- Datang Mobil Aviation division in China agreed that the AFIRS 228 would be standard fit on production ARJ21 aircraft.
- Shareholders exercised warrants and stock options totally $6,087,733 FLYHT introduced the Dragon as an exciting new member of the FLYHT family of products.
- DAC Aviation International Ltee., purchased five of the recently release Dragon product.
Year Highlights Include:
- Revenue of $8,000,364, which represents an increase of 23.7 per cent over 2012.
- Recurring revenue (UpTime usage) of $3,624,718, an increase of 17.2 per cent over 2012.
- Gross profit for 2013 was 59.2 per cent of revenue compared to 57.2 per cent for 2012.
- Net loss for the year of $4,063,164 which included research and development costs of $2,180,277, which if removed would have resulted in a net loss of $1,882,937887, a reduction of 16.8989 per cent and 24.0 per cent respectfully over 2012.
- Distribution expenses were $2,956,446 representing a decrease of $404,759 from 2012.
- Administration expenses increased to $2,859,122 versus $2,496,769 for 2012 or an increase of $362,353.
- Research and development expenses were $2,180,227 or $227,510 lower than 2012.
- Net finance costs increased $488,440 over 2012 to $1,060,002.
Detailed information in FLYHT’s 2013 Annual 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.
