CALGARY, Alberta, Aug. 05, 2020 (GLOBE NEWSWIRE) — FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today reported financial results for the quarter ended June 30, 2020.
Bill Tempany, interim CEO, remarked, “Q2 was a quarter of challenge and resilience for FLYHT and for most businesses around the globe. The board instituted a management change to ensure our focus was on the optimal way for the Company to participate in the recovery of the aviation industry as it changes and evolves. We have made significant adjustments to priorities to ensure that our people, with the support of the US and Canadian governments, have meaningful long term employment and that our customers and prospects have affordable tools to help them restart an industry that was gutted by events outside of their control. We are confident we are on the right path to achieve those goals.”
Second Quarter 2020 Results
- Revenue decreased by 52% to $3,060,157 compared to the second quarter of 2019. This decrease was seen across all revenue categories, including:
- SaaS revenue of $1,305,049, a decrease of 47% from the second quarter of 2019;
- Hardware revenue of $450,841, a decrease of 74% from the second quarter of 2019;
- Licensing revenue of $1,233,096, a decrease of 18% from the second quarter of 2019;
- Technical Services revenue total of $71,171, which is a decrease of 88% from the second quarter of 2019
- Other income of $178,412 is the value of the last reconciling items from the October 2018 asset acquisition of Panasonic Weather Solutions, which compares to Q2 2019’s full quarterly subsidy recognized of $1,544,756.
- Gross margin was 68% of revenue, compared to 66% in the second quarter of 2019
- Operating expenses decreased by 48% from the second quarter of 2019. Decreases occurred in all three categories – Administration expenses (39%), Distribution expenses (49%) and Research and Development expenses (57%). COVID-19 governmental funding of $997,963 recognized in the quarter contributed significantly toward the year over year decrease, with the remainder of the decrease reflecting cost containment efforts.
- Positive EBITDA1 totaled $153,132 in the quarter compared to positive $1,511,634 in the same quarter of 2019
- Net loss was $276,515, compared to net income in Q1 2019 of $1,037,326
FLYHT’s balance sheet ended the quarter with:
- A cash balance of $3,702,824, a decrease from 2019 year-end’s balance of $4,127,648;
- An increase in trade and other receivables (10%), reflecting delays in receipt of customer payments due to the COVID-19 pandemic; and
- An increase in Property and Equipment, with a corresponding increase in Lease liability, as FLYHT brought a new building lease for its Calgary headquarters onto the balance sheet, having taken possession of the space in March 2020.
FLYHT’s Q2 2020 Report, which contains more detailed information including the CEO’s Message, Management Discussion and Analysis and Financial Statements, has been posted to the Company’s website at http://flyht.com/financial-reports/. The MD&A and Financial Statements have also been filed with SEDAR, accessible at www.sedar.com.
FLYHT will host a live conference call to discuss its second quarter results on Thursday, August 6, 2020 at 7 am MDT (9 am EDT, 6 am PDT). The conference call will include a brief presentation from FLYHT’s 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.A., the toll-free number is 1-800-319-4610. Outside Canada and the U.S.A., dial 1-604-638-5340. Callers should dial in 5 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. 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 FLYHT’s website as soon as it is available from the conference call provider.
FLYHT has also retained FNK IR LLC. (“FNK”) for investor relations and capital markets communications services. FNK is based in New York, NY. Pursuant to an agreement between the parties, FNK will be responsible for, among other matters, developing and executing a comprehensive and strategically-aligned investor relations program focused on: (i) raising awareness in the financial community across North America and enhancing visibility of the Company; (ii) coordinating investor roadshows in the United States; and (iii) assisting in the preparation of corporate materials.
FNK is a group of senior capital markets communications executives who develop and execute comprehensive investor relations programs that help clients enhance visibility, build credibility, and ultimately gain greater appreciation in the capital markets. The firm aims to deliver superior performance in corporate messaging and positioning, investor awareness, analyst and financial press coverage, and capital formation. FNK‘s senior capital markets communications executives have extensive experience in finance and investments, representing a selective roster of clients in a range of industries. Neither FNK nor any of its executives or employees have an ownership interest, directly or indirectly, in FLYHT or its securities.
Under the terms of the investor relations agreement, FNK will receive US$5,000 per month from FLYHT with an initial term of 12 months and thereafter on a month to month basis. Either party may terminate the agreement by providing 60 days written notice. Subject to TSX approval, under this agreement, FNK will be granted 160,000 stock options at an exercise price per share equal to the Company’s market price of the shares on the date of issuance and subject to the pricing rules of the TSX Venture Exchange in relation to options. The options will be subject to the vesting of 40,000 per quarter over the calendar year and shall be exercisable until August 5, 2023. The options are subject to the terms of the Company’s stock option plan and the stock option agreement and will be subject to regulatory hold periods. FLYHT’s agreements with all other investor relations firms have expired.