Calgary, Alberta – May 3, 2022 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today reported financial results for the first quarter ended March 31, 2022 (“Q1 2022”). All figures are Canadian dollars unless otherwise stated.
Financial Summary – For Three Months ending March 31
| 2022 | 2021 | Increase /Decrease | |
| Revenue | $5,030,657 | $2,691,275 | 87% |
| SaaS | 1,675,072 | 1,539,825 | 9% |
| Hardware | 2,109,598 | 831,704 | 154% |
| Licensing | 1,134,706 | 182,181 | 523% |
| Technical Services | 111,281 | 137,565 | -19% |
| Gross Margin | 54.7% | 56.5% | -80 bps |
| EBITDA | (937,630) | (1,000,616) | 6% |
| Net Income (Loss) | (1,284,347) | (912,068) | -40% |
| EPS – Basic | (0.03) | (0.03) | (0.00) |
| EPS – Diluted | (0.03) | (0.03) | (0.00) |
Added Tempany, “One major area that FLYHT is particularly well positioned to assist the aviation industry is climate, where we are focused on being the premier supplier of products and services to assist our customers in their efforts to meet or exceed net-zero targets. We are supporting customers in multiple ways, whether it be helping airlines reduce unnecessary fuel burn on the ground, or regulators and the planet as a whole better understand what is changing and where. The move to sustainable aviation fuel (“SAF”) will only further increase the importance of data and insights to on aircraft performance, and so we are very optimistic about how FLYHT can be part of an industry solution and how this growing area of global importance can be a megatrend driving continued performance of FLYHT’s business in the years ahead.”
Operating Results
Revenue increased by 87% to $5,030,657 compared to Q1 2021, driven by growth in all three of our largest businesses, and $186,360 of contribution from CrossConsense which was consolidated into the Company’s results beginning March 17, 2022. Excluding CrossConsense, revenue increased 80% compared to Q1 2021.
Licensing revenue increased by 523% to $1,134,706 due to a higher number of modems and associated license fees ordered for delivery in comparative periods. Hardware revenue increased by 154% to $2,109,598 due to the reopening of international travel, particularly seen in North America, resulting in customers moving forward with shipments of 34 contracted installation kits versus 17 in Q1 2021. SaaS revenue increased by 9% to $1,675,072 and due to a higher number of flights and flight hours. Technical Services revenue decreased by 2% to $111,281.
Gross margin was 55% of revenue compared to 57% in Q1 2021. The decrease in gross margin was due primarily to changes in the mix of revenue sources during the quarter.
Operating expenses increased by 43% from Q1 2021, with all categories contributing to the increase – Distribution expenses by 37%, Administration expenses by 71%, and Research and Development and certification engineering expenses by 27%. This increase contributed to an increase in bad debt reserve, labor and legal expenses related to the pursuit and acquisition of CrossConsense and the elimination of government grants in 2022.
EBITDA[1] loss totaled $937,630 compared to EBITDA loss of $1,000,616 in Q1 2021.
Net loss was $1,284,347 compared to Net loss of $912,068 in Q1 2021.
Balance Sheet and Liquidity
Cash and short-term investments were $3,326,656 at March 31, 2022, compared to $4,520,591 at December 31, 2021.
Trade and other receivables increased to $3,700,553 compared to YE 2021, and Trade payables and accrued liabilities increased by 91% to $3,255,540 compared to YE 2021. The combination of the addition of CrossConsense working capital balances calculated as part of the acquisition purchase price allocation, in tandem with increased sales in Q1 and associated costs resulted in an increase in both the receivables and payables balances.
Additional Information
FLYHT’s Q1 2022 Report, which contains more detailed information including the CEO’s Letter to Shareholders, Management Discussion and Analysis and Financial Statements, can be accessed on the Company’s website. The MD&A and Financial Statements have also been filed with SEDAR and will be accessible at www.sedar.com.
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. These include AFIRS™, an aircraft satcom/interface device, which enables cockpit voice communications, real-time aircraft state analysis, and the transmission of aircraft data while inflight. The AFIRS Edge is a state-of-the-art 5G Wireless Quick Access Recorder (WQAR), Aircraft Interface Device (AID), and Aircraft Condition and Monitoring System (ACMS). The Edge can be interfaced with FLYHT’s TAMDAR probe or the FLYHT-WVSS-II relative humidity sensor to deliver airborne weather and humidity data in real-time.
CrossConsense, FLYHT’s wholly-owned subsidiary, offers highly skilled services to the commercial aviation industry and provides preventative maintenance solutions. These include Aircraft Fleet View, a native application that gives a real-time view of airline fleet status; AviationDW, a managed data warehouse for enhanced business intelligence; and ACSIS, a visualization and predictive maintenance alerting tool.
FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. CrossConsense, located in Frankfurt, Germany, is an ISO9001 certified operation. For more information, visit flyht.com.