FLYHT to Participate in Lake Street Best Ideas Growth Conference

CALGARY, Alberta, Sept. 02, 2021 (GLOBE NEWSWIRE) — FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today announced that the Company will participate in the Lake Street Capital Markets 5th Annual Best Ideas Growth Conference, being held virtually on September 14 and 15, 2021. Bill Tempany, Interim CEO, will be available for meetings with investors throughout the two-day event.

For more information, visit https://www.lakestreetcapitalmarkets.com/big5conference or contact your Lake Street Capital Markets sales representative to request a meeting.

About FLYHT Aerospace Solutions Ltd.

FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, delivering industry leading solutions to improve aviation safety, efficiency and profitability. This unique capability is driven by FLYHT’s patented aircraft certified hardware products including AFIRS™, a satcom aircraft interface device which enables real-time streaming of flight information, cockpit voice and black box data streaming and TAMDAR™, which aggregates and streams airborne weather data in real-time. FLYHT is headquartered in Calgary, Canada with an office in Littleton, Colorado, and is an AS9100 Quality registered company. For more information, view our latest presentation here, or visit http://www.flyht.com.

FLYHT Reports Second Quarter 2021 Results

— Trends in SaaS and Hardware are Leading FLYHT’s Path to Recovery —

— Recent Private Placement and Debt Repayment Enhance Financial Position —

CALGARY, Alberta, Aug. 04, 2021 (GLOBE NEWSWIRE) — FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today reported financial results for the second quarter and six months ended June 30, 2021.

“While the COVID pandemic remains an issue around the globe and has continued to skew FLYHT’s financial performance, we are beginning to see signs of recovery in customer confidence and the aviation industry in general which we expect will lead to improvement in our results in the quarters ahead,” said Bill Tempany, Interim CEO. “The decline in revenue in the quarter, which significantly moderated from prior periods, was mostly attributable to the timing difference in license sales as some OEM deliveries have been delayed. Encouragingly, although not reflected in the second quarter numbers, we are seeing licensing revenue start to return. Our customers are certainly not back to any semblance of their 2019 levels, but the increase in SaaS revenue this quarter driven by more customer flights and flight hours over Q2 2020 is a positive sign of recovery.”

Continued Tempany, “Throughout the pandemic we have taken many steps to improve our business which we believe will lead to growth and higher returns to our shareholders as our company and industry emerge from the pandemic. We are strategically shifting from being a Satcom provider to becoming more of a SaaS provider, leveraging our roots in data and significant installed customer base of over 80 airlines around the globe. We have increased our investment in research and development, developing solutions such as AFIRS Edge, our low cost – high value data feed device, which is on track for delivery this year, with launch customers being identified for early 2022 installations. We hired industry veteran Willie Cecil to drive product direction and enhance our sales and marketing efforts. Furthermore, our successful private placement and debt retirement in July strengthen our balance sheet, and provide us with the capital to carry out our growth initiatives.”  

Concluded Tempany, “Although new virus variants could always pose a challenge for the aviation industry, we are cautiously optimistic that the worst of the pandemic is behind us. As the commercial aviation industry begins its inevitable recovery, the need for airlines to reduce avoidable operating expenses and to minimize the impact on the environment of their operations is becoming a higher strategic imperative for them, and I am confident that FLYHT is positioned as a critical partner. We will remain focused on developing cutting edge solutions for our customers to help them rebuild their businesses as they emerge from the pandemic. We are excited about the year ahead for FLYHT.”

Second Quarter 2021 Financial Overview

Total revenue decreased by 4% to $2,926,122 compared to the second quarter of 2020, although the decline in revenue moderated from Q1 2021. SaaS revenue increased by 11% from Q2 2020 to $1,446,221 and Hardware revenue increased by 212% from Q2 2020 to $1,404,193. Increases in SaaS and Hardware were more than offset by declines in Licensing and Technical Services. Licensing revenue decreased 99% from Q2 2020 to $7,924 and Technical Services revenue decreased by 5% from Q2 2020 to $67,784.

Gross margin was 52% of revenue compared to 68% in the second quarter of 2020. The decrease in gross margin was due primarily to changes in the mix of revenue sources during the quarter, as Q2 2021 revenue included a larger contribution from Hardware compared to Q2 2020, which has the lowest gross margin among revenue sources, and limited revenue from Licensing, which carries the highest gross margin among revenue sources.

Operating expenses increased by 17% compared to the second quarter of 2020, largely attributable to the Company’s sharpened focus on its growth and product development efforts. A 23% decrease in Distribution expenses was offset by an increase in Administration expenses of 8% and an increase in Research and Development and certification engineering expenses of 138%.

Negative EBITDA1 was $980,611 compared to positive EBITDA of $153,132 in the second quarter of 2020.

Net Loss was $1,395,889 compared to a net loss of $276,515 in the second quarter of 2020.

Balance Sheet and Liquidity

FLYHT ended the quarter with cash and short-term investments of $3,079,255, a decrease from 2020’s year-end balance of $5,127,963, and slightly lower than Q1 2021’s ending cash balance of $3,871,741.

Trade and other receivables increased by 4% to $1,647,436 compared to year-end 2020, and Trade payables and accrued liabilities decreased by 10% to $1,918,856 compared to year-end 2020.

Subsequent Events

On July 21, 2021, the Company closed a non-brokered private placement, issuing 8,828,818 common shares at an issue price of $0.75 per share, resulting in proceeds to the Company of CAD$6,621,615. Directors, officers and senior employees contributed 10% of the offering total. The Company used a portion of the proceeds from the offering to repay its outstanding secured convertible debentures, including any accrued and unpaid interest, in the amount of CAD$1,806,425.

Conference Call Information

FLYHT will host a conference call to discuss its second quarter 2021 financial results on August 5, 2021 at 9:00 am MT (11:00 am ET). The conference call will include a brief presentation from FLYHT’s Interim 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 five to ten 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 the Investor Communications section of FLYHT’s website following the meeting.

Additional Information

FLYHT’s Q2 2021 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.

Options Granted

FLYHT has granted incentive stock options for an aggregate 43,760 common shares, subject to regulatory approval, to new employees and a director under the stock option plan approved at the Annual and Special Meeting held on May 6, 2021.

The stock options are exercisable at a price of $0.93 per share. The options will vest 1/3 on each of August 4, 2022, 2023 and 2024 and will expire on August 4, 2025. A maximum of 10% of the issued and outstanding shares are reserved under the Company’s stock option plan. The options, and any common shares issued upon exercise of the stock options, are subject to a four-month resale restriction.

About FLYHT Aerospace Solutions Ltd.

FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, delivering industry leading solutions to improve aviation safety, efficiency and profitability. This unique capability is driven by FLYHT’s patented aircraft certified hardware products including AFIRS™, a satcom aircraft interface device which enables real-time streaming of flight information, cockpit voice and black box data streaming and TAMDAR™, which aggregates and streams airborne weather data in real-time. FLYHT is headquartered in Calgary, Canada with an office in Littleton, Colorado, and is an AS9100 Quality registered company. For more information, view our latest presentation here, or visit www.flyht.com

FLYHT Receives Follow-On Order from a Long-Time OEM Partner

Calgary, Alberta – July 6, 2021 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) has received a US$338 thousand purchase order for Iridium modems and license fees from a long-time OEM customer. This order builds upon the relationship previously discussed in press releases dated July 15, 2014, August 1, 2019 and February 18, 2020.

“Receiving the order from this OEM, who has been an important partner of FLYHT’s for many years, is a positive sign of the aviation industry’s recovery,” said Gurjot Bhullar, Manager of Aircraft Systems at FLYHT. “Following a challenging 2020, we are excited to once again support our partner and continue to strengthen our business relationship. We applaud the efforts of the aviation community and will continue to provide our world-class customer support and our quality products to aid the industry’s recovery.”

Under the terms of the existing agreement, the OEM will be licensing FLYHT’s technology and delivering the automated flight information reporting system (AFIRS 228S) to their European airframer customer for three certified aircraft platform types. FLYHT anticipates shipping all product, and therefore recognizing revenues, from this order during the third quarter of 2021.

About FLYHT Aerospace Solutions Ltd.

FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, delivering industry leading solutions to improve aviation safety, efficiency and profitability. This unique capability is driven by FLYHT’s patented aircraft certified hardware products including AFIRS™, a satcom aircraft interface device which enables real-time streaming of flight information, cockpit voice and black box data streaming and TAMDAR™, which aggregates and streams airborne weather data in real-time. FLYHT is headquartered in Calgary, Canada with an office in Littleton, Colorado, and is an AS9100 Quality registered company. For more information view our latest presentation here, or visit http://www.flyht.com.

FLYHT and Major Chinese Cargo Operator Contract for Additional Installations of AFIRS

One of China’s largest cargo carriers continues to invest in FLYHT’s communication solutions for their expanding fleet

CALGARY, Alberta, June 30, 2021 (GLOBE NEWSWIRE) — FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) announced today that they have signed an agreement with an existing customer to equip up to an additional 15 aircraft per year over the next five years with the AFIRS™ solution, to meet the demands of the airline’s growing business.

Bill Tempany, CEO of FLYHT, stated, “We are thrilled that this customer is growing the number of AFIRS-equipped aircraft in use, in our family of Chinese customers who now number over 25 airlines. Their operations fit well with the products and services we sell to our clients who respond to the ever increasing demands of cargo operations, while keeping close contact with the crews and operations departments to ensure maximum utilization of their fleets. We are very pleased to continue our growth in China and around the globe.”

The agreement is expected to generate revenue of approximately USD $3.6 million to FLYHT, provided all deliverables are shipped over the five-year term of the agreement. In tandem with the agreement signing, FLYHT received a purchase order from this cargo operator for the first four aircraft under this agreement.

About FLYHT Aerospace Solutions Ltd.

FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, delivering industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by FLYHT’s patented aircraft certified hardware products including AFIRS™, a satcom aircraft interface device which enables real-time streaming of flight information, cockpit voice and black box data streaming and TAMDAR™, which aggregates and streams airborne weather data in real-time. FLYHT is headquartered in Calgary, Canada with an office in Littleton, Colorado, and is an AS9100 Quality registered company. For more information, view our latest presentation here, or visit www.flyht.com.

FLYHT to Present at 2021 LD Micro Invitational XI

CALGARY, Alberta, June 01, 2021 (GLOBE NEWSWIRE) — FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (“FLYHT”) today announced that Bill Tempany, Interim CEO, and Alana Forbes, CFO, will present virtually at the 2021 LD Micro Invitational XI on Wednesday, June 9, 2021, at 11:00 a.m. ET (9:00 a.m. MT).

DATE:Wednesday, June 9, 2021
TIME:11:00 a.m. ET (9:00 a.m. MT)
REGISTRATION:https://ldmicrojune2021.mysequire.com/

A live audio webcast and archive of the presentation will be available using the webcast links above and in the Investors section of the FLYHT website at www.flyht.com/investors.

For additional information, please contact FLYHT’s IR team at flyht@fnkir.com.

About FLYHT Aerospace Solutions Ltd.

FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, delivering industry leading solutions to improve aviation safety, efficiency and profitability. This unique capability is driven by FLYHT’s patented aircraft certified hardware products including AFIRS™, a satcom aircraft interface device which enables real-time streaming of flight information, cockpit voice and black box data streaming and TAMDAR™, which aggregates and streams airborne weather data in real-time. FLYHT is headquartered in Calgary, Canada with an office in Littleton, Colorado, and is an AS9100 Quality registered company. For more information, view our latest presentation here, or visit www.flyht.com.

FLYHT Names Nina Jonsson as Chairman of Board of Directors

CALGARY, Alberta, May 11, 2021 (GLOBE NEWSWIRE) — FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) is pleased to announce that Ms. Nina Jonsson, a 30-year global airline industry veteran, has agreed to serve as Chairman of the Board of FLYHT. Ms. Jonsson brought the airline customer’s perspective to the forefront when she joined FLYHT’s board of directors in 2019, and in her new role, will continue to help guide the Company as the industry recovers from the pandemic and refocuses on the future.

Nina Jonsson

Ms. Jonsson has held leadership roles at major operators in the U.S. and Europe, including most recently at Air France-KLM, United Airlines, US Airways and global industrial aviation services provider Bristow Group. She is currently active as a consultant to the global airline industry’s C-suite as Senior Advisor with Plane View Partners, and serves on the board of directors at Icelandair and the advisory boards of Waltzing Matilda Aviation and Genesis Park Acquisition Corporation.

“I am very proud of the superbly capable, innovative, nimble and customer-focused team at FLYHT,” said Nina, “As a pioneer and independent provider in the live-streaming aircraft data space for the past two decades, FLYHT is uniquely positioned to help airline customers achieve cost-savings, greater operational efficiencies, and enhanced safety with its Actionable Intelligence solutions. As Chairman, I’m looking forward to continuing to work with Bill and the entire FLYHT team to promote the Company’s services across the airline industry and to help it grow into the major player it deserves to be.”

Barry Eccleston, outgoing Chairman of FLYHT, stated, “I have known Nina for years and recruited her to the board because of her knowledge and passion for the industry she has been part of for three decades. As I stated at FLYHT’s recent AGM, I am confident that the Company is being left in good hands to capitalize on the recovery of the industry we all love.”

Bill Tempany, Interim CEO of FLYHT, stated, “Getting to know Nina over the last two years, I am confident that her leadership style, industry knowledge and contacts, and passion for the business, will help drive FLYHT in ways we have never experienced before. I am looking forward to working with Nina to take our Company to new heights and provide a rewarding place for our employees and shareholders. We have a new vigor in the business, and under Nina’s stewardship, will take advantage of turning our strong products into industry transforming solutions.”

About FLYHT Aerospace Solutions Ltd.

FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, delivering industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by FLYHT’s patented aircraft certified hardware products including AFIRS™, a satcom aircraft interface device which enables real-time streaming of flight information, cockpit voice and black box data streaming and TAMDAR™, which aggregates and streams airborne weather data in real-time. FLYHT is headquartered in Calgary, Canada with an office in Littleton, Colorado, and is an AS9100 Quality registered company.

FLYHT Reports First Quarter 2021 Results


— Cash Balance Steady with Last Year Due to Disciplined Cost Control —
— SaaS Revenue Represented 57% of Total, Driving 57% Gross Margins —
— Preparing for “Go Live” with First Actionable Intelligence Launch Partner —


Calgary, Alberta – May 5, 2021 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today reported financial results for the first quarter ended March 31, 2021.

“The first quarter results reflect what we expect to be the worst of the pandemic’s impact on travel and our business,” said Bill Tempany, Interim CEO. “We are already observing many of our customers actively readying their operations for the expected return of passengers to the skies. FLYHT will be there to support their recovery with existing and new solutions, executing on our exciting strategic initiatives. We expect to show significantly improved financial performance over the coming quarters as vaccinations unleash pent-up demand for travel, and as airlines recover their ability to deliver services to their customers. The impact of trained pilots, suitable aircraft configurations and government regulations all will continue to be factors.

Tempany continued, “As has been the case in prior quarters, we saw mixed performance across geographies, customer categories and service lines. This is likely to continue even in recovery and reflects the strategic diversification of our global business and uneven pace of the recovery. Strength in cargo and specialty carriers, which collectively represent approximately 19% of our business, was more than offset by a lack of international and business travel which remain restricted due to closed borders and continued social distancing. Despite this, we shipped 17 AFIRS hardware kits in the first quarter which was up from only 3 in Q1 2020; licensing improved sequentially from the prior two quarters; and even with these headwinds, we held the line on cash compared to last year.”

“There is a lot of excitement in the halls at FLYHT. We are launching new products and services within our Actionable Intelligence suite and the AFIRS family of products which cover a wide spectrum of aircraft, communication methods, and geographies. As we announced on May 4 we have also recently signed on a new customer, Waltzing Matilda.”

Concluded Tempany, “We are well-positioned, given our cash reserves and current recovery trends, to see a significant improvement in our operating results as we move through 2021 and 2022 as the vaccination rollout continues and pandemic related travel restrictions dissipate.”

First Quarter 2021 Financial Overview

Total revenue decreased by 49% to $2,691,275 compared to the first quarter of 2020. This decline was attributable to decreases in SaaS and Licensing revenue partially offset by increases in Hardware and Technical Services revenue. SaaS revenue decreased by 44% from a record high in Q1 2020 to $1,539,825 and Licensing revenue decreased by 92% from Q1 2020 to $182,181. Hardware revenue increased 265% from Q1 2020 to $831,704 and Technical Services revenue increased by 111% from Q1 2020 to $137,565.

Gross margin was 57% of revenue compared to 75% in the first quarter of 2020. The decrease in gross margin was due primarily to changes in the mix of revenue sources during the quarter, as Q1 2021 revenue included a larger contribution from Hardware, which has the lowest gross margin among revenue sources, compared to Q1 2020.

Operating expenses decreased by 49% from the first quarter of 2020, with all categories contributing to the decrease. Distribution expenses by 52%, Administration expenses by 30%, and Research and Development and certification engineering expenses by 1%. This decrease reflects the Company’s cost containment efforts.

Negative EBITDA[1] totaled $1,000,616 in the quarter compared to positive EBITDA of $729,438 in the first quarter of 2020.

Net Loss was $912,068, compared to a net profit of $686,022 in Q1 2020.

Balance Sheet and Liquidity

FLYHT’s balance sheet ended the quarter with cash and short-term investments balances of $3,871,741, a decrease from 2020’s ending balance of $5,127,963, and comparable to Q2 2020’s ending cash balance of $3,702,824.

Trade and other receivables increased by 14% from 2020 year-end, and customer deposits increased by 75% since December 31, 2020.

FLYHT Signs Waltzing Matilda Aviation’s New Brand, Connect Airlines

CALGARY, Alberta, May 04, 2021 (GLOBE NEWSWIRE) — FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”), a leader in providing real-time insights and actions to improve global aviation operations and profitability, today announced a multi-year contract with U.S. charter operator Waltzing Matilda Aviation for its new scheduled air carrier branded, Connect Airlines.  

Under the terms of the five-year agreement, FLYHT will install AFIRS and Actionable Intelligence (“AI”) services on Connect Airlines’ entire fleet of DHC-8-Q400 turboprop aircraft. FLYHT’s Actionable Intelligence solution includes voice and text communications, engine and airframe exceedances, situational display as well as automatic movement messages in the initial installation. Future AI services are expected to include fuel management, turn and airport apron operations, integrated flight plan and emissions tracking, as well as features currently under development with other AI launch customers. The initial installs will commence within 45 days and will be part of the certification of the new airline brand. The contract is expected to generate revenue of approximately USD $1.0 million to FLYHT, provided that all services are delivered over the 5-year term of the agreement.

Bill Tempany, CEO of FLYHT, said, “We are excited to begin a new relationship with Waltzing Matilda for their new brand, Connect Airlines. As a provider of critical infrastructure for communications and operational insights for Connect Airlines, we are committed to providing the products and services needed to support their launch and subsequent business growth for years to come. It is also great to be part of the unfolding recovery of aviation in North America.”

David Marcontell, COO of Connect Airlines, said, “After an exhaustive review of alternatives, we chose FLYHT because it provided our flight crew and operations team the technology, data, and analytics to operate a highly efficient and reliable airline, right out of the box. We look forward to a long and mutually beneficial relationship with FLYHT as we connect our guests to family, friends and colleagues with the highest standards of air transportation service and reliability.”

Connect Airlines, a new airline commencing operations in October 2021, will offer convenient service ideal for the day-tripping US business traveler direct into Toronto’s downtown Billy Bishop airport

About FLYHT Aerospace Solutions Ltd.

FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, delivering industry leading solutions to improve aviation safety, efficiency and profitability. This unique capability is driven by FLYHT’s patented aircraft certified hardware products including AFIRS™, a satcom aircraft interface device which enables real-time streaming of flight information, cockpit voice and black box data streaming and TAMDAR™, which aggregates and streams airborne weather data in real-time. FLYHT is headquartered in Calgary, Canada with an office in Littleton, Colorado, and is an AS9100 Quality registered company. For more information, view our latest presentation here, or visit www.flyht.com

About Connect Airlines

Boston-based charter operator Waltzing Matilda Aviation (WMA) is planning to launch a new scheduled airline later this year targeting business traffic. 

Connect Airlines will be based at Toronto’s downtown Billy Bishop City Airport (YTZ), offering routes to points in the northeast and Midwest US using Q400 turboprop aircraft. It is hoped the start-up will be operational by October 2021.

FLYHT Announces Resolution of Claim

CALGARY, Alberta, April 26, 2021 (GLOBE NEWSWIRE) — FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) announced today that the Company has executed a settlement agreement and mutual release (in respect of any claims between the parties) in respect of the litigation between Thomas R. Schmutz (former CEO of FLYHT) and the Company, as first announced on June 30, 2020. The parties have agreed upon a final settlement whereby FLYHT will pay Mr. Schmutz $225,000 CAD and 250,000 common shares in FLYHT. All of the common shares issued pursuant to the settlement agreement are subject to a 4-month hold period. The settlement is conditional upon final approval for the issuance of the common shares by the TSX Venture Exchange.

About FLYHT Aerospace Solutions Ltd.

FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, delivering industry leading solutions to improve aviation safety, efficiency and profitability. This unique capability is driven by FLYHT’s patented aircraft certified hardware products including AFIRS™, a satcom aircraft interface device which enables real-time streaming of flight information, cockpit voice and black box data streaming and TAMDAR™, which aggregates and streams airborne weather data in real-time. FLYHT is headquartered in Calgary, Canada with an office in Littleton, Colorado, and is an AS9100 Quality registered company. For more information, view our latest presentation here, or visit www.flyht.com

Contact Information:

FLYHT Reports Fourth Quarter and Full Year 2020 Results, Provides Corporate Update

— Strong Cost Control Contributes to Increase in Cash Balance —

— SaaS Represented 54% of 2020 Revenue, Driving Gross Margin Expansion to 68% —

— Company Expects Launch Partners to Deploy Actionable Intelligence Software in Q2 —

CALGARY, Alberta, April 07, 2021 (GLOBE NEWSWIRE) — FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today reported financial results for the fourth quarter and full year ended December 31, 2020.

“We are encouraged by recent trends for short-haul travel and cargo activity in the current environment and are relieved to have 2020 behind us,” said Bill Tempany, CEO. “While it was a challenging year for FLYHT and the commercial aviation industry, we feel that we have weathered the storm relatively well. Given that we serve a client base that has seen a 40% to 75% reduction in revenue, unprecedented financial losses and staff reductions, the revenue slip experienced by FLYHT is better than the industry as a whole and testament to the critical value that our solutions bring to airline operations.”

Tempany continued, “During the fourth quarter, we started to see signs of recovery across our business. We have seen clients that had experienced financial distress early in the pandemic return to the skies with equipped with FLYHT solutions. Additionally, we shipped 24 AFIRS hardware kits in the fourth quarter which was up from only one in the third quarter, and have a solid pipeline of additional units committed for deliveries in 2021. While still down on a year over year basis, overall revenue increased 76% sequentially from the third quarter of 2020.”

“We enter 2021 with an expanded suite of solutions that leverage FLYHT’s historical core strength in real-time aircraft data with additional insights and actions from our Actionable Intelligence suite of SaaS applications. We expect to have at least three clients using the AI software suite in the second quarter of 2021 and to start generating incremental revenue from these services beginning in the third quarter.”

Concluded Tempany, “We are well-positioned, given our cash reserves and current recovery trends, to see a significant improvement in our operating results in 2021 and 2022 as the vaccination rollout continues and pandemic related travel restrictions dissipate.”

Fourth Quarter 2020 Results

  • Revenue decreased 21% to $3,379,186 compared to the fourth quarter of 2019. This included:
    • SaaS revenue of $1,627,421, a decrease of 40% from Q4 2019;
    • Hardware revenue of $1,490,709, an increase of 127% from Q4 2019;
    • Licensing revenue of $48,068, down 94% from 4Q 2019; and
    • Technical Services of $212,988, an increase of 52% from Q4 2019.
  • Gross margin was 56% of revenue compared to 63.0% in the fourth quarter of 2019.
  • Operating expenses decreased 12% from the fourth quarter of 2019. Distribution expenses decreased by 23%, Administration expenses increased by 11%, and Research and Development and certification engineering expenses decreased by 13%.
  • Negative EBITDA was $1,657,110 in the quarter compared to negative EBITDA of $711,486 in the fourth quarter of 2019.
  • Net loss was $1,999,715, compared to a net loss of $1,212,971 in Q4 2019.

Full Year 2020 Results

  • Revenue for the full year was $13,652,985, representing a decrease of 36% compared to full year 2019 revenue of $21,171,159. This included:
    • SaaS revenue of $7,323,125, a 29% decrease year-over-year;
    • Hardware revenue of $2,306,371, a 65% decrease year-over-year;
    • Licensing revenue of $3,630,874, an increase of 12% year-over-year; and
    • Technical Services of $392,615, a 62% decrease compared to 2019.
  • Gross margin of $9,257,099 was a 25% decrease from $12,326,802 in 2019.
  • Operating expenses decreased 21% year-over-year to $12,786,742. This included decreases in all expense categories: 35% in Distribution, 4% in Administration, and 11% in Research & Development.
  • The full year EBITDA loss was $1,854,413 in 2020, which compares to an EBITDA gain of $1,015,591 for the full year of 2019.
  • Net loss for the year increased to $3,237,457 from a 2019 net loss of $746,635.

FLYHT’s balance sheet ended the year with:

  • Cash and short-term investments balances of $5,127,963, an increase from 2019’s ending balance of $4,127,648;
  • Trade and Other Receivables decreased 68% year-over-year, in part due to reserves for bad debts;
  • Increases in both Property and Equipment and Non-current lease liabilities, reflecting the addition of a new leased office space for the company’s headquarters in Calgary; and
  • Movement of the debenture due in July 2021 to Current from Non-Current Loans and Borrowings.

Additional Information

FLYHT’s 2020 Annual 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.

Corporate Update

Barry Eccleston, Executive Chairman of FLYHT, has decided to not run for re-election at the AGM. Barry says, “It has been a pleasure working with the board and staff at FLYHT and that I feel confident that the recent changes in management have the company on a strong course to thrive as the airline business recovers from the pandemic. I have always believed in the FLYHT technology and the need the industry has for it and the current direction with Actionable Intelligence, using JetBridge technology, will serve the company’s customers and prospects well to emerge healthier and more agile than pre-pandemic. It has been a pleasure to serve the shareholders of FLYHT and I wish the company, its staff, customers and shareholders every success in the coming years.”

Bill Tempany, Interim CEO stated, “It has been a pleasure to work with and get to know Barry over the last 7 years. For him to be able to carve out the time and energy to give a small company like ours the insights he has of the industry, business and trends has been an immeasurable help to me and to the staff, and has given us a foundation to build on. We will all miss having Barry’s insights, humour and guidance but also understand that after 5 plus decades of hard work, retirement is supposed to mean taking time for your own passions and family. We wish Barry many days of clear skies while he perfects his flying techniques, zero IROP issues while he and Valerie enjoy their many planned activities once the COVID beast is defeated and many years to take advantage of the time well earned while helping aviation in general become a safe, clean, great industry.”

The board will leave the vacancy unfilled and a chairman will be elected from among the elected directors after FLYHT’s AGM in May.

About FLYHT Aerospace Solutions Ltd.

FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, delivering industry leading solutions to improve aviation safety, efficiency and profitability. This unique capability is driven by FLYHT’s patented aircraft certified hardware products including AFIRS™, a satcom aircraft interface device which enables real-time streaming of flight information, cockpit voice and black box data streaming and TAMDAR™, which aggregates and streams airborne weather data in real-time. FLYHT is headquartered in Calgary, Canada with an office in Littleton, Colorado, and is an AS9100 Quality registered company. For more information, view our latest presentation here, or visit www.flyht.com.