FLYHT Reports Fourth Quarter and Full Year 2021 Results
FLYHT Aerospace Solutions Ltd. reported its Q4 and full-year 2021 financial results, revealing a 25% decline in Q4 revenue to $2.53 million due to pandemic impacts. Despite a 641% growth in licensing revenues, overall revenues dropped from $3.38 million in Q4 2020. The annual revenue decreased 17% to $11.32 million, with net loss rising to $5.86 million. Operating expenses were down 8% year-over-year, focusing on R&D. FLYHT maintains a solid balance sheet with $4.52 million in cash, preparing for a recovering aviation market.
- Licensing revenue increased by 641% to $356,197 in Q4 2021.
- Operating expenses decreased by 15% in Q4 2021 to $3,175,847.
- Cash and short-term investments stood at $4,520,591 as of December 31, 2021.
- Q4 2021 total revenue decreased by 25% compared to Q4 2020.
- Net loss increased to $2,444,054 in Q4 2021 from $1,999,715 in Q4 2020.
- EBITDA loss increased to $1,745,000 in Q4 2021 compared to $1,657,110 in Q4 2020.
- Annual revenue dropped by 17% to $11,318,689 in 2021.
CALGARY, AB / ACCESSWIRE / April 6, 2022 / FLYHT Aerospace Solutions Ltd. (TSXV:FLY)(OTCQX:FLYLF) (the "Company" or "FLYHT") today reported financial results for the fourth quarter and full year ended December 31, 2021.
"FLYHT has made tremendous strategic and operational progress as we navigated the ongoing challenges besetting the global aviation industry these past two years," said Bill Tempany, Interim CEO. "We advanced our efforts to build one of the industry's premier platforms for Actionable Intelligence, creating multiple, durable revenue streams and positioning the company as a trusted, critical, value-adding partner for a growing list of customers. We are well positioned to serve our customers as they see more normalized flight activities across their businesses."
"Our financial results in the fourth quarter reflect the choppiness of the recovery from the pandemic that is affecting the global aviation industry. While our revenues declined compared to last year's strong fourth quarter, we have continued to invest in R&D as part of our transition to a SaaS driven model, and maintain a strong balance sheet. We are confident that our strategic investments will show results in 2022 as the aviation recovery unfolds."
Concluded Tempany, "We enter 2022 with the right tools to support our airline customers. In particular, CrossConsense provides us with a maintenance capability and fulfills our goal to increase our presence in the European and Middle East markets, and we have already identified several customers who will benefit and are engaging with them. Additionally, the Edge platform delivers unprecedented capabilities to provide a replacement for the old 2G-3G systems installed on 4,000+ aircraft with a device that supports 3G, 4G and 5G, Iridium Certus, Bluetooth, Wi-Fi, and connection through virtual and in-flight entertainment systems. These are two of the initiatives which underscore our confidence in FLYHT's outlook."
Fourth Quarter 2021 Financial Overview
Total revenue decreased by
Gross margin decreased to
Operating expenses decreased by
EBITDA1 loss increased to
Net loss increased slightly to
Full Year 2021 Financial Overview
2021 annual results reflect a full year of pandemic impact in 2021 versus three quarters in 2020. Total revenue decreased by
Gross margin decreased to
Operating expenses decreased
EBITDA1 loss was
Net loss was
Balance Sheet and Liquidity
FLYHT had cash and short-term investments of
Trade and other receivables remained constant at
Intangible assets grew due to the September 2021 acquisition of the WVSS-II product line from SpectraSensors, Inc.
The current portion of Loans and borrowings decreased year over year by
Fourth Quarter Achievements
During the 4th quarter of 2021, the Company signed a multi-year contract with Commercial Aircraft Corporation of China, Ltd. ("COMAC") for the installation of AFIRS 228 on the COMAC C-919 aircraft, and received an initial order purchase. The aircraft is in final certification by the Civil Aviation Administration of China (CAAC) and AFIRS will be used for communication during the cold weather certification to be conducted in Canada. COMAC currently had confirmed orders for 305 aircraft mostly from Chinese leasing companies or airlines.
Also during the quarter, FLYHT announced an agreement with Frontier Airlines to equip Frontier's near-term deliveries of A320 and A321 aircraft with FLYHT's AFIRS solution, enabling Frontier to optimize its over water routes. By gaining access to real-time fleet information through FLYHT's solutions, Frontier aims to improve operational efficiencies in both flight and ground operations, including reducing flying time and the associated fuel burn, while enhancing customer satisfaction.
On November 1, 2021, the Company announced that it had applied to the TSX Venture Exchange to amend the exercise price and expiry date of 2,667,610 previously issued and outstanding warrants (the "Warrants") such that the Warrants will now expire on June 15, 2022 and have an exercise price of
Conference Call Information
FLYHT will host a conference call to discuss its fourth quarter and full year 2021 financial results on April 7, 2022, at 7:30 am MT (9:30 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., the toll-free number is 1-800-319-4610. Outside Canada and the U.S., 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 Q4 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.
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 www.flyht.com
Cautionary Note Regarding Forward-Looking Statements
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to the anticipated/projected revenues and related matters. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made and are founded on the basis of expectations, assumptions and hypotheses made by the Company, including, but not limited to projected revenues. Such forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada, the United States and globally; industry conditions, and supply chain delays. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.
Contact Information:
FLYHT Aerospace Solutions Ltd.
Alana Forbes
Chief Financial Officer
403.291.7437
aforbes@flyht.com
FNK IR LLC
Matt Chesler, CFA
Investor Relations
646.809.2183
flyht@fnkir.com
investors@flyht.com
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1 EBITDA: a non-GAAP financial measure, defined as earnings before interest, income tax, depreciation and amortization. EBITDA is provided to aid in analysis and profitability comparisons among companies and industries, by segregating operating results from the effects of financing and capital expenditures.
SOURCE: FLYHT Aerospace Solutions Ltd.
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