FLYHT Reports Fourth Quarter and Full Year 2023 Results
- Record SaaS revenue of $10.7 million in 2023, a 31% increase from 2022.
- Revenue for Q4 2023 was $4.2 million, a 41% decrease from Q4 2022.
- Gross margin was 59.1% in Q4 2023 compared to 67.1% in Q4 2022.
- EBITDA loss of $1.2 million in Q4 2023 compared to positive EBITDA of $1.2 million in Q4 2022.
- Net loss of $1.5 million in Q4 2023 compared to a net income of $718,689 in Q4 2022.
- Cash position increased by $102,244 quarter-over-quarter to $2,042,203 at December 31, 2023.
- Granted amendment to government loans reducing payments from April 2024 to March 2025.
- Conference call scheduled for April 25, 2024, to discuss financial results.
- None.
Quarterly results highlighted by sequential increases in SaaS revenues and receipt of favorable amendment to debt terms
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, 2023 ("Q4 2023"). All figures are Canadian dollars unless otherwise stated.
Financial Summary
| Three Months Ended December 31 | Twelve Months Ended December 31 | |||||||||||||||||||||||
| 2023 | 2022 | Inc./ Dec. | 2023 | 2022 | Inc./ Dec. | |||||||||||||||||||
Revenue | 4,244,787 | 7,241,758 | -41.4 | % | 20,144,579 | 23,879,160 | -15.6 | % | ||||||||||||||||
SaaS | 2,801,661 | 2,253,618 | 24.3 | % | 10,693,098 | 8,157,886 | 31.1 | % | ||||||||||||||||
Hardware | 327,941 | 1,217,860 | -73.1 | % | 4,273,464 | 4,720,204 | -9.5 | % | ||||||||||||||||
Licensing | 25,649 | 3,030,368 | -99.2 | % | 1,962,223 | 9,101,130 | -78.4 | % | ||||||||||||||||
Technical Services | 1,089,536 | 739,912 | 47.3 | % | 3,215,794 | 1,899,940 | 69.3 | % | ||||||||||||||||
Gross Margin | 59.1 | % | 67.1 | % | -800 | bps | 58.7 | % | 63.7 | % | -500 | bps | ||||||||||||
EBITDA | (1,226,783 | ) | 1,170,183 | NM | (2,833,517 | ) | 251,453 | NM | ||||||||||||||||
Net Income (Loss) | (1,494,795 | ) | 718,689 | NM | (4,049,371 | ) | (1,003,033 | ) | NM | |||||||||||||||
EPS - Basic & Diluted | (0.04 | ) | 0.01 | (0.05 | ) | (0.10 | ) | (0.03 | ) | (0.07 | ) | |||||||||||||
Management Commentary
"FLYHT finished 2023 with performance in-line with our expectations. We reported over
Continued Jacobs, "We continue to make significant progress on our two main strategic growth initiatives, 5G aviation solutions and weather. Less than two months after being issued the Supplemental Type Certificate ("STC") for the AFIRS EdgeTM on Airbus A320 aircraft, the flange version Edge is now being installed on our first customer's fleet, where we will operate WQAR functions through the 5G network. We are underway with efforts to familiarize this STC into other jurisdictions, starting with the U.S. and Europe. We are also on track to deploy the FLYHT-WVSS-II sensor, Edge, and Certus-100 satcom solution with a North American airline as part of NOAA's FY2023 budget. As expected, NOAA was allocated FY2024 budget to purchase additional FLYHT-WVSS-II, Edge and satcom systems."
Concluded Jacobs, "As we enter 2024, we have a higher cash and investments balance at December 31, 2023 as compared to the ending cash balance at Q3 2023, reflecting our disciplined allocation of resources. We are focused on the multiple opportunities for growth across our 5G solutions and weather businesses. We expect 2024 to be a milestone year as we commercialize these business opportunities."
Fourth Quarter 2023 Results
Revenue decreased by
SaaS revenue increased by
Gross margin was
Operating expenses increased by
EBITDA[1] loss totaled
Net loss was
Full Year 2023 Results
Revenue decreased by
SaaS revenue increased by
Gross margin was
Operating expenses decreased by
EBITDA[2] loss totaled
Net loss was
Balance Sheet and Liquidity
Cash and equivalents plus GICs totalled
Trade and other receivables decreased by
During the quarter, Western Economic Diversification Canada granted FLYHT an amendment to the contribution agreements for the two government loans that are in the repayment phase. The amendment reduces payments required from April 2024 to March 2025, with the resulting difference of
Conference Call Information
FLYHT will host a conference call to discuss the financial results for the fourth quarter and full year 2023 on Thursday, April 25, 2024, at 7:30 a.m. MT (9:30 a.m. ET). The conference call will include prepared remarks followed by a question-and-answer session with FLYHT's President & Interim CEO Kent Jacobs and CFO Alana Forbes. 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.
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 2023 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, AFIRS™. Solutions include an aircraft satcom/interface device that enables cockpit voice communications, the transmission of aircraft data both inflight via satellite and post-flight via 5G, real-time aircraft state and fleet status analysis, and preventative maintenance solutions. FLYHT's hardware products can also be interfaced with FLYHT's proprietary relative humidity sensors to deliver airborne weather and humidity data in real-time.
FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. 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. | FNK IR LLC |
Alana Forbes | Matt Chesler, CFA |
Chief Financial Officer | Investor Relations |
403.291.7437 | 646.809.2183 |
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[1] EBITDA: defined as earnings before interest, income tax, depreciation and amortization (a non-GAAP financial measure). 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.
[2] EBITDA: defined as earnings before interest, income tax, depreciation and amortization (a non-GAAP financial measure). 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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