PASSUR® Aerospace Announces Second Consecutive Quarter of Operating Profit for the Fourth Quarter Ended October 31, 2020

Rhea-AI Summary

PASSUR Aerospace, Inc. (OTC: PSSR) reported fiscal year 2020 revenues of $11.53 million, down 23% from $15.05 million in 2019. The net loss reached $12.30 million, or $1.60 per diluted share, compared to a loss of $3.84 million, or $0.50 per diluted share, in FY 2019. Key impairments included $9.87 million related to software and network investments due to COVID-19 impacts. However, the company achieved positive operating income in Q3 and Q4 of 2020, driven by a shift to data-driven solutions and a significant $3 million grant from the CARES Act. The ARiVA platform expansion and new partnerships were noteworthy advancements.

Positive

• Achieved positive operating income in Q3 and Q4 of 2020.
• Transitioned to data-driven solutions, enhancing operational efficiencies.
• Expanded ARiVA platform, improving customer service and operational tracking.
• Secured a $3 million grant from the CARES Act for employee support.
• Retained major airport customers and added new aviation clients.

Negative

• Revenue decreased by $3.52 million (23%) from 2019.
• Net loss increased to $12.30 million, significantly higher than previous year's loss.
• Impairment charges of $9.87 million due to COVID-19 impacts on operations.
• Wrote off $6.13 million in capitalized software investments.

STAMFORD, Conn., Feb. 3, 2021 /PRNewswire/ -- PASSUR® Aerospace, Inc. (OTC: PSSR), a global leader in digital operational excellence, announced revenues of $11,529,000 for fiscal year 2020, compared with $15,046,000, for fiscal year 2019, a decrease of $3,517,000 or 23%.

The Company had a net loss of $12,304,000, or $1.60 per diluted share, for the year ended October 31, 2020 after an impairment charge of $9,874,000 taken during the second quarter, ended April 30, 2020, or $2,430,000 before the impairment charge, as compared to a net loss for fiscal year 2019 of $3,837,000, or $0.50 per diluted share.

Given the impact of the current COVID-19 environment on customers, during fiscal year 2020 the Company wrote off $6,134,000 in capitalized software, which was included in the $9,874,000 impairment charge above. In addition, due to the FAA mandated use of ADS-B feeds system-wide as of January 2020 and the commercial availability of ADS-B feeds, PASSUR also wrote off its entire investment of $3,565,000 in the PASSUR network and $175,000 of related lease assets, which had previously incorporated and integrated ADS-B feeds, where available, with data generated by the PASSUR network and had become redundant.  Such write-off was also included in the impairment charge above.

Brian Cook, PASSUR's President and CEO, stated "We are proud to announce that the Company's income from operations for the third quarter of fiscal year 2020, ended July 31, 2020, was positive for the first time in six quarters, on revenue of $2.2 million.  For the quarter ended October 31, 2020, the Company also had a positive operating income on revenue of $1.9 million.  In addition, for the quarter ended October 31, 2020, the Company had a positive net income. All of the previous eight fiscal quarters had net losses."

Cook became PASSUR's CEO in February 2020 and President in June 2020. He has been a PASSUR Director since November 2018, and had previously served as Vice President and General Manager Travel and Transportation at DXC Technologies and at Hewlett Packard, which was merged into DXC.

In July 2020 PASSUR received a grant of $3.0 million from the CARES Act Payroll Support Program for Air Carriers and Contractors, paid in installments in July, August, and September 2020, which is being used for the continuation of payment of employee wages, salaries, and benefits for certain eligible employees. Visit our website to view the full 10-K.

Major Achievements

While the pandemic created economic challenges in 2020, PASSUR was resilient and made several key advancements.  Last year, we transitioned from hardware-driven tools to data-driven decision support solutions with integrated value-adds.  This included the expansion of our solutions platform (ARiVA^TM) powered by global data from our new partnerships with:

• Flight Radar 24
• Aireon
• OAG  

Additionally, in 2020, we retained major airport customers, added several new airport and business aviation customers, implemented ARiVA ^WORKFLOW at AeroMexico, and expanded the IATA Operations Coordination platform.

The ARiVA™ Platform

ARiVA is a technology and professional services platform powered by fused global data, predictive analytics, and workflow optimization. Our significant expansion of the ARiVA Platform enables key aviation stakeholders to track all operations on a single screen, reduce training and implementation costs, customize data to fit their needs, and scale based on user roles. Additionally, satellite ADS-B surveillance is available to track flights in remote areas and over water, in compliance with ICAO Global Aeronautical Distress and Safety System (GADDS) specifications. ARiVA increases safety, reduces operational costs, and improves customer loyalty and retention.

About PASSUR® Aerospace, Inc.

PASSUR Aerospace, Inc. (OTC: PSSR), a New York corporation founded in 1967, is the operations platform of choice for aviation experts, offering a unique combination of global data, decision support, and subject matter expertise solutions to improve operational efficiencies. Our platform and people help deliver actionable-data and user-friendly tools to corporate and operations leadership looking for creative ways to minimize and eliminate bottleneck capacity constraints, react to irregular operations (IROPS), restart operations after an interruption in service, and enhance the efficiency of the daily schedule. Our collaborative framework uniquely enhances data sharing, communications, and decision-making within and between stakeholders in an operations ecosystem. PASSUR provides its solutions to the largest airlines and airports globally including the United States, Canada, and Latin America.

Visit PASSUR Aerospace's website at www.passur.com for updated products, solutions, and news.

Forward Looking Statements This press release contains ":forward-looking statements: within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the Company's future plans, objectives, and expected performance. Forward-looking statements are subject to risks, uncertainties and assumptions, and are identified by words such as "will", "expects", "estimates", "projects", "anticipates", "believes", "intends", "plans", "may", "pending", "continues", "should", "could" and other similar words. All statements other than statements of historical fact are considered to be forward-looking statements and such forward-looking statements, including statements of management's expectations and beliefs, are based on preliminary information and assumptions and expectations of future events.  The Company cannot and does not guarantee that such information, assumptions, and expectations are accurate or will be realized. These forward-looking statements are not guarantees of future performance or results, and should be evaluated in light of important risk factors, assumptions, and uncertainties that could cause the Company's results to differ in material respects, including, without limitation,  those related to customer needs, budgetary constraints, competitive pressures, the success of airline trials,  the Company's maintenance of above average quality of its product and services, as well as potential regulatory changes. Additional uncertainties include, without limitation, uncertainties relating to the ability of the Company to sell its existing product and professional service lines, plus new products and professional services, as well as the potential for terrorist attacks, changes in fuel costs, airline bankruptcies and consolidations, and economic conditions, including, without limitation, the severity and duration of the continuing COVID-19 pandemic and its adverse impact on the U.S. and world aviation and travel industries.  Further information regarding some of the factors that could affect the Company's results and cause those results to vary materially from those currently anticipated is contained on Forms 10-K - including under the heading entitled "Risk Factors", 10-Q, and other reports filed with the Securities and Exchange Commission. In addition, undue reliance should not be placed on the Company's forward-looking statements.  Any forward-looking statement made by the Company in this press release speaks only as of the date on which we made it and reflect management's analysis, judgments, belief, or expectation only as of such date. Except as required by law, the Company disclaims any obligation to update its risk factors or to publicly announce updates to the forward-looking statements contained in this press release to reflect new information, future events, or other developments.

 

PASSUR Aerospace, Inc. and Subsidiary Consolidated Balance Sheets October 31, 2020 and 2019
	2020		2019
Assets
Current assets:
Cash	$              2,748,066		$                 145,151
Accounts receivable, net	662,081		1,141,282
Prepaid expenses and other current assets	162,843		249,118
Total current assets	3,572,990		1,535,551
PASSUR Network, net	-		3,948,542
Capitalized software development costs, net	1,223,399		8,319,134
Property and equipment, net	257,561		552,150
Operating lease right-of-use assets	232,721		-
Other assets	53,031		91,883
Total assets	$              5,339,702		$            14,447,260
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$              1,486,808		$              1,531,112
Accrued liabilities - Stimulus funding	1,933,955		-
Accrued expenses and other current liabilities	721,058		789,370
Operating lease liabilities, current portion	168,923		-
Deferred revenue, current portion	1,173,573		2,863,273
Total current liabilities	5,484,317		5,183,755
Deferred revenue, long term portion	249,727		377,760
Note payable - related party	10,691,625		8,350,058
Operating lease liabilities, non-current	271,946
Other liabilities	-		79,958
Total liabilities	16,697,615		13,991,531
Commitments and contingencies
Stockholders' equity:
Preferred shares - authorized 5,000,000 shares, par value $0.01 per share;
none issued or outstanding	-		-
Common shares - authorized 20,000,000 shares, respectively, par value $0.01
per share;  issued 8,496,526 at October 31, 2020 and 8,480,526 at October 31, 2019, respectively	84,964		84,804
Additional paid-in capital	18,448,202		17,958,165
Accumulated deficit	(27,957,401)		(15,653,562)
	(9,424,235)		2,389,407
Treasury stock, at cost, 784,435 shares at October 31, 2020 and 2019, respectively	(1,933,678)		(1,933,678)
Total stockholders' equity	(11,357,913)		455,729
Total liabilities and stockholders' equity	$              5,339,702		$            14,447,260

 

 

PASSUR Aerospace, Inc. and Subsidiary Consolidated Statements of Operations Years Ended October 31, 2020 and 2019
	2020		2019
Revenues	$     11,528,813		$        15,046,149
Cost of expenses:
Cost of revenues	6,187,442		8,368,025
Research and development expenses	338,001		556,261
Selling, general, and administrative expenses	6,466,682		9,253,583
Impairment charges	9,874,281		-
	22,866,406		18,177,869
Loss from operations	$   (11,337,593)		$       (3,131,720)
Interest expense - related party	906,567		715,933
Other loss	22,761		-
Loss before income taxes	(12,266,921)		(3,847,653)
Provision/(Benefit) for income taxes	36,918		(10,320)
Net loss	$   (12,303,839)		$       (3,837,333)
Net loss per common share - basic	$                (1.60)		$               (0.50)
Net loss per common share - diluted	$                (1.60)		$                (0.50)
Weighted average number of common shares outstanding - basic	7,710,561		7,696,091
Weighted average number of common shares outstanding - diluted	7,710,561		7,696,091

 

 

Contact:	Media:	Investor Relations:
	Evee Burgard	Sean Doherty
	VP Marketing	Executive VP Finance and Administration
	(310) 995-0313	(226) 338-0969
	290667@email4pr.com	sdoherty@passur.com

 

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SOURCE PASSUR

FAQ

What were PASSUR Aerospace's revenues for fiscal year 2020?

PASSUR Aerospace reported revenues of $11.53 million for fiscal year 2020.

What was the net loss for PASSUR Aerospace in 2020?

The net loss for PASSUR Aerospace in 2020 was $12.30 million.

How much did PASSUR Aerospace lose per diluted share in 2020?

PASSUR Aerospace had a loss of $1.60 per diluted share in 2020.

What significant grant did PASSUR Aerospace receive?

PASSUR Aerospace received a $3 million grant from the CARES Act.

What were the major advancements made by PASSUR Aerospace in 2020?

PASSUR Aerospace expanded its ARiVA platform and transitioned to data-driven decision support solutions.