FLYHT Reports Second Quarter 2024 Results
Rhea-AI Summary
FLYHT Aerospace Solutions (TSX-V: FLY) (OTCQX: FLYLF) reported Q2 2024 financial results. Revenue decreased by 29% to $4,311,999 compared to Q2 2023. SaaS revenue increased by 1% to $2,707,667, while Hardware revenue decreased 46% to $627,756. Gross margin improved to 61.9% from 59.6% in Q2 2023. The company reported a net loss of $1,796,131 compared to a net loss of $168,807 in Q2 2023. FLYHT secured a $5 million unsecured debenture arrangement in June and implemented a strategic restructuring in August, aiming for $1.75 million in annual cost savings. The company is focusing on sales of the AFIRS Edge+ and achieving sustainable positive EBITDA.
Positive
- SaaS revenue increased by 1% to $2,707,667
- Gross margin improved to 61.9% from 59.6% in Q2 2023
- Technical Services revenue increased by 31% to $975,645
- Secured $5 million unsecured debenture arrangement in June
- Implemented strategic restructuring for $1.75 million annual cost savings
- Received Supplemental Type Certificate for AFIRS Edge on Boeing 737 aircraft
Negative
- Overall revenue decreased by 29% to $4,311,999 compared to Q2 2023
- Hardware revenue decreased 46% to $627,756
- Licensing revenue decreased by 100% to $931
- Net loss increased to $1,796,131 from $168,807 in Q2 2023
- Negative EBITDA of $1,380,917 compared to positive EBITDA of $168,045 in Q2 2023
- Operating expenses increased by 17% from Q2 2023
Calgary, Alberta - August 28, 2024 - FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the "Company" or "FLYHT") today reported financial results for the second quarter ended June 30, 2024 ("Q2 2024"). All figures are Canadian dollars unless otherwise stated.
Financial Summary
| Three Months Ended June 30 |
|
| Six Months Ended June 30 |
| |||||||||||||||||||
| 2024 |
|
| 2023 |
|
| Inc./ Dec. |
|
| 2024 |
|
| 2023 |
|
| Inc./ Dec. |
| |||||||
Revenue |
| $ | 4,311,999 |
|
| $ | 6,043,543 |
|
|
| -29 | % |
| $ | 9,102,593 |
|
| $ | 10,800,773 |
|
|
| -16 | % |
SaaS |
|
| 2,707,667 |
|
|
| 2,690,573 |
|
|
| 1 | % |
|
| 5,471,383 |
|
|
| 5,103,773 |
|
|
| 7 | % |
Hardware |
|
| 627,756 |
|
|
| 1,172,261 |
|
|
| -46 | % |
|
| 1,291,288 |
|
|
| 2,943,706 |
|
|
| -56 | % |
Licensing |
|
| 931 |
|
|
| 1,433,264 |
|
|
| -100 | % |
|
| 80,090 |
|
|
| 1,442,001 |
|
|
| -94 | % |
Technical Services |
|
| 975,645 |
|
|
| 747,445 |
|
|
| 31 | % |
|
| 2,259,832 |
|
|
| 1,311,293 |
|
|
| 72 | % |
|
| 61.9 | % |
|
| 59.6 | % |
| 23 bps |
|
|
| 63.0 | % |
|
| 58.6 | % |
| 44 bps |
| |||
|
| (1,380,917 | ) |
|
| 168,045 |
|
| NM |
|
|
| (1,974,922 | ) |
|
| (1,175,869 | ) |
| NM |
| |||
Net Loss |
|
| (1,796,131 | ) |
|
| (168,807 | ) |
| NM |
|
|
| (2,590,513 | ) |
|
| (1,825,921 | ) |
| NM |
| ||
EPS - Basic & Diluted |
|
| (0.05 | ) |
|
| (0.01 | ) |
|
| (0.04 | ) |
|
| (0.07 | ) |
|
| (0.05 | ) |
|
| (0.02 | ) |
Management Commentary
"FLYHT is at an exciting and critical juncture," said Mary McMillan, Interim CEO and Executive Chair of the Board at FLYHT. "With the development of the AFIRS EdgeTM+ functionally complete, we are now focused on sales of the Edge to new and existing customers and on achieving positive EBITDA on a sustainable basis."
Continued McMillan, "As announced in the quarter, FLYHT received a Supplemental Type Certificate ("STC") from Transport Canada for the flange version of the 5G AFIRS Edge on Boeing 737 aircraft. We now have two STC's in Canada and have a clear path to obtaining additional aircraft certifications for both the Airbus A320 and Boeing 737 aircraft. These two aircraft types are the most popular aircraft in key global markets creating a huge pipeline of commercial opportunities for our product. Our weather solutions continue to expand with the receipt of an additional purchase order from the U.S. National Oceanic and Atmospheric Administration (NOAA) for the FLYHT-WVSS-II humidity sensors. Our European division, CrossConsense continues to perform well and recently secured two new contracts, demonstrating the growing demand for its Maintenance Repair Organization (MRO) offering."
Added Alana Forbes, CFO, "In recent months we have taken decisive action to strengthen our financial position and reduce costs. This includes a
Concluded McMillan, "Looking to the second half of the year, we are laser-focused on the conversion of our sizeable pipeline to sales. With a strengthened balance sheet, a world class product that we believe will rapidly penetrate the market, and a lower fixed cost base, we enter the next chapter squarely set on driving revenue growth and realizing positive EBITDA."
Operating Results
Revenue decreased by
Gross margin was
Operating expenses increased by
Negative EBITDA[1] totaled
Net loss was
Balance Sheet and Liquidity
Cash and short-term investments totaled
Trade and other receivables increased by
Conference Call Information
FLYHT will host a conference call to discuss its financial results for Q2 2024 on Thursday, August 29, 2024, at 7:30 a.m. MT (9:30 a.m. ET). The conference call will include a brief presentation 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 1-844-763-8274. Outside Canada and the U.S., dial 1-647-484-8814.
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 2024 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, transmission of aircraft data both while 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.
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 |
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
[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.
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