FLYHT records record-setting results in 2015
FLYHT Aerospace Solutions Ltd. has reported financial results for the fourth quarter and its year ended December 31, 2015.
Thomas R. Schmutz, CEO stated: “FLYHT had a strong financial year that ended with a record revenue quarter; this fourth quarter was 47% higher than the previous Q1 2015 record. In the year we enhanced our board of directors, advanced many business opportunities, contracted our largest customer fleet to date, and made changes to our executive team. We are hard at work on our goals and plans for 2016 and beyond.”
Fourth Quarter Highlights Include:
- Revenue of $3,769,267, which represents 69.9% increase over the fourth quarter of 2014.
- Recurring revenue (voice and data services) of $1,067,894, an increase of 16.6% over the fourth quarter of 2014.
- Gross profit was 64.4% of revenue compared to 61.7% for the fourth quarter of 2014.
- Net loss of $1,203,998 which included research and development (R&D) costs of $689,195, which if removed would have resulted in a net loss of $514,803. The net loss decreased $101,714 over the fourth quarter of 2014, and the loss before R&D decreased $18,183 over the fourth quarter of 2014.
- Distribution expenses were $1,084,443 representing an increase of $93,793 compared to the fourth quarter of 2014, attributable mainly to higher people costs offset by a decrease in bad debt reserve.
- Administration expenses increased to $1,573,796 in the quarter; an increase of $793,757 compared to the same quarter in 2014 due to costs associated with staff retirement, variable compensation for the change in key management positions and offset by cost savings in the other expense categories.
- Cash increased approximately $5,000 in the quarter.
Year Highlights Include:
- Three record revenue quarters for the company (Q4, Q1 and Q3)
- Revenue of $10,457,125, which represents an increase of 51.9% over 2014 owing to a significant increase in parts sales and AFIRS units, and an increase in recurring revenue.
- Recurring revenue (voice and data services) was $3,986,813, an increase of 9% over 2014, and AFIRS sales $3,372,421, an increase of 64.2%.
- Gross profit for 2015 was 69.3% of revenue compared to 62.9% in 2014.
- Net loss for the year was $3,891,560. If research and development costs were removed the loss would have been $1,089,008, an improvement (lower loss) of 9.1% on net loss and 68.9% lower loss before research and development than in 2014.
- Distribution expenses were $3,977,633, an increase of $584,642 from 2014.
- Administration expenses increased to $3,676,953 from $3,548,518 for 2014, or an increase of $128,435 due to costs associated with staff retirement, variable compensation for the change in key management positions and offset by cost savings in all other expense categories.
- Research and development expenses were $2,804,187, an increase of 160% from 2014 due mainly to the recovery on settlement of the dispute with Sierra Nevada Corporation accounted for in 2014; if the recovery is excluded in 2014 the 2015 expenditure has increased 2.7%.
- Net finance costs decreased 24.4% or $218,271 in 2015 from the previous year to $673,279.
- Cash burn was $2.3M for 2015; however, it reduced significantly as the year progressed. Q1 activities reduced cash by $1.7M; Q2 and Q3 cumulatively reduced cash by $0.6M and Q4 was slightly cash flow positive.
- In the 2015 year FLYHT signed contracts:
- With new customers that had AFIRS 220 units previously installed on their aircraft. One was with an African operator on a Bombardier DHC-8; the other a Caribbean carrier on a Boeing 767-300.
- With an African Airline for the AFIRS 228 on a fleet of four A320 aircraft.
- With Avmax Group Inc. to install the AFIRS 228 on the two airlines Avmax owns, as well as its current and future leased fleet, for a total fleet size of 146 aircraft over a seven-year term.
- Directly with airlines and sales through partners, with five airlines in China for a total of 18 aircraft.