FLYHT reports 2014 year end results
Calgary - FLYHT Aerospace Solutions Ltd. has reported financial results for the fourth quarter and its year end December 31, 2014.
“In spite of a tumultuous year for the airline industry, which did impact our anticipated sales growth, we made significant advances with industry partners and regulators in 2014,” CEO Bill Tempany said. “Of note was our participation in numerous industry group discussions around emerging flight tracking regulations and the strong reception that our technology received when demonstrated at numerous industry events. We have also made important inroads with our strategic partners, with key STC approvals and the rejuvenation of our relationship with Sierra Nevada Corporation. Although 2014 may not have been a record year when it comes to revenue, we are encouraged by progress we have made.
“Also of important note is that thanks to our supportive shareholders we were able to extend our convertible debenture which has allowed us to start the year in a strong cash position of $3.9 million.”
Fourth Quarter Highlights Include:
- Revenue of $2,218,681, which represents 14.5% increase over fourth quarter of 2013.
- Recurring revenue (voice and data services) of $915,602, a decrease of 15% over the fourth quarter of 2013.
- Gross profit was 61.7% of revenue compared to 60.4% for the fourth quarter of 2013.
- Net loss of $1,305,712 which included research and development costs of $772,725, which if removed would have resulted in a net loss of $532,986, a net loss decrease of $133,834 decrease in loss before R&D of $212,458 over the fourth quarter of 2013.
- Distribution expenses were $990,650 representing an increase of $156,322 from the fourth quarter of 2013 attributable mainly to increased bad debt reserve.
- Administration expenses decreased to $780,039 versus the fourth quarter of 2013 or a decrease of $25,476.
- Research and development expenses were $772,725 or $79,749 higher than the fourth quarter of 2013.
Year Highlights Include:
- Revenue of $6,882,028, which represents a decrease of 14% over 2013 attributable to lower AFIRS sales revenue consequent, on a decreased number of installation kits meeting the requirements for revenue recognition and lower services revenue (2013 revenue earned on the contract with L-3 AR was not repeated).
- Recurring revenue (voice and data services) of $3,657,300, an increase just under 1% over 2013.
- Gross profit for 2014 was 62.9% of revenue compared to 59.2% for 2013.
- Net loss for the year of $4,278,885 included research and development costs of $777,749, which if removed would have resulted in a net loss of $3,501,136, an increase of 5.3% and 85.9% respectfully over 2013.
- Distribution expenses were $3,392,991, an increase of $436,545 from 2013.
- Administration expenses increased to $3,548,518 versus $2,859,122 for 2013 or an increase of $689,396 due to higher share based compensation cost, cost of participation in industry groups after the disappearance of MH370, additional investor relations costs and separation payments for the retiring CFO.
- Research and development expenses were $777,749, a reduction of 180% from 2013 due mainly to the recovery on settlement of the dispute with Sierra Nevada Corporation, partly offset by additional staffing costs.
- Net finance costs decreased $168,452 in 2014 from the previous year to $891,550.
- FLYHT signed a contract with the Middle Eastern based operations group of an international cargo airline for the AFIRS 228B on four Boeing 757 aircraft.
- FLYHT signed a contract with an Asian charter airline for the AFIRS 220 on four Bombardier CRJ aircraft.
- FLYHT signed a contract with a Nigerian airline for the sale and delivery of the AFIRS 220 on five Boeing 737 aircraft.
- FLYHT signed a contract with the national carrier of an African airline for the sale and delivery of AFIRS for its fleet of 11 planes. AFIRS 220 will be installed on three B737-500 aircraft, while the AFIRS 228 will provide solutions for DHC-8-Q400, B737-700 and ERJ190 aircraft.
- FLYHT signed a contract with a North American cargo customer for service on the AFIRS 220 that were already installed on two of the airline’s recently acquired B767-300 aircraft and sale and service on three additional AFIRS 228 for their B767-200 aircraft.