FLYHT reveals third quarter results
FLYHT Aerospace Solutions Ltd. has reported financial results for its third quarter ended September 30, 2015.
“FLYHT’s third quarter revenue results were strong, the second highest on record and place us in a good financial position leading into the fourth quarter,” stated Tom Schmutz, chief executive officer of FLYHT. “On the sales front, we signed our largest customer to date, Avmax Group, Inc. for 146 aircraft. We also saw increased sales in China and in the sales of modems with related licence fees. As a recent addition to the FLYHT team, I am encouraged with this progress and the positive results for our shareholders.”
Third Quarter Results Include:
- Revenue of $2,519,347 in the third quarter, a 39.3% increase from Q3 2014.
- Net loss for the quarter at $683,224, compared to a loss of $1,653,147 in the same period last year.
- Modified Working Capital at the end of Q3 2015 of $1,077,505 compared to $5,283,775 at December 31, 2014, although only $4,261 less than the end of Q2 2015.
- Customer deposits of $524,325, a 51.0% decrease over the third quarter of 2014; payments received of $824,409, were 82.2% higher than the same quarter of 2014.
- Unearned revenue increased to $1,922,505 or 51.1% higher than the third quarter of 2014; revenue recognized on AFIRS units shipped was higher than in Q2 although lower than Q3 2014 and the value of customer deposits moved to unearned revenue was $1,164,416 or 87.8% higher than in Q2 of 2014, or $878,182 more than in Q2 of 2015.
- Recurring revenue (voice and data services) of $1,100,238 showed an increase of 18.7% over the third quarter of 2014, and parts sales of $682,476 was an increase of 360.5% from the third quarter of 2014 or $397,017 (139.1%) increase on the second quarter 2015.
- Administration expenses decreased to $607,755 or 38.3% versus the third quarter of 2014.
- R&D expense decreased to $638,104 in 2015 from $848,119 in the third quarter 2014.
- Distribution expense increased $336,035 due to additional resources and activities focused on sales, marketing and customer deliverables.
- In the third quarter of 2015 FLYHT signed one contract and extended another for a combined 169 aircraft worldwide. All were for the AFIRS 228.
- On July 29, 2015 FLYHT entered into an agreement pursuant to which the Company would offer for sale on a private placement basis up to 30 million units at a price of $0.17 USD ($0.22 CAD) per unit for gross proceeds of up to $5.1 million USD. Each unit to consist of one common share and one-half of one common share purchase. Subsequent to quarter end the placement was withdrawn by the Company as market conditions were not conducive to closing this U.S. based offering.
- In July, FLYHT welcomed Mr. David Perez as Vice President, Sales and Marketing. Mr. Perez has over 25-years of experience in the aviation industry.
- In August, FLYHT was selected by Alberta Venture Magazine in a list of 20 most innovative companies.
- In October, subsequent to the end of the third quarter, FLYHT announced appointment of Mr. Thomas R. Schmutz as new CEO of the Company. In a career of more than 30 years, Mr. Schmutz gained extensive experience in senior leadership roles in the aerospace and telecommunications industries and the military.