CALGARY, Alberta, April 08, 2020 (GLOBE NEWSWIRE) — FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today reported financial results for the fourth quarter and full year ended December 31, 2019.
“In 2019, we finished the year with a positive million dollars in EBITDA and annual revenues that exceeded $21 million dollars. It was a very encouraging year where we earned nearly fifty percent of our revenues in recurring Software as a Service revenues,” said CEO Thomas R. Schmutz. “Our challenge now is to protect our cash and weather this incredibly challenging COVID-19 pandemic.”Fourth Quarter 2019 ResultsRevenues and Other Income increased 6.1% to $4,281,612 compared to the fourth quarter of 2018. This included:SaaS revenue of $2,711,228, an increase of 19.9% from the fourth quarter of 2018;Hardware revenue of $657,577, a decrease of 55.1% from the fourth quarter of 2018;Licensing revenue of $772,466, an increase of 209.2% from the fourth quarter of 2018; andTechnical Services of $140,341, an increase of 140.7% from the fourth quarter of 2018.
Gross margin was 62.7% of revenue compared to 56.0% in the fourth quarter of 2018.
Operating expenses increased 4.1% from the fourth quarter of 2018. Distribution expenses decreased by 4%, Administration expenses decreased by 4.7%, and Research and Development and certification engineering expenses increased by 39.5%.
Negative EBITDA1 totaled $711,486 in the quarter compared to an EBITDA gain of $53,845 in the same quarter of 2018.
Net loss was $1,212,971, compared to a net income in Q4 2018 of $217,954.Full-Year 2019 ResultsRevenue for the full year was $21,171,159, representing an increase of 55.8% compared to full-year 2018 revenue of $13,590,516. This included:SaaS revenue of $10,246,685, an 85.3% increase year-over-year;Hardware revenue of $6,651,673, a 20.1% increase year-over-year;Licensing revenue of $3,241,285, a 43.1% increase year-over-year; andTechnical Services of $1,031,516, a 297.1% increase over 2018.
Gross Margin increased 52.8% from the prior year to $12,326,802.
Operating expenses increased 37.1% year-over-year to $16,279,202. This included a 38.4% increase in Distribution expenses, a 29.6% increase in Administration expenses, and a 43.2% decrease in Research & Development expenses.
EBITDA gain was $1,015,591 in 2019, which compares to an EBITDA loss of $1,787,930 for the full-year 2018.
Net loss for the year decreased 62.0% to $746,635 from a net loss $1,966,748 in 2018.FLYHT’s balance sheet ended the year with:Cash and short-term investments of $4,127,648 at the end of 2019, an increase from the 2018 and Q3 2019 ending balances of $2,406,769 and $2,040,638, respectively;
Trade and Other Receivables increased 44.7% year-over-year; and
Contract liabilities decreased 56.8% year-over-year, as subsidy amounts received from Panasonic Avionics Corporation in 2018 were recognized as Other Income in Q1 2019.FLYHT’s 2019 Annual Report, which contains more detailed information including the CEO’s Message, Management Discussion and Analysis and Financial Statements, has been posted to the Company’s website and can be accessed at http://flyht.com/financial-reports/. The MD&A and Financial Statements have also been filed with SEDAR and will be accessible at www.sedar.com.FLYHT will host a live conference call to discuss its fourth quarter and full year 2019 financial results on Thursday, April 9, 2020 at 7 am MDT (9 am EDT, 6 am PDT)
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