CALGARY, AB / ACCESSWIRE / November 13, 2024 / FLYHT Aerospace Solutions Ltd. (TSXV:FLY, Financial)(OTCQX:FLYLF, Financial) (the "Company" or "FLYHT") today reported financial results for the third quarter ended September 30, 2024 ("Q3 2024"). All figures are Canadian dollars unless otherwise stated.
Financial Summary
| Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||
| 2024 | 2023 | Inc./ Dec. | 2024 | 2023 | Inc./ Dec. | |||||||||||||||||||
Revenue | $ | 4,398,225 | $ | 5,099,019 | -14 | % | $ | 13,500,818 | $ | 15,899,792 | -15 | % | ||||||||||||
SaaS | 2,167,003 | 2,787,664 | -22 | % | 7,638,386 | 7,891,437 | -3 | % | ||||||||||||||||
Hardware | 1,061,822 | 1,001,817 | 6 | % | 2,353,110 | 3,945,523 | -40 | % | ||||||||||||||||
Licensing | 22,889 | 494,573 | -95 | % | 102,979 | 1,936,574 | -95 | % | ||||||||||||||||
Technical Services | 1,146,511 | 814,965 | 41 | % | 3,406,343 | 2,126,258 | 60 | % | ||||||||||||||||
Gross Margin | 56.8 | % | 58.7 | % | -190 | bp | 61.0 | % | 58.6 | % | 220 | bp | ||||||||||||
Adjusted EBITDA | (1,034,678 | ) | (430,865 | ) | NM | (3,009,600 | ) | (1,606,734 | ) | NM | ||||||||||||||
Net Loss | (2,244,504 | ) | (728,655 | ) | NM | (4,835,017 | ) | (2,554,576 | ) | NM | ||||||||||||||
EPS - Basic & Diluted | (0.05 | ) | (0.02 | ) | (0.03 | ) | (0.12 | ) | (0.07 | ) | (0.05 | ) | ||||||||||||
Operating Results
Revenue decreased by 14% to $4,398,225 in Q3 2024 compared to Q3 2023, driven by declines in SaaS and Licensing, which more than offset increases in Hardware and Technical Services. SaaS revenue decreased by 22% to $2,167,003, driven by a decrease in TAMDAR soundings, and Licensing revenue decreased by 95% to $22,889 due to differences in orders from our long-term OEM customer. Hardware revenue increased 6% to $1,061,822 with a total of 11 installations kits shipped in Q3 2024 compared to 18 kits shipped in Q3 2023, mainly due to installation schedules for our contracted AFIRS 228 product and per kit pricing variances. Technical Services revenue increased by 41% to $1,146,511 due to an increased amount of AMOS data migration work completed and an increase in certification services provided.
Gross margin was 56.8% of revenue in Q3 2024 compared to 58.7% in Q3 2023. The increase in gross margin was due primarily to changes in the mix of revenue sources during the quarter.
Operating expenses increased by 24% from Q3 2023, mainly driven by $719,508 of non-recurring expenses associated with the restructuring. Excluding the non-recurring costs, operating expenses would have increased by 4%. Distribution expenses increased by 13%, reflecting an increased focus on sales and marketing for our Edge products. Research, Development and Certification Engineering expenses increased by 8%, mainly driven by contract labour reflecting the final push required to complete the AFIRS Edge+ and FLYHT-WVSS-II development work, moving those products into their new phase of commercialization, including required certifications. Administration expenses increased by 62% mainly due to the restructuring.
Negative Adjusted EBITDA1 totaled $1,034,678 in Q3 2024, excluding $719,508 of non-recurring restructuring expenses, compared to negative EBITDA of $430,865 in Q3 2023.
Net loss was $2,244,504 in Q3 2024 compared to a net loss of $728,655 in Q3 2023.
Balance Sheet and Liquidity
Cash and short-term investments totaled $1,289,217 at September 30, 2024, compared to $1,542,203 at December 31, 2023.
Trade and other receivables decreased by 25% to $2,175,408 compared to YE 2023, and Trade payables and accrued liabilities increased by 13% to $3,505,481 compared to YE 2023.
Additional Information
FLYHT's Q3 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, AFIRSâ„¢. 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 |
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.
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1Adjusted EBITDA: defined as earnings before interest, income tax, depreciation and amortization, less non-recurring restructuring costs (a non-GAAP financial measure). Adjusted 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.
SOURCE: FLYHT Aerospace Solutions Ltd.
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