FLYHT Reports Fourth Quarter and Full Year 2020 Results, Provides Corporate Update
-- Strong Cost Control Contributes to Increase in Cash Balance --
-- SaaS Represented 54% of 2020 Revenue, Driving Gross Margin Expansion to 68% --
-- Company Expects Launch Partners to Deploy Actionable Intelligence Software in Q2 --
CALGARY, Alberta, April 07, 2021 (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, 2020.
“We are encouraged by recent trends for short-haul travel and cargo activity in the current environment and are relieved to have 2020 behind us,” said Bill Tempany, CEO. “While it was a challenging year for FLYHT and the commercial aviation industry, we feel that we have weathered the storm relatively well. Given that we serve a client base that has seen a 40% to 75% reduction in revenue, unprecedented financial losses and staff reductions, the revenue slip experienced by FLYHT is better than the industry as a whole and testament to the critical value that our solutions bring to airline operations.”
Tempany continued, “During the fourth quarter, we started to see signs of recovery across our business. We have seen clients that had experienced financial distress early in the pandemic return to the skies with equipped with FLYHT solutions. Additionally, we shipped 24 AFIRS hardware kits in the fourth quarter which was up from only one in the third quarter, and have a solid pipeline of additional units committed for deliveries in 2021. While still down on a year over year basis, overall revenue increased 76% sequentially from the third quarter of 2020.”
“We enter 2021 with an expanded suite of solutions that leverage FLYHT’s historical core strength in real-time aircraft data with additional insights and actions from our Actionable Intelligence suite of SaaS applications. We expect to have at least three clients using the AI software suite in the second quarter of 2021 and to start generating incremental revenue from these services beginning in the third quarter.”
Concluded Tempany, “We are well-positioned, given our cash reserves and current recovery trends, to see a significant improvement in our operating results in 2021 and 2022 as the vaccination rollout continues and pandemic related travel restrictions dissipate.”
Fourth Quarter 2020 Results
- Revenue decreased 21% to $3,379,186 compared to the fourth quarter of 2019. This included:
- SaaS revenue of $1,627,421, a decrease of 40% from Q4 2019;
- Hardware revenue of $1,490,709, an increase of 127% from Q4 2019;
- Licensing revenue of $48,068, down 94% from 4Q 2019; and
- Technical Services of $212,988, an increase of 52% from Q4 2019.
- Gross margin was 56% of revenue compared to 63.0% in the fourth quarter of 2019.
- Operating expenses decreased 12% from the fourth quarter of 2019. Distribution expenses decreased by 23%, Administration expenses increased by 11%, and Research and Development and certification engineering expenses decreased by 13%.
- Negative EBITDA was $1,657,110 in the quarter compared to negative EBITDA of $711,486 in the fourth quarter of 2019.
- Net loss was $1,999,715, compared to a net loss of $1,212,971 in Q4 2019.