Company Delivers Record Revenue and Positive EBITDA for the Quarter and Year
 

Calgary, Alberta – April 12, 2022 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today reported financial results for the fourth quarter ended December 31, 2022 (“Q4 2022”). All figures are Canadian dollars unless otherwise stated.

Financial Summary

Management Commentary

“With the strong execution of our strategy, FLYHT delivered record revenue of nearly $24 million in 2022, a doubling over 2021, while also generating positive EBITDA in the second half of the year and on a full year basis,” said Kent Jacobs, President and Interim CEO. “The continued recovery of the airline industry coupled with FLYHT’s innovative approach positions us to benefit from the ongoing robust demand for our legacy products and surging interest for our new solutions.”

Continued Jacobs, “FLYHT exited the year with one of its strongest quarters ever in Q4 2022. Revenue was $7.2 million, up 186% over last year, driven by continued SaaS growth and fulfilment of the 2022 purchase order of modems from our long-time OEM partner. EBITDA was positive $1.2 million and net income was positive $719 thousand, the highest in over three years.”

Concluded Jacobs, “In 2023, we are focused on fulfilling Bill Tempany’s vision to become a global force in providing innovative aviation and environmental solutions for our customers. We are on the verge of obtaining the initial Supplemental Type Certificates (“STCs”) of our newest innovation, the AFIRS Edge™, which opens up a significant incremental growth opportunity as we target the ~25,000 aircraft that will ultimately require 5G enabled connectivity. Meanwhile, demand for the complementary AFIRS 228™ Satcom product remains at an all time high, highlighted in 2022 by our single largest licencing order ever of more than $7 million. These products and services are complemented by additional standalone SaaS offerings as part of our recurring revenue strategy, including our recently introduced ClearPort aircraft turn management tool. As we expand into Artificial Intelligence and Machine Learning models, and further develop our Data Warehouse capabilities, we look forward to reaching our full SaaS revenue potential.

Fourth Quarter 2022 Operating Results

Revenue increased by 187% to $7,241,758 in Q4 2022 compared to Q4 2021, driven by growth in all four revenue categories, SaaS, Hardware, Licensing and Technical Services.

 SaaS revenue increased by 50% to $2,253,618 in Q4 2022. The addition of CrossConsense SaaS revenues further supported a 2.6% increase in AFIRS SaaS revenues. Licensing revenue increased by 751% to $3,030,368 due to increases in the number of modems and associated license fees ordered for delivery in comparative periods, as the Company delivered on an order received in Q2 2022 for US$5.65 million. Technical Services revenue increased by 817% to $739,912, including contributions from CrossConsense services. Hardware revenue increased by 106% to $1,217,860 due to a higher number of shipments in the quarter. A total of 16 installation kits were shipped in Q4 2022 compared with 9 shipped in Q4 2021.

Gross margin was 67.1% of revenue in Q4 2022 compared to 49.5% in Q4 2021. 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 Q4 2021, driven by a 71% increase in Distribution expenses and a 11% increase in Administration expenses. Research and Development and certification engineering expenses decreased by 4% compared to Q4 2021. These increases were largely driven by the addition of personnel and expenses associated with the March 2022 acquisition of CrossConsense.

Positive EBITDA totaled $1,170,183 in Q4 2022 compared to an EBITDA loss of $1,745,000 in Q4 2021.

Net income was $718,689 in Q4 2022 compared to a net loss of $2,444,054 in Q4 2021.

Full Year 2022 Operating Results

Revenue increased by 111% to $23,879,160 in 2022 compared to 2021, driven by growth in all four revenue categories, SaaS, Hardware, Licensing and Technical Services.

SaaS revenue increased by 36% to $8,157,886 in Q4 2022. The addition of CrossConsense SaaS revenues more than offset a decrease of 1.6% in AFIRS SaaS revenues resulting from a drop in customers’ flight hours and active aircraft in some geographies in the first half of the year. Licensing revenue increased by 487% to $9,101,130 due to increases in the number of modems and associated license fees ordered for delivery in comparative periods, as the Company delivered on an order received in Q2 2022 for US$5.65 million. Technical Services revenue increased by 400% to $1,899,940 including contributions from CrossConsense services. Hardware revenue increased by 39% to $4,720,204 due to a higher number of shipments. A total of 69 installation kits were shipped in 2022 compared with 54 shipped in 2021.

Gross margin was 63.7% of revenue in 2022 compared to 57.2% in 2021. The increase in gross margin was due primarily to changes in the mix of revenue sources during the year.

Operating expenses increased by 33% from 2021, driven by a 53% increase in Distribution expenses, a 50% increase in Administration expenses, and a 4% increase in Research and Development and certification engineering expenses. These increases were largely driven by the addition of personnel and expenses associated with the acquisition of CrossConsense.

Positive EBITDA totaled $251,453 in 2022 compared to an EBITDA loss of $4,538,193 in 2021. Net loss was $1,003,033 in 2022 compared to a net loss of $5,859,206 in 2021.

Balance Sheet and Liquidity

Cash and short-term investments were $2,647,650 at December 31, 2022, compared to
$4,520,591 at December 31, 2021.

Trade and other receivables increased by 222% to $5,127,338 compared to YE 2021, and Trade payables and accrued liabilities increased by 61% to $2,736,269 compared to YE 2021. The increased sales in Q4 2022 and associated costs resulted in an increase in both the receivables and payables balances.

Conference Call Information

FLYHT will host a conference call to discuss its financial results for Q4 2022 on Thursday, April 13, 2023, at 7:30 a.m. MT (9:30 a.m. ET). The conference call will include a brief presentation from FLYHT’s President and Interim CEO Kent Jacobs and CFO Alana Forbes followed by a question-and-answer session. To access the conference call by phone within Canada and the U.S., the toll-free number is 1-800-319-4610. Outside Canada and the U.S., dial 1-604-638-5340.
 
Management will accept questions by telephone and e-mail. Individuals wishing to ask a question during the call can do so by pressing *1. Questions can be emailed in advance or during the conference call to investors@flyht.com. An archive of the conference call will be posted on the Investor Communications section of FLYHT’s website following the meeting.

Additional Information
FLYHT’s Q4 2022 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. These include AFIRS™, an aircraft satcom/interface device, that enables cockpit voice communications, real-time aircraft state analysis, and the transmission of aircraft data while inflight. The AFIRS Edge is a state-of-the-art 5G Wireless Quick Access Recorder (WQAR), Aircraft Interface Device (AID), and Aircraft Condition and Monitoring System (ACMS). The Edge can be interfaced with FLYHT’s TAMDAR probe or the FLYHT-WVSS-II relative humidity sensor to deliver airborne weather and humidity data in real-time.

CrossConsense, FLYHT’s wholly-owned subsidiary, offers highly skilled services to the commercial aviation industry and provides preventative maintenance solutions. These include Aircraft Fleet View, a native application that gives a real-time view of airline fleet status; AviationDW, a managed data warehouse for enhanced business intelligence; and ACSIS, a visualization and predictive maintenance alerting tool.

FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. CrossConsense, located in Frankfurt, Germany, is an ISO9001 certified operation. For more information, visit www.flyht.com.

• SEO Powered Content & PR Distribution. Get Amplified Today.
• Platoblockchain. Web3 Metaverse Intelligence. Knowledge Amplified. Access Here.
• Source: https://canadianaviationnews.wordpress.com/2023/04/12/flyht-reports-fourth-quarter-2022-results/