FLYHT Reports Second Quarter 2013 Results

CALGARY, ALBERTA—(Marketwired – Aug. 7, 2013) – FLYHT Aerospace Solutions Ltd. (TSX VENTURE:FLY) (the “Company” or “FLYHT”) a leading provider of real-time data communications technology for the aviation industry today reported financial results for its second quarter ended June 30, 2013.

“The FLYHT team’s dogged determination is building into a groundswell of actions which will drive success,” stated Bill Tempany, President and Chief Executive Officer of FLYHT. “Revenue has continued to grow quarter over quarter and our reduction of expenses related to research and development expenses continued as predicted. We are in the homestretch of getting our AFIRS 228S in the marketplace.”

Second Quarter Highlights Include:

Revenue of $2,163,434, which represents an increase of 36.5% over the same period last year.
Recurring revenue (UpTime usage) of $846,438, an increase of 11.9% over the second quarter of 2012.
Gross profit was 54.5% of revenue compared to 43.7% for the second quarter of 2012.
Net loss of $1,038,283 which included research and development costs of $357,347, which if removed would have resulted in a net loss of $680,936, a reduction of 46.9% and 42.5% respectfully over the second quarter of 2012.
Distribution expenses were $759,738 representing a decrease of $143,019 from the second quarter of 2012.
Administration expenses increased to $879,103 versus the second quarter of 2012 or an increase of $87,215.
Research and development expenses were $357,347 or $413,682 lower than the second quarter of 2012.
Net finance costs increased $41,726 from the same quarter of 2012 to $285,420 in the second quarter of 2013.
Closed a non-convertible debenture financing with total proceeds of $2,110,000.
Received a purchase order from a major avionics integrator for AFIRS 228 for seven Lockheed C-130 Hercules aircraft which are owned and operated by a Middle Eastern country’s air force.
Signed a contract with a Maldivian airline to install AFIRS 220 or 228 on two Boeing 767 aircraft.
Received activation STC for AFIRS 228 on Boeing 777 model aircraft from the Federal Aviation Administration.
Appointed Derek Graham as Chief Operating Officer.
Six Months Highlights Include:

Revenue of $3,880,570, which represents an increase of 43.7% over the first six months of last year.
Recurring revenue (UpTime usage) of $1,662,313, an increase of 9.6% over the first six months of 2012.
Gross profit for the first six months of 2013 was 59.9% of revenue compared to 48.3% for the same period of 2012.
Net loss of $2,008,419 which included research and development costs of $1,045,913, which if removed would have resulted in a net loss of $962,506, a reduction of 51.4% and 55.1% respectfully over the first six months of 2012.
Distribution expenses were $1,440,603 representing a decrease of $431,122 from the first six months of 2012.
Administration expenses increased to $1,480,475 versus the first six months of 2012 or an increase of $126,148.
Research and development expenses were $1,045,913 or $938,275 lower than the first six months of 2012.
Net finance costs increased $142,598 from the same six month period of 2012 to $492,544 in the first six months of 2013.
For detailed information FLYHT’s 2013 Second Quarter Report containing the President and CEO’s Message, Management Discussion and Analysis and Financial Statements has been posted to the Company’s website and can be accessed at www.flyht.com/investors/financial-reports-results-centre. The MD&A and Financial Statements have also been sent to SEDAR and will be accessible at www.sedar.com.