Restructure Expected to Contribute to $1.75 Million in Annual Savings
CALGARY, AB / ACCESSWIRE / August 22, 2024 / FLYHT Aerospace Solutions Ltd. ("FLYHT" or the "Company") (TSXV:FLY)(OTCQX:FLYLF) today announced a restructuring of its business operations to significantly reduce expenditures.
"We have reached an exciting and critical juncture in the 25-year history of FLYHT," said Mary McMillan, Interim CEO and Executive Chair of the Board. "After several years of hard work, the development of the AFIRS Edge product line is functionally complete. This milestone represents a significant achievement for our team and our company. As we move forward, we must now sharpen our focus, energy, and resources around sales and delivering our contracted backlog towards achieving positive EBITDA on a sustainable basis. There is both an opportunity and an imperative to retool the organization to focus on delivery of the promised returns to all our stakeholders while achieving significant cost savings."
Added McMillan, "Unfortunately, fallout from these actions involves parting ways with some team members who have played critical roles in getting us to where we are today. Their individual contributions cannot be understated, and I want to express my sincerest gratitude for their performance and commitment to FLYHT."
Concluded McMillan, "We are able to make this organizational change because we have substantially completed what we set out to do with the Edge: develop an industry leading 5G compatible wireless QAR (WQAR) and aircraft interface device (AID). We are releasing the 4MCU plug-in-replacement version, the Edge+, which we believe addresses the present and future requirements of the global airline community. The Edge+ is a world class ‘plug and play' version which we believe will rapidly penetrate the market. Now is the time to focus on introducing the Edge products to the wider marketplace, deliver and grow our contracted backlog, including our weather portfolio and SATCOM solutions."
To support this sharpened focus, Darrel Deane will take on the role of Chief Revenue Office (formerly Vice President Solutions) and Gurjot Bhullar will take on the role of Chief Operating Officer (formerly Vice President Operations).
These reductions will impact 20% of FLYHT's workforce, and is expected to contribute to fixed cost savings of $1.75 million CAD on an annualized run-rate basis. FLYHT expects to record a one-time restructuring expense of approximately $770,000 in Q3 2024 related to the reduction in force, which includes severance payments and benefits to affected employees.
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, AFIRS™. 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.
Cautionary Note Regarding Forward-Looking Statements
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to projected revenues and related matters. Although FLYHT believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. FLYHT cannot guarantee future results, performance, or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made and are founded on the basis of expectations, assumptions and hypotheses made by the Company, including, but not limited to projected revenues. Such forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include but are not limited to global economic conditions, industry conditions, and supply chain delays. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
The forward-looking information contained in this news release is expressly qualified by this cautionary statement. FLYHT undertakes no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.
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SOURCE: FLYHT Aerospace Solutions Ltd.
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