FLYHT Aerospace Solutions Ltd.
TSX Venture: FLY
Shares Issued: 140,386,166
Fully Diluted: 179,132,626
Calgary-based FLYHT Aerospace Solutions was featured in a Globe and Mail article published late yesterday titled, “Stock to Watch: FLYHT Aerospace poised to gain altitude.” Globe reporter Shirley Won interviewed Toronto fund manager Hugh Cleland, who owns 12% of the company’s shares. Mr. Cleland expresses optimism over the sales of FLYHT’s next generation AFIRS 228 solution to key customers like NetJets Europe, Airbus SAS and Bombardier Inc. AFIRS (Automated Flight Information Reporting System) sends real-time data from an aircraft via satellite to base.
“Most people are unaware that there are large swaths of global airspace where airplanes have no means of communicating with the world outside the airplane,” said Mr. Cleland.
Mr. Cleland additionally commented, “FLYHT delivered 30 systems in 2011, over 80 in 2012, and I expect it to deliver between 150 to 200 systems in 2013 before the adoption really accelerates in 2014,” said Mr. Cleland. The fact that the Nigerian Civil Aviation Authority has recently given its airlines six months to install the systems on their aircraft indicates how the technology is catching on.”
Based on publicly available documents and statements from organizations like Airbus, the Nigerian government and Chinese Civil Aviation Authority, Mr. Cleland is projecting the installation of about 1,000 systems by the end of 2014 and between 3,800 and 6,600 within five years. However, the key catalyst for the stock is the company’s business model, whereby FLYHT will receive a recurring monthly revenue stream averaging $1,300 a month per plane. Mr. Cleland stated that he expects FLYHT shares to trade in the range of 50 cents to $1.00 by year-end.
The article also points out that FLYHT is close to addressing its balance sheet issues. “FLYHT’s shares have struggled because of the company’s need for additional short-term financing, but its Chief Executive Officer William Tempany, told investors during a conference call last week that he was confident that the new cash infusion would be in-hand by the end of next month.”