Wednesday, 9 October 2013

Bob McWhirter On FLYHT – Recurring Revenue Portion of The Business Is What’s Attractive!

FLYHT Aerospace Solutions Ltd.  
TSX Venture: FLY   
Shares Issued: 142.5 million   
Fully Diluted: 182.1 million

Today, the President of Selective Asset Management, Bob McWhirter, appeared as a guest on Market Call, a very popular show on Canada’s Business News Network. During his appearance, one of the callers raised a question about FLYHT Aerospace Solutions. Below are the points highlighted by Mr. McWhirter, who is based out of Toronto.

Key highlights include the following:
  • FLYHT is the eighth largest holding in Mr. McWhirter’s personal position.
  • FLYHT is currently working with Airbus, which produces 400 planes per year. Airbus’s retrofit market is of particular importance, as it is 10 times larger than Airbus’s new aircraft production market.
  • FLYHT’s technology saves approximately $100,000 in fuel costs per year per plane, plus additional maintenance costs.
  • Payback is extremely attractive to an airline.
  • Mr. McWhirter believes the key element to FLYHT is that it will become a recurring revenue story. Other recurring revenue stories in Canada trade at 12 to 15 times enterprise value to EBITDA levels.

Mr. McWhirter discusses FLYHT at the 2:52 mark of the video.... Click here to view