PASSUR® Aerospace Announces a Breakeven Operating Profit for Its Third Quarter Ended July 31, 2020
STAMFORD, Conn., Sept. 29, 2020 /PRNewswire/ -- PASSUR® Aerospace, Inc. (OTC: PSSR) ("PASSUR or the "Company"), a global leader in digital operational excellence, announced revenues of $2,208,000 for the three months ended July 31, 2020, compared with $3,798,000 for the same period in fiscal year 2019. For the nine months ended July 31, 2020, revenues totaled $9,612,000, compared with $11,088,000 for the same period in fiscal year 2019.
For the three months ended July 31, 2020, income from operations improved to $9,000, compared to a loss from operations of $894,000 for the same period in fiscal year 2019. For the three months ended July 31, 2020, net loss was $250,000, or $0.03 per diluted share, compared to a net loss of $1,074,000, or $0.14 per diluted share, in the same period in fiscal year 2019.
"While COVID-19 has created many challenges for our industry, PASSUR has continued to develop and renew deals with new and existing clients," said Brian Cook, President and CEO.
For the nine months ended July 31, 2020, loss from operations (inclusive of an impairment charge of $9,874,000) was $11,845,000, compared to $2,624,000 for the same period in fiscal year 2019. Excluding the impact of the impairment charge, the loss from operations was $1,971,000 for the nine months ended July 31, 2020, an improvement of $653,000 from the same period in fiscal 2019. For the nine months ended July 31, 2020, net loss (inclusive of the impairment charge of $9,874,000) was $12,564,000, or $1.63 per diluted share, compared to a net loss of $3,140,000, or $0.41 per diluted share, in the same period in fiscal year 2019.
The global COVID-19 pandemic has created uncertainty surrounding the prospects of airlines, airports, and the travel industry and contributed, in part, to a decline in the Company's revenues which commenced during the second quarter of 2020. In response, the Company has taken steps to reduce its operating costs going forward, including terminating or furloughing certain positions and instituting a temporary pay reduction plan during the second quarter of 2020, suspending the use of outside consultants where possible, rationalizing the PASSUR Network, and reducing and/or eliminating other operating expenses that were not critical to the short-term operations of the Company. As a result, the Company reduced its cash operating costs for the quarter ended July 31, 2020, by approximately $2,100,000. This reduction amounted to approximately a 40% cost reduction when compared to comparable expenses in the first quarter, which ended January 31, 2020.
On July 7, 2020, the Company entered into an agreement with the U.S. Department of the Treasury to receive an aggregate of $3,003,000 in grants for emergency relief through the CARES Act Payroll Support Program, which amounts were received in installments through September 2020. Pursuant to the Payroll Support Program Agreement, the relief payments must be used exclusively for the continuation of payment of employee wages, salaries and benefits. The relief payments are conditioned on the Company's agreement to, among other things, refrain from conducting involuntary employee layoffs or furloughs through September 30, 2020. $208,000 of these grants were used during the third quarter ended July 31, 2020.
Mike Hulley Joined the Board
As previously announced, Michael O. Hulley was appointed to the Board of Directors in July 2020 bringing over 40 years of industry experience and executive leadership skills. Since January 2019, Mr. Hulley has served as the CEO and Managing Partner of Aileron Strategic Advisors, which provides aviation and management expertise to private equity and consulting firms. Prior to Aileron Strategic Advisors, he served as the CEO of Navtech/Navblue for 10 years, and led its sale to Airbus in February 2016. Prior to Navtech, Mr. Hulley served as the President and Global Leader of the Transportation Industry at EDS and the Global Vice President and GM of IBM where he won the Lou Gerstner Chairman's award. Mr. Hulley's career began at Delta Air Lines and continued with United Airlines and Galileo International. Mr. Hulley with his vast industry knowledge and experience is a valuable addition to our Board of Directors.
Michael Henne Promoted to Chief Commercial Officer
On September 29, 2020 Michael Henne was promoted to Chief Commercial Officer. Mr. Henne joined PASSUR in May as Vice President of Sales having served in executive leadership roles in Operations, Technology, Finance, and Sales in airline and system integrators around the world. Prior to joining PASSUR, he accumulated 30 years of experience in aviation and in growing small and large companies. Mr. Henne served at IBM Corporation as Global Client Executive in Travel and Transportation, at Delta as General Manager for Airport Planning and Performance, and at DXC Technology as Travel and Transportation Digital General Manager. His deep understanding of aviation, technology, and information systems, as well as his passion for client advocacy, makes him a valuable addition to PASSUR's executive leadership team.
About PASSUR® Aerospace, Inc.
PASSUR Aerospace, Inc. (OTC: PSSR), a New York corporation founded in 1967, is the operations platform of choice for aviation experts, offering a unique combination of global data, decision support, and subject matter expertise solutions to improve operational efficiencies. Our platform and people help deliver actionable-data and user-friendly tools to corporate and operations leadership looking for creative ways to minimize and eliminate bottleneck capacity constraints, react to irregular operations (IROPS), restart operations after an interruption in service, and enhance the efficiency of the daily schedule. Our collaborative framework uniquely enhances data sharing, communications, and decision-making within and between stakeholders in an operations ecosystem. PASSUR provides its solutions to the largest airlines and airports globally including the United States, Canada, Europe, and Latin America.
Visit PASSUR Aerospace's website at www.passur.com for updated products, solutions, and news.
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PASSUR Aerospace, Inc. and Subsidiary
CONSOLIDATED BALANCE SHEETS
July 31, 2020 October 31,
2019
---
(unaudited)
Assets
Current assets:
Cash $1,998,004 $145,151
Accounts receivable,
net 460,203 1,141,282
Prepaid expenses and
other current assets 271,992 249,118
Total current assets 2,730,199 1,535,551
PASSUR Network, net - 3,948,542
Capitalized software
development costs, net 1,344,849 8,319,134
Property and equipment,
net 322,395 552,150
Operating lease right-
of-use assets 701,287 -
Other assets 57,217 91,883
Total assets $5,155,947 $14,447,260
---
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $1,901,557 $1,531,112
Accrued liabilities -
Stimulus funding 1,401,530 -
Accrued expenses and
other current
liabilities 792,428 789,370
Operating lease
liabilities, current
portion 384,526 -
Deferred revenue,
current portion 1,136,980 2,863,273
Total current
liabilities 5,617,021 5,183,755
Deferred revenue, long
term portion 257,270 377,760
Notes payable -related
party 10,452,799
8,350,058
Operating lease
liabilities, non-
current 550,098 -
Other liabilities - 79,958
---
Total liabilities 16,877,188 13,991,531
Total stockholders'
equity (11,721,241) 455,729
---
Total liabilities and
stockholders' equity $5,155,947 $14,447,260
---
PASSUR Aerospace, Inc. and Subsidiary
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
July 31, July 31,
---
2020 2019 2020 2019
---
Revenues $2,207,722 $3,798,149 $9,611,780 $11,088,397
Cost of expenses:
Cost of revenues 860,540 2,137,662 5,567,720 6,206,428
Research and development expenses 66,042 143,102 281,739 426,376
Selling, general, and administrative expenses 1,272,376 2,411,029 5,733,142 7,079,287
Impairment charges 9,874,281 -
2,198,958 4,691,793 21,456,882 13,712,091
---
Income/(Loss) from operations $8,764 $(893,644) $(11,845,102) $(2,623,694)
Interest expense - related party 238,826 180,191 667,741 515,875
Other Loss 19,473 19,473 -
Loss before income taxes (249,535) (1,073,835) (12,532,316) (3,139,569)
Provision for income taxes 31,560 -
Net loss $(249,535) $(1,073,835) $(12,563,876) $(3,139,569)
---
Net loss per common share - basic $(0.03) $(0.14) $(1.63) $(0.41)
Net loss per common share - diluted $(0.03) $(0.14) $(1.63) $(0.41)
Weighted average number of common shares outstanding
- basic
7,712,091 7,696,091 7,710,047 7,696,091
Weighted average number of common shares outstanding
- diluted
7,712,091 7,696,091 7,710,047 7,696,091
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SOURCE PASSUR Aerospace
