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AMA Q3 2011 Presentation


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Bill Tempany and Tom French present on AeroMechanical Services' third quarter results.

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AMA Q3 2011 Presentation

  1. 1. AeroMechanical Services <ul><li>Q3 2011 Results </li></ul>
  2. 2. Forward Looking Statements <ul><li>This discussion includes certain statements that may be deemed “forward-looking statements” that are subject to risks and uncertainty. All statements, other than statements of historical facts included in this discussion, including, without limitation, those regarding the Company’s financial position, business strategy, projected costs, future plans, projected revenues, objectives of management for future operations, the Company’s ability to meet any repayment obligations, the use of non-GAAP financial measures, trends in the airline industry, the global financial outlook, expanding markets, research and development of next generation products and any government assistance in financing such developments, foreign exchange rate outlooks, new revenue streams and sales projections, cost increases as related to marketing, research and development (including afirs 228), administration expenses, and litigation matters, may be or include forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on a number of reasonable assumptions regarding the Canadian, U.S., and global economic environments, local and foreign government policies/regulations and actions and assumptions made based upon discussions to date with the Company’s customers and advisers, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include production rates, timing for product deliveries and installations, Canadian, U.S., and foreign government activities, volatility of the aviation market for the Company’s products and services, factors that result in significant and prolonged disruption of air travel worldwide, U.S. military activity, market prices, foreign exchange rates, continued availability of capital and financing and general economic, market, or business conditions in the aviation industry, worldwide political stability or any effect those may have on our customer base. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. </li></ul><ul><li>Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to have been correct. The Company cannot assure investors that actual results will be consistent with any forward-looking statements; accordingly, readers should not place undue reliance on forward‑looking statements. The forward-looking statements contained herein are current only as of the date of this document. The Company disclaims any intentions or obligation to update or revise any forward-looking statements or comments as a result of any new information, future event or otherwise, unless such disclosure is required by law. </li></ul><ul><li> AMA : TSX-V </li></ul>
  3. 3. Q3 Highlights <ul><li>R&D expenses in control </li></ul><ul><li>Announcements from Q3 </li></ul><ul><li>AFIRS TM 220 and 228 in demand </li></ul><ul><li>AFIRS 228 development on schedule </li></ul><ul><li>National Business Aviation Association (NBAA) Convention </li></ul><ul><li>Solid revenue growth year over year </li></ul><ul><li>Financial Summary </li></ul>
  4. 4. Reduction in R&D Expenses <ul><li>Q3 2011: $1,118k </li></ul><ul><li>Q3 2010: $1,745k </li></ul><ul><li>$627k reduction year over year </li></ul>
  5. 5. Announcements from Q3 <ul><li>Cash growth quarter over quarter </li></ul><ul><li>FLYHTStream TM emergency streaming showcased by BEA </li></ul><ul><li>NBAA: meetings with OEMs and China delegation </li></ul><ul><li>Nigeria opens second Operations Command Centre </li></ul><ul><li>AFIRS 228B certification work </li></ul>
  6. 6. AFIRS Contracts <ul><li>AFIRS 220 </li></ul><ul><li>Two Boeing 737-200 aircraft for a Middle Eastern Operator </li></ul><ul><li>Seven Boeing 767-200/300SF aircraft for an international charter airline </li></ul><ul><li>Five Boeing 747 and 767 aircraft for a Nigerian airline </li></ul><ul><li>AFIRS 228 </li></ul><ul><li>Three Boeing 737-800 aircraft for ACARS over Iridium solution </li></ul><ul><li>Two Boeing 777 with existing customer </li></ul>
  7. 7. AFIRS 228B Progress <ul><li>Hardware completed, testing started in Q3 and completed in early Q4 </li></ul><ul><li>New customers added </li></ul><ul><li>Demonstrated real-time functionalities </li></ul><ul><li>First commercial installation on track to meet customer demand in Q4 </li></ul>
  8. 8. National Business Aviation Association Convention
  9. 9. NBAA
  10. 10. USA & China Comparison
  11. 11. Increased Cash Position and Revenue from Q3 2010 <ul><li>Cash Position </li></ul><ul><li>$3.5 m cash in Q3 2011 </li></ul><ul><li>$3.3 m cash in Q3 2010 </li></ul><ul><li>Revenue </li></ul><ul><li>$1.4 m revenue in Q3 2011 </li></ul><ul><li>$1.0 m revenue in Q3 2010 </li></ul><ul><li>Gross margin of 62.7% </li></ul>
  12. 12. Financial Summary <ul><li>Debt and Working Capital as of Sept. 30, 2011 </li></ul><ul><li>Modified working capital $ 2.49 million </li></ul><ul><li>Long term debt $ 2.8 million </li></ul><ul><li>Capitalization: Shares Outstanding </li></ul><ul><li>Basic 118,615,466 </li></ul><ul><li>Fully diluted 144,861,553 </li></ul><ul><li>Management, directors, officers > 5.5% </li></ul>
  13. 13. Financial Summary <ul><li>Customer growth in flight hours, flights and recurring revenue - nine months ended Sept. 30, 2006-2011 </li></ul>
  14. 14. Questions <ul><li>Conference call with Bill Tempany, CEO and Tom French, CFO and VP Finance </li></ul><ul><li>Thursday, November 10, 2011 at 2 pm MT (4 pm ET) </li></ul><ul><ul><li>Canada & USA Toll Free: 1-800-319-4610 </li></ul></ul><ul><ul><li>Outside of Canada & USA call: +1-604-638-5340 </li></ul></ul><ul><li>Questions can be asked live or e-mailed to: </li></ul>