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PASSUR® Aerospace Announces a Breakeven Operating Profit for Its Third Quarter Ended July 31, 2020
[September 29, 2020]

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.

 





Media Contact:

Media:

Evee Burgard

VP Marketing

(310) 995-0313

[email protected]                                                        

Investor Relations:

Louis J. Petrucelly

SVP & Chief Financial Officer

(203) 622-4086

[email protected]


 

 

 

 

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

 

Cision View original content:http://www.prnewswire.com/news-releases/passur-aerospace-announces-a-breakeven-operating-profit-for-its-third-quarter-ended-july-31-2020-301140329.html

SOURCE PASSUR Aerospace


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