- FY 2024 total revenue of $27,147,414, with 16% year over year growth in services and technology revenue
- Achieved record blended gross margin of 38% in Q4 2024
- Achieved cost synergies from merger of approximately $3,770,000 in 4 months
- The active Sales pipeline totaling greater than $600M
- Received an agreement to Convert $2,646,000 of debt into equity, strengthening balance sheet
- Volatus will host a webinar and live Q&A on Friday May 2, 2025, at 8 am ET (see registration link below).
TORONTO, April 30, 2025 (GLOBE NEWSWIRE) -- Volatus Aerospace Inc. (TSXV:FLT) (OTCQB:TAKOF) (Frankfurt:A3DP5Y/ABBA.F) ("Volatus" or "the Company"), a leader in aerial solutions, is pleased to announce its financial results for the twelve-month period and fourth quarter ended Dec 31, 2024 ("FY 2024" and "Q4 2024", respectively). All dollar figures are stated in Canadian dollars, unless otherwise indicated.
In FY 2024, the Company generated revenue of $27,147,414, while Q4 2024 contributed $6,783,176. In Q4 2024, the Company's blended gross margin was a record 38% compared to Q3 2024 of 27%, mainly due to a larger mix of higher margin services and technology revenue. In Q4 2024, the Company also achieved near-breakeven normalized EBITDA of $(206,900), compared to $(3,344,056) for the same comparative period in 2023, adjusting for certain expenses related to the merger of equals transaction with Drone Delivery Canada that was completed in August 2024. The $3,137,156 improvement in normalized EBITDA is directly related to the Company's early focus and success of integration efforts and realization of various cost synergies.
FY 2024 Operational Highlights:
- Completed the acquisitions of UAVHub & The Drone Mentor
- Completed its merger of equals transaction between Drone Delivery Canada and Volatus Aerospace Corp.
- Ranked second fastest growth companies in Canada by the Globe and Mail
- Closed a $15M financing backed by Investissement Québec (IQ) and Export Development Canada (EDC)
- Expanded global ecosystem to markets such as UK, India, Norway
- Announced a new collaboration to enhance Beyond Visual Line of Sight (BVLOS) capabilities for Remotely Piloted Aircraft Systems (RPAS) through the integration of Kongsberg's IRIS Terminal into Volatus' state-of-the-art Operations Control Center (OCC)
- Closed a $2,767,240 LIFE brokered private placement
- Appointed Omar Mourad to its Board of Directors
Q4 2024 and FY 2024 Financial Highlights:
- Total FY 2024 revenue was $27,147,414 compared to $34,872,815 in FY 2023, the drop mainly due to a direct focus by management on technology and services that are less working capital intensive and generate higher margins. Service and technology revenue increased by 16% from $16,573,827 in FY 2023 to $19,256,498 in FY 2024.
- Gross profit for FY 2024 was $9,556,299 compared to $11,135,842 in FY 2023. As a result of a focus on higher margin services and technology, overall gross margin increased from 32% in FY 2023 to 35% in FY 2024. Gross profit for Q4 2024 totaled $2,573,599, increasing gross margin to 38%.
- Available cash on hand as at Dec 31, 2024, was $1,558,909 compared to $1,256,743 at Dec 31, 2023.
- Comprehensive loss was ($2,744,568) in Q4 2024 compared to ($2,775,864) in Q4 2023. On a normalized basis, SG&A expenses were reduced by approximately $421,000 as a result of various cost synergies realized. Costs savings were offset by increased interest charges incurred in 2024.
- During the first 100 days following the merger between Drone Delivery Canada and Volatus Aerospace Corp, the Company has realized annualized cost synergies exceeding $3,770,000 Normalized EBITDA for Q4 2024 was ($206,900). This resulted from our cost optimization improvements and focus on near-term profitability.
Subsequent to FY 2024 Operational Highlights:
- Renewed and expanded U.S. power utility inspection program
- Released new Surveillance as a Service solution to market
- Announced a partnership with DroneUp LLC to support the acceleration of drone deliveries in the United.States.
- Surpasses 75,000 flight hours in pipeline integrity monitoring
- Announced a partnership with Dufour Aerospace AG to support remote cargo deliveries
- Announced a partnership with Ondas Holdings to enhance border surveillance offerrings
- Announced a partnership with Rigi Technologies S.A. to add autonomous drone delivery technologies in its portfolio of solutions
- Obtained Canada-wide approval from Transport Canada to conduct long-distance, remotely piloted beyond visual line of sight (BVLOS) drone operations at night in atypical airspace
- Announced a shares-for-debt transaction with respect to $2,646,000 of unsecured convertible debentures
- Obtained clearance for high-value RPAS deployments in the oil & gas sector
"During Q4 2024, Volatus has been focused on streamlining operations post-closing of the merger between Drone Delivery Canada and Volatus Aerospace Corp.," said Glen Lynch, CEO of Volatus Aerospace. "As we integrate our organization, we look forward to enhancing our operational capabilities to serve large enterprise and government customers while driving towards profitability."
Webinar:
In conjunction with this release, Volatus will host a webinar on Friday, May 2nd at 8:00 AM EST at which time Glen Lynch, Chief Executive Officer, and Abhinav Singhvi, Chief Financial Officer, will review financial results and major milestones with Danielle Gagne, Head of Corporate Communications as moderator. Investors are invited to register for the webinar here.
Registration Link:
https://us06web.zoom.us/webinar/register/WN_P0I5hKShTAmbL7nGlO35sA#/registration
Audio Replay Options:
An audio replay of the event will be archived on the Investor Relations page of the company's website here.
| Summary of Results: | Twelve months ended Dec 31 | |||||
| 2024 | 2023 | 2022 | ||||
| Product and Services Revenue | 27,147,414 | 34,872,815 | 24,414,418 | |||
| Aircraft Sale | - | 5,356,721 | ||||
| Direct Cost | 17,591,115 | 23,736,973 | 21,425,786 | |||
| Gross Profit | 9,556,299 | 11,135,842 | 8,345,353 | |||
| 35% | 32% | 28% | ||||
| OPERATING EXPENSES | ||||||
| Advertising & marketing | 1,123,337 | 1,856,220 | 2,225,224 | |||
| IT & tech | 884,437 | 669,096 | 512,056 | |||
| Personnel | 7,458,005 | 6,984,713 | 5,660,069 | |||
| R&D | 41,279 | 1,341,377 | 541,023 | |||
| Office cost | 2,308,002 | 2,830,861 | 1,513,960 | |||
| Travel | 213,733 | 479,163 | 419,823 | |||
| External partner cost | 3,134,312 | 1,281,121 | 1,556,278 | |||
| Depreciation | 4,824,680 | 4,033,731 | 1,866,791 | |||
| Share based Payments | 456,028 | 723,803 | 1,244,858 | |||
| 20,443,813 | 20,200,085 | 15,540,082 | ||||
| (Loss) from Operations | (10,887,514 | ) | (9,064,243 | ) | (7,194,729 | ) |
| OTHER ITEMS - INCOME/(EXPENSE) | ||||||
| Finance cost | (2,935,917 | ) | (1,775,236 | ) | (526,238 | ) |
| Goodwill Impairment | - | - | ||||
| Bargain Purchase Gain | 221,808 | 2,112,197 | ||||
| FV changes in Contingent Consideration | 247,661 | 386,731 | (33,846 | ) | ||
| Other income (expense) | (146,568 | ) | 15,405 | 411,502 | ||
| Gain (Loss) on disposal of drones | 115,657 | 92,782 | 9,969 | |||
| Foreign exchange translation | 12,900 | (35,089 | ) | (157,460 | ) | |
| Net Loss and comprehensive loss before tax | (13,593,781 | ) | (10,157,842 | ) | (5,378,605 | ) |
| Deferred Tax Income/ (Expense) | 283,457 | 464,216 | (71,311 | ) | ||
| Net loss and comprehensive loss after tax | (13,310,324 | ) | (9,693,626 | ) | (5,449,916 | ) |
| Total comprehensive loss for the period attributable to: | ||||||
| Owners of Volatus Aerospace | (13,141,604 | ) | (9,464,043 | ) | (4,623,378 | ) |
| Non-controlling interest | (168,720 | ) | (229,583 | ) | (826,538 | ) |
| (13,310,324 | ) | (9,693,626 | ) | (5,449,916 | ) | |
| Loss per share | ||||||
| Basic and Diluted | (0.04 | ) | (0.04 | ) | (0.02 | ) |
| Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | |||||||||
| Revenue | 6,783,176 | 6,618,504 | 7,121,993 | 6,623,741 | 10,500,995 | 8,274,349 | 8,684,991 | 7,412,480 | ||||||||
| Direct costs | 4,209,577 | 4,366,107 | 4,617,447 | 4,397,985 | 7,700,881 | 5,265,775 | 5,724,516 | 5,045,802 | ||||||||
| Gross Profit | 2,573,599 | 2,252,397 | 2,504,546 | 2,225,757 | 2,800,114 | 3,008,574 | 2,960,475 | 2,366,678 | ||||||||
| 38% | 34% | 35% | 34% | 27% | 36% | 34% | 32% | |||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Advertising & marketing | 100,878 | 331,763 | 397,357 | 293,339 | 278,781 | 541,635 | 629,686 | 406,118 | ||||||||
| IT & tech | 157,851 | 210,328 | 259,456 | 256,802 | 28,439 | 243,602 | 211,960 | 185,095 | ||||||||
| Personnel | 1,958,572 | 1,787,175 | 1,515,536 | 2,196,722 | 1,312,983 | 1,727,086 | 1,788,347 | 2,156,297 | ||||||||
| R&D | 25,429 | 4,011 | - | 11,840 | 771,861 | 104,832 | 364,263 | 100,420 | ||||||||
| Office cost | 673,047 | 497,706 | 554,050 | 583,199 | 605,396 | 722,276 | 610,650 | 892,539 | ||||||||
| Travel | 38,959 | 77,011 | 40,143 | 57,621 | 126,710 | 90,804 | 167,364 | 94,285 | ||||||||
| External partner cost | 386,259 | 2,117,840 | 430,141 | 200,072 | 436,686 | 243,443 | 326,979 | 274,013 | ||||||||
| Depreciation and amortization | 1,315,544 | 1,294,350 | 1,116,698 | 1,098,088 | 1,647,364 | 843,744 | 797,487 | 745,136 | ||||||||
| Share based Payments | 77,523 | 124,861 | 126,822 | 126,822 | 173,671 | 195,372 | 178,361 | 176,401 | ||||||||
| 4,734,061 | 6,445,045 | 4,440,202 | 4,824,504 | 5,381,891 | 4,712,793 | 5,075,097 | 5,030,304 | |||||||||
| (Loss) from Operations | (2,160,462 | ) | (4,192,648 | ) | (1,935,656 | ) | (2,598,748 | ) | (2,581,777 | ) | (1,704,219 | ) | (2,114,622 | ) | (2,663,626 | ) |
| OTHER ITEMS - INCOME/(EXPENSE) | ||||||||||||||||
| Finance cost | (1,072,341 | ) | (992,806 | ) | (491,664 | ) | (379,106 | ) | (667,949 | ) | (425,671 | ) | (368,635 | ) | (312,982 | ) |
| Other income (expense) | (133,884 | ) | (2,669 | ) | 153 | (10,168 | ) | 14,955 | (39,229 | ) | 41,237 | (1,558 | ) | |||
| Unrealized gain on investments | 247,661 | - | - | |||||||||||||
| Gain (Loss) on disposal of property and equipment | (1,541 | ) | (194,662 | ) | 319,044 | (7,184 | ) | (125,476 | ) | 228,769 | (0 | ) | (10,511 | ) | ||
| Foreign exchange translation | 92,541 | (109,037 | ) | 25,508 | 3,887 | (24,156 | ) | 19,946 | (16,191 | ) | (14,688 | ) | ||||
| Net Loss | (3,028,025 | ) | (5,491,822 | ) | (2,082,615 | ) | (2,991,319 | ) | (2,775,864 | ) | (1,920,403 | ) | (2,458,211 | ) | (3,003,365 | ) |
| Deferred Tax Income/ (Expense) | 283,457 | 464,216 | ||||||||||||||
| Net Loss | (3,028,025 | ) | (5,491,822 | ) | (2,082,615 | ) | (2,991,319 | ) | (2,311,647 | ) | (1,920,403 | ) | (2,458,211 | ) | (3,003,365 | ) |
| Total comprehensive Income (loss) for the period attributable to: | ||||||||||||||||
| Owners of Volatus Aerospace. | (2,715,484 | ) | (5,440,827 | ) | (2,070,150 | ) | (2,915,143 | ) | (1,997,089 | ) | (2,427,597 | ) | (2,427,468 | ) | (2,611,890 | ) |
| Non-controlling interest | (29,084 | ) | (50,994 | ) | (12,465 | ) | (76,176 | ) | (314,559 | ) | 507,194 | (30,743 | ) | (391,475 | ) | |
| (2,744,568 | ) | (5,491,822 | ) | (2,082,615 | ) | (2,991,319 | ) | (2,311,647 | ) | (1,920,403 | ) | (2,458,211 | ) | (3,003,365 | ) | |
| Loss per share | ||||||||||||||||
| Basic and Diluted | (0.01 | ) | (0.02 | ) | (0.02 | ) | (0.02 | ) | (0.02 | ) | (0.02 | ) | (0.03 | ) | (0.02 | ) |
About Volatus Aerospace:
Volatus Aerospace is a leader in innovative global aerial solutions for intelligence and cargo. With a strong foundation of over 100 years of combined institutional knowledge in aviation, Volatus provides comprehensive solutions using both piloted and remotely piloted aircraft systems (RPAS). We serve industries such as oil and gas, utilities, healthcare, and public safety. Our mission is to enhance operational efficiency, safety, and sustainability through cutting-edge, real-world solutions.
Note Regarding Non-GAAP Measures:
In this press release we describe certain income and expense items that are unusual or non-recurring. There are terms not defined by International Financial Reporting Standards (IFRS). Our usage of these terms may vary from the usage adopted by other companies. Specifically, gross profit, gross margin, and Adjusted EBITDA r Normalized EBITDA are undefined terms by IFRS that may be referenced herein. We provide this detail so that readers have a better understanding of the significant events and transactions that have had an impact on our results.
Throughout this release, reference is made to "gross profit," "gross margin," and "Adjusted EBITDA or Normalized EBITDA" which are non-IFRS measures. Management believes that gross profit, defined as revenue less operating expenses, is a useful supplemental measure of operations. Gross profit helps provide an understanding on the level of costs needed to create revenue. Gross margin illustrates the gross profit as a percentage of revenue. Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"). The Company defines Adjusted EBITDA as IFRS comprehensive loss excluding interest expense, depreciation and amortization expense, share-based payments, income tax expense, integration and due diligence costs, one time profit or loss (non-recurring), and impairment of goodwill, property, plant, and equipment and right-of-use assets (ROU). The Company believes that Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations which the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives. Readers are cautioned that these non-IFRS measures may not be comparable to similar measures used by other companies. Readers are also cautioned not to view these non-IFRS financial measures as an alternative to financial measures calculated in accordance with International Financial Reporting Standards ("IFRS"). Adjusted EBITDA does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers and should not be construed as alternatives to comprehensive loss or income determined in accordance with IFRS. For more information with respect to financial measures which have not been defined by GAAP, including reconciliations to the closest comparable GAAP measure, see the "Non-GAAP Measures and Additional GAAP Measures"? section of the Company's most recent MD&A which is available on SEDAR.
Forward-Looking Statement:
This news release contains statements that constitute "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs, and current expectations of the Company with respect to future business activities and operating performance. Often, but not always, forward-looking information and forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results "may", "could", "would", "might" or "will" (or other variations of the foregoing) be taken, occur, be achieved, or come to pass. Forward-looking information includes information regarding: (i) the business plans and expectations of the Company; and (ii) expectations for other economic, business, and/or competitive factors. Forward-looking information is based on currently available competitive, financial, and economic data and operating plans, strategies, or beliefs as of the date of this news release, but involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors may be based on information currently available to the Company, including information obtained from third-party industry analysts and other third-party sources, and are based on management's current expectations or beliefs. Any and all forward-looking information contained in this news release is expressly qualified by this cautionary statement. Investors are cautioned that forward-looking information is not based on historical facts but instead reflects expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Forward-looking information and forward-looking statements reflect the Company's current beliefs and is based on information currently available to it and on assumptions it believes to be not unreasonable in light of all of the circumstances. In some instances, material factors or assumptions are discussed in this news release in connection with statements containing forward-looking information. Such material factors and assumptions include, but are not limited to: the commercialization of drone flights beyond visual line of sight and potential benefits to the Company; and meeting the continued listing requirements of the TSXV. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. The forward-looking information contained herein is made as of the date of this news release and, other than as required by law, the Company disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
CONTACT DETAILS
Abhinav Singhvi
Chief Financial officer
+1 833-865-2887
abhinav.singhvi@volatusaerospace.com
COMPANY WEBSITE
https://volatusaerospace.com
SOURCE: Volatus Aerospace Inc.
