NEW YORK, May 15, 2014 /PRNewswire/ -- Saker Aviation
Services, Inc. (SKAS), an aviation services company specializing in
ground-based services to the general aviation marketplace, today
announced its financial results for the three months ended
March 31, 2014.
Revenue from continuing operations increased by 12.7 percent to
$3,045,439 for the three months ended
March 31, 2014 as compared with
corresponding prior-year period revenue of $2,701,456. The primary drivers of the
increase were revenue associated with services and supply items,
which increased by 30.5 percent to approximately $1,700,000. Revenue associated with the
sale of fuel and related items decreased by 5.5 percent to
approximately $1,300,000 and revenue
from all other sources increased by 120.0 percent to approximately
$28,000.
Net income for the three months ended March 31, 2014 was $11,869, a decrease of 79.2 percent as compared
to net income of $56,953 in the same
period in 2013.
"We are pleased to have started off in 2014 with a double-digit
increase in revenue," stated Ron
Ricciardi, the Company's President. "This increase was
primarily driven by our acquisition of a maintenance, repair and
overhaul firm in the third quarter of 2013. This enterprise
delivered revenue in 2014 that had no comparison in 2013. The
revenue, however, was also accompanied by expenses in 2014 that had
no comparison in 2013. We infused this new operation with
additional personnel and facility/systems upgrades which
contributed to the decreased net income for the quarter. We
believe, however, that this business unit will contribute
positively as the year plays out."
The Company also reported Adjusted EBITDA1 of
$184,310 for the three months ended
March 31, 2014, a decrease of
$165,504 or 47.3 percent as compared
to Adjusted EBITDA of $349,815 in the
three months ended March 31,
2013. Please see footnote 1 below for the Company's
definition of Adjusted EBITDA, a description of why the Company
uses Adjusted EBITDA and important disclaimers regarding Adjusted
EBITDA, which is a non-GAAP measure. A reconciliation of
Adjusted EBITDA to the appropriate GAAP measure is also included in
footnote 1.
About Saker Aviation Services, Inc.
Saker Aviation Services
(www.SakerAviation.com), through our subsidiaries,
operates in the aviation services segment of the general aviation
industry, in which we serve as the operator of a heliport, a fixed
base operation ("FBO"), as a provider of aircraft maintenance,
repair and overhaul ("MRO") services, and as a consultant for a
seaplane base that we do not own.
Note Regarding Forward-Looking Statement
This press release contains "forward-looking statements"
within the meaning of Section 27A of the Securities Act and Section
21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). Forward-looking statements can be identified by
words such as "anticipates," "intends," "plans," "seeks,"
"believes," "estimates," "expects" and similar references to future
periods. These statements may include projections of
revenue, provisions for doubtful accounts, income or loss, capital
expenditures, repayment of debt, other financial items, statements
regarding our plans and objectives for future operations,
acquisitions, divestitures and other transactions, statements of
future economic performance, statements of the assumptions
underlying or relating to any of the foregoing statements and
statements other than statements of historical fact.
Forward-looking statements are based on the Company's current
expectations and assumptions regarding its business, the economy
and other future conditions. Because forward-looking statements
relate to the future, they are subject to inherent uncertainties,
risks and changes in circumstances that are difficult to predict.
The Company's actual results may differ materially from those
contemplated by the forward-looking statements. The Company
therefore cautions readers of this press release against relying on
any of these forward-looking statements because they are neither
statements of historical fact nor guarantees or assurances of
future performance. Important factors that could cause actual
results to differ materially from those in the forward-looking
statements include the Company's services and pricing, general
economic conditions, its ability to raise additional capital, its
ability to obtain the various approvals and permits for the
acquisition and operation of FBOs and the other risk factors
contained under Item 1A of the Company's Annual Report on Form 10-K
for the year ended December 31,
2013.
Any forward-looking statement made in this press release
speaks only as of the date on which it is made. Factors or events
that could cause the Company's actual results to differ may emerge
from time to time and it is not possible to predict all of them.
The Company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by
law.
-FINANCIAL TABLES TO FOLLOW
-
1 Explanation of Adjusted EBITDA, a
Non-GAAP Financial Measure
The Company defines Adjusted EBITDA as earnings before interest,
taxes, depreciation and amortization, as adjusted for stock based
compensation expense, Hurricane Sandy expenses, and other
income. The Company believes that Adjusted EBITDA, which is a
financial measure that is not defined by Generally Accepted
Accounting Principles ("GAAP"), is a useful performance metric
because it eliminates non-cash and/or non-recurring charges to
earnings. It is important to note that non-GAAP measures such
as Adjusted EBITDA should be considered in addition to, not as a
substitute for or superior to, net income, cash flows, or other
measures of financial performance prepared in accordance with
GAAP. A reconciliation of net income to Adjusted EBITDA is as
follows for the three months ended March 31,
2014 and 2013.
|
|
For the Three Months
Ended
March 31,
|
|
|
2014
|
|
2013
|
|
|
|
|
|
Net income
|
|
$
|
11,869
|
|
$
|
57,953
|
|
|
|
|
|
|
|
Non-cash and/or
one-time charges and credits
|
|
|
|
|
|
|
Other
(income)
|
|
|
(6,194)
|
|
|
(5,607)
|
Other
expense – Hurricane Sandy
|
|
|
—
|
|
|
111,145
|
Interest
expense
|
|
|
25,037
|
|
|
23,129
|
Interest
(income)
|
|
|
(3,201)
|
|
|
(5,109)
|
Income
tax expense
|
|
|
14,000
|
|
|
64,000
|
Stock
compensation expense
|
|
|
7,701
|
|
|
8,114
|
Depreciation and amortization
|
|
|
135,099
|
|
|
97,189
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
184,310
|
|
$
|
349,815
|
SOURCE Saker Aviation Services, Inc.