WILKES-BARRE, Pa. and SCRANTON, Pa., Nov. 14, 2012 /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 nine months ended September 30, 2012.
Revenue increased by 7.5 percent to $12,893,110 for the nine months ended September 30, 2012 as compared with corresponding prior-year period revenue of $11,993,660. The primary drivers of the increase were revenue associated with the sale of fuel and related items, which increased by 12.3 percent to approximately $7,000,000. Revenue associated with services and supply items increased by 2.0 percent to approximately $5,800,000 and revenue from all other sources increased by 19.7 percent to approximately $164,000.
Net income for the nine months ended September 30, 2012 was $509,772, an increase of 32.5 percent as compared to net income of $384,713 in the same period in 2011.
"We are pleased to post another reporting period of increased revenue and sustained profitability," stated Ron Ricciardi, the Company's President and CEO. "The sale of fuel and related items continues its momentum – increasing in volume as well as through our pricing methodology. We generally price our fuel products on a fixed dollar margin basis. As the cost of fuel increases, the corresponding customer price increases as well. If volume is constant, this methodology yields higher revenue but at comparable gross margins. We experienced higher average fuel costs in 2012 as compared to 2011. Revenue from services and supplies also continues to grow on a year-over-year basis primarily paced by the performance of our heliport operation."
The Company also reported Adjusted EBITDA1 of $1,412,056 for the nine months ended September 30, 2012, an improvement of $184,671 or 15.0 percent as compared to Adjusted EBITDA of $1,227,385 in the nine months ended September 30, 2011. 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) provides Fixed Base Operations (FBO) flight support services through a growing chain of US based facilities. Products include, but are not limited to, aircraft fueling, maintenance, repair and overhaul (MRO), hangar/tie-down, facility management, pilot support services, ground handling, operational consulting and other related services.
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, 2011.
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.
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 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 nine months ended September 30, 2012 and 2011.
For the Nine Months Ended
September 30,
2012
2011
Net income
$
509,772
$
384,713
Non-cash and/or one-time charges and credits
Other expense (income)
(39,607)
(20,779)
Interest expense
116,634
118,108
Interest (income)
(19,358)
(24,454)
Income tax expense
520,000
505,000
Stock compensation expense
27,232
5,247
Depreciation and amortization
297,383
259,551
Adjusted EBITDA
$
1,412,056
$
1,227,385
SOURCE Saker Aviation Services, Inc.
