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 year ended December 31, 2012.
Revenue increased by 5.2 percent to $16,928,073 for the year ended December 31, 2012 as compared with corresponding prior-year period revenue of $16,088,906. Note that the revenue results in 2012 were reduced by at least $400,000 from the impact of Hurricane Sandy, as more further described in the Company's Annual Report on Form 10-K. The primary drivers of the increase were revenue associated with the sale of fuel and related items, which increased by 8.8 percent to approximately $9,000,000. Revenue associated with services and supply items increased by 1.1 percent to approximately $7,700,000 and revenue from all other sources increased by 11.1 percent to approximately $244,000.
Net income for the year ended December 31, 2012 was $549,511, an increase of 35.9 percent as compared to net income of $404,496 in the same period in 2011.
"We are pleased to post a third consecutive year of increased revenue and profitability," stated Ron Ricciardi, the Company's President and CEO. "Hurricane Sandy had a tremendous impact on our Downtown Manhattan Heliport, effectively destroying the first floor of our facility. We're proud of the efforts of our entire staff and tenant operators, who quickly banded together and developed alternative methods of operation while the Heliport was uninhabitable. Their collective determination drove our ability to resume operations only seven days after such a devastating storm. We're mindful of the impact Sandy had on our business results, but feel extremely fortunate that there were no injuries among ours or our tenant operator's staffs. It was an event that truly yielded the best form of cooperation among people and competitors."
The Company also reported Adjusted EBITDA1 of $1,664,176 for the year ended December 31, 2012, an improvement of $116,241 or 7.5 percent as compared to Adjusted EBITDA of $1,547,935 in the year ended December 31, 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 (http://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, 2012.
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 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 year ended December 31, 2012 and 2011.
For the Year Ended December 31, 2012 2011 Net income $ 549,511 $ 404,496 Non-cash and/or one-time charges and credits Other expense (income) (43,654) (23,657) Interest expense 148,931 127,734 Interest (income) (24,923) (31,769) Income tax expense 594,000 700,000 Stock compensation expense 42,609 13,087 Depreciation and amortization 397,702 358,044 Adjusted EBITDA $ 1,664,176 $ 1,547,935
SOURCE Saker Aviation Services, Inc.
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