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.
