Revenue Rises 16.5% to $3.7 Million
Net Income of $57,000 in 2013 up 20.3% Compared to $47,000 in 2012
WILKES-BARRE, Pa. and SCRANTON, Pa., May 15, 2013 /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, 2013.
Revenue increased by 16.5 percent to $3,665,163 for the three months ended March 31, 2013 as compared with corresponding prior-year period revenue of $3,146,075. The primary drivers of the increase were revenue associated with the sale of fuel and related items, which increased by 14.7 percent to approximately $2,100,000. Revenue associated with services and supply items increased by 20.2 percent to approximately $1,600,000 and revenue from all other sources decreased by 19.1 percent to approximately $38,000.
Net income for the three months ended March 31, 2013 was $56,953, an increase of 20.3 percent as compared to net income of $47,351 in the same period in 2012.
"We are pleased to have started off in 2013 with an extremely strong first quarter highlighted by double-digit increases in revenue and net income," stated Ron Ricciardi, the Company's President and CEO. "We are even more pleased that this performance was possible despite the ongoing
impact of Hurricane Sandy throughout the quarter. Sandy effectively destroyed the first floor of our facility, which prompted a makeshift operation via a tent in the parking lot. The collective determination of our staff and tenant operators enabled the business to drive forward. We're all happy to have resumed operations from inside the facility on March 25, 2013."
The Company also reported Adjusted EBITDA(1) of $349,815 for the three months ended March 31, 2013, an improvement of $166,910 or 91.3 percent as compared to Adjusted EBITDA of $182,906 in the three months ended March 31, 2012. 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), charter, 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, 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, 2013 and 2012.
For the Three Months Ended
March 31,
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2013 2012
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Net income $ 56,953 $ 47,351
Non-cash and/or one-time charges and
credits
Other (income) (5,607) (33,015)
Other expense -- Hurricane Sandy 111,145 --
Interest expense 23,129 36,963
Interest (income) (5,109) (6,888)
Income tax expense 64,000 29,000
Stock compensation expense 8,114 8,589
Depreciation and amortization 97,189 100,905
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Adjusted EBITDA $ 349,815 $ 182,906
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