NEW YORK, April 11, 2016 –Â 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 twelve months ended December 31, 2015.
Operating income from continuing operations increased by 10.8 percent to $1,918,696 on revenues of $15,974,307, which were down 2.7 percent, as compared with $1,740,845 in operating income and $16,416,170 in revenue during the twelve months ended December 31, 2014.Â Average fuel cost was lower in 2015, which led to lower average fuel prices.Â Combined with a 2.3 percent reduction in total fuel gallons, this translated to 12.2 percent lower fuel sales revenue.Â The fuel sales decline was offset by rising revenue associated with services and supply items, which increased by 4.8 percent as compared with the corresponding prior-year period.
“We are pleased to have delivered solid growth in 2015, with a double-digit increase in operating income,” stated Ron Ricciardi, the Company’s President.Â “These results proved our ability to re-focus after the divestiture of our former maintenance, repair and overhaul firm in the third quarter.Â It also provides a platform for the organization in light of mandatory changes to our New York operations, which were announced earlier in 2016.Â The forced reduction of air tour activity, ultimately to 50% of 2015 levels, will impact our Heliport operation, and overall Company performance.Â Nonetheless, we are committed to the Downtown Manhattan Heliport and will ensure that it remains a vibrant part of the City, as a business hub and a tourism mecca. We are proud to remain the City’s concessionaire and appreciate the opportunity to serve an extended term in that capacity.”
The Company also reported Adjusted EBITDA1 of $2,645,921 for the twelve months ended December 31, 2015, an increase of $221,981 or 9.1 percent as compared to Adjusted EBITDA of $2,423,940 in the twelve months ended December 31, 2014.Â 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.Â 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”), and as a consultant for a seaplane base that we do not own.Â FBOs provide ground-based services, such as fueling and aircraft storage for general aviation, commercial and military aircraft, and other miscellaneous 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.Â Â 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, 2015.
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 –
1Explanation 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 and expense items.Â 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.Â 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.Â A reconciliation of net income to Adjusted EBITDA is as follows for the twelve months ended December 31, 2015 and 2014.