NEW YORK, NY, November 14, 2016/PR Newswire/ 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 nine months ended September 30, 2016.
Revenue and operating income in the nine months ended September 30, 2016 of $10,872,366 and $1,348,252, respectively, were down 7.7 percent and 10.4 percent, respectively, as compared to revenue of $11,774,659 and operating income of $1,513,317 in the nine months ended September 30, 2015. The first two phases of mandatory reductions in helicopter air tour activity at the Companyâ€™s New York operation, which occurred on June 1st and October 1st, negatively impacted the year-over-year comparison.
â€œThe first two phases of mandatory air tour reductions drove unfavorable revenue and operating income comparisons this year as compared to 2015.â€ stated Ron Ricciardi, the Companyâ€™s President. â€œWhile our recent acquisition of Aircraft Services, Inc. in Garden City, Kansas will help, the combination of these first two stages of air tour reductions will continue the anticipated pressure on operating income for the balance of 2016. The final phased reduction in January will extend that pressure into 2017.â€
As disclosed in a Current Report on Form 8-K filed with the SEC on October 7, 2016, the Companyâ€™s wholly-owned subsidiary, FBO Air Garden City, Inc. (â€œGCKâ€), entered into a Stock Purchase Agreement, dated October 3, 2016, by and between GCK and Gary and Kim Keller, to purchase all of the capital stock of Aircraft Services, Inc., an aircraft maintenance services firm located in Garden City, Kansas.
The Company also reported Adjusted EBITDA1 of $1,764,465 for the nine months ended September 30, 2016, a decrease of $428,558 or 19.5 percent as compared to Adjusted EBITDA of $2,193,023 in the nine months ended September 30, 2015. Please see footnote 1 below for the Companyâ€™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 (â€œFBOâ€), and as a consultant for a seaplane base that we do not own. FBOs provide ground-based services, such as fueling and aircraft storage for general aviation, commercial and military aircraft, and other miscellaneous services.
Saker Aviation Services, Inc.
Ronald J. Ricciardi,Â President
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 â€œExchange Actâ€). Forward-looking statements can be identified by words such as â€œanticipates,â€ â€œintends,â€ â€œplans,â€ â€œseeks,â€ â€œbelieves,â€ â€œestimates,â€ â€œexpectsâ€ 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 Companyâ€™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 Companyâ€™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 Companyâ€™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 Companyâ€™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 Companyâ€™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 and expense items. The Company believes that Adjusted EBITDA, which is a financial measure that is not defined by Generally Accepted Accounting Principles (â€œGAAPâ€), 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, 2016 and 2015.