New York, NY, November 14, 2017/PR Newswire/ â€“ Saker Aviation Services, Inc. (OTCQB: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 September 30, 2017.
Revenue and net income in the three months ended September 30, 2017 of $3,518,712 and $232,064, respectively, were down 8.4 percent and 17.2 percent, respectively, as compared to revenue of $3,840,800 and net income of $280,384 in the three months ended September 30, 2016.
The third quarter of 2017 showed improvement in year-over-year comparisons, as anticipated, stated Ron Ricciardi, the Company’s President. Similar to Q2, the third quarter again narrowed the gap in comparison to last year’s results. With the final of three phased reductions taking place on January 1st, the full 50 percent reduction of air tour activity is fully realized in 2017. The first phase was implemented on June 1, 2016 and the second on October 1, 2016. The net effect of these reductions will continue to challenge year-over-year quarterly comparisons throughout 2017. The first quarter 2018, notwithstanding other additions to the business, will be a true apples-to-apples comparison.
The Company also reported Adjusted EBITDA1 of $609,691 for the three months ended September 30, 2017, a decrease of $102,481 or 11.6 percent as compared to Adjusted EBITDA of $712,172 in the three months ended September 30, 2016. 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), 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, 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, 2016.
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 three months ended September 30, 2017 and 2016.