Revenue of $12 Million in 2017 Down 18.2% Versus $14.7 Million in 2016
Net Income of $478,000 in 2017 Down 45.8% Versus $880,000 in 2016
NEW YORK, April 02, 2018 (GLOBE NEWSWIRE) -- 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 twelve months ended December 31, 2017.
Revenue and net income in the twelve months ended December 31, 2017 of $12,016,031 and $477,628, respectively, were down 18.2 percent and 45.8 percent, respectively, as compared to revenue of $14,690,654 and net income of $880,430 in the twelve months ended December 31, 2016.
“Given the forced reduction of air tour activity at our Heliport operation, we are pleased with our full-year results in 2017,” stated Ron Ricciardi, the Company’s President. “The revenue and profit figures were right on our internal plan and give us a stable operating base heading into 2018.” As previously reported, the City of New York mandated that Saker reduce tourism-related flights out of the Heliport. Reductions in comparison with 2015 activity were implemented in phases on June 1, 2016, October 1, 2016, and January 1, 2017. Moving forward, and notwithstanding other additions to the business, 2018 will reflect comparisons that are on a similar basis.
The Company also reported Adjusted EBITDA1 of $1,653,626 for the twelve months ended December 31, 2017, a decrease of $620,486 or 27.2 percent as compared to Adjusted EBITDA of $2,274,112 in the twelve months ended December 31, 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, aircraft storage, and aircraft maintenance for general aviation, commercial and military aircraft, and other miscellaneous services.
Saker Aviation Services, Inc.
Ronald J. Ricciardi
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, 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 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 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 (“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 twelve months ended December 31, 2017 and 2016.
|For the Twelve Months Ended|
|Non-cash and/or one-time charges and credits|
|Income tax expense||584,000||827,000|
|Stock compensation expense||33,996||33,996|
|Depreciation and amortization||536,598||505,390|
Source:Saker Aviation Services, Inc.