Saker Aviation Services, Inc. Announces Financial Results for the Three Months Ended March 31, 2018
Revenue of $2.1 Million in 2018 Up 1.8% Versus $2.0 Million in 2017
Net Loss of $224,000 in 2018 Versus $152,000 in 2017
NEW YORK, May 15, 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 three months ended March 31, 2018.
Revenue and net loss in the three months ended March 31, 2018 of $2,078,489 and $223,563, respectively, were up 1.8 percent and down $71,444, respectively, as compared to revenue of $2,041,261 and net loss of $152,119 in the three months ended March 31, 2017.
“We had mixed results in the first quarter of 2018.” stated Ron Ricciardi, the Company’s President. “Our revenue increased over last year, but a successful effort to address aged receivables at our New York operation led to approximately $140,000 in increased costs and, consequently, to a net loss that was greater than last year. Excluding these collections, which positively impacted our balance sheet, would more accurately reflect the improvement in performance indicated by our growth in revenue.” The Company’s agreement with New York City calls for payments to be made on the basis of the collection of gross receipts. Collections on aged receivables drove higher fees to New York City in the current year as compared to prior year.
The Company also reported Adjusted EBITDA1 of $(84,499) for the three months ended March 31, 2018, a decrease of $171,679 as compared to Adjusted EBITDA of $87,180 in the three months ended March 31, 2017. 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.
CONTACT: Saker Aviation Services, Inc.Ronald J. RicciardiPresident1.212.776.4046 RRicciardi@SakerAviation.com
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, 2017.
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 three months ended March 31, 2018 and 2017.
For the Three Months Ended March 31, ------------------------ 2018 2017 ----------- ----------- Net loss $ (223,563) $ (152,119) Non-cash and/or one-time charges and credits Interest expense 3,799 5,412 Interest income (14,067) --- Income tax expense --- 97,341 Stock compensation expense 8,499 8,499 Depreciation and amortization 140,833 128,047 Adjusted EBITDA $ (84,499) $ 87,180 - --------- - ---------