SKAS Saker Aviation Services Inc (QB)

WILKES-BARRE, Pa. and SCRANTON, Pa., Nov. 14, 2013 /PRNewswire/ -- 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, 2013.

Revenue from continuing operations increased by 13.9 percent to $10,775,000 for the nine months ended September 30, 2013 as compared with corresponding prior-year period revenue of $9,461,973.  The primary drivers of the increase were revenue associated with the sale of fuel and related items, which increased by 14.5 percent to approximately $4,900,000.  Revenue associated with services and supply items increased by 13.6 percent to approximately $5,900,000 and revenue from all other sources decreased by 6.3 percent to approximately $65,000. 

Income from continuing operations for the nine months ended September 30, 2013 was $1,025,172, an increase of 11.9 percent as compared to income from continuing operations of $916,313 in the same period in 2012.

The Company ceased operations at its former Wilkes-Barre/Scranton (Pennsylvania) International Airport facility.  The Company was unable to negotiate a new lease with the airport on acceptable terms.  Results from this facility for the nine months ended September 30, 2013 and 2012 is recorded as a discontinued operation.

Results from continuing operations for the nine months ended September 30, 2013 also includes output associated with the Company's August 15, 2013 acquisition of Phoenix Rising Aviation, Inc., as reported in the Current Report on Form 8-K filed on that same date.

Net loss for continuing and discontinued operations for the nine months ended September 30, 2013 was $1,076,316 as compared to net income of $509,772 in the same period in 2012.  The Company recorded in the nine months ended September 30, 2013, a net loss from discontinued operations of $2,265,488, which was primarily the write off of goodwill and impaired assets associated with its former Wilkes-Barre/Scranton facility.  The Company also recorded Other Expense of $111,145 during 2013 in connection with Hurricane Sandy. 

"We are disappointed that the resolution of our Pennsylvania situation led to the discontinuation of that operation.  We are pleased, however, that the results associated with continuing operations posted another solid quarter with double digit increases in revenue and continuing income," stated Ron Ricciardi, the Company's President and CEO.  "We also have a solid expectation that Phoenix Rising, which contributed only six weeks of performance to this reporting period, will have a positive effect on future quarters and years." 

The Company also reported Adjusted EBITDA¹ from continuing operations of $1,515,502 for the nine months ended September 30, 2013, an improvement of $295,136 or 24.2 percent as compared to Adjusted EBITDA from continuing operations of $1,220,366 in the nine months ended September 30, 2012.  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) 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"), as a provider of aircraft maintenance, repair & overhaul ("MRO") services, 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. 

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, 2012.

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 from continuing operations as earnings before interest, taxes, depreciation and amortization, as adjusted for discontinued operations, stock based compensation expense, Hurricane Sandy expenses, and other income.  The Company believes that Adjusted EBITDA from continuing operations, 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 nine months ended September 30, 2013 and 2012.

SOURCE Saker Aviation Services, Inc.