Saker Aviation Services, Inc. Announces Financial Results For The Six Months Ended June 30, 2013 Revenue Rises 10.0% to $8.8 Million

Pre-Tax Income of $672,000 in 2013 up 11.0% Compared to $606,000 in 2012

WILKES-BARRE, Pa. and SCRANTON, Pa., Aug. 12, 2013 /PRNewswire/ -- Saker Aviation Services, Inc. (OTC Markets: SKAS), an aviation services company specializing in ground-based services to the general aviation marketplace, today announced its financial results for the six months ended June 30, 2013.

Revenue increased by 10.0 percent to $8,812,898 for the six months ended June 30, 2013 as compared with corresponding prior-year period revenue of $8,010,329.  The primary drivers of the increase were revenue associated with the sale of fuel and related items, which increased by 9.3 percent to approximately $4,800,000.  Revenue associated with services and supply items increased by 11.3 percent to approximately $3,900,000 and revenue from all other sources decreased by 4.1 percent to approximately $92,000

Pre-tax income for the six months ended June 30, 2013 was $672,489, an increase of 11.0 percent as compared to pre-tax income of $605,773 in the same period in 2012.

Net income for the six months ended June 30, 2013 was $291,489, a decrease of 7.1 percent as compared to net income of $313,773 in the same period in 2012.  The Company recorded Other Expense of $111,145 during 2013 in connection with Hurricane Sandy.  Absent these one-time expenses, net income would have been $402,634 for the six months ended June 30, 2013, an increase of 28.3 percent as compared to net income of $313,773 in the same period in 2012.

"We are pleased to have posted another solid quarter with double digit increases in revenue and continuing profitability," stated Ron Ricciardi, the Company's President and CEO.  "When adjusted for the impact of Hurricane Sandy, our net income for the six months ended June 30, 2013 was also outstanding compared to last year.  We are mindful, however, of the potential future impact that the resolution of our Pennsylvania facility may have."  

On July 19, 2013, the Company was notified that the Wilkes-Barre/Scranton International Airport had selected a firm other than the Company with whom it intends to negotiate a lease to provide FBO services.  The Company believes it has grounds to challenge this decision and has filed a complaint and request for preliminary injunction, as further described in Current Reports on Form 8-K, which were filed on July 29, 2013 and August 1, 2013. 

The Company also reported Adjusted EBITDA1 of $1,059,790 for the six months ended June 30, 2013, an improvement of $214,847 or 25.4 percent as compared to Adjusted EBITDA of $844,943 in the six months ended June 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) provides Fixed Base Operations (FBO) flight support services through a growing chain of US based facilities.  Products include, but are not limited to, aircraft fueling, maintenance, repair and overhaul (MRO), charter, hangar/tie-down, facility management, pilot support services, ground handling, operational consulting and other related 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 as earnings before interest, taxes, depreciation and amortization, as adjusted for stock based compensation expense, Hurricane Sandy expenses, and other income.  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 six months ended June 30, 2013 and 2012.



For the Six months ended

June 30,




2013


2012








Net income


$

291,489


$

313,773










Non-cash and/or one-time charges and credits








   Other (income)



(9,075)



(35,909)


   Other expense – Hurricane Sandy



111,145




   Interest expense



53,523



74,048


   Interest (income)



(9,754)



(13,343)


   Income tax expense



381,000



292,000


   Stock compensation expense



16,515



16,144


   Depreciation and amortization



224,947



198,230










Adjusted EBITDA


$

1,059,790


$

844,943


 

SOURCE Saker Aviation Services, Inc.



RELATED LINKS
http://www.SakerAviation.com

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