Saker Aviation Services (SKAS) Q2 2024 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2024 increased 6.1% year-over-year to $3.96 million, driven by higher non-aeronautical revenue, despite declines in jet fuel and services revenue.

• Net income for the six months was $155,983, down from $591,698 in the prior year, primarily due to increased costs under the Interim Agreement and a significant litigation expense.

• The company operates the Downtown Manhattan Heliport under an Interim Concession Agreement, with the first renewal option exercised through December 12, 2024.

Financial highlights

• Three-month revenue rose 8.8% year-over-year to $2.62 million; six-month revenue up 6.1% to $3.96 million.

• Gross profit for the six months fell 16.2% to $2.02 million; gross margin declined to 51.1% from 64.7%.

• Operating income for the six months increased to $1.10 million from $863,344, aided by lower SG&A after the Empire Aviation agreement ended.

• Net income for the six months was $155,983, with basic EPS of $0.16 and diluted EPS of $0.15, both down from the prior year.

• Litigation expense of $1.05 million was recorded in Q2 2024 due to an arbitration judgment, significantly impacting net results.

Outlook and guidance

• The company continues to operate the Downtown Manhattan Heliport under the Interim Agreement, which can be terminated at any time by the city.

• The RFP process for a new long-term operator is ongoing; Saker submitted a proposal and will operate under the Interim Agreement until a decision is made.