July 17, 2014
Bermuda Aviation Services Limited (“BAS”) Earnings Release for the year ended March 31, 2014
BAS wishes to announce that despite two significant restatements the year ended March 31, 2014 was another profitable one, albeit not as strong as the year prior. The consolidated net income attributable to shareholders was $0.78 million and earnings per shares were $0.15. This compares with the prior year in which BAS achieved net income of $1.65 million (restated) and earnings per share of $0.32 (restated).
There have been two significant restatements of the March 2013 Financial Statements of note. The most significant change relates to an accounting methodology change for pensions as prescribed by International Accounting Standard 19, “Employee Benefits”. This has resulted in an approximate $0.152million reduction of the previously reported 2013 consolidated net income attributable to shareholders, the establishment of a $2.7 million pension liability and a $4 million reduction to the 2014 opening net equity. While it is clear that this had a detrimental impact on the reported 2013 performance, it is important to note that this had no immediate cash impact to BAS.
The second restatement of the 2013 Financial Statements relates to the sale of our subsidiary, Aircraft Services Bermuda Ltd. (“ASB”), at the end of the fiscal year. The current operating results for ASB have been shifted to discontinued operations and for comparative purposes the 2013 operating results have been similarly adjusted. The transaction closed on March 31, 2014 and resulted in a gain on sale of approximately $1.3 million.
Another item that impacted the current year’s results was a write-down of goodwill that related to the Cargo Handling Segment. In 2012, $5.7 million of the goodwill that related to this segment was deemed to be impaired and was written off. During the current year, annual goodwill impairment testing revealed that a further impairment of $1.3 million had occurred to this segment’s goodwill. This adjustment had no cash impact on the Company and represents a complete write-off of the goodwill that relates to this segment. The Board of Directors and Management are extremely pleased with the operational performance of the Group. It remains indicative of a Company that is built on a solid foundation that continues to move from strength to strength.
Ian Cook, BAS President & CEO: “The past year has been particularly challenging as a result of the ongoing economic climate coupled with complexities associated with transitioning to new International Financial Reporting Standards. We continue to benefit from our diverse portfolio of companies which has enabled us to report positive earnings. We look forward to building on the opportunity to expand our service offerings to our existing customer base.”
“As BAS continues to develop and diversify, it has continued with its efforts to incorporate the two acquisitions (Bermuda Energy Service Company Ltd. and Integrated Technology Solutions Ltd.) that it made in 2013, and the new start-up venture (Efficient Technologies Bermuda Ltd.) of 2013, into its Group operations. The redesign of the operating processes and company structure continues to evolve and senior management expects that a more robust and efficient consolidated company will be created.”
Note to Editor: BAS started as a single entity operation that was formed in 1947 to provide ground and passenger handling at the L.F. Wade International Airport, and has grown into a holding company with multiple subsidiaries providing a myriad of services that are distinct in nature, but are also strategically complimentary and synergistic. BAS has become a full-fledged total solution service company and intends to serve Bermuda to the best of its ability with customer satisfaction and an increase in shareholder wealth expected to be the by-products of these efforts.
Ian Cook, Chief Executive Officer – 294-3401 email@example.com
Andrew Griffith, Chief Financial Officer – 299-4880 firstname.lastname@example.org
Disclaimer: This press release contains certain forward-looking statements regarding plans, expectations and objectives for BAS. Such forward-looking statements, by their nature, are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in the forward looking statements as a result of various factors.View all news