Bermuda Aviation Services Limited (the “Group” or “BAS”) today announces net losses attributable to shareholders of $4.3 million for the year ended March 31, 2018. This compares to net income of $0.8 million in the prior year.
The company has recently completed a comprehensive strategic and functional review of all aspects of its operations and the financial results for the year reflect multiple initiatives to reposition the Group which include one-time strategic planning expenses, restructuring costs as a result of senior management changes, refocus on more profitable business lines in BESCO, and the sale of Eff-Tech, which was deemed to be a non-core business subsidiary.
The Group incurred non-recurring charges of $4.0 million. Overall, the net loss attributable to shareholders adjusted for these one-time charges as a result of the strategic review is $0.3 million.
The Group posted total consolidated net revenues of $31.3 million, a $1.4 million decrease from the prior year. While the sale of goods is down $2.1 million from 2017, the supply of services increased by $0.7 million, in line with the Group’s strategy to grow recurring service revenues across all subsidiaries.
Total operating expenses increased $1.9 million, of which $1.8 million are one-time restructuring costs. Other direct expenses and overheads include non-recurring charges for accounts receivable and inventory write downs of $1 million. Operating expenses for the year, adjusted for these one-time charges, are $11.3 million, a $0.7 million improvement over prior year.
The Group paid dividends of $0.5 million during this reporting period. In December 2017the Board of Directors took the decision to temporarily suspend the dividend payment, while the company focuses on executing its strategic plan.
The Group accelerated its debt repayment by $0.6 million during the fiscal year, making additional payments on debt principal. Total bank debt was reduced by $1.3 million.
Leslie Rans, Chief Executive Officer, Bermuda Aviation Services Limited, says: “The recent comprehensive strategic and functional review included initiatives to reposition and refocus the Group on profitable business lines and margin maximization. Operational growth, benefits and synergies from these initiatives will be the focus for the Group during the fiscal year 2018/19.
“We would like to take the time to thank our employees for their hard work and our clients for their continued support. Additionally, we would like to thank Dr. James A. C. King and Mrs. J. Patricia Lynn for their long years of invaluable service to the Group as they retire from the Board of Directors.”
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