Sky Harbour Group Corporation Announces Amendment to its 2023 Q2 Cash Flow Statement in Form 10-Q/A
- The amendment corrects a classification error in the statement of cash flows for the six months ended June 30, 2023.
- The correction had no impact on the Company's income statement, balance sheet, or reported cash position.
- A material weakness in internal controls over financial reporting was identified and management is implementing a plan to address it.
- None.
Please see the following links to access the filing:
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001823587/000143774923027985/ysac20230630_10qa.htm
The Company’s previously issued interim consolidated financial statements as of and for the three and six months ended June 30, 2023 contained a classification error within the statement of cash flows for the six months ended June 30, 2023. Certain cash transactions made during Q2 2023 associated with the subsequent payment of construction retainage liabilities incurred and appropriately recognized during the years ended December 31, 2021 and December 31, 2022 were included in the Company’s cash used in operating activities as opposed to cash used in investing activities for the six month period ending June 30, 2023.
The effects of the correction of the prior-period misstatement to the specific line items previously presented in the consolidated statement of cash flows are reflected in the table below (in thousands):
|
|
As Previously
|
|
|
Adjustments |
|
|
As Restated |
|
|||
Changes in Accounts payable, accrued expenses and other liabilities |
|
$ |
(1,367 |
) |
|
$ |
3,372 |
|
|
$ |
2,005 |
|
Net cash used in operating activities |
|
|
(9,103 |
) |
|
|
3,372 |
|
|
|
(5,731 |
) |
Payments for cost of construction |
|
|
(21,155 |
) |
|
|
(3,372 |
) |
|
|
(24,527 |
) |
Net cash used in investing activities |
|
|
(13,059 |
) |
|
|
(3,372 |
) |
|
|
(16,431 |
) |
This classification correction had no impact on the Company’s income statement, balance sheet, or reported cash position as previously reported on Form 10-Q.
In connection with the restatement of the consolidated financial statements for the three and six months ended June 30, 2023, the Company identified a material weakness in its internal controls over financial reporting. Management is committed to remediating this material weakness and has already begun to implement a plan to do so, inclusive of enhanced review processes over manual cash flow adjustments. The Company does not anticipate that the filing of the Form 10-Q/A will have any impact on the timing of its future SEC filings.
In addition, the Company also corrected a previously identified immaterial error with respect to the calculation of diluted earnings (loss) per share for the three months ended June 30, 2023 and 2022. Please see Note 12 - Net Earnings (Loss) per Share in the consolidated financial statements on Form 10-Q/A for further details.
The Company’s management and the Audit Committee have discussed the matters disclosed in the amended 10-Q filed today with the Company’s independent registered accounting firm. The restatement did not result from any override of controls, nor has the Audit Committee been informed of any issues related to an override of controls or misconduct.
About Sky Harbour Group Corporation
Sky Harbour Group Corporation is an aviation infrastructure company developing the first nationwide network of Home-Basing campuses for business aircraft. The company develops, leases and manages general aviation hangars across
Forward Looking Statements
Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995, including statements about the financial condition, results of operations, earnings outlook and prospects of SHG may include statements for the period following the consummation of the business combination. When used in this press release, the words “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “should,” “would” and other similar words and expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements are based on the current expectations of the management of SHG as applicable and are inherently subject to uncertainties and changes in circumstances and their potential effects and speak only as of the date of such statement. There can be no assurance that future developments will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those discussed and identified in the public filings made or to be made with the SEC by SHG, including the filings described above, regarding the following: expectations regarding SHG’s strategies and future financial performance, including its future business plans, expansion plans or objectives, prospective performance and opportunities and competitors, revenues, products and services, pricing, operating expenses, market trends, liquidity, cash flows and uses of cash, capital expenditures, and SHG’s ability to invest in growth initiatives; SHG’s ability to scale and build the hangars currently under development or planned in a timely and cost-effective manner; the implementation, market acceptance and success of SHG’s business model and growth strategy; the success or profitability of SHG’s hangar facilities; SHG’s future capital requirements and sources and uses of cash; SHG’s ability to obtain funding for its operations and future growth; developments and projections relating to SHG’s competitors and industry; the ability to recognize the anticipated benefits of the business combination; geopolitical risk and changes in applicable laws or regulations; the possibility that SHG may be adversely affected by other economic, business, and/or competitive factors; operational risk; risk that the COVID-19 pandemic, and local, state, and federal responses to addressing the pandemic may have an adverse effect on SHG’s business operations, as well as SHG’s financial condition and results of operations. Should one or more of these risks or uncertainties materialize or should any of the assumptions made by the management of SHG prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. SHG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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Investor Relations:
investors@skyharbour.group
Attn: Francisco X. Gonzalez, CFO
Source: Sky Harbour Group Corporation
FAQ
What error was corrected in the amendment?
Did the correction impact the Company's financial statements?
Was any material weakness identified in the internal controls?
Is the Company taking steps to address the material weakness?
Will the filing of the amendment affect future SEC filings?
