"As I reflect on our results for the period, it is my opinion that despite our lower earnings, BAS performed very well. Attaining good results when business is good is quite easy. But to succeed during difficult times is the true test of a company's underlying strength and fiscal 2000 was just such a year for BAS. Again there were many challenges to overcome during the year. Air arrivals were at their lowest level ever, putting severe pressure on our bar and restaurant terminal operations. We also incurred a non-recurring charge of $120,000 as a result of redundancies related to the additional loss of catering revenues. Upgrading of facilities and rehabilitation of equipment also weighed heavily on the performance of our bakery operations.
The year did produce some significant successes. Aircraft Services Bermuda Ltd. (ASB), our subsidiary company, performed far better than in any previous year on record. And again the contribution from Crow Lane Bakery Ltd. was as planned.
The company also achieved measurable revenue growth as total sales were increased by 19% to 17.2 million. However expenses for the fiscal period rose 25% to 15.8 million, largely a result of increased staffing and costs related to several recent acquisitions. Operating income at 1.4 million was 16% lower than last year, whilst net income at 1.3 million was 14% off last years record 1.5 million.
We are very confident of our success in the coming year as we do have a sound strategy for growth and a strong management team to execute our vision. Our diversification of the company is progressing as planned. Although quite aggressive, it is very necessary, as organic growth in our core business can no longer be relied upon. We will therefore continue to pursue opportunities that may involve acquisitions, alliances or partnerships. Had we been content to be just an aviation company, we probably would not be where we are today. During this period we continued investing in the growth of the business through capital spending and acquisition. We took ownership of the Memory Lane Deli and New Deli Bakery and now have a majority holding in DE Mortimer Ltd., a small but successful import agency. The three operations will not only give significant support to our bakery and food divisions, but of more importance they will strengthen our reach into the retail market, accelerating our growth. Not many years ago it was widely believed that this prospect was limited. Our stock price was therefore depressed and traded in very limited numbers. This year we hit a high of $8.00 before settling back to a yearly low of $7.
My congratulations and gratitude to our staff for their sacrifices and enthusiasm during another good year. With them, the prospect for a successful 2001 is assured. To our shareholders we are very committed to being a diverse and successful business. The fundamentals that gave us our successes over the past few years are still there, and will assure us success in the future.
2000 1999 CHANGE
REVENUE $17,219,456 $14,468,616 + 17%
EXPENSES $15,836,040 $12,819,287 + 23%OPERATING INCOME
$ 1,383,416 $1 ,649,329 - 16%
NET INCOME $ 1,285,878 $1,500,638 - 14%EARNINGS PER SHARE $1.22 $ 1.42 - 14%
W. Neville Conyers
Chairman"