A tumultuous year in senior management, continuing into the start of this year, required revisions to the accounts.
Several directors left and the chief executive, who is scheduled to leave, is no longer receiving a bonus.
The accounts do not give detail of what went wrong, though the boardroom rows were well publicised in the media.
However, the report to Companies House indicates the company has lost out from the drop in energy prices, buying its fuel in advance of the sharp drop in oil market.
In a statement with the accounts, the directors stated: "The group has faced significant operating and cost pressures.
"We anticipate that these cost pressures will remain in 2015 and we will remain proactive in seeking to mitigate the impact of these cost pressures".
Lothian Buses revenue in 2014 was up by 2.3% to Â£135m. Pre-tax profits fell from Â£11.7m to Â£10.1m.
The company is owned mainly by City of Edinburgh Council, with small stakes held by neighbouring Lothian councils.
It owns more than 650 buses, and carries more than two million passengers each week. The numbers transported were up in 2014 by 2.6% to a total of 118 million.

He is the second Belgian cyclist to die in as many days after Antoine Demoitie was struck by a motorbike during Belgium's Gent-Wevelgem race.
Myngheer, who turned professional last year, had been in an induced coma.
His team, Roubaix Metropole Lille, said in a statement: "He lost his last race after fighting like a champion."
Myngheer pulled up in difficulty 20 miles from the line in the first stage of the race at Porto-Vecchio on Saturday.
He suffered the heart attack while in an ambulance, before being transferred by helicopter to hospital, where he was put on artificial respiration and fell into a coma. According to his team, Myngheer's organs have been donated.
British cyclist Mark Cavendish tweeted: "Such a terribly sad few days in the professional cycling world. Another tragic loss.
"RIP Daan Myngheer. My thoughts are with your loved ones."
The Trek-Segafredo team added: "The cycling family loses another young talent. Our thoughts go to the loved ones and team members of Daan Myngheer."
The latest tragedy comes after Demoitie, 25, was killed when he was hit by a motorbike on Monday.
The accident happened after several riders crashed as they passed through northern France during Sunday's Gent-Wevelgem one-day race.
Demoitie, who was riding for the Wanty-Gobert team, was taken to hospital in Lille but died some time later.
In January, six racers from the Giant-Alpecin team, including German John Degenkolb and Frenchman Warren Barguil, were injured in a collision with a car during a training ride south of Valencia.
Lothian Buses, which dominates Edinburgh public transport, including trams and tourist tours, has reported a drop in profits during last year.
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Cyclist Daan Myngheer, 22, has died in hospital after suffering a heart attack during the first stage of the Criterium International in Corsica.