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.
Lothian Buses, which dominates Edinburgh public transport, including trams and tourist tours, has reported a drop in profits during last year.