Air T, Inc. Subsidiary Extends Kinston Maintenance Facility Lease

MAIDEN, N.C., Nov. 24, 2015 — Air T, Inc. (NASDAQ: AIRT) today announced that its Mountain Air Cargo subsidiary has entered into an agreement to extend the lease of its 60,000 square foot maintenance facility at the North Carolina Global TransPark in Kinston, North Carolina.  The extension initially runs to 2023, though Mountain Air Cargo has the option to extend the lease for up to four additional five-year periods.  The renewal takes effect in 2018, at which time the rental rate will increase by 4% and remain at that level to 2023.  Thereafter, the rental rate increases by 10% at the beginning of each five-year renewal term and remains at that level for that five-year term.  Mountain Air Cargo, an original tenant at the Global TransPark in Kinston, has operated its primary maintenance facility at that location since 1995.

Nick Swenson, Air T’s Chairman and Chief Executive Officer, commented, “With this agreement, Mountain Air Cargo has the ability to extend its lease on this important and long-standing facility to 2043. This agreement provides us with a long-term aircraft maintenance base and the operational flexibility that allows us to continue to provide outstanding maintenance services to our air cargo customer. It also evidences our commitment to our highly skilled and dedicated employees in Kinston. We are proud to be able to continue our association with the Global TransPark, a unique aerospace and logistics business park developed by the State of North Carolina.”

Air T, through its subsidiaries, provides overnight air freight service to the express delivery industry, manufactures and sells aircraft deicers and other special purpose industrial equipment, and provides ground support equipment and facilities maintenance to airlines. Air T is one of the largest, small-aircraft air cargo operators in the United States. Air T’s Mountain Air Cargo and CSA Air subsidiaries currently operate a fleet of single and twin-engine turbo-prop aircraft nightly in the eastern half of the United States, Puerto Rico and the Caribbean Islands. Air T’s Global Ground Support subsidiary manufactures deicing and other specialized military and industrial equipment and is one of the largest providers of deicers in the world. The Global Aviation Services subsidiary provides ground support equipment and facilities maintenance to domestic airline customers.

SOURCE: Air T, Inc.

Air T, Inc. Reports Unaudited Second Quarter Earnings

MAIDEN, N.C., Nov. 6, 2015 — Air T, Inc. (Air T) (NASDAQ: AIRT) today reported consolidated net earnings of$3,794,000 ($1.58 per diluted share) for fiscal 2016’s second quarter ended September 30, 2015 compared to consolidated net earnings of $1,818,000 ($0.77 per diluted share) for the similar fiscal 2015 period.

Consolidated revenue increased by $10,029,000 (29%) to $44,654,000 for the quarter ended September 30, 2015 compared to$34,625,000 in the same quarter in the prior fiscal year. Consolidated operating income increased by $2,908,000 (112%) to$5,505,000 for the quarter ended September 30, 2015, as compared to $2,597,000 the same quarter in the prior fiscal year.

Ground equipment sales revenue increased by $3,332,000 (19%) this quarter compared to the prior year comparable quarter last year. The increase in revenue is attributable primarily to the shipment of aircraft deicing vehicles to a major U.S.-based airline under a significant order announced on June 30, 2015. Ground equipment sales operating income increased by $1,639,000 (56%) from the prior year comparable quarter due to the sales increase and production efficiencies. At September 30, 2015, ground equipment sales backlog was $24.4 million, as compared to $15.3 million at September 30, 2014.

Nick Swenson commented, “GGS has driven our results this quarter. Once again, they converted backlog into on-time shipments and posted strong top-line and bottom-line growth. Our mid-year inventory levels at GGS are substantially similar to those of the prior fiscal year despite significantly higher revenues, thereby demonstrating GGS’s operating acumen.  Simply put, Mike Moore and his management team have continued to execute on their business plan, rising to the challenge of fulfilling a large order for de-icers from American Airlines. As of October 30, 2015 we have delivered sixty (60) de-icers, leaving seventeen (17) to be delivered in the third fiscal quarter. GGS is delivering high quality products on time and within budget.”

FINANCIAL HIGHLIGHTS

(In thousands, except per share data)

  Three Months Ended

 Six Months Ended

9/30/2015

9/30/2014

9/30/2015

9/30/2014

Operating Revenues

$    44,654

$    34,625

$    67,012

$    56,403

Net Earnings

$      3,794

$      1,818

$      3,058

$      1,891

Net Earnings Per Share- Diluted

$        1.58

$        0.77

$        1.28

$        0.80

Average Common Shares Outstanding

2,397

2,375

2,396

2,376

Air T, through its subsidiaries, provides overnight air freight service to the express delivery industry, manufactures and sells aircraft deicers and other special purpose industrial equipment, and provides ground support equipment and facilities maintenance to airlines.  Air T is one of the largest small-aircraft air cargo operators in the United States.  Air T’s Mountain Air Cargo and CSA Air subsidiaries currently operate a fleet of single and twin-engine turbo-prop aircraft daily in the eastern half of the United States, Puerto Rico and the Caribbean Islands.  Air T’s Global Ground Support subsidiary manufactures deicing and other specialized military and industrial equipment and is one of the largest providers of deicers in the world.  The Global Aviation Services subsidiary provides ground support equipment and facilities maintenance to domestic airline customers.

For a more detailed presentation and discussion of the Company’s results of operations and financial condition, please read the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2015 filed today with the Securities and Exchange Commission.  Copies of the Form 10-Q may be accessed on the Internet at the SEC’s website, http://www.sec.gov.

Statements in this press release, which contain more than historical information, may be considered forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995), which are subject to risks and uncertainties.  Actual results may differ materially from those expressed in the forward-looking statements because of important potential risks and uncertainties, including but not limited to the risk that contracts with major customers will be terminated or not extended, uncertainty regarding future economic conditions and their impact on the Company’s customers, the timing and amounts of future orders under our contract with the United States Air Force, inflation rates, competition, changes in technology or government regulation, and the impact of future terrorist activities in the United States and abroad.  A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur.  We are under no obligation, and we expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.

 

SOURCE: Air T, Inc.