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.