Air T, Inc. Reports Unaudited Third Quarter Fiscal 2017 Earnings

MAIDEN, N.C., Feb. 13, 2017 — Air T, Inc. (Air T) (NASDAQ: AIRT) today reported consolidated net earnings of $856,000 ($0.42 per diluted share) for fiscal 2017’s third quarter ended December 31, 2016 compared to consolidated net earnings of $2,971,000 ($1.24 per diluted share) for the similar fiscal 2016 period.

Consolidated revenues net of intercompany eliminations decreased by $10,849,000 (23%) to $35,769,000 for the quarter ended December 31, 2016 compared to $46,619,000 in the same quarter in the prior fiscal year. Consolidated operating income net of intercompany eliminations decreased by $2,251,000 (58%) to $1,639,000 for the quarter ended December 31, 2016, as compared to $3,890,000 for the same quarter in the prior fiscal year.

Ground equipment sales segment revenue decreased by $17,698,000 (87%) this quarter compared to the prior year comparable quarter. The decrease in the segment’s revenue is attributable primarily to the large order of deicers from a major airline in the prior year quarter that did not reoccur this fiscal year. Operating income for the ground equipment sales segment decreased by $4,754,000 to an operating loss of $913,000 in the current year quarter as a result of the decrease in sales volumes compared to the prior-year quarter. At December 31, 2016, ground equipment sales’ backlog was $11.2 million, as compared to $10.8 million at December 31, 2015.

Revenues in the overnight air cargo segment decreased by $1,575,000 (8%) attributable to decreased maintenance cost passed through to the customer as well as decreased administrative fee revenues reflecting the lower administrative fee amount paid under an amendment to the dry-lease agreements that became effective on June 1, 2016. In addition, the segment’s maintenance revenue was reduced as a result of lower maintenance billable hours in response to a customer directive. Operating income for the air cargo segment decreased by $383,000 from the prior-year quarter resulting from the decreased administrative fee, lower billable maintenance hours and higher operating costs not passed through to the customer, principally increased flight crew costs.

Revenues in the ground support services segment increased $1,021,000 (16%) primarily as a result of the company’s growth in new markets and services offered to new and existing customers. Operating results for the ground support services segment improved by $28,000 from the prior year quarter to an operating loss of $41,000 primarily as increased revenues began to offset the costs of infrastructure improvements made in prior periods to position the segment for growth.

On November 24, 2015, Air T acquired from Delphax Technologies Inc. (“Delphax”) shares of its Series B Preferred Stock then convertible into approximately 38% of the shares of Delphax common stock outstanding after conversion and other equity and debt interests in Delphax and its Canadian subsidiary. Air T has concluded that as a result of its acquisition of these interests, Delphax is required to be consolidated with Air T for financial reporting purposes since the November 24, 2015 acquisition date and reports these results in its printing equipment and maintenance segments. The operating income attributable to Delphax included in consolidated net income for the three months ended December 31, 2016 was approximately $388,000 attributable to Air T, Inc. stockholders compared to an operating loss of $336,000 in the prior-year period. A number of factors led to this improvement at Delphax. Delphax has significantly reduced operating expenses during the last two quarters, as Delphax significantly curtailed its production activities during this period. At the same time, the segment had more sales of legacy consumable products in the quarter than anticipated. Such sales included certain products against which a lower-of-cost-or-market reserve had previously been established and, as such, the related gross margin upon sale was higher than normal.

On July 18, 2016, Contrail Aviation Support, LLC (“Contrail Aviation”), a subsidiary of the Company, completed the purchase of substantially all of the assets of Contrail Aviation Support, Inc. The acquisition consideration included equity membership units in Contrail Aviation representing 21% of the total equity membership units in Contrail Aviation. Air T, through a subsidiary, acquired 100% of the outstanding equity interests of Jet Yard, LLC (“Jet Yard”) on October 3, 2016. Contrail Aviation and Jet Yard comprise the commercial jet engines segment of the Company’s operations. The operating income attributable to Contrail Aviation and Jet Yard included in consolidated net income for the three months ended December 31, 2016 was approximately $491,000 attributable to Air T, Inc. stockholders.

FINANCIAL HIGHLIGHTS

(In thousands, except per share data)

Three Months Ended December 31,

Nine Months Ended December 31,

2016

2015

2016

2015

Operating Revenues

$ 35,769

$ 46,619

$ 104,785

$ 113,631

Operating Income (Loss)

$ 1,639

$ 3,890

$ (4,412)

$ 8,346

Net Income (Loss)

$ 1,665

$ 2,446

$ (5,244)

$ 5,504

Net Income (Loss) Attributable to Air T, Inc. Stockholders

$ 856

$ 2,971

$ (1,752)

$ 6,029

Net Earnings (Loss) Per Share – Diluted

$ 0.42

$ 1.24

$ (0.81)

$ 2.52

Weighted Average Shares Outstanding – Diluted

2,048

2,397

2,152

2,397

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 December 31, 2016 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.

About Air T, Inc.

Established in 1980, Air T, Inc. is a diversified holding company with four core industry segments: overnight air cargo, aviation ground support equipment manufacturing, aviation ground support maintenance services, and commercial jet engines. Our ownership interests consist of a broad set of operating and financial assets that are designed to expand, strengthen and diversify Air T’s cash earnings power. Our goal is to build on Air T’s core businesses, to expand into adjacent industries, and when appropriate, to acquire companies that we believe fit into the Air T family. For more information, visit www.airt.net.

Forward-looking Statements

Statements in this press release that 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, future economic conditions and their impact on the Company’s customers, the Company’s ability to recover on its investments, including its investments in Delphax, the timing and amounts of future orders under the Company’s Global Ground Support subsidiary’s contract with the United States Air Force, inflation rates, competition, changes in technology or government regulation, information technology disruptions, 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. The Company is under no obligation, and it expressly disclaims any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.

Air T, Inc. Reports Unaudited Second Quarter Fiscal 2017 Earnings

MAIDEN, N.C., Nov. 14, 2016 — Air T, Inc. (Air T) (NASDAQ: AIRT) today reported consolidated net earnings of $1,069,000($0.52 per diluted share) for fiscal 2017’s second quarter ended September 30, 2016 compared to consolidated net earnings of $3,794,000 ($1.58 per diluted share) for the similar fiscal 2016 period.

Consolidated revenues net of intercompany eliminations decreased by $6,131,000 (14%) to $38,523,000 for the quarter ended September 30, 2016 compared to $44,654,000 in the same quarter in the prior fiscal year. Consolidated operating income net of intercompany eliminations decreased by $4,483,000 (81%) to $1,022,000 for the quarter ended September 30, 2016, as compared to $5,505,000 the same quarter in the prior fiscal year.

Ground equipment sales segment revenue decreased by $10,194,000 (48%) this quarter compared to the prior year comparable quarter last year. The decrease in the segment’s revenue is attributable primarily to the large order of deicers from a major airline in the prior year quarter that did not reoccur this fiscal year. Operating income net of intercompany eliminations, for the ground equipment sales segment decreased by $3,120,000 as a result of the decrease in sales volumes compared to the prior year quarter. At September 30, 2016, ground equipment sales backlog was $9.8 million, as compared to $24.4 million at September 30, 2015. Revenues in the overnight air cargo segment decreased by $235,000 (1%). Administrative fee revenues decreased reflecting the lower administrative fee amount paid under an amendment to the new dry-lease agreements which became effective on June 1, 2016. In addition, the segment’s maintenance revenues decreased as a result of the lower billable hours compared to the prior year quarter. Operating income for the air cargo segment decreased by $1,038,000 resulting from the lower administrative fee amount paid under the new dry-lease agreements, as well as maintenance revenue decrease as a result of the lower maintenance billable hours, coupled with higher operating costs not passed through to the customer, principally increased flight crew costs, during the three-month period ended September 30, 2016. Revenues in the ground support services segment increased $1,053,000 (18%) primarily as a result of the company’s growth in new markets and services offered to new and existing customers. Operating results for the ground support services segment improved by $30,000 from the prior year quarter primarily as increased revenues began to offset the costs of infrastructure improvements made in prior periods to position the segment for growth.

FINANCIAL HIGHLIGHTS
(In thousands, except per share data)

Three Months Ended September 30,

Six Months Ended September 30,

2016

2015

2016

2015

Operating Revenues

$          38,523

$            44,654

$          69,016

$        67,012

Operating Income (Loss)

$            1,022

$              5,505

$          (6,052)

$          4,456

Net Income (Loss)

$            1,080

$              3,794

$          (6,910)

$          3,058

Net Income (Loss) Attributable to
Air T, Inc. Stockholders

$            1,069

$              3,794

$          (2,608)

$          3,058

Net Earnings (Loss) Per Share – Diluted

$              0.52

$                1.58

$            (1.18)

$            1.28

Weighted Average Shares Outstanding – Diluted

2,048

2,397

2,208

2,396

On November 24, 2015, Air T purchased from Delphax Technologies Inc. (“Delphax”) shares of its Series B Preferred Stock then convertible into approximately 38% of the shares of Delphax common stock outstanding after conversion and a warrant to purchase additional shares of Delphax Series B Preferred Stock and from Delphax’s Canadian subsidiary a $2.5 million five-year senior subordinated promissory note.  Air T has concluded that as a result of its acquisition of these interests, Delphax is required to be consolidated with Air T for financial reporting purposes since the November 24, 2015 acquisition date. The operating loss attributable to Delphax included in consolidated net income for the three months ended September 30, 2016 was approximately $12,000.

On July 18, 2016, Contrail Aviation Support, LLC (“Contrail Aviation”), a subsidiary of the Company, completed the purchase of substantially all of the assets of Contrail Aviation, Inc. The acquisition consideration consisted of (i) $4,033,368 in cash, $300,000 of which is being held in an escrow account to secure indemnification payments, (ii) equity membership units in Contrail Aviation representing 21% of the total equity membership units in Contrail Aviation, and (iii) certain contingent additional deferred consideration payments. The operating income attributable to Contrail Aviation included in consolidated net income for the three months ended September 30, 2016 was approximately $43,000.

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, 2016 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.

About Air T, Inc.

Established in 1980, Air T, Inc. is a diversified holding company with four core industry segments: overnight air cargo, aviation ground support equipment manufacturing, aviation ground support maintenance services, and commercial jet engines. Our ownership interests consist of a broad set of operating and financial assets that are designed to expand, strengthen and diversify Air T’s cash earnings power.  Our goal is to build on Air T’s core businesses, to expand into adjacent industries, and when appropriate, to acquire companies that we believe fit into the Air T family.  For more information, visit www.airt.net.

Forward-looking Statements

Statements in this press release that 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, future economic conditions and their impact on the Company’s customers, the Company’s ability to recover on its investments, including its investments in Delphax, the timing and amounts of future orders under the Company’s Global Ground Support subsidiary’s contract with the United States Air Force, inflation rates, competition, changes in technology or government regulation, information technology disruptions, 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. The Company is under no obligation, and it expressly disclaims 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.

Air T, Inc. Reports Unaudited First Quarter Earnings

MAIDEN, N.C., Aug. 15, 2016 /PRNewswire/ — Air T, Inc. (Air T) (NASDAQ: AIRT) today reported consolidated net loss attributable to Air T, Inc. stockholders of $3,676,000 ($1.55 per diluted share) for the fiscal 2017 first quarter ended June 30, 2016 as compared to consolidated net loss of $736,000 ($0.31 per diluted share) for the similar fiscal 2016 comparable period.  As discussed below, Air T’s consolidated financial results include the results of Delphax Technologies, Inc. (“Delphax”) sinceNovember 24, 2015.

Consolidated revenue increased $8,135,000 (36%) to $30,493,000 for the quarter ended June 30, 2016 compared to the comparable quarter in the prior fiscal year. Consolidated operating loss increased $6,024,000 (574%) to $7,073,000 for the quarter ended June 31, 2016 compared to the comparable quarter in the prior fiscal year.

Overnight air cargo revenues increased $3,748,000 (29%) to $16,637,000 compared to the prior year comparable quarter. Administrative fee revenues increased to reflect the greater administrative fee amount paid under the dry-lease agreements which became effective on June 1, 2015. In addition, maintenance revenues increased to reflect the higher hourly maintenance labor rate under these agreements during the full current-year quarter. The segment’s operating income increased by$1,074,000 to $979,000 as a result of the same factors discussed above.

Ground equipment sales revenue increased $215,000 (5%) to $4,254,000 this quarter compared to the prior year comparable quarter.  Ground equipment sales operating loss decreased by $378,000 (73%) to $141,000 from the prior year comparable quarter, principally attributable to increased sales volume this quarter. At June 30, 2016, ground equipment sales backlog was$12.1 million, compared to $10.0 million at March 31, 2016 and $39.9 million at June 30, 2015.

Ground support services segment revenue increased  $1,370,000 (25%) to $6,800,000, as a result of the company’s growth in new markets and in services offered to new and existing customers.  Operating loss for this segment for the same period decreased by $225,000 (67%), to $110,000, as increased revenues began to offset the costs of infrastructure improvements made in prior periods to position the segment for growth.

Consolidated revenue increased by $2,560,000 due to the inclusion of Delphax in consolidated results for the current-year quarter. Operating income was adversely affected by Delphax’s $6,935,000 operating loss for the quarter, which includes$5,610,000 in aggregate impairment of tangible and intangible assets and accruals for severance actions.

Results for the quarter ended June 30, 2016 include a non-operating charge of approximately $1,502,000 related to an other-than-temporary impairment of the Company’s investment in marketable securities of Insignia Systems, Inc.

 

FINANCIAL HIGHLIGHTS
(In thousands, except per share data)

Three Months Ended June 30,

2016

2015

Operating Revenues

$          30,493

$        22,359

Operating Loss

$          (7,073)

$        (1,049)

Net Loss

$          (7,989)

$           (736)

Net Loss Attributable to Air T, Inc. Stockholders

$          (3,676)

$           (736)

Loss Per Share – Diluted

$            (1.55)

$          (0.31)

Weighted Average Shares Outstanding – Diluted

2,373

2,373

 

On November 24, 2015, Air T purchased from Delphax shares of its Series B Preferred Stock then convertible into approximately 38% of the shares of Delphax common stock outstanding after conversion, a warrant to purchase additional shares of Delphax Series B Preferred Stock and a $2.5 million five-year senior subordinated promissory note.  Air T has concluded that as a result of its acquisition of these interests, Delphax is required to be consolidated with Air T for financial reporting purposes since theNovember 24, 2015 acquisition date.  The operating loss attributable to Delphax included in consolidated net income for the three months ended June 30, 2016 was approximately $6,935,000.  Net loss attributable to Air T, Inc. stockholders reflects a GAAP adjustment to net loss to eliminate the Delphax net loss attributable to the interests in Delphax not held by Air T.

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 June 30, 2016 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.

About Air T, Inc.

Established in 1980, Air T, Inc. is a diversified holding company with four core industry segments: overnight air cargo, aviation ground support equipment manufacturing, aviation ground support maintenance services, and aircraft engine aftermarket and surplus parts.  Our ownership interests consist of a broad set of operating and financial assets that are designed to expand, strengthen and diversify Air T’s cash earnings power.  Our goal is to build on Air T’s core businesses, to expand into adjacent industries, and when appropriate, to acquire companies that we believe fit into the Air T family.  For more information, visitwww.airt.net.

Forward-looking Statements

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, future economic conditions and their impact on the Company’s customers, the Company’s ability to recover on its investments, including its investments in Delphax, the timing and amounts of future orders under the Company’s Global Ground Support subsidiary’s contract with the United States Air Force, inflation rates, competition, changes in technology or government regulation, information technology disruptions, 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. The Company is under no obligation, and it expressly disclaims any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.

Air T, Inc. Reports Fiscal 2016 Results

MAIDEN, N.C., June 29, 2016 — Air T, Inc. (NASDAQ Capital Market: AIRT) today reported consolidated net income attributable to Air T, Inc. stockholders of $4,943,000 ($2.06 per diluted share) for fiscal 2016, which ended March 31, 2016, compared to net income of $2,484,000 ($1.04 per diluted share) for fiscal 2015.  Consolidated net income was$3,758,000 for the fiscal year 2016.

Consolidated revenue for fiscal 2016 was $148,212,000 compared to $112,181,000 for fiscal 2015, representing a 32% increase. On a segment basis, air cargo revenue increased $18,362,000 (37%) to $68,227,000, ground equipment sales revenue increased by $9,405,000 (23%) to $51,176,000, and ground support services revenue increased by $4,288,000 (21%) to$24,835,000. Air cargo revenues were up principally due to the greater administrative fee amount paid under the dry-lease agreements entered into on June 1, 2015 with the Company’s air cargo customer. In addition, the segment’s maintenance revenues increased to reflect the higher hourly maintenance labor rates in effect under these agreements. The increase in the revenues of the ground equipment sales segment is attributable to a $14.4 million increase in sales of commercial deicers and a$954,000 increase in the sales of catering trucks. The ground support services revenue increased with growth into new markets and services for both new and existing customers and strong annual part sales.

The $2,459,000 increase in fiscal 2016’s net income attributable to Air T, Inc. stockholders represented a 99% increase from the prior year.  Operating income in the ground equipment sales segment was up $2,716,000 (74%) principally due to the significant order by a major airline company received in June 2015 and completed in the second and third fiscal quarters along with continued improvement in production efficiencies obtained in connection with the assembly of similar units.  At March 31, 2016, backlog at the ground equipment sales segment was $10.0 million, compared to $2.8 million at March 31, 2015. Operating income of the air cargo segment improved by a greater amount due to the impact of the new dry-lease agreements, including the increase in the labor maintenance rate which had not been adjusted since 2008. Operating loss in our ground support services segment increased as costs under fixed-price service contracts in place in certain markets significantly exceeded the revenue associated with those contracts, and the segment continued to position itself for growth with investments in facility upgrades and administrative infrastructure. The company’s printing equipment and maintenance segment incurred an operating loss of $1,967,000 from November 24, 2015 to March 31, 2016. The Company acquired its interests in Delphax Technologies Inc. (“Delphax”), which comprises this segment, on November 24, 2015.

FINANCIAL HIGHLIGHTS

(In thousands, except per share data)

Year Ended March 31,

2016

2015

Operating Revenues

$        148,212

$      112,181

Operating Income

$            6,032

$          3,417

Net Income

$            3,758

$          2,484

Net Income Attributable to Air T, Inc. Stockholders

$            4,943

$          2,484

Earnings Per Share – Diluted

$              2.06

$            1.04

Weighted Average Shares Outstanding – Diluted

2,397

2,380

 

Air T has several business segments.  Air T is one of the largest, small-aircraft air cargo operators in the United States.  Its Mountain Air Cargo and CSA Air subsidiaries, which comprise the air cargo segment, 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, which comprises the ground equipment sales segment, 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, which comprises the ground support services segment, provides ground support equipment and facilities maintenance to domestic airline customers.  During the fiscal quarter ended December 31, 2015, Air T completed an investment in Delphax, which designs, manufactures and sells advanced digital print production systems, and organized Air T Global Leasing, LLC, a subsidiary which provides funding for equipment leasing transactions, including transactions for the leasing of equipment manufactured by Global Ground Support and Delphax and transactions initiated by third parties unrelated to equipment manufactured by Air T or any of its subsidiaries.

For a more detailed presentation and discussion of the Company’s results of operations and financial condition, please read the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2016 filed today with the Securities and Exchange Commission.  Copies of the Form 10-K 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, future economic conditions and their impact on the Company’s customers, the timing and amounts of future orders under Global Ground Support’s 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.

Air T, Inc. Reports Unaudited Third Quarter Earnings

MAIDEN, N.C., Feb. 5, 2016 — Air T, Inc. (Air T) (NASDAQ: AIRT) today reported consolidated net income of $2,971,000 ($1.24 per diluted share) for the fiscal 2016 third quarter ended December 31, 2015 as compared to consolidated net income of $1,448,000 ($0.61 per diluted share) for the similar fiscal 2015 comparable period.  As discussed below, Air T’s consolidated financial results include the results of Delphax Technologies, Inc. (“Delphax”) since November 24, 2015.

Consolidated revenue increased $15,726,000 (51%) to $46,619,000 for the quarter ended December 31, 2015 compared to the comparable quarter in the prior fiscal year. Consolidated operating income increased $1,749,000 (82%) to $3,890,000 for the quarter ended December 31, 2015 compared to the comparable quarter in the prior fiscal year.

Overnight air cargo revenues increased $5,701,000 (44%) to $18,674,000 compared to the prior year comparable quarter. Administrative fee revenues increased to reflect the greater administrative fee amount paid under the new dry-lease agreements which became effective on June 1, 2015. In addition, maintenance revenues increased to reflect the higher hourly maintenance labor rate under these agreements during fiscal 2016. The segment’s operating income increased by $811,000 (135%) to $1,414,000 as a result of the same factors discussed above. Operating income for the air cargo segment for the prior year quarter included a$374,000 gain from the sale of company-owned aircraft used primarily to support the air cargo segment’s operations.

Ground equipment sales revenue increased $7,705,000 (61%) to $20,344,000 this quarter compared to the prior year comparable quarter.  Ground equipment sales operating income increased by $2,170,000 (127%) to $3,875,000 from the prior year comparable quarter, principally attributable to increased commercial domestic deicer sales this quarter and an improved gross margin. Gross margin percentage for this segment was 26.2% for this quarter compared to 22.8% for the prior year quarter as the segment benefited from production efficiencies due in part to the large number of identical units manufactured to fill the significant order placed by a major U.S. airline in June 2015. Operating income for the ground equipment sales segment for the prior year quarter included a$412,000 gain from the sale of eight leased de-icing units to the leasing customers. At December 31, 2015, ground equipment sales backlog was $10.8 million, compared to $7.2 million at December 31, 2014 and $2.8 million at March 31, 2015.

Ground support services segment revenue increased  $1,279,000 (24%) to $6,559,000, as a result of the company’s growth in new markets and in services offered to new and existing customers. Operating income for this segment for the same period decreased by$236,000 (90%), to $26,000 as a result of the significant increase in operating costs to position the segment for anticipated growth with new customers and in new markets, as well as increased maintenance and parts expense in select markets.

Consolidated revenue increased by $1,035,000 due to the inclusion of Delphax in consolidated results since November 24, 2015. Operating income was adversely affected by Delphax’s $883,000 operating loss for the period in which Delphax’s financial results are consolidated in Air T’s financial statements.

FINANCIAL HIGHLIGHTS

(In thousands, except per share data)

 Three Months Ended

Nine Months Ended

12/31/2015

12/31/2014

12/31/2015

12/31/2014

Operating Revenues

$    46,619

$    30,893

$113,631

$87,296

Net Income

$      2,446

$      1,448

$5,504

$3,340

Net Income Attributable to Air T, Inc. Stockholders

$      2,971

$      1,448

$6,029

$3,340

Earnings Per Share- Diluted

$1.24

$0.61

$2.52

$1.41

Average Common Shares Outstanding

2,397

2,381

2,397

2,374

On November 24, 2015, Air T purchased from Delphax shares of its Series B Preferred Stock then convertible into approximately 38% of the shares of Delphax common stock outstanding after conversion, a warrant to purchase additional shares of Delphax Series B Preferred Stock and a $2.5 million five-year senior subordinated promissory note.  Air T has concluded that as a result of its acquisition of these interests, Delphax is required to be consolidated with Air T for financial reporting purposes since the November 24, 2015 acquisition date.  The operating loss attributable to Delphax included in consolidated net income for the three and nine-months ended December 31, 2015 was approximately $883,000.  Net income attributable to Air T, Inc. stockholders reflects a GAAP adjustment to net income to eliminate the Delphax net loss attributable to the interests in Delphax not held by Air T.

Air T has several business segments.  Air T is one of the largest, small-aircraft air cargo operators in the United States.  Its 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.  During the quarter endedDecember 31, 2015, Air T completed an investment in Delphax, which designs, manufactures and sells advanced digital print production systems, and organized Air T Global Leasing, LLC, a subsidiary which provides funding for equipment leasing transactions, including transactions for the leasing of equipment manufactured by Global Ground Support and transactions initiated by third parties unrelated to equipment manufactured by Air T or any of its subsidiaries.

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 December 31, 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 legal actions against the Company, 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.

To read original version on PR Newswire, visit: http://www.prnewswire.com/news-releases/air-t-inc-reports-unaudited-third-quarter-earnings-300215832.html

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.

Air T, Inc. Reports First Quarter Earnings

MAIDEN, N.C., Aug. 5, 2015 — Air T, Inc. (NASDAQ: AIRT) today reported consolidated net loss of approximately $736,000 ($0.31 per diluted share) for the quarter ended June 30, 2015 compared to consolidated net income of approximately $73,000 ($0.03 per diluted share) for the first quarter of the prior fiscal year.

Consolidated revenues increased by approximately $580,000 (3%) to $22,359,000 for the quarter ended June 30, 2015 compared to the same quarter in the prior fiscal year. Operating income decreased $1,148,000 to $1,049,000 in the first quarter compared to the prior year quarter. Each of the company’s operating segments experienced decreases in operating income as compared to the prior year’s quarter ended June 30.

Revenues decreased at the company’s ground equipment sales segment comprised of its Global Ground Support subsidiary (GGS) by $1,273,000 (24%) to $4,039,000 compared to the first quarter of the prior fiscal year.  GGS had an operating loss of approximately$424,000 for the quarter, compared to an operating loss of $180,000 in the prior year’s comparable quarter.  Operating loss increased in the segment as a result of reduced segment revenues and increased employee benefit costs and service technician costs. In addition, operations for the prior year quarter included a $188,000 gain from sale of leased ground support equipment, which did not recur in the current quarter. Order flow at GGS is above last years’ levels, with backlog at June 30, 2015 of $39.9 million as compared to $21.8 million at June 30, 2014 and $2.8 million at March 31, 2015. Backlog at June 30, 2015 includes an order received in June 2015 to supply approximately $32 million of aircraft deicing vehicles to a major U.S.-based airline, expected to be filled in the third fiscal quarter of the current fiscal year.

Revenues from the air cargo segment increased $1,208,000 (10%) to $12,889,000 compared to the first quarter of the prior fiscal year, while operating income decreased $309,000 (57%) to $236,000. Administrative fee revenues increased to reflect the greater administrative fee amount paid under the new dry-lease agreements which became effective on June 1, 2015. The quarter was also positively impacted by the addition of an additional ATR aircraft during the quarter. Operating income decreased principally due to a$129,000 expense, related to an FAA-mandated update of our operations manuals; unusually high health benefit costs; increased expenses reflecting the transition to the new dry-lease agreements; and reduced contract labor revenue driven by the decrease in calendar maintenance checks as compared to the prior comparable quarter.

Revenues from our ground support services segment increased by $644,000 (13%) to $5,430,000 compared to the first quarter of the prior fiscal year as a result of the addition of new operating locations, and growth in the services offered to new and existing customers.  Operating income for the segment decreased by $444,000 (200%) to an operating loss of $222,000 for the quarter compared to the prior year quarter.  The decrease in operating income over the prior year quarter was primarily due to the significant increase in operating costs required to position the segment for anticipated growth, as well as increased maintenance and parts expense in select markets where GAS operates under fixed-price contracts.

 

FINANCIAL HIGHLIGHTS

(In thousands, except per share)

Quarter Ended

6/30/2015

6/30/2014

Operating Revenues

$         22,359

$         21,779

Net Income (Loss)

$             (736)

$                73

Net Earnings (Loss) Per Share- Diluted

$            (0.31)

$             0.03

Average Common Shares Outstanding-Diluted

2,373

2,380

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 June 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 legal actions against the Company, 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, the timing of shipment of current orders received by GGS, 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.

Air T, Inc. to Report First Quarter Results on August 5

MAIDEN, N.C., July 29, 2015 — Air T, Inc. (Air T) (NASDAQ: AIRT) announced that it intends to release results for its first fiscal quarter ended June 30, 2015 on August 5, 2015 at 8:00 A.M. (Eastern Time).

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.

SOURCE: Air T, Inc.

Air T, Inc. Reports Fiscal 2015 Results

MAIDEN, N.C., June 8, 2015 — Air T, Inc. (NASDAQ Capital Market: AIRT) today reported consolidated net earnings of$2,484,000 ($1.04 per diluted share) for fiscal 2015, which ended March 31, 2015, compared to net earnings of $1,467,000 ($0.60per diluted share) for fiscal 2014.

Consolidated revenue for fiscal 2015 was $112,181,000 compared to $100,772,000 for fiscal 2014, representing an 11% increase.  On a segment basis, air cargo revenue decreased by $2,477,000 (5%), ground equipment revenue increased by $10,260,000 (33%), and ground support services revenue increased by $3,626,000 (21%). Air cargo revenues were down primarily as a result of a cyclical decline in heavy maintenance at our Kingston, N.C. facility. The increase in ground equipment sales revenue was due primarily to an increase in sales of commercial deicers.  The increase in ground support services revenue was the result of growth in new markets and services for both new and existing customers and strong part sales.

The $1,017,000 increase in fiscal 2015’s net earnings represented a 69% increase from the prior year.  Operating income in the air cargo segment was down $984,000 (46%) due to a variety of factors, including a cyclical decline in heavy maintenance checks, a manual re-write and regulatory penalty. Operating income in our ground equipment sales segment increased by $1,886,000 (79%) as a result of strong deicer sales and continual improvement in production efficiencies, along with gains from the sale of deicers held on lease.  At March 31, 2015, backlog was $2.8 million, compared to $14.4 million at March 31, 2014.  Operating income in our ground support services segment decreased by $818,000 (75%) principally as a result of unexpected operating challenges. The impact of the harder winter across the Northeast and a large contract recently transitioned to fixed-priced services added to the operating challenges. GAS continues to position itself for growth with investments in facility upgrades and administrative infrastructure.

Nick Swenson, Air T’s Chief Executive Officer, commented on the recent renewal of the air cargo segment’s agreements with FedEx, “We are pleased to report our recent contract renewals with FedEx. The changes will result in increased revenues and costs within our air cargo segment. And our base expectation is that the air cargo segment’s profitability under the new agreements will more closely approximate absolute historical net results for the business, and not the net results of the past few fiscal years.  We are delighted with and proud of our relationship with FedEx, which has been a customer since 1980, and work hard every day to deliver the operational excellence that earns their trust and confidence.”

 

FINANCIAL HIGHLIGHTS

(In thousands, except per share data)

Year Ended March 31,

2015

2014

Operating Revenues

$       112,181

$       100,772

Net Earnings

$           2,484

$           1,467

Net Earnings Per Share – Diluted

$             1.04

$             0.60

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.

For a more detailed presentation and discussion of the Company’s results of operations and financial condition, please read the Company’s Annual Report on Form 10-K for the year ended March 31, 2015, filed earlier today with the Securities and Exchange Commission.  Copies of the Form 10-K 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, future economic conditions and their impact on the Company’s customers, 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.