Air T, Inc. Reports Unaudited Third Quarter Earnings - KMPH FOX 26 | Central San Joaquin Valley News Source

Air T, Inc. Reports Unaudited Third Quarter Earnings

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SOURCE Air T, Inc.

AIR T, INC. NAMES NICK SWENSON CHIEF EXECUTIVE OFFICER

MAIDEN, N.C., Feb. 10, 2014 /PRNewswire/ -- Air T, Inc. (Air T) (NASDAQ: AIRT) today reported consolidated net earnings of $455,000 ($0.19 per diluted share) for fiscal 2014's third quarter ended December 31, 2013 compared to consolidated net earnings of $633,000 ($0.26 per diluted share) for the similar fiscal 2013 period.

Consolidated revenue increased $3,131,000 (12%) to $29,835,000 for the quarter ended December 31, 2013 compared to the same quarter in the prior fiscal year. Consolidated operating income decreased $191,000 (19%) for the quarter ended December 31, 2013 compared to the same quarter in the prior fiscal year.  Ground equipment sales revenue increased $106,000 (1%) this quarter compared to the prior year comparable quarter.  Ground equipment sales operating income increased by $767,000 from the prior year comparable quarter, the result of a ten point increase in gross margins due to improved plant efficiencies and a substantial reduction in the sale of low margin flight-line tow tractor units to the military.  At December 31, 2013, ground equipment sales backlog was $10.2 million, compared to $9.2 million at December 31, 2012 and $6.5 million at March 31, 2013.  Our ground support services segment reported a $967,000 (29%) increase in revenue this quarter, driven by continuing growth in locations and in services offered to new and existing customers; operating income decreased by $154,000 as a result of increasing administrative salaries and costs.  Overnight air cargo revenues increased $2,059,000 (17%) this quarter as a result of an increase in maintenance costs passed through to our customer at cost.  The segment's operating income decreased by $210,000 this quarter as a result of a variety of factors including a reduction in revenue aircraft, increased maintenance labor costs and increased maintenance facility costs this quarter.  Operating income for the quarter ended December 31, 2013 was also negatively impacted by the $566,000 severance payment paid to the Company's former CEO during the quarter.

FINANCIAL HIGHLIGHTS

(In thousands, except per share data)










Three Months Ended


Nine Months Ended


12/31/2013


12/31/2012


12/31/2013


12/31/2012

Operating Revenues

$    29,835


$    26,703


$75,305


$72,354









Net Earnings

$         455


$         633


$1,050


$1,277









Net Earnings Per Share- Diluted

$0.19


$0.26


$0.43


$0.52









Average Common Shares Outstanding

2,442


2,447


2,458


2,451

Air T, Inc. also announced the appointment of Nick Swenson, current Chairman of the Board and Interim Chief Executive Officer, as its Chief Executive Officer.

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 December 31, 2013 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.

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