Tue, 27 Jul 2021

Air T, Inc. Reports First Quarter Fiscal 2020 Results

15 Aug 2019, 07:49 GMT+10

DENVER, NC, / ACCESSWIRE / August 14, 2019 / Air T, Inc. (NASDAQ:AIRT) is organized as a portfolio of powerful businesses, each of which is independent yet interrelated. These include overnight air cargo operations; ground support equipment manufacturing; ground support equipment maintenance services; and commercial aircraft management, leasing and logistics. Today the Company announced results for its fiscal quarter ended June 30, 2019.

Q1 2020 Overview

Revenues totaled $55.7 million for the fiscal quarter ended June 30, 2019, an 8% decrease from the prior year comparable quarter

Operating income of $1.2 million, a decrease of $1.4 million from the prior year comparable quarter's operating income of $2.6 million

Non-operating income of $2.6 million, an increase of $1.6 million over the prior year comparable quarter

Net income attributable to Air T stockholders was $1.8 million as compared to net income of $2.8 million in the prior year comparable quarter

Income per share was $0.79 compared to the prior comparable quarter's income per share of $0.92

Nick Swenson commented, "While reported segment level operating income is an important reference point when evaluating AIRT's quarterly financial results, our June results reflect unusual year-over-year segment variances, each of which is driven by independent factors. At times, it is difficult and even counter-productive to manage for quarterly results. To paraphrase the Oracle of Omaha, we prefer a 'lumpy high return' to a 'smooth low return.' We are comforted by our current belief that AIRT is on target to meet or exceed its consolidated fiscal 2020 plan."

Business Segment Results

Commercial Jet Engines and Parts

This segment leases commercial jet engines and aircraft; buys, sells and trades in surplus and aftermarket commercial jet engines, engine parts, airframes, and airframe parts, avionics, and other; then delivers the related documents and logistics.

Recent acquisitions in this segment include the acquisition of the assets of Worthington Aviation in May 2018.

Revenues for this segment totaled $16.3 million in Q1 2020, a decrease of $11.0 million over the same period of fiscal 2019. Last year Contrail experienced record levels of sales and income in the first quarter, selling four whole engines for $17.4 million.

Operating income for this segment totaled $1.9 million in Q3 2020 compared to operating income of $3.2 million in the prior-year quarter.

Overnight Air Cargo

The segment provides air express delivery services, substantially all for FedEx.

Revenues for this segment increased 4% to $18.3 million in Q1 2020 compared to $17.6 million in Q1 2019.

Operating income for this segment was $0.0 million, a decrease of $1.0 million when compared to the operating income of Q1 2019. This decrease is due primarily to additional pilot incentives and bonus expenses as a result of the nationwide pilot shortage.

Aviation Ground Support Maintenance Services

This segment provides ground support equipment maintenance and facilities maintenance services to domestic airlines and aviation service providers across the United States.

Revenue from this segment totaled $8.5 million in Q1 2020, a decline of 6% over Q1 2019. The decrease in the current quarter is principally due to a reduction of business in the southeast region.

Operating income for this segment was $0.2 million in the current quarter, compared to a loss of $0.1 million in the same quarter of the prior year, due primarily to operational improvements across the system.

Aviation Ground Support Equipment

This segment manufactures and provides mobile deicers and other specialized equipment products to passenger and cargo airlines, airports, the military and industrial customers.

Revenues for this segment, which is the world's largest manufacturer of aircraft de-icing equipment, totaled $12.3 million for the fiscal quarter ended June 30, 2019. This represents an increase of 92% over the revenue of $6.4 million in the prior comparable quarter. The increase was primarily due to an increase in the unit sales of military and commercial deicers during the quarter.

Operating income for this segment was $1.3 million in the third quarter, an increase of $1.0 million for Q1 of last year, principally due to the higher level of revenues.


This segment includes expenses attributable to core Corporate functions, investment research, and specialized resources that are available to business units.

This segment's operating loss totaled $1.9 million in the current quarter. In the comparable quarter of the prior year, operating loss totaled $1.7 million.

The increase in Corporate segment costs in the current quarter is primarily attributable to increased headcount over the prior year.

Other Investments and Financial Liquidity

Air T owned approximately 3.5 million shares of common stock of Insignia Systems, Inc. (NASDAQ: ISIG) with a market value of $4.0 million as of June 30, 2019.

As of June 30, 2019, Air T held $5.7 million of marketable securities (including Insignia at market value of $4.0 million).

Working capital (defined as current assets less current liabilities) as of June 30, 2019 totaled $28.5 million compared to $18.6 million as of March 31, 2019.


Established in 1980, Air T Inc. is a portfolio of powerful businesses and financial assets, each of which is independent yet interrelated. Its core segments are: overnight air cargo, aviation ground support equipment manufacturing, aviation ground support maintenance services, and commercial aircraft asset management and logistics. We seek to expand, strengthen and diversify Air T's after-tax cash flow per share. Our goal is to build Air T's core businesses, and when appropriate, to expand into adjacent and other industries. We seek to activate growth and overcome challenges while delivering meaningful value for all stakeholders. For more information, visit www.airt.net.


Certain matters discussed in this press release may be considered forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). These forward-looking statements are subject to risks, uncertainties and assumptions about our operations and the investments we make, including, among other things, factors discussed under the heading "Risk Factors" in our 10-K, as well as the following:

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 and other recently acquired companies,

The timing and amounts of future orders under the Company's Global Ground Support subsidiary's contract with the United States Air Force; and

The risks and uncertainties related to business acquisitions (including the ability to successfully achieve the anticipated benefits of the acquisitions) inflation rates, competition, changes in technology or government regulation, debt covenants, information technology disruptions, and the impact of future terrorist activities in the United States and abroad.

Forward-looking statements can be identified by the use of words like "believes," "could," "possibly," "probably," "anticipates," "estimates," "projects," "expects," "may," "will," "should," "seek," "intend," "plan," "expect," or "consider" or the negative of these expressions or other variations, or by discussions of strategy that involves risks and uncertainties. All forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual transactions, results, performance or achievements to be materially different from any future transactions, results, performance or achievements expressed or implied by such forward-looking statements. We base these forward-looking statements on current expectations and projections about future events and the information currently available to us. Although we believe that the assumptions for these forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Consequently, no representation or warranty can be given that the estimates, opinions, or assumptions made in or referenced by this prospectus will prove to be accurate. We undertake no obligation to update our forward-looking statements. We caution you that the forward-looking statements in this press release are only estimates and predictions, or statements or current intent. Actual results or outcomes, or actions that we ultimately undertake, could differ materially from those anticipated in the forward-looking statements due to risks, uncertainties or actual events differing from the assumptions underlying these statements. These risks, uncertainties and assumptions include, but are not limited to, those discussed in this press release.


Air T, Inc.

Brian Ochocki, CFO



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