Air T, Inc. Reports Unaudited Second Quarter Earnings

MAIDEN, N.C., Nov. 7, 2014 /PRNewswire/ -- Air T, Inc. (Air T) AIRT today reported consolidated net earnings of $1,818,000 ($0.77 per diluted share) for fiscal 2015's second quarter ended September 30, 2014 compared to consolidated net earnings of $456,000 ($0.18 per diluted share) for the similar fiscal 2014 period.

Consolidated revenue increased $10,435,000 (43%) to $34,625,000 for the quarter ended September 30, 2014 compared to the same quarter in the prior fiscal year. Consolidated operating income increased $1,844,000 (245%) for the quarter ended September 30, 2014 compared to the same quarter in the prior fiscal year.  Ground equipment sales revenue increased $10,044,000 (127%) this quarter compared to the prior year comparable quarter. Approximately $4,800,000 of the increase in revenue is attributable to the shipment of deicing units that had been delayed at June 30, 2014 as noted in the  June 30, 2014 Form 10-Q.  Ground equipment sales operating income increased by $2,471,000 from the prior year comparable quarter as a result of the impact of the delay in shipment into the second quarter, efficiencies in production, and increased parts and service volume as customers experience some early winter weather. At September 30, 2014, ground equipment sales backlog was $15.3 million, compared to $11.9 million at September 30, 2013. The ground support services segment reported a $541,000 (13%) increase in revenue this quarter, driven by continuing growth in locations and in services offered to new and existing customers; operating income decreased by $217,000 (70%) principally due to infrastructure changes to help position the segment for further growth. Overnight air cargo revenues reported a $150,000 (1%) decrease this quarter compared to the same quarter in the prior fiscal year, and the segment's operating income decreased by $287,000 (51%) this quarter as a result of a variety of factors including a reduction in revenue aircraft and maintenance labor costs.

Nick Swenson commented, "GGS completed an outstanding first half of the fiscal year, converting backlog into shipments and delivering strong top-line and bottom-line growth. Our inventories at mid-year are the lowest they've been in six years.  Simply put, Mike Moore and his management team have been executing on their business plan. GGS is delivering high quality products on time and within budget. While the harsh winter is part of the demand story at GGS, we believe that GGS management has enhanced operations in many incremental ways, thereby strengthening the franchise."

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, 2014 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.

SOURCE Air T, Inc.