Air T, Inc. Reports Unaudited Third Quarter Earnings

MAIDEN, N.C., Feb. 3, 2015 /PRNewswire/ -- (3:00pm EST) -- Air T, Inc. (Air T) AIRT today reported consolidated net earnings of $1,448,000 ($0.61 per diluted share) for the fiscal 2015 third quarter ended December 31, 2014 as compared to consolidated net earnings of $455,000 ($0.19 per diluted share) for the similar fiscal 2014 comparable period.

Consolidated revenue increased $1,058,000 (4%) to $30,893,000 for the quarter ended December 31, 2014 compared to the comparable quarter in the prior fiscal year. Consolidated operating income increased $1,345,000 (169%) for the quarter ended December 31, 2014 compared to the comparable quarter in the prior fiscal year.  The increase in consolidated operating income from the prior year quarter includes a gain on sale of assets for the current year quarter of $781,000 compared to $25,000 in the prior year quarter. Gain on sale of assets for the current year quarter reflects a $374,000 gain from the sale of the company-owned King Air aircraft, a $412,000 gain from the sales of eight leased de-icing units to the leasing customers and a $5,000 loss from the retirement of equipment by the ground support services business.  The quarter-over-quarter increase in operating income was also favorably impacted by $565,000 in separation payments made to the company's former chief executive officer in the prior year quarter which did not recur in the current year.

Ground equipment sales revenue increased $1,588,000 (14%) this quarter compared to the prior year comparable quarter.  Ground equipment sales operating income increased by $496,000 (41%) from the prior year comparable quarter, the result of the gain on the sale of the leased de-icing units and continuing efforts to improve production efficiencies, as well as a change in the product and customer mix.  At December 31, 2014, ground equipment sales backlog was $7.2 million, compared to $10.2 million at December 31, 2013 and $14.4 million at March 31, 2014. 

Ground support services segment reported a $972,000 (23%) increase in revenue this quarter, driven by continuing growth in new markets and services offered to new and existing customers. Operating income for this segment for the same period increased by only $8,000 (3%), as company expenses have risen as a result of additional cost of sales expense and with investments made in the company infrastructure to help position the company for growth; including leadership, marketing and data analysis roles, facility upgrades, and additional controls.

Overnight air cargo revenues decreased $1,502,000 (10%) this quarter as a result of a decrease in maintenance labor revenue billed to the customer due to the completion of eight- and twelve-year heavy maintenance checks during the prior comparable period.  The segment's operating income increased by $105,000 (21%), which includes the benefit of the gain on the sale of the company-owned King Air aircraft.

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, 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.

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SOURCE Air T, Inc.