Air T, Inc. Reports Unaudited First Quarter Earnings

Tue Aug 7, 2012 8:15am EDT

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Air T, Inc. Reports Unaudited First Quarter Earnings

PR Newswire

MAIDEN, N.C., Aug. 7, 2012 /PRNewswire/ -- Air T, Inc. (Air T) (NASDAQ: AIRT) today reported consolidated net earnings of $417,000 ($0.17 per diluted share) for fiscal 2013's first quarter ended June 30, 2012 compared to consolidated net earnings of $168,000 ($0.07 per diluted share) for the similar fiscal 2012 period.

Consolidated revenues increased $7,927,000 (48%) to $24,488,000 for the quarter ended June 30, 2012 compared to the same quarter in the prior fiscal year.  This increase resulted principally from a $6,573,000 (158%) increase in our ground equipment sales segment revenues resulting from increased military and commercial sales in the quarter.  The segment continues to see increased pressure on margins but produced an operating margin of $252,000 for the quarter, a $563,000 improvement over the operating loss for the comparable prior year quarter.  At June 30, 2012, ground equipment sales backlog was $12.0 million, compared to $10.1 million at June 30, 2011 and $15.3 million at March 31, 2012.  Our ground support services revenues increased by $1,447,000 (92%) as a result of increases in customers and new locations over last year's quarter.  Revenues of our air cargo segment were $10,733,726 for the quarter ended June 30, 2012, a 1% decrease from the segment's revenues in the prior year quarter.

Walter Clark, Chairman and Chief Executive Officer of Air T, commented, "We are pleased to see the improved overall results of our first quarter.  The improvement in the ground equipment sales segment was achieved with a significant increase in revenue coupled with some improvement in deicer production efficiency.  Management continues to focus on all aspects of Global Ground Support's operations in an effort to improve the bottom line.  This segment remains under pressure from both competitive factors in the marketplace and the need to achieve higher margins.  The opportunity for greater margin improvement resides mainly within our commercial business.  Our ground support services segment is continuing to add new stations and work and the efforts are bearing fruit.  Our air cargo segment contributed another solid quarter."    

FINANCIAL HIGHLIGHTS

(In thousands, except per share data)



Quarter Ended


6/30/2012


6/30/2011

Operating Revenues

$    24,488


$    16,562





Net Earnings  

$         417


$         168





Net Earnings Per Share - Diluted 

$        0.17


$        0.07





Average Common Shares Outstanding - Diluted

2,458


2,454

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, 2012 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.

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