Air T Announces Change to Dividend Policy and Adoption of Common Stock Repurchase Authorization
MAIDEN, N.C., May 14, 2014 /PRNewswire/ -- Air T, Inc. (Nasdaq Capital Market: AIRT) announced today that its Board of Directors has approved a change to its dividend policy, ending the payment of dividends, and has adopted resolutions authorizing the repurchase of up to 750,000 shares of Air T common stock from time to time. Prior to this action, Air T's policy had been to pay a regularly scheduled annual cash dividend in the first quarter of each fiscal year.
Nick Swenson, Air T's Chief Executive Officer, commented, "A dividend policy is a kind of promise to shareholders. By voting to retain earnings that otherwise would be paid out as dividends, the board is taking an important step, trusting management to find attractive reinvestment opportunities that will compound the company's earnings per share. We take this responsibility seriously. And we believe that reinvesting, while not as immediately gratifying (or as low-risk) as a dividend distribution, will likely be the best long-term approach to shareholder-value creation."
"The board's adoption of a share repurchase authorization positions the company to repurchase shares when share repurchases are a prudent use of cash," Mr. Swenson continued.
The share repurchase authorization is for an indefinite period. Repurchases under Air T's repurchase authorization will be made in open market or privately negotiated transactions in compliance with Securities and Exchange Commission Rule 10b-18, subject to market conditions, applicable legal requirements, and other relevant factors. This share repurchase authorization does not obligate Air T to acquire any particular amount of common stock and repurchases may commence and be suspended at any time at Air T's discretion. Air T had 2,355,028 shares of common stock outstanding as of April 30, 2014.
About Air T
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 (MAC) and CSA, Air subsidiaries currently operate a fleet of single and twin-engine turbo-prop aircraft nightly 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.
SOURCE Air T, Inc.