Air T, Inc. Reports Fiscal 2014 Results
MAIDEN, N.C., June 2, 2014 /PRNewswire/ -- Air T, Inc. (NASDAQ Capital Market: AIRT) announces consolidated net earnings of $1,467,000 ($0.60 per diluted share) for fiscal 2014, which ended March 31, 2014, compared to net earnings of $1,670,000 ($.68 per diluted share) for fiscal 2013.
Consolidated revenue for fiscal 2014 was $100,772,000 compared to $103,064,000 for fiscal 2013, representing a 2% decrease. By segment, we had a $2,491,000 (5%) increase in air cargo revenue, an $8,784,000 (22%) decrease in ground equipment sales revenue and a $4,001,000 (31%) increase in ground support services revenue. The increase in air cargo revenue was primarily due to increased maintenance operating costs passed through to our customer. The decrease in ground equipment sales revenue was due primarily to a decrease in deliveries of the low margin flight-line tow tractors under contract with the United States Air Force. The increase in ground support services revenue is the result of a continuing strong effort by the company's Global Aviation Services subsidiary to grow revenues and profits by adding new customers and business this past year.
The $203,000 decrease in fiscal 2014's net earnings represented a 12% decrease from the prior year. Operating income in our air cargo segment was down $949,000 (31%) as a result of a variety of factors including a reduction in revenue aircraft, increased maintenance labor costs and increased maintenance facility costs this quarter. Operating income in our ground equipment sales segment increased by $1,509,000 (170%) as a result of continuing efforts to improve production efficiencies as well as a shift in the customer and product mix sold this past year. At March 31, 2014, backlog was $14.4 million, compared to $6.5 million at March 31, 2013. Operating income in our ground support services segment increased by $214,000 (25%) related to the increase in revenues this year.
Nick Swenson, Air T's Chief Executive Officer, commented, "Fiscal year 2014 was a year of transition for Air T with new leadership and changes to our Board of Directors. We continue to be pleased with the performance of Air T's equipment manufacturer, Global Ground Support. They increased their operating income by over $1.5 million for the second consecutive year, which is a tremendous story. In addition, our ground support services division, Global Aviation Services, continues to grow both its revenues and profitability while adding infrastructure for continued growth. The air cargo segment remains a steady performer, with some bottom line decline over the prior fiscal year."
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.
For a more detailed presentation and discussion of the Company's results of operations and financial condition, please read the Company's Annual Report on Form 10-K for the year ended March 31, 2014, filed earlier today with the Securities and Exchange Commission. Copies of the Form 10-K 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, future economic conditions and their impact on the Company's customers, 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.