Air T, Inc. Reports Fiscal 2012 Results

MAIDEN, N.C., June 5, 2012 /PRNewswire/ -- Air T, Inc. (NASDAQ Capital Market: AIRT) announces consolidated net earnings of $1,350,000 ($0.55 per diluted share) for fiscal 2012, which ended March 31, 2012, compared to net earnings of $2,138,000 ($.87 per diluted share) for fiscal 2011. 

Consolidated revenue for fiscal 2012 was $89,382,000 compared to $83,362,000 for fiscal 2011.  This 7% increase resulted from a $6,009,000 (14%) increase in air cargo revenue, a $730,000 (9%) increase in ground support services revenue, offset by a $719,000 (2%) decrease in ground equipment sales revenue. The increase in air cargo revenue was due to increased administrative fee and maintenance revenue related to four aircraft that FedEx purchased during fiscal 2011.The increase in ground support services revenue is the result of a strong effort by our Global Aviation Services subsidiary to grow revenues and profits by adding new customers and locations this past year.

The $788,000 decrease in fiscal 2012's net earnings represented a 37% decrease from the prior year.  The decrease is largely the result of decreased profitability in the company's ground equipment sales segment as margins in that segment continue to be affected by highly competitive domestic and international markets as well as operational inefficiencies.  At March 31, 2012, backlog was $15.3 million, compared to $9.6 million at March 31, 2011 and $1.3 million at March 31, 2010.

Walter Clark, Chairman and Chief Executive Officer of Air T, commented, "Fiscal year 2012 has been a challenge to our Company but even in these difficult times we have remained a strong and profitable company.  Senior Air T management continues to evaluate the operations at the Company's equipment manufacturing subsidiary. The top down review which was initiated in January 2012 has begun to have some positive impact on productivity.  The expectation is that while there has been improvement in several key aspects of Global Ground's operations, the full effect of these review efforts will be realized over the longer term.  The trajectory of our equipment maintenance subsidiary during this past fiscal year has been encouraging with the addition of new customers and locations.  Results in our air cargo segment improved with the full realization of additional revenue from operating additional aircraft for our customer.  The management team continues to focus on improving operational efficiencies and maintaining the strong partnership with our customer base."

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, 2012, 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, uncertainty regarding legal actions against the Company, 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.