Air T, Inc. Reports Fiscal 2015 Results

MAIDEN, N.C., June 8, 2015 /PRNewswire/ -- Air T, Inc. (NASDAQ Capital Market: AIRT) today reported consolidated net earnings of $2,484,000 ($1.04 per diluted share) for fiscal 2015, which ended March 31, 2015, compared to net earnings of $1,467,000 ($0.60 per diluted share) for fiscal 2014. 

Consolidated revenue for fiscal 2015 was $112,181,000 compared to $100,772,000 for fiscal 2014, representing an 11% increase.  On a segment basis, air cargo revenue decreased by $2,477,000 (5%), ground equipment revenue increased by $10,260,000 (33%), and ground support services revenue increased by $3,626,000 (21%). Air cargo revenues were down primarily as a result of a cyclical decline in heavy maintenance at our Kingston, N.C. facility. The increase in ground equipment sales revenue was due primarily to an increase in sales of commercial deicers.  The increase in ground support services revenue was the result of growth in new markets and services for both new and existing customers and strong part sales.

The $1,017,000 increase in fiscal 2015's net earnings represented a 69% increase from the prior year.  Operating income in the air cargo segment was down $984,000 (46%) due to a variety of factors, including a cyclical decline in heavy maintenance checks, a manual re-write and regulatory penalty. Operating income in our ground equipment sales segment increased by $1,886,000 (79%) as a result of strong deicer sales and continual improvement in production efficiencies, along with gains from the sale of deicers held on lease.  At March 31, 2015, backlog was $2.8 million, compared to $14.4 million at March 31, 2014.  Operating income in our ground support services segment decreased by $818,000 (75%) principally as a result of unexpected operating challenges. The impact of the harder winter across the Northeast and a large contract recently transitioned to fixed-priced services added to the operating challenges. GAS continues to position itself for growth with investments in facility upgrades and administrative infrastructure.

Nick Swenson, Air T's Chief Executive Officer, commented on the recent renewal of the air cargo segment's agreements with FedEx, "We are pleased to report our recent contract renewals with FedEx. The changes will result in increased revenues and costs within our air cargo segment. And our base expectation is that the air cargo segment's profitability under the new agreements will more closely approximate absolute historical net results for the business, and not the net results of the past few fiscal years.  We are delighted with and proud of our relationship with FedEx, which has been a customer since 1980, and work hard every day to deliver the operational excellence that earns their trust and confidence."

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 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, 2015, 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.

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