MAIDEN, N.C., Aug. 15, 2016 /PRNewswire/ -- Air T, Inc. (Air T) (NASDAQ: AIRT) today reported consolidated net loss attributable to Air T, Inc. stockholders of $3,676,000 ($1.55 per diluted share) for the fiscal 2017 first quarter ended June 30, 2016 as compared to consolidated net loss of $736,000 ($0.31 per diluted share) for the similar fiscal 2016 comparable period. As discussed below, Air T's consolidated financial results include the results of Delphax Technologies, Inc. ("Delphax") since November 24, 2015.
Consolidated revenue increased $8,135,000 (36%) to $30,493,000 for the quarter ended June 30, 2016 compared to the comparable quarter in the prior fiscal year. Consolidated operating loss increased $6,024,000 (574%) to $7,073,000 for the quarter ended June 31, 2016 compared to the comparable quarter in the prior fiscal year.
Overnight air cargo revenues increased $3,748,000 (29%) to $16,637,000 compared to the prior year comparable quarter. Administrative fee revenues increased to reflect the greater administrative fee amount paid under the dry-lease agreements which became effective on June 1, 2015. In addition, maintenance revenues increased to reflect the higher hourly maintenance labor rate under these agreements during the full current-year quarter. The segment's operating income increased by $1,074,000 to $979,000 as a result of the same factors discussed above.
Ground equipment sales revenue increased $215,000 (5%) to $4,254,000 this quarter compared to the prior year comparable quarter. Ground equipment sales operating loss decreased by $378,000 (73%) to $141,000 from the prior year comparable quarter, principally attributable to increased sales volume this quarter. At June 30, 2016, ground equipment sales backlog was $12.1 million, compared to $10.0 million at March 31, 2016 and $39.9 million at June 30, 2015.
Ground support services segment revenue increased $1,370,000 (25%) to $6,800,000, as a result of the company's growth in new markets and in services offered to new and existing customers. Operating loss for this segment for the same period decreased by $225,000 (67%), to $110,000, as increased revenues began to offset the costs of infrastructure improvements made in prior periods to position the segment for growth.
Consolidated revenue increased by $2,560,000 due to the inclusion of Delphax in consolidated results for the current-year quarter. Operating income was adversely affected by Delphax's $6,935,000 operating loss for the quarter, which includes $5,610,000 in aggregate impairment of tangible and intangible assets and accruals for severance actions.
Results for the quarter ended June 30, 2016 include a non-operating charge of approximately $1,502,000 related to an other-than-temporary impairment of the Company's investment in marketable securities of Insignia Systems, Inc.
| FINANCIAL HIGHLIGHTS |
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| Three Months Ended June 30, |
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| 2016 |
2015 |
||
| Operating Revenues |
$ 30,493 |
$ 22,359 |
|
| Operating Loss |
$ (7,073) |
$ (1,049) |
|
| Net Loss |
$ (7,989) |
$ (736) |
|
| Net Loss Attributable to Air T, Inc. Stockholders |
$ (3,676) |
$ (736) |
|
| Loss Per Share - Diluted |
$ (1.55) |
$ (0.31) |
|
| Weighted Average Shares Outstanding - Diluted |
2,373 |
2,373 |
|
On November 24, 2015, Air T purchased from Delphax shares of its Series B Preferred Stock then convertible into approximately 38% of the shares of Delphax common stock outstanding after conversion, a warrant to purchase additional shares of Delphax Series B Preferred Stock and a $2.5 million five-year senior subordinated promissory note. Air T has concluded that as a result of its acquisition of these interests, Delphax is required to be consolidated with Air T for financial reporting purposes since the November 24, 2015 acquisition date. The operating loss attributable to Delphax included in consolidated net income for the three months ended June 30, 2016 was approximately $6,935,000. Net loss attributable to Air T, Inc. stockholders reflects a GAAP adjustment to net loss to eliminate the Delphax net loss attributable to the interests in Delphax not held by Air T.
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, 2016 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.
About Air T, Inc.
Established in 1980, Air T, Inc. is a diversified holding company with four core industry segments: overnight air cargo, aviation ground support equipment manufacturing, aviation ground support maintenance services, and aircraft engine aftermarket and surplus parts. Our ownership interests consist of a broad set of operating and financial assets that are designed to expand, strengthen and diversify Air T's cash earnings power. Our goal is to build on Air T's core businesses, to expand into adjacent industries, and when appropriate, to acquire companies that we believe fit into the Air T family. For more information, visit www.airt.net.
Forward-looking Statements
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, the Company's ability to recover on its investments, including its investments in Delphax, the timing and amounts of future orders under the Company's Global Ground Support subsidiary's contract with the United States Air Force, inflation rates, competition, changes in technology or government regulation, information technology disruptions, 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. The Company is under no obligation, and it expressly disclaims 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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