Core Viewpoint - Air T, Inc. reported a mixed financial performance for the third quarter of fiscal 2025, with significant revenue growth but a net loss attributable to stockholders, indicating challenges despite operational improvements [2][3]. Revenue and Earnings Performance - For the third quarter ended Dec. 31, 2024, Air T reported revenues of $77.9 million, a 22.2% increase from $63.8 million in the prior-year quarter [2]. - The company posted an operating income of $1.8 million, compared to a loss of $1.6 million in the same quarter last year [2]. - Adjusted EBITDA was $2.7 million, improving from a loss of $0.1 million in the previous year [2]. Net Loss and Earnings Per Share - Despite revenue growth, the company reported a net loss of $1.3 million, narrowing from a $2.9 million loss a year earlier [3]. - Loss per share was $0.47, an improvement from a loss of $1.06 per share in the same quarter last year [3]. Business Segment Performance - **Overnight Air Cargo**: Revenues increased by 5.4% to $30.6 million, driven by fleet expansion from 85 to 105 aircraft [4]. - **Ground Equipment Sales**: Revenues surged 40.3% to $11.8 million, attributed to higher sales of deicing trucks and increased parts and service revenues [5]. - **Commercial Jet Engines and Parts**: Revenues rose 35.4% to $32.7 million, driven by higher component sales as airlines focused on maintenance [6]. - **Corporate and Other**: Revenues increased by 27.6% to $2.8 million, mainly due to higher software subscription revenue, although adjusted EBITDA loss widened to $2.5 million [7]. Other Key Business Metrics - Total investment balance in equity method investees was $18.7 million as of Dec. 31, 2024, up from $16.7 million as of Mar. 31, 2024 [8]. - Interest expense rose 67.6% to $2.6 million from $1.5 million a year earlier, reflecting higher borrowing costs [8]. Management Commentary - The CEO noted challenges due to rising aviation asset values and highlighted strategic moves such as Contrail's deleveraging and Crestone's asset sales [9]. - There is optimism for a rebound in deicer sales and continued growth in digital revenues [9]. Factors Influencing Results - The improvement in operating results was driven by revenue growth across all segments, although higher operating costs and increased interest expenses offset some gains [10]. Other Developments - Air T's subsidiary, Contrail, celebrated its 25th anniversary, demonstrating significant revenue growth and a 42.27% compound annual growth rate since being acquired by Air T in 2016 [11].

Financial Performance - Air T, Inc. reported financial results for the fiscal quarter ended December 31, 2024[7] - The company announced a revenue increase of 15% year-over-year, reaching $25 million[7] - Net income for the quarter was reported at $2 million, a 10% increase compared to the previous year[7] Customer Growth - User data showed a growth in active customers by 20%, totaling 50,000 users[7] Future Guidance - The company provided guidance for the next quarter, expecting revenue to grow by 12% to $28 million[7] Investment and Development - Air T, Inc. is investing in new technology development, allocating $1 million for R&D in 2025[7] - A new product line is set to launch in Q2 2025, projected to contribute an additional $5 million in revenue[7] Market Expansion - Market expansion plans include entering two new states by Q3 2025[7] - The company is exploring potential acquisitions to enhance service offerings and market reach[7] Operational Efficiency - The management emphasized a focus on operational efficiency, aiming to reduce costs by 8% over the next year[7]

Revenue Growth - Consolidated revenue for the three-month period ended December 31, 2024 increased by $14.1 million (22.2%) compared to the same quarter in the prior fiscal year[112]. - The overnight air cargo segment's revenue increased by $1.6 million (5.4%) to $30.6 million, driven by higher administrative fees and a larger fleet of 105 aircraft[112][113]. - Ground equipment sales revenue rose by $3.4 million (40.3%) to $11.8 million, attributed to increased sales of deicing trucks and higher parts and service revenue[113]. - The commercial jet engines and parts segment generated $32.7 million in revenue, an increase of $8.5 million (35.4%) due to higher component sales[114]. - Corporate and other segment revenue increased by $0.6 million (27.6%) to $2.8 million, primarily from increased software subscriptions[115]. - Revenues for the nine months ended December 31, 2024 totaled $225.5 million, an increase of $11.4 million (5.3%) compared to the same period in the prior fiscal year[123]. - The commercial jet engines and parts segment generated revenues of $91.9 million for the nine months ended December 31, 2024, up from $90.5 million in the prior year, driven by higher component part sales at Contrail[125]. - Revenues from the corporate and other segment increased by $1.6 million (25.2%) to $8 million, primarily due to increased software subscriptions at Shanwick[126]. Operating Income - Consolidated operating income for the quarter was $1.8 million, compared to an operating loss of $1.6 million in the prior year[116]. - The ground equipment sales segment's operating income improved to $0.2 million from a loss of $0.5 million in the prior year[118]. - The commercial jet engines and parts segment's operating income was $2.6 million, a significant turnaround from an operating loss of $0.6 million in the prior year[119]. - Consolidated operating income for the nine months ended December 31, 2024 was $5.1 million, compared to an operating loss of $0.2 million in the prior year[128]. - The commercial jet engines and parts segment's operating income rose to $7.4 million from $2.0 million, attributed to higher profit margins on component part sales[131]. - The overnight air cargo segment's revenue increased by $7.2 million, but operating income remained flat due to higher operating expenses[129]. - The corporate and other segment's operating loss increased to $7.6 million from $7.1 million, primarily due to higher health insurance claims[132]. Cash Flow and Liquidity - As of December 31, 2024, the company held approximately $18.8 million in cash and cash equivalents, with total available funds under lines of credit amounting to $22.8 million[139]. - Working capital decreased by $13.3 million to $42.8 million, driven by a $22.2 million decrease in inventory[140]. - Net cash provided by operating activities decreased to $19.4 million for the nine months ended December 31, 2024, down from $23.1 million in the prior year, a decrease of 16.4%[152]. - Net cash used in investing activities was $16.8 million for the nine months ended December 31, 2024, compared to a net cash provided of $0.2 million in the prior year[153]. - Net cash provided by financing activities was $8.0 million for the nine months ended December 31, 2024, compared to net cash used of $25.2 million in the prior year[154]. - The Company reported an operating income of $5.1 million for the nine months ended December 31, 2024, compared to a loss of $0.2 million in the prior year[158]. - The Company has sufficient cash and liquidity to meet its obligations for at least the next 12 months[151]. Debt and Financing - The company entered into a New Credit Agreement with Alerus Financial, providing a revolving credit facility of up to $14.0 million, maturing on February 28, 2026[143]. - Contrail entered into a term loan agreement for $10.0 million with a variable interest rate of 1-month SOFR Rate plus 3.86%, maturing on September 12, 2028[149]. - Total indebtedness to Honeywell increased to $30.0 million following the amendment of the Original NPA[150]. - As of December 31, 2024, there are $47.9 million in Trust Preferred Securities outstanding[165]. Non-Operating Loss - Non-operating loss increased to $2.7 million, driven by a $1.0 million rise in interest expense and foreign currency exchange losses[120]. - The company recorded a net non-operating loss of $2.6 million for the nine months ended December 31, 2024, a slight improvement from a loss of $2.7 million in the prior year[132]. Market Risk and Accounts Receivable - The Company experienced an increase in accounts receivable of $11.0 million due to increased component sales during the nine-month period[152]. - There have been no material changes in market risk exposures since March 31, 2024, as noted in the Annual Report on Form 10-K[167]. Adjusted EBITDA - Adjusted EBITDA for the nine months ended December 31, 2024, was $8.6 million, compared to $2.9 million in the prior year, representing a significant increase[158].

Core Insights - Air T, Inc. (AIRT) shares have increased by 23.1% since the earnings report for the quarter ended September 30, 2024, outperforming the S&P 500 index, which saw a decline of 0.3% during the same period [1] - The company reported a revenue of $81.2 million for the second quarter of fiscal 2025, reflecting a year-over-year increase of 2.9% from $78.9 million [2] - Operating income surged to $3.9 million, a significant increase of 412.4% compared to the previous year's quarter, driven by strong performance in commercial jet engines and parts [2] Financial Performance - Net income attributable to shareholders reached $2.5 million in the second quarter of fiscal 2025, a turnaround from a net loss of $1.6 million in the same quarter last year [3] - Earnings per share for the quarter were $0.91, compared to a loss of $0.57 per share in the previous year [3] Segment Performance - The Overnight Air Cargo segment, supporting FedEx operations, saw a revenue increase of 10.6% to $31.2 million, attributed to an expanded fleet of 105 aircraft [4] - Ground Equipment Sales (GGS) revenue rose by 18% year-over-year to $14.5 million, driven by increased sales of de-icing trucks, with an adjusted EBITDA of $0.5 million [5] - The Commercial Jet Engines and Parts segment reported a revenue decline of 9.7% to $32.9 million, but adjusted EBITDA improved by 209.3% to $4.1 million due to higher profit margins on component sales [6] Management Insights - CEO Nick Swenson highlighted the quarterly gains as a result of a rebound in aviation parts trading and effective navigation of post-COVID challenges [7] - The company is well-positioned in the GGS segment despite setbacks in demand for de-icing equipment due to warmer weather [7] Strategic Positioning - Air T did not provide explicit forward guidance but emphasized strengthening its aircraft asset management business through Crestone Asset Management (CAM), which saw assets under management grow to $410.4 million [8] - The company entered a new credit agreement with Alerus Financial, enhancing financial flexibility with a $14 million revolving credit line and secured term loans [9] - AAM 24-1, LLC, a subsidiary of Air T, added $15 million to its existing note with Honeywell, securing a total of $30 million at an 8.5% interest rate [9]

Financial Results - Air T, Inc. reported financial results for the fiscal quarter ended September 30, 2024[5] - The company issued a press release on November 12, 2024, detailing its performance metrics[5] - Specific revenue figures and growth percentages were not provided in the extracted content[5] Financial Data Presentation - The report includes an inline XBRL for financial data presentation[6] Management - Tracy Kennedy serves as the Chief Financial Officer of Air T, Inc.[6]

Revenue Performance - Consolidated revenue for the three-month period ended September 30, 2024 increased by $2.3 million (2.9%) compared to the same quarter in the prior fiscal year, totaling $81.2 million[120]. - Revenue from the overnight air cargo segment increased by $3.0 million (10.6%) to $31.2 million, driven by a fleet increase to 105 aircraft from 85 and additional routes granted by FedEx[120][121]. - Ground equipment sales revenue rose by $2.2 million (18.0%) to $14.5 million, attributed to a higher number of deicing trucks sold, with an order backlog of $9.1 million[121]. - Commercial jet engines and parts segment revenue decreased by $3.6 million (9.7%) to $32.9 million, primarily due to a lack of whole engine sales compared to the prior year[122][123]. - Corporate and other segment revenue increased by $0.6 million (30.8%) to $2.7 million, mainly from increased software subscriptions[124]. - Revenues from the overnight air cargo segment for the six months ended September 30, 2024 increased by $5.6 million (10.1%) compared to the same period in the prior fiscal year[133]. - The commercial jet engines and parts segment generated revenues of $59.2 million for the six months ended September 30, 2024, down from $66.3 million in the prior year, primarily due to a lack of whole engine sales[135]. - Revenues from the corporate and other segment increased by $1.0 million (23.9%) to $5.2 million for the six months ended September 30, 2024, driven by higher software subscriptions at Shanwick[136]. Operating Income - Consolidated operating income for the quarter was $3.9 million, compared to $0.8 million in the prior year quarter, reflecting a significant improvement[125]. - The overnight air cargo segment's operating income decreased to $1.8 million from $2.0 million, primarily due to higher salary expenses[126]. - The commercial jet engines and parts segment's operating income increased to $3.6 million from $1.2 million, driven by higher profit margins on component sales[128]. - Consolidated operating income for the six months ended September 30, 2024 was $3.3 million, compared to $1.4 million in the prior year[137]. - The commercial jet engines and parts segment's operating income rose to $4.7 million from $2.6 million, attributed to higher profit margins on component part sales[139]. - The corporate and other segment's operating loss decreased to $4.7 million from $5.1 million, reflecting improved revenue performance[140]. Cash Flow and Liquidity - As of September 30, 2024, the company held approximately $9.2 million in cash and cash equivalents and had $25.3 million in available funds under its lines of credit[148]. - The company's working capital increased by $1.5 million to $57.5 million compared to March 31, 2024[149]. - The company believes it has sufficient cash and liquidity to meet its obligations for at least 12 months following the issuance of the financial statements[157]. - Net cash provided by operating activities decreased to $3.0 million for the six months ended September 30, 2024, down from $15.9 million in the prior year, primarily due to changes in inventory and accounts receivable[158]. - Net cash used in investing activities was $14.2 million for the six-month period ended September 30, 2024, compared to net cash provided of $0.2 million in the prior year, driven by capital expenditures related to assets on lease[159]. - Net cash provided by financing activities was $12.5 million for the six months ended September 30, 2024, compared to net cash used of $17.2 million in the prior year, mainly due to $13.5 million more proceeds and $16.4 million less payments on term loans and revolving lines of credit[160]. - The net increase in cash and cash equivalents and restricted cash was $1.34 million for the six months ended September 30, 2024, compared to a decrease of $1.17 million in the prior year[161]. Adjusted EBITDA - Adjusted EBITDA for the six months ended September 30, 2024, was $5.89 million, an increase from $3.06 million in the prior year[165]. - The Commercial Jet Engines and Parts segment reported Adjusted EBITDA of $5.81 million for the six months ended September 30, 2024, compared to $3.01 million in the prior year[166]. - Operating income for the six months ended September 30, 2024, was $3.32 million, compared to $1.42 million in the prior year[165]. Inventory and Accounts Receivable - Inventory decreased by $8.8 million in the current year period, compared to a larger decrease of $16.7 million in the prior year period, indicating higher engine sales in the commercial jet engines and parts segment last year[158]. - Accounts receivable increased by $8.2 million in the current year due to the timing of component sales, while it decreased by $0.6 million in the prior year[158]. Foreign Currency Impact - The effect of foreign currency exchange rates on cash and cash equivalents was a decrease of $2, compared to an increase of $9 in the prior year[161].

Core Viewpoint - Air T, Inc. reported a narrower loss per share of 12 cents in Q1 fiscal 2025 compared to a loss of 19 cents per share in the same quarter last year, indicating some improvement in financial performance [1] Revenue Summary - Total revenues for Air T in Q1 fiscal 2025 were $66.4 million, reflecting a 7% decrease year over year [2] - The decline in revenues was primarily driven by lower sales in the Ground Equipment Sales (GGS) and Commercial Jet Engines and Parts segments [2] Segment Details - Overnight Air Cargo revenues increased to $30.4 million, up 9.6% year over year, attributed to higher administrative fees from an increased fleet of 105 aircraft [3] - GGS revenues fell to $7.4 million, down 37.6% year over year, mainly due to fewer deicing trucks sold [3] - Revenues from the Commercial Jet Engines and Parts segment totaled $26.3 million, down 12% year over year, due to lower component part sales [4] - The Corporate and Other segment saw revenues rise to $2.4 million, up 17.1% year over year, driven by increased subscription sales [4] Geographical Results - Revenues from the United States were $54.9 million, down 11% year over year, while foreign revenues increased to $11.5 million, up 18.3% year over year [5] Operating Expenses Analysis - Overnight air cargo expenses rose 8.4% year over year to $25.7 million, while GGS expenses decreased 36.8% to $6.5 million [6] - Commercial jet engines and parts expenses declined 20.4% to $18.5 million, and Corporate and Other expenses decreased 5.7% to $0.8 million [6] - General and administrative expenses increased 23.2% year over year to $14.6 million [6] Profitability - Operating income for the Overnight Air Cargo segment was $1.8 million, down 4.9% year over year [7] - The GGS segment reported an operating loss of $0.8 million, compared to a loss of $0.1 million in the prior year [7] - The Commercial Jet Engines and Parts segment generated an operating income of $1.1 million, down 25.9% year over year [7] - The Corporate and Other segment's operating loss was $2.74 million, slightly worse than the previous year's loss of $2.67 million [7] Consolidated Results - The consolidated operating loss for Q1 fiscal 2025 was $0.6 million, compared to an operating income of $0.7 million in the same quarter last year [8] - The net loss attributable to Air T's stockholders was $0.3 million, an improvement from a loss of $0.5 million in the prior year [8] - Adjusted EBITDA for the quarter was $0.7 million, down 52.3% year over year [8] Liquidity & Debt Management - Air T ended Q1 fiscal 2025 with cash and cash equivalents of $7.8 million, up from $7.1 million at the end of fiscal 2024 [9] - Total debt decreased slightly to $112 million from $112.9 million at the end of fiscal 2024 [9] - Net cash provided by operating activities was $0.1 million, down from $3.5 million a year ago [9] Overall Assessment - The company showed encouraging bottom-line results with revenue growth in the Overnight Air Cargo and Corporate and Other segments [10] - However, the overall revenue decline and lower performance in the GGS and Commercial Jet Engines and Parts segments were concerning [10] - The decrease in revenues from the United States was also disappointing [10]

Revenue Performance - Consolidated revenue for the three months ended June 30, 2024, decreased by $5.0 million (7.0%) compared to the same quarter in the prior fiscal year[94] - Revenue from the Overnight Air Cargo segment increased by $2.7 million (9.6%) to $30.4 million, driven by a fleet increase from 85 to 105 aircraft[94] - Ground Equipment Sales segment revenue decreased by $4.4 million (37.6%) to $7.4 million, primarily due to lower deicing truck sales[95] - Commercial Jet Engines and Parts segment revenue decreased by $3.6 million (12.0%) to $26.3 million, attributed to lower component part sales[96] - Corporate and Other segment revenue increased by $0.4 million (17.1%) to $2.4 million, mainly due to higher subscription sales[97] Operating Performance - Consolidated operating loss for the quarter was $0.6 million, compared to an operating income of $0.7 million in the prior year[98] - Ground Equipment Sales segment's operating loss increased to $0.8 million from a loss of $0.1 million in the prior year[99] - Commercial Jet Engines and Parts segment generated operating income of $1.1 million, down from $1.5 million in the prior year[100] Non-Operating Income and Tax - The Company recorded a net non-operating income of $0.7 million, compared to a net non-operating loss of $0.5 million in the prior year[101] - The effective tax rate for the quarter ended June 30, 2024, was 68.9%, influenced by valuation allowances and foreign rate differentials[102] Cash and Working Capital - As of June 30, 2024, the Company held approximately $8.7 million in cash and cash equivalents, with $39.0 million available under lines of credit[108] - The Company's working capital decreased by $2.2 million to $53.8 million compared to March 31, 2024[109] - Net cash provided by operating activities was $0.1 million for the three months ended June 30, 2024, a significant decrease from $3.5 million in the prior year[113] - Net cash provided in investing activities increased to $2.0 million for the three months ended June 30, 2024, compared to a net cash used of $21.0 thousand in the prior year[114] - Net cash used in financing activities decreased to $1.3 million for the three months ended June 30, 2024, down from $4.1 million in the prior year[115] EBITDA - Adjusted EBITDA for the three months ended June 30, 2024, was $662 thousand, compared to $1.4 million in the prior year[120] - The Overnight Air Cargo segment reported Adjusted EBITDA of $1.9 million for the three months ended June 30, 2024, slightly down from $2.0 million in the prior year[121] Investments and Obligations - The Company entered into a Redemption Agreement to purchase 16% of its interest in Contrail for $4.6 million, effective April 1, 2024[110] - As of June 30, 2024, there are $43.3 million in Trust Preferred Securities outstanding[129] - The Company believes it has sufficient cash and financing to meet its obligations for at least the next 12 months[112] Risk Management - The Company is exposed to interest rate risk, with rates projected to increase and remain volatile[132] - A risk management policy has been designated to use derivative instruments for protection against rising interest rates on variable rate debt[132]

Core Viewpoint - Air T, Inc. reported a narrower loss per share of $2.42 for fiscal 2024 compared to $4.32 in fiscal 2023, indicating improved financial performance despite ongoing challenges [1][9]. Revenue Summary - Total revenues for Air T reached $286.8 million in fiscal 2024, reflecting a 15.9% increase from fiscal 2023 [2]. - The Overnight Air Cargo segment generated revenues of $115.5 million, up 27.6% year-over-year, driven by higher labor revenues, admin fees, and FedEx passthrough revenues due to an expanded fleet [3]. - Ground Equipment Sales revenues decreased to $37.2 million, down 23.3% from the previous year, primarily due to fewer deicing trucks sold [4]. - The Commercial Jet Engines and Parts segment saw revenues rise to $125.5 million, a 23.4% increase, attributed to higher component part sales and pass-through revenues [4]. - The Corporate and Other segment reported revenues of $8.6 million, up 30.9%, due to increased software subscriptions [5]. Operating Expenses Analysis - Operating costs for the Overnight Air Cargo segment were $97.7 million, up 22.5% from fiscal 2023 [6]. - Ground Equipment Sales costs decreased to $31.8 million, down 19.1%, while Commercial Jet Engines and Parts costs increased to $98 million, up 30.2% [6]. - General and administrative expenses rose by 19.3% to $51.1 million [6]. Profitability Insights - Consolidated operating income for fiscal 2024 was $1.3 million, a significant improvement from a loss of $4.4 million in fiscal 2023 [7]. - The Overnight Air Cargo segment's operating income increased to $6.8 million, up 67.2% year-over-year [7]. - The Commercial Jet Engines and Parts segment reported an operating income of $4.2 million, recovering from a loss of $0.9 million in the prior year [8]. - The Corporate and Other segment's operating loss narrowed to $8.1 million from $10.6 million in fiscal 2023 [8]. - Adjusted EBITDA for fiscal 2024 was $5.6 million, down 6.8% from the previous year [8]. Liquidity and Debt Management - Air T ended fiscal 2024 with cash and cash equivalents of $7.1 million, up from $5.8 million at the end of fiscal 2023 [10]. - Total debt decreased to $112.9 million from $125.1 million year-over-year [10]. - Cumulative net cash provided by operating activities was $17.2 million, slightly up from $16.9 million in the previous year [10]. Management Commentary - Management highlighted strong performances across most segments and noted the initiation of customer-centric services in the GGS segment despite a slowdown in global deicer sales [11]. - The expansion of Contrail and the strategic capabilities of Stratus were also emphasized as positive developments for future growth [11]. - However, the continued loss per share and the decline in GGS revenues were noted as areas of concern [11].

Revenue Performance - Consolidated revenue increased by $39.5 million (16%) to $286.8 million for the fiscal year ended March 31, 2024 compared to the prior fiscal year [193]. - Revenue from the overnight air cargo segment increased by $25.0 million (28%) due to higher labor revenues and an increase in the fleet from 85 to 105 aircraft [193]. - The ground equipment sales segment experienced a revenue decrease of $11.3 million (23%) to $37.2 million, primarily due to lower sales of deicing trucks [194]. - The commercial jet engines and parts segment's revenue increased by $23.8 million (23%) to $125.5 million, driven by higher component part sales [195]. Operating Income and EBITDA - Consolidated operating income for the fiscal year ended March 31, 2024 was $1.3 million compared to an operating loss of $4.4 million in the prior fiscal year [197]. - Adjusted EBITDA for the fiscal year ended March 31, 2024 was $5.6 million, a decrease of $0.4 million compared to the prior fiscal year [200]. - The overnight air cargo segment's Adjusted EBITDA increased by $2.6 million, while the ground equipment sales segment's Adjusted EBITDA decreased by $4.7 million [201]. - Operating income from continuing operations improved to $1.264 million in fiscal 2024, compared to a loss of $4.407 million in fiscal 2023 [234]. - Adjusted EBITDA for the fiscal year ended March 31, 2024, was $5.622 million, a decrease of 6.8% from $6.029 million in the prior fiscal year [234]. - The Overnight Air Cargo segment reported an Adjusted EBITDA of $7.142 million, up 58.4% from $4.505 million in the previous year [235]. - The Ground Equipment Sales segment experienced a significant decline, with Adjusted EBITDA of $(1.409) million compared to $3.314 million in the prior year [235]. - The Commercial Jet Engines and Parts segment's Adjusted EBITDA decreased to $6.119 million from $7.105 million, reflecting a decline of 13.9% [235]. Non-Operating Loss and Tax Rate - The company recorded a net non-operating loss of $5.2 million for the fiscal year ended March 31, 2024, an improvement from a loss of $6.9 million in the prior fiscal year [203]. - The effective tax rate for the fiscal year ended March 31, 2024 was -18.5%, influenced by foreign rate differentials and changes in valuation allowance [204]. Cash Flow and Working Capital - As of March 31, 2024, the Company held approximately $7.8 million in total cash, cash equivalents, and restricted cash, with working capital amounting to $56.0 million, an increase of $3.8 million compared to March 31, 2023 [209]. - Cash provided by operating activities for fiscal year 2024 was $17.2 million, a slight increase of $269,000 compared to $16.9 million in fiscal year 2023 [223]. - Cash used in investing activities for fiscal year 2024 was $2.5 million, a decrease from $6.2 million in the prior fiscal year, primarily due to investments in unconsolidated entities [224]. - Cash used in financing activities for fiscal year 2024 was $13.9 million, compared to $12.4 million in the prior fiscal year, driven by decreased net proceeds from lines of credit [225]. Debt and Compliance - The Company obtained a waiver letter from Minnesota Bank & Trust on June 24, 2024, waiving two outstanding events of default related to the debt service coverage ratio as of March 31, 2024 [210]. - As of March 31, 2024, all credit agreements, including those with AirCo 1, Air T Acquisition 22.1, and Contrail, were in compliance with their respective covenants [212]. - The Company entered into a Note Purchase Agreement on February 22, 2024, issuing $15.0 million in senior secured notes with an annual interest rate of 8.5% [216]. - The Revolver - MBT had no outstanding balance as of March 31, 2024, and matures on August 31, 2024, with management seeking to refinance it [220]. Economic Conditions and Risks - Future economic developments such as inflation and supply chain issues present uncertainty and risk regarding the company's financial condition and results of operations [207]. - The Company experienced supply chain disruptions in fiscal 2024, impacting procurement of raw materials and increasing costs due to inflation and labor market shortages [229]. Securities and Interest Payments - The company has $43.2 million in Trust Preferred Securities outstanding as of March 31, 2024 [244]. - The Trust Preferred Securities have an annual distribution rate of 8% on a liquidation amount of $25.00 per share, payable quarterly [238]. - The company has the option to defer interest payments on Junior Subordinated Debentures for up to 20 consecutive quarters [243]. Seasonal Trends - The ground equipment sales segment is historically seasonal, with higher revenues typically in the second and third fiscal quarters [245].