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].

Zacks Investment Research has recently initiated coverage of Air T, Inc. (AIRT) , assigning a "Neutral" recommendation to the company's shares. This assessment comes amid a mixed outlook for the company, which has been making notable strides in the aviation space despite industry challenges. Air T, presently operating from Charlotte, NC, is a diversified holding company engaged in aviation-related businesses. The company operates in four industry segments — Overnight Air Cargo, Ground Equipment Sales, Comme ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark one) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended December 31, 2023 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from _____to _____ Commission File Number 001-35476 Air T, Inc. (Exact name of registrant as specified in its charter) Delaware 52-1206400 (State or other jurisdic ...

NEW YORK, Jan. 17, 2024 /PRNewswire/ -- Ashland Place Finance LLC ("Ashland Place"), a commercial aviation financing platform, today announced the completion of a new facility financing the acquisition of three B737-800 freighters for Atalaya Capital Management ("Atalaya") and Crestone Air Partners ("Crestone"). This is the second transaction that the Ashland Place platform has completed with each of Atalaya and Crestone, having separately previously financed a 777-300ER for Atalaya in August 2022 and four ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark one) Commission File Number 001-35476 Air T, Inc. (Exact name of registrant as specified in its charter) Delaware 52-1206400 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 11020 David Taylor Drive, Suite 305, Charlotte, North Carolina 28262 (Address of principal executive offices, including zip code) (980) 595 – 2840 (Registrant's telephone number, including area code) ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark one) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June 30, 2023 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from _____to _____ Commission File Number 001-35476 Air T, Inc. (Exact name of registrant as specified in its charter) Delaware 52-1206400 (State or other jurisdiction ...