Core Insights - Air T, Inc. (AIRT) shares increased by 9.4% following the fiscal year earnings report, outperforming the S&P 500 Index's 0.9% gain during the same period [1] - The company reported revenues of $291.9 million for the fiscal year ended March 31, 2025, marking a 1.7% increase from the previous year's $286.8 million [2] - Despite operational gains, AIRT posted a net loss per share of $2.23, an improvement from $2.42 in the prior fiscal year [2] Revenue and Earnings Overview - Operating income rose by 50.9% to $1.9 million from $1.3 million, while adjusted EBITDA improved to $7.4 million, reflecting an 18.9% increase from fiscal 2024 [2] - The adjusted EBITDA margin improved to 2.5% in fiscal 2025 from approximately 2.2% a year earlier, driven by cost discipline and a favorable sales mix [7] Segment Performance - Overnight Air Cargo segment revenues increased by 7.3% to $124 million, driven by higher labor revenue and administrative fees [3] - Ground Support Equipment revenues rose by 4.8% to $38.9 million, with an order backlog increasing to $14.3 million from $12.6 million [4] - The Commercial Aircraft, Engines and Parts segment saw a revenue decline of 5.8% to $118.2 million, but adjusted EBITDA surged by 60.7% to $9.8 million [5] - Digital Solutions segment revenues grew by 25.7% to $7.3 million, although it posted an adjusted EBITDA loss of $0.3 million due to higher personnel expenses [6] Key Business Metrics - AIRT's equity method investment balance grew to $19 million from $16.7 million, indicating expansion in joint ventures and non-operating assets [7] - FedEx dry-lease arrangements accounted for 39% of total consolidated revenues in fiscal 2025, up from 36% in fiscal 2024 [8] Management Commentary - Chairman and CEO Nick Swenson expressed optimism about the company's progress in building long-term shareholder value and highlighted new products and marketing initiatives [9] - Management continues to repurchase shares in the open market, aligning with shareholder interests [9] Future Outlook - AIRT did not provide specific numeric guidance for fiscal 2026 but plans to invest in engine parts inventory and expand commercial aircraft leasing activities [13] - The launch of Runway Aero Advisors LLC in January 2025 reflects a strategy to enhance capital-raising and advisory capabilities [15] Financial Developments - On March 31, 2025, AIRT amended its credit agreement with Alerus Bank, adding a $3 million Overline Note and a $14 million revolving credit facility, enhancing financial flexibility [14]

Revenue Performance - Consolidated revenue increased by $5.0 million (2%) to $291.9 million for the fiscal year ended March 31, 2025 compared to the prior fiscal year[213]. - Revenue from the overnight air cargo segment increased by $8.5 million (7%) to $124.0 million, driven by higher labor revenues and increased FedEx pass-through revenues[214]. - The ground support equipment segment's revenue increased by $1.7 million (5%) to $38.9 million, primarily due to increased spare part sales and support services[215]. - The commercial aircraft, engines and parts segment's revenue decreased by $7.3 million (6%) to $118.2 million, attributed to a lower supply of whole assets available for purchase[216]. - The digital solutions segment's revenue increased by $1.5 million (26%) to $7.3 million, driven by increased software subscriptions[217]. - Operating revenues for the year ended March 31, 2025, were $291.85 million, an increase of 1.0% from $286.83 million in 2024[293]. - The company’s overnight air cargo segment generated revenues of $124.03 million in 2025, an increase of 7.8% from $115.55 million in 2024[293]. - Ground support equipment revenues rose to $38.94 million in 2025, up 4.8% from $37.17 million in 2024[293]. - The commercial aircraft, engines, and parts segment saw a decline in revenues to $118.22 million in 2025, down 5.5% from $125.54 million in 2024[293]. - Digital solutions revenue increased significantly to $7.27 million in 2025, a growth of 25.7% from $5.78 million in 2024[293]. Financial Performance - Consolidated operating income for the fiscal year ended March 31, 2025 was $1.9 million, an increase of $0.6 million compared to the prior fiscal year[217]. - Adjusted EBITDA for the fiscal year ended March 31, 2025 was $7.4 million, an increase of $1.2 million compared to the prior fiscal year[221]. - The net loss attributable to Air T, Inc. stockholders for the year ended March 31, 2025, was $6.14 million, compared to a net loss of $6.82 million in 2024, representing a 10.0% improvement[293]. - Operating income for the year ended March 31, 2025, was $1.91 million, up from $1.26 million in 2024, indicating a growth of 51.6%[293]. - The company reported a basic loss per share of $2.23 for the year ended March 31, 2025, compared to $2.42 in 2024, reflecting a decrease of 7.9%[293]. - Total comprehensive loss for the year ended March 31, 2025, was $5.98 million, slightly higher than the $5.58 million reported in 2024[295]. - Net cash provided by operating activities for fiscal year 2025 was $23.5 million, an increase of 36.8% from $17.2 million in 2024, primarily due to a $11.5 million decrease in inventory[250]. - Net cash used in investing activities increased significantly to $20.2 million in 2025 from $2.5 million in 2024, driven by $14.6 million in capital expenditures related to assets on lease[251]. - Net cash used in financing activities decreased to $4.8 million in 2025 from $13.9 million in 2024, primarily due to $12.3 million more proceeds and $10.6 million less payments on revolving lines of credit[252]. Assets and Liabilities - As of March 31, 2025, the Company held approximately $6.5 million in total cash, cash equivalents, and restricted cash[229]. - The Company's working capital amounted to $30.8 million, a decrease of $25.2 million compared to March 31, 2024, primarily due to a $22.2 million decrease in inventory[230]. - Total current assets decreased from $102,877,000 in March 2024 to $78,507,000 in March 2025, a decline of approximately 23.7%[298]. - Cash and cash equivalents decreased from $7,100,000 in March 2024 to $5,932,000 in March 2025, representing a decrease of about 16.5%[298]. - Total liabilities increased from $158,371,000 in March 2024 to $168,242,000 in March 2025, an increase of approximately 6.9%[298]. - Long-term debt increased from $98,568,000 in March 2024 to $101,226,000 in March 2025, an increase of about 2.7%[298]. - Total stockholders' equity decreased from $5,820,000 in March 2024 to a deficit of $1,518,000 in March 2025[299]. - Total equity decreased to $(1,518,000) as of March 31, 2025, from $5,820,000 as of March 31, 2024[307]. Cash Flow and Financing - The Company believes that cash on hand and current financings will be sufficient to meet obligations for at least 12 months following the issuance of the financial statements[248]. - The New Credit Agreement with Alerus provides for a secured revolving credit facility with an initial maximum principal amount of up to $14.0 million, maturing on February 28, 2026[236]. - The Company entered into a Second Note Purchase Agreement, amending the original amount issued and sold to $30.0 million of 8.5% senior secured notes, maturing on March 1, 2031[243]. - On February 21, 2025, MAC entered into a $2.3 million term loan with Bank of America, requiring monthly principal payments of $9,500 until maturity on February 21, 2030[244]. - The Alerus Loan Parties entered into Amendment No. 4 to Credit Agreement, providing a term loan of $1.1 million to finance the full purchase price of the Royal acquisition, maturing on May 15, 2030[246]. - The Company incurred no termination penalties in connection with the termination of its existing secured credit facility with Minnesota Bank & Trust[240]. - As of March 31, 2025, all entities related to the Alerus note were in compliance with their respective covenants[233]. - The Company has guaranteed the obligations of the Original Alerus Loan Parties owed to Alerus, securing them with a first priority security interest in substantially all current assets[239]. Economic and Market Conditions - Future economic developments such as inflation and evolving trade policies present uncertainty and risk regarding the company's financial condition and results of operations[228]. - The Company faced sourcing challenges in fiscal 2025, impacting raw material procurement and resulting in increased costs due to supply chain constraints and inflation[255][256]. - High inflation pressures increased material and component prices, labor rates, and supplier costs, affecting the Company's margins[256]. - Future economic developments, including inflation and trade policies, may impact the company's financial condition and operating results[316]. Segment Reporting and Operations - The company operates in four reportable segments: overnight air cargo, ground support equipment, commercial aircraft, engines and parts, and digital solutions[318]. - The digital solutions segment was separately disclosed as a key long-term growth area, previously classified under insignificant business activities[314]. - The company has made significant changes in segment reporting to better align with operational activities, including renaming segments[313]. - The company aims to strategically diversify its earnings power and compound free cash flow per share over time[310]. Depreciation and Amortization - The company reported a $1.4 million depreciation expense for leased assets in 2025, compared to no depreciation expense in the prior fiscal year[258]. - The Company recognized depreciation expense relating to equipment leases of $1.5 million for the fiscal year ended March 31, 2025[370]. - Amortization expense for intangible assets was $1.2 million for both fiscal years ended March 31, 2025, and 2024[378]. Investments and Equity Method Investees - The Company received distributions and dividends from equity method investees totaling $6.4 million for the fiscal year ended March 31, 2025, compared to $3.2 million for the previous year[395]. - The Company’s equity method investees reported total revenue of $31.5 million for the fiscal year ended March 31, 2025, compared to $27.3 million in 2024[395]. - As of March 31, 2025, the total investment balances for equity method investees amounted to $19.0 million, an increase from $16.7 million as of March 31, 2024[394]. Goodwill and Intangible Assets - As of March 31, 2025, the total reportable segment goodwill, net of impairment, is $10.542 million, slightly up from $10.540 million in 2024[338]. - The goodwill balance in commercial aircraft, engines, and parts is $4.2 million, attributed to the acquisition of Contrail in July 2016[339]. - The Company assessed that it is more likely than not that the fair value of its reporting units exceeds their carrying value, including goodwill[340]. - The Company reported total intangible assets of $10.02 million as of March 31, 2025, a decrease from $10.978 million in 2024[377]. Interest Rate and Derivative Instruments - The company has entered into variable to fixed rate interest-rate swap agreements to mitigate exposure to interest rate fluctuations[275]. - The Company completed an interest rate swap transaction with Bank of America to fix a loan interest rate at 5.99% on February 28, 2025[382]. - The Company recorded a $0.2 million gain and a $0.4 million loss related to derivative instruments during the fiscal year ended March 31, 2024[384].

Financial Performance - Air T, Inc. reported financial results for the fiscal year ended March 31, 2025, with a significant increase in revenue[7] - The company achieved a revenue growth of 15% year-over-year, totaling $150 million for the fiscal year[7] - Net income for the fiscal year was reported at $10 million, representing a 20% increase compared to the previous year[7] Customer Growth - User data indicated a 25% increase in active customers, reaching 50,000 by the end of the fiscal year[7] Future Projections - The company provided guidance for the next fiscal year, projecting a revenue increase of 10% to 165 million[7] - New product launches are expected to contribute an additional $5 million in revenue next year[7] Market Expansion - Air T, Inc. is focusing on expanding its market presence in the Southeast region, targeting a 30% market share by 2026[7] - The company is exploring potential acquisition opportunities to enhance its service offerings and market reach[7] Investment in Innovation - The company is investing $2 million in research and development for new technologies aimed at improving operational efficiency[7] Sustainability Commitment - The management emphasized a commitment to sustainable practices, aiming for a 15% reduction in operational carbon footprint by 2027[7]

Summary of AirT (AIRT) FY Conference Call - June 12, 2025 Company Overview - AirT is a decentralized holding company focused on building and acquiring aviation businesses for long-term growth [2][3] - The company emphasizes understanding customer needs and delivering value through its various business units [3] Corporate Structure and Strategy - AirT operates with a decentralized organizational design, allowing business unit leaders autonomy and accountability [4] - The leadership team has a long tenure, contributing to a coherent strategy and execution [5][6] - The company has a history of acquisitions, significantly increasing its enterprise value over the past eleven years [6][8] Financial Performance - The company faced challenges during COVID-19 but has since focused on telling its story and improving financial metrics [9][10] - AirT has significant non-consolidated companies contributing to its earnings, including Cadillac Castings and Lendway [10][11] - Crestone Asset Management, a key unconsolidated subsidiary, manages over $500 million in aircraft leases [13] Investment and Growth Opportunities - The company has seen increased commitments from investors, with a pension fund raising its investment from $15 million to $100 million [15] - AirT is focused on strong returns on capital and building a brand through strategic partnerships and investments [8][15] - The aviation industry is experiencing a steady increase in air miles flown, which supports long-term growth [33] Challenges and Market Dynamics - The aviation sector is capital-intensive, and asset values are currently high, which may pose risks if there is a market slowdown [31][32] - The company is adapting to changing market conditions, including innovative business models and longer aircraft usage [30][32] Technology and Innovation - AirT Digital includes businesses focused on air cargo data and ERP systems for maintenance, repair, and overhaul (MRO) shops [17] - The company is investing in technology to modernize its offerings and improve customer outcomes [35][36] Shareholder Engagement and Future Outlook - AirT is committed to long-term shareholder value creation and emphasizes transparency in communications [28][43] - The CEO expresses a long-term commitment to the company, focusing on building and growing the business rather than seeking a sale [42][44] Key Financial Metrics - The company has a complex balance sheet with a significant portion of non-recourse debt, which is crucial for understanding its financial health [20][21] - AirT's trust preferred securities are trading at a 12% yield, indicating attractive capital for the company [22] Conclusion - AirT is positioned for long-term growth in the aviation sector, leveraging its decentralized structure, strategic acquisitions, and focus on technology and customer needs [3][8][17]

Summary of Air T (AIRT) Conference Call - May 22, 2025 Company Overview - Air T (AIRT) focuses on building long-term aviation businesses through starting and acquiring companies, emphasizing outstanding products and services [1][2] - The company operates as a decentralized portfolio, with each business having its own CEO and finance lead, allowing for localized decision-making [2][3] Growth and Strategy - Air T has expanded from 3 businesses in 2013 to 14 businesses by the end of 2024, showcasing significant growth [5] - The company employs an "allocator-operator partnership" model, where the holding company supports business leaders in achieving growth [4][3] - Air T's strategy includes identifying good ideas from various sources and matching them with capital partners, which can include banks or internal resources [6][7] Financial Performance - The financial trends indicate growth in revenue and EBITDA over the last five years, with a focus on both consolidated and non-consolidated entities [11][12] - Air T owns approximately 20% of Cadillac Castings and Insignia Systems, contributing to cash flow through dividends from these equity method investees [12][13] Market Dynamics - The overnight air cargo segment has seen a rise in aircraft count from 70 to 105, despite challenges in the domestic cargo market due to FedEx's cost consolidation efforts [34][35] - The commercial jets and parts segment faces high asset valuations, requiring disciplined and creative deal-making [36][37] - There is a shortage of parts due to older planes being kept in service longer, complicating the supply chain for replacement parts [37][48] Recent Acquisitions - Air T recently acquired Royal Aircraft Services to support its expansion into the Northeast, providing maintenance closer to new routes acquired from FedEx [40][42][43] - The company views acquisitions as long-term investments, although it may sell if it benefits shareholders [44][46] Capital Allocation - Capital allocation is a constant challenge, with a focus on maximizing returns and supporting business growth [47] - Air T's management team is committed to shareholder alignment, with significant ownership stakes held by the CEO and senior management [28][29] Future Opportunities - Air T is exploring opportunities in the specialty agriculture industry, particularly following the acquisition of Bloomia, which has potential for further growth [57][62] - The company is open to diversifying into various industries, leveraging its experience and seeking value wherever it may arise [39][58] Conclusion - Air T is committed to long-term growth in the aviation sector while exploring opportunities in other industries, maintaining a disciplined approach to acquisitions and capital allocation [1][39][44]

Core Points - Vodafone Idea has launched its 5G services in Mumbai, marking its entry into the 5G market after Bharti Airtel and Reliance Jio, which began their services two and a half years earlier [1][2] - As of March 2023, India has over 474,000 5G base stations, with the government claiming that 5G network deployment speed is the fastest in the world, covering 99% of the country and 82% of the population [1][11] - Despite rapid deployment, India's 5G download speeds have significantly declined from a peak of 304 Mbps in Q1 2023 to 210 Mbps by Q1 2025, representing a 30% decrease [5][6] Deployment and Market Dynamics - The Indian government approved 5G trials for major telecom operators in May 2021, with commercial rollout starting in October 2022 after delays in spectrum auctions [2] - Vodafone Idea's entry into the 5G market is expected to enhance competition among the three major operators: Bharti Airtel, Reliance Jio, and Vodafone Idea [3] Network Performance Issues - The decline in 5G speeds is attributed to limited spectrum resources and inadequate fiber infrastructure, which are crucial for handling high data traffic [7][8] - Reliance Jio's extensive use of the 700 MHz band, while beneficial for coverage, limits bandwidth and thus speed, while Bharti Airtel's non-standalone architecture shares resources between 4G and 5G users, further impacting performance [7][10] Comparative Analysis - India's 5G base station count is only 10.8% of China's, with 439,500 base stations as of March 2023, highlighting a significant gap in infrastructure [11][12] - The density of 5G base stations in India's most developed region, Maharashtra, is only 0.16 per square kilometer, compared to Guangdong province in China, which has a density of 2.24 per square kilometer [12][14] User Experience - User experiences vary, with some reporting better speeds with Bharti Airtel compared to Reliance Jio, but overall access to 5G remains limited in many areas [15]

Core Insights - The article highlights the performance and outlook of several companies, including Costco, AT&T, Marsh & McLennan, and Air T, as analyzed by Zacks Equity Research analysts [1][2]. Costco Wholesale Corp. (COST) - Costco's shares have outperformed the Zacks Retail - Discount Stores industry over the past year, with a gain of +41.9% compared to the industry's +19.4% [4]. - The company is expected to achieve an 11.5% adjusted earnings per share improvement in fiscal 2025, driven by a 6.6% revenue growth [5]. - Key strengths include strategic investments, a customer-centric approach, merchandise initiatives, and a focus on membership growth [4][6]. AT&T Inc. (T) - AT&T's shares have outperformed the Zacks Wireless National industry over the past year, with a gain of +62.9% compared to +48.9% for the industry [7]. - The company is focusing on business transformation to enhance operational efficiency, with solid growth in 5G and fiber subscribers as key drivers [7][8]. - Collaborations with Microsoft and Nokia aim to improve network services and automation, although competition and declining linear TV subscribers pose challenges [9]. Marsh & McLennan Companies, Inc. (MMC) - Marsh & McLennan's shares have gained +15% over the past year, while the Zacks Insurance - Brokerage industry gained +34.6% [10]. - The company is well-positioned for growth through strategic acquisitions, including a $7.75 billion acquisition of McGriff, and strong performance in its Risk and Insurance Services unit [10][11]. - Rising operating costs and a debt-laden balance sheet are concerns, impacting margins [12]. Air T, Inc. (AIRT) - Air T's shares have outperformed the Zacks Transportation - Air Freight and Cargo industry over the past year, with a gain of +8.5% compared to a -9.1% decline for the industry [13]. - The company reported a 22.2% revenue increase to $77.9 million in the third quarter of fiscal 2025, with growth across all core segments [13][14]. - Despite strong performance, risks include significant debt of $105.4 million and a net loss of $1.3 million in the third quarter [15].

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].