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].
Air T(AIRT) - 2024 Q4 - Annual Report