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]
Air T(AIRT) - 2025 Q1 - Quarterly Report