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].
Air T(AIRT) - 2025 Q2 - Quarterly Report