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].
Air T(AIRT) - 2025 Q3 - Quarterly Report