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].
AIRT Stock Declines Despite Q3 Earnings & Revenue Growth