MAIDEN, N.C., June 29, 2016 /PRNewswire/ -- Air T, Inc.
(NASDAQ Capital Market: AIRT) today reported consolidated net
income attributable to Air T, Inc. stockholders of $4,943,000 ($2.06
per diluted share) for fiscal 2016, which ended March 31, 2016, compared to net income of
$2,484,000 ($1.04 per diluted share) for fiscal 2015.
Consolidated net income was $3,758,000 for the fiscal year 2016.
Consolidated revenue for fiscal 2016 was $148,212,000 compared to $112,181,000 for fiscal 2015, representing a 32%
increase. On a segment basis, air cargo revenue increased
$18,362,000 (37%) to $68,227,000, ground equipment sales revenue
increased by $9,405,000 (23%) to
$51,176,000, and ground support
services revenue increased by $4,288,000 (21%) to $24,835,000. Air cargo revenues were up
principally due to the greater administrative fee amount paid under
the dry-lease agreements entered into on June 1, 2015 with the Company's air cargo
customer. In addition, the segment's maintenance revenues increased
to reflect the higher hourly maintenance labor rates in effect
under these agreements. The increase in the revenues of the ground
equipment sales segment is attributable to a $14.4 million increase in sales of commercial
deicers and a $954,000 increase in
the sales of catering trucks. The ground support services revenue
increased with growth into new markets and services for both new
and existing customers and strong annual part sales.
The $2,459,000 increase in fiscal
2016's net income attributable to Air T, Inc. stockholders
represented a 99% increase from the prior year. Operating
income in the ground equipment sales segment was up $2,716,000 (74%) principally due to the
significant order by a major airline company received in
June 2015 and completed in the second
and third fiscal quarters along with continued improvement in
production efficiencies obtained in connection with the assembly of
similar units. At March 31,
2016, backlog at the ground equipment sales segment was
$10.0 million, compared to
$2.8 million at March 31, 2015. Operating income of the air cargo
segment improved by a greater amount due to the impact of the new
dry-lease agreements, including the increase in the labor
maintenance rate which had not been adjusted since 2008. Operating
loss in our ground support services segment increased as costs
under fixed-price service contracts in place in certain markets
significantly exceeded the revenue associated with those contracts,
and the segment continued to position itself for growth with
investments in facility upgrades and administrative infrastructure.
The company's printing equipment and maintenance segment incurred
an operating loss of $1,967,000 from
November 24, 2015 to March 31, 2016. The Company acquired its
interests in Delphax Technologies Inc. ("Delphax"), which comprises
this segment, on November 24,
2015.
|
FINANCIAL
HIGHLIGHTS
|
(In thousands, except
per share data)
|
|
Year Ended March
31,
|
|
2016
|
|
2015
|
Operating
Revenues
|
$
148,212
|
|
$ 112,181
|
|
|
|
|
Operating
Income
|
$
6,032
|
|
$
3,417
|
|
|
|
|
Net Income
|
$
3,758
|
|
$
2,484
|
|
|
|
|
Net Income
Attributable to Air T, Inc. Stockholders
|
$
4,943
|
|
$
2,484
|
|
|
|
|
Earnings Per Share -
Diluted
|
$
2.06
|
|
$
1.04
|
|
|
|
|
Weighted Average
Shares Outstanding - Diluted
|
2,397
|
|
2,380
|
|
|
|
|
Air T has several business segments. Air T is one of the
largest, small-aircraft air cargo operators in the United
States. Its Mountain Air Cargo and CSA Air subsidiaries,
which comprise the air cargo segment, currently operate a fleet of
single and twin-engine turbo-prop aircraft daily in the eastern
half of the United States,
Puerto Rico and the Caribbean
Islands. Air T's Global Ground Support subsidiary, which
comprises the ground equipment sales segment, manufactures deicing
and other specialized military and industrial equipment and is one
of the largest providers of deicers in the world. The Global
Aviation Services subsidiary, which comprises the ground support
services segment, provides ground support equipment and facilities
maintenance to domestic airline customers. During the fiscal
quarter ended December 31, 2015, Air
T completed an investment in Delphax, which designs, manufactures
and sells advanced digital print production systems, and organized
Air T Global Leasing, LLC, a subsidiary which provides funding for
equipment leasing transactions, including transactions for the
leasing of equipment manufactured by Global Ground Support and
Delphax and transactions initiated by third parties unrelated to
equipment manufactured by Air T or any of its subsidiaries.
For a more detailed presentation and discussion of the Company's
results of operations and financial condition, please read the
Company's Annual Report on Form 10-K for the fiscal year ended
March 31, 2016 filed today with the
Securities and Exchange Commission. Copies of the Form 10-K
may be accessed on the Internet at the SEC's website:
http://www.sec.gov.
Statements in this press release, which contain more than
historical information, may be considered forward-looking
statements (as such term is defined in the Private Securities
Litigation Reform Act of 1995), which are subject to risks and
uncertainties. Actual results may differ materially from
those expressed in the forward-looking statements because of
important potential risks and uncertainties, including but not
limited to, the risk that contracts with major customers will be
terminated or not extended, future economic conditions and their
impact on the Company's customers, the timing and amounts of future
orders under Global Ground Support's contract with the United
States Air Force, inflation rates, competition, changes in
technology or government regulation, and the impact of future
terrorist activities in the United
States and abroad. A forward-looking statement is
neither a prediction nor a guarantee of future events or
circumstances, and those future events or circumstances may not
occur. We are under no obligation, and we expressly disclaim
any obligation, to update or alter any forward-looking statements,
whether as a result of new information, future events or
otherwise.
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SOURCE Air T, Inc.