Air T, Inc. Reports First Quarter Fiscal 2025 Results

Rhea-AI Summary

Air T, Inc. (NASDAQ:AIRT) reported its Q1 fiscal 2025 results, revealing a 7% decrease in revenues to $66.4 million compared to the previous year. The company experienced an operating loss of $0.6 million, down from an operating income of $0.7 million in the prior year. Adjusted EBITDA profit decreased to $0.7 million from $1.4 million year-over-year. The loss per share improved to $0.12 from $0.19 in the comparable quarter. Total equity declined by 10% to $5.2 million.

Segment performance varied, with Overnight Air Cargo seeing a 10% revenue increase, while Ground Equipment Sales experienced a 38% revenue decrease. The Commercial Jet Engines and Parts segment reported lower revenues, and the Corporate segment's Adjusted EBITDA loss slightly increased.

Positive

• Overnight Air Cargo segment revenues increased by 10% to $30.4 million
• Loss per share improved from $0.19 to $0.12 year-over-year
• Commercial Jet Engines and Parts segment maintained stable Adjusted EBITDA at $1.7 million

Negative

• Overall revenues decreased by 7% to $66.4 million
• Operating loss of $0.6 million compared to operating income of $0.7 million in the prior year
• Adjusted EBITDA profit decreased from $1.4 million to $0.7 million
• Ground Equipment Sales segment revenues declined by 38% to $7.4 million
• Total Equity decreased by 10% to $5.2 million

CHARLOTTE, NC / ACCESSWIRE / August 14, 2024 / Air T, Inc. (NASDAQ:AIRT) is an industrious American company with a portfolio of businesses, each of which is independent yet interrelated. We seek dynamic individuals and teams to operate companies using processes that increase value over time. We believe we can apply corporate resources to help activate growth and overcome challenges.

Our core segments are overnight air cargo; ground equipment sales; commercial jet engines and parts; and corporate and other.

Today the Company is announcing results for the fiscal first quarter ended June 30, 2024:

• Revenues totaled $66.4 million for the quarter ended June 30, 2024, a decrease of $5.0 million, or 7% from the prior year's comparable quarter.

• Operating loss was $0.6 million for the quarter ended June 30, 2024, compared to the prior year's operating income of $0.7 million.

• Adjusted EBITDA* profit of $0.7 million for the quarter ended June 30, 2024, compared to an Adjusted EBITDA* profit of $1.4 million in the prior year's comparable quarter.

• Loss per share of $0.12 for the quarter ended June 30, 2024, compared to the loss per share of $0.19 for the prior year's comparable quarter.

• Total Equity decreased from $5.8 million as of March 31, 2024, to $5.2 million as of June 30, 2024, a decrease of $0.6 million, or 10%.

*Adjusted EBITDA is a non-GAAP financial measure; see below for further explanation and reconciliation to GAAP measure.

Company Chairman and CEO Nick Swenson commented:

"Air T management is focused on executing its business plans for the year. We have challenges and opportunities. The leadership teams around the company are cohesive and working hard. We are seeking to deliver shareholder-value-creating results as the year unfolds."

Business Segment Results

Overnight Air Cargo

• This segment provides air express delivery services, primarily for FedEx, and repair services.

• Revenues for this segment increased 10% to $30.4 million in the quarter ended June 30, 2024, compared to $27.7 million in the prior year quarter. The increase was principally attributable to higher administrative fees due to increased fleet of 105 aircraft in the current year quarter compared to 85 aircraft in the prior year quarter, partially offset by lower pass-through revenues from FedEx due to initial provisioning for new aircraft in the prior year that did not recur in the current year quarter.

• Adjusted EBITDA* for this segment was $1.9 million for the quarter ended June 30, 2024, a decrease of $0.1 million when compared to the prior year quarter.

Ground Equipment Sales ("GGS")

• This segment, which includes the world's largest manufacturer of aircraft deicing equipment, manufactures, and provides mobile deicers and other specialized equipment products to passenger and cargo airlines, airports, and military and industrial customers.

• Revenues for this segment totaled $7.4 million for the quarter ended June 30, 2024, down 38% when compared to revenue of $11.8 million in the same quarter in 2023. The decrease was primarily driven by the lower number of deicing trucks sold offset by a slight increase in catering truck sales in the current year quarter compared to the prior year's comparable quarter.

• Adjusted EBITDA* loss for this segment was $0.7 million in the quarter ended June 30, 2024, a decrease of $0.6 million compared to the prior year quarter, primarily due to the revenue decrease noted above.

• As of June 30, 2024, this segment's order backlog was $9.9 million versus $13.7 million as of June 30, 2023.

Commercial Jet Engines and Parts

• This segment leases commercial jet engines and aircraft; buys, sells and trades in surplus and aftermarket commercial jet engines, engine parts, airframes, and airframe parts, avionics, and other; then delivers the related documents and logistics.

• Revenues for this segment totaled $26.3 million for the quarter ended June 30, 2024, a decrease of $3.6 million versus revenues of $29.8 million in the previous year's first fiscal quarter. The decrease was primarily driven by lower component part sales at Contrail in the current quarter compared to the prior year comparable quarter.

• Adjusted EBITDA* for this segment was $1.7 million for the quarter ended June 30, 2024, which approximates the Adjusted EBITDA for the prior year comparable quarter.

Corporate and Other

• This segment acts as the capital allocator and resource for other consolidated businesses. Further, Corporate and other also comprises smaller businesses and business interests.

• This segment's Adjusted EBITDA* for the quarter ended June 30, 2024 represented a loss of $2.3 million, compared to an Adjusted EBITDA* loss of $2.2 million in the same quarter a year ago.

*Adjusted EBITDA is a non-GAAP financial measure; see below for further explanation and reconciliation to GAAP measures.

Non-GAAP Financial Measures

The Company uses adjusted earnings before taxes, interest, and depreciation and amortization ("Adjusted EBITDA"), a non-GAAP financial measure as defined by the SEC, to evaluate the Company's financial performance. This performance measure is not defined by accounting principles generally accepted in the United States and should be considered in addition to, and not in lieu of, GAAP financial measures.

Adjusted EBITDA is defined as earnings before taxes, interest, and depreciation and amortization, adjusted for specified items. The Company calculates Adjusted EBITDA by removing the impact of specific items and adding back the amounts of interest expense and depreciation and amortization to earnings before income taxes. When calculating Adjusted EBITDA, the Company does not add back depreciation expense for aircraft engines that are on lease, as the Company believes this expense matches with the corresponding revenue earned on engine leases. There was no depreciation expense for leased engines for the three months ended June 30, 2024 and June 30, 2023.

Management believes that Adjusted EBITDA is a useful measure of the Company's performance because it provides investors additional information about the Company's operations allowing better evaluation of underlying business performance and better period-to-period comparability. Adjusted EBITDA is not intended to replace or be an alternative to operating income, the most directly comparable amounts reported under GAAP.

The table below provides a reconciliation of operating income to Adjusted EBITDA for the three month periods ended June 30, 2024, and 2023, respectively (in thousands):

		Three months ended
		6/30/2024				6/30/2023
Operating (loss) income		$	(577	)		$	658
Depreciation and amortization (excluding leased engines depreciation)			760				690
Asset impairment, restructuring or impairment charges			378				-
Gain on sale of property and equipment			-				(6	)
TruPs issuance expenses			101				45
Adjusted EBITDA		$	662			$	1,387

View the original press release on accesswire.com

FAQ

What were Air T's Q1 fiscal 2025 revenue results?

Air T (AIRT) reported Q1 fiscal 2025 revenues of $66.4 million, a 7% decrease from the previous year's comparable quarter.

How did Air T's operating income change in Q1 fiscal 2025?

Air T (AIRT) reported an operating loss of $0.6 million for Q1 fiscal 2025, compared to an operating income of $0.7 million in the prior year's quarter.

What was Air T's Adjusted EBITDA for Q1 fiscal 2025?

Air T (AIRT) reported an Adjusted EBITDA profit of $0.7 million for Q1 fiscal 2025, down from $1.4 million in the prior year's comparable quarter.

How did Air T's Overnight Air Cargo segment perform in Q1 fiscal 2025?

Air T's (AIRT) Overnight Air Cargo segment revenues increased by 10% to $30.4 million in Q1 fiscal 2025 compared to the prior year quarter.

What was the performance of Air T's Ground Equipment Sales segment in Q1 fiscal 2025?

Air T's (AIRT) Ground Equipment Sales segment revenues decreased by 38% to $7.4 million in Q1 fiscal 2025 compared to the same quarter in 2023.