MAIDEN, N.C., Nov. 2, 2011 /PRNewswire/ -- Air T, Inc. (Air T) (NASDAQ: AIRT) today reported consolidated net earnings of $593,000 ($0.24 per diluted share) for fiscal 2012's second quarter ended September 30, 2011 compared to consolidated net earnings of $546,000 ($0.22 per diluted share) for the similar fiscal 2011 period.
Consolidated revenues increased $5,290,000 (26%) to $25,461,000 for the quarter ended September 30, 2011 compared to the same quarter in the prior fiscal year. This increase resulted from a $2,015,000 (20%) increase in our overnight air cargo segment revenues resulting from increased administrative fee revenue and maintenance labor revenue during the quarter, relating to additional ATR aircraft purchased by FedEx in the prior year. In addition, our ground equipment sales revenue increased by $4,156,000 (59%). The principal component of this increase was GGS shipping $5.2 million of deicers to the US Air Force in the quarter. At September 30, 2011, ground equipment sales backlog was $20.0 million, compared to $10.1 million at June 30, 2011 and $9.6 million at March 31, 2011.
Walter Clark, Chairman and Chief Executive Officer of Air T, commented "We are encouraged by the growth in revenues this quarter and particularly pleased with the operating results generated by our air cargo segment. We are happy to note that our customer has elected to operate all four of the recently converted ATR aircraft on our certificate, with the last one coming online in October 2011. Margins and profitability generated by our ground equipment sales segment were adversely affected by highly competitive markets, as well as increased production and engineering costs that are the result of new products and product revisions. We are encouraged by the level of activity at our ground support services segment. While revenues and income were down for the quarter, the segment continues to add new stations and work and should show improvement in the last half of the year."
FINANCIAL HIGHLIGHTS (In thousands, except per share data) |
|||||||||
Three Months Ended |
Six Months Ended |
||||||||
09/30/11 |
09/30/10 |
09/30/11 |
09/30/10 |
||||||
Operating Revenues |
$ 25,461 |
$ 20,171 |
$ 42,022 |
$ 35,195 |
|||||
Net Earnings |
$ 593 |
$ 546 |
$ 761 |
$ 845 |
|||||
Net Earnings Per Share – Diluted |
$ 0.24 |
$ 0.22 |
$ 0.31 |
$ 0.34 |
|||||
Average Common Shares Outstanding |
2,446 |
2,452 |
2,450 |
2,475 |
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Air T, through its subsidiaries, provides overnight air freight service to the express delivery industry, manufactures and sells aircraft deicers and other special purpose industrial equipment, and provides ground support equipment and facilities maintenance to airlines. Air T is one of the largest, small-aircraft air cargo operators in the United States. Air T's Mountain Air Cargo and CSA Air subsidiaries 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 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 provides ground support equipment and facilities maintenance to domestic airline customers.
For a more detailed presentation and discussion of the Company's results of operations and financial condition, please read the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2011 filed today with the Securities and Exchange Commission. Copies of the Form 10-Q 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, customer requirements for ground support equipment and facilities maintenance services will be less than anticipated, the timing and amounts of future orders under our contract with the United States Air Force, inflation rates, the impact of competition, changes in technology or government regulation, and the impact of 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.
SOURCE Air T, Inc.
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