Air T Inc (AIRT)

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AIRT-Air T Reports Unaudited Third Quarter Results

Air T, Inc. Topics:Earnings Related Quotes
Symbol Price Change
AIRT 9.91 -0.32
Press Release Source: Air T, Inc. On Thursday January 27, 2011, 2:39 pm
MAIDEN, N.C., Jan. 27, 2011 /PRNewswire/ -- Air T, Inc. (Nasdaq Capital Market: AIRT) today reported consolidated net earnings of $599,000 ($0.24 per diluted share) for fiscal 2011's third quarter ended December 31, 2010, compared to consolidated net earnings of $1,247,000 ($0.51 per diluted share) for the third quarter of fiscal 2010. The Company also reported year-to-date earnings for the nine months of $1,443,000 ($.58 per diluted share) compared to $3,212,000 ($1.32 per diluted share) for the similar fiscal 2010 period.

Consolidated revenues for fiscal 2011's third quarter were $22,314,000, a decrease of less than 1% compared to the similar 2010 fiscal quarter. Consolidated revenues for the first nine months of the 2011 fiscal year were $57,508,000 or 6% lower than the prior year comparable period. At December 31, 2010, the backlog at Global Ground Support, the Company's ground support equipment business, was $19.0 million, compared to $5.7 million at December 31, 2009.

Walter Clark, Chairman and Chief Executive Officer of Air T, commented, "While we are disappointed with our bottom line results, we are encouraged by the consistency in revenues and the additional growth in our backlog at Global Ground Support this quarter. Gross margins on equipment sales were down, reflecting a very competitive commercial market both domestically and internationally, as well as changes in customer and product mix. The lack of orders under the contract with the Air Force continues to impact our results this year. On the positive side, Global Ground Support has experienced increases in both domestic and international commercial deicer orders this year, buoyed by the recent $10.5 million order from the City of Charlotte. Our ground support services segment saw an 84% decrease in its operating income reflecting reduced revenues and increased costs associated with the closure of certain locations as a result of changes in our Delta Airlines contract in early September 2010. Finally, with regard to our air cargo business, we have seen a positive impact this quarter from the four aircraft in our shop for heavy maintenance and we benefited from operating one of the aircraft in revenue service this past quarter."


FINANCIAL HIGHLIGHTS

(In thousands, except per share data)









Three Months Ended

Nine Months Ended



12/31/10

12/31/09

12/31/10

12/31/09











Operating Revenues

$ 22,314

$ 22,321

$ 57,508

$ 61,411











Net Earnings

$ 599

$ 1,247

$ 1,443

$ 3,212











Net Earnings Per Share - Diluted

$ 0.24

$ 0.51

$ 0.58

$ 1.32






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 (MAC) and CSA, Air subsidiaries currently operate a fleet of single and twin-engine turbo-prop aircraft nightly 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 December 31, 2010 to be 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.