MAIDEN, N.C., July 31 /PRNewswire-FirstCall/ -- Air T, Inc. (Air T) (NASDAQ:AIRT) today reported consolidated net earnings of $1,118,000 ($0.46 per diluted share) for fiscal 2010's first quarter ended June 30, 2009 compared to consolidated net earnings of $1,340,000 ($0.55 per diluted share) for the similar fiscal 2009 period.
Consolidated revenues decreased $3,468,000 (15%) to $18,948,000 for the quarter ended June 30, 2009 compared to the same quarter in the prior fiscal year. This decrease resulted from a $3,238,000 (29%) decrease in ground equipment sales revenue and a $667,000 (7%) decrease in air cargo revenue. The decrease in ground equipment sales revenue related principally to a decrease in the number of deicer units delivered to the military. The decrease in air cargo revenue was attributed to a decrease in the number of aircraft operated this quarter and the resulting decrease in flight and maintenance costs passed through to its customer at cost. Revenues for the ground support services segment increased by $437,000 (27%) as that segment continues to mature from its startup in September 2007.
At June 30, 2009, ground equipment sales backlog was $14.8 million, compared to $21.3 million at June 30, 2008 and $8.4 million at March 31, 2009. The new contract with the United States Air Force, which was awarded in July 2009, is not reflected in this backlog and will not likely result in revenues until the fourth quarter of this fiscal year or the next fiscal year.
Walter Clark, Chairman and Chief Executive Officer of Air T, commented, "We are satisfied with the overall results of our first quarter and pleased with our earnings and the continued growth of our ground support services segment. We are, of course, concerned with the decline in revenues in our ground equipment sales segment which has been affected by the contracted economy. Our ground equipment sales backlog includes a substantial order received prior to the June 2009 expiration of our prior contract with the United States Air Force and otherwise reflects the slowdown in commercial business that is continuing. We believe that our recently awarded contract with the United States Air Force will provide the opportunity for a solid revenue base and continued flexibility to our production and delivery schedule, although there may be a timing gap before we would begin to realize revenues under that contract." FINANCIAL HIGHLIGHTS
(In thousands, except per share data) Three Months Ended (Unaudited)
-------------------------------
6/30/2009 6/30/2008
----------- ----------- Operating Revenues $18,948 $22,417
========== ========== Net Earnings $1,118 $1,340
========== ========== Net Earnings Per Share - Diluted $0.46 $0.55
========== ========== Average Common Shares Outstanding 2,424 2,424
========== ==========
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 June 30, 2009 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, uncertainty regarding legal actions against the Company, future economic conditions and their impact on the Company's customers, the timing and amounts of future orders under our recently awarded 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. DATASOURCE: Air T, Inc.
CONTACT: John Parry, Chief Financial Officer of Air T, Inc., +1-828-464-8741 Ext. 6677 Web Site: http://www.airt.net/
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