CHARLOTTE, NC / ACCESSWIRE / February 12, 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; aviation ground equipment manufacturing and sales; commercial jet engines and parts; and corporate and other.
Today the Company is announcing results for the fiscal third quarter ended December 31, 2023:
*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:
"Management believes the people of Air T are building value for stakeholders over time, inclusive of the December 2023 quarter. During the quarter, both our balance sheet and income statements were impacted by the unexpected revenue decrease of 48% in our Ground Equipment Sales segment. The decline was caused by the weather and some unusual circumstances that we expect to resolve themselves. Before the current year, Ground Equipment Sales was a steady and reliable contributor to Air T. This segment's operating income over the previous nine (9) years ranged from a MIN of $2.4 million to a MAX of $9.0 million. We expect the segment to maintain its just-in-time manufacturing disciplines and efficient capital utilization."
Business Segment Results
Overnight Air Cargo
Aviation Ground Equipment Manufacturing and Sales
Commercial Jet Engines and Parts
Corporate and Other
*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 December 31, 2023 and $0.5 million for the three months ended December 31, 2022.
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 periods ended December 31, 2023, and 2022 (in thousands):
Three months ended | Nine months ended | |||||||||||||||
12/31/2023 | 12/31/2022 | 12/31/2023 | 12/31/2022 | |||||||||||||
Operating (loss) income | $ | (1,608 | ) | $ | 135 | $ | (189 | ) | $ | 1,147 | ||||||
Depreciation and amortization (excluding leased engines depreciation) | 699 | 560 | 2,088 | 1,810 | ||||||||||||
Asset impairment, restructuring or impairment charges | 321 | 638 | 326 | 2,174 | ||||||||||||
Loss (gain) on sale of property and equipment | 1 | - | (7 | ) | (2 | ) | ||||||||||
Trust Preferred Securities issuance expenses | 185 | 4 | 277 | 38 | ||||||||||||
Adjusted EBITDA | $ | (402 | ) | $ | 1,337 | $ | 2,495 | $ | 5,167 |
The following table shows the Company's Adjusted EBITDA by segment for the periods ended December 31, 2023, and 2022 (in thousands):
Three months ended | Nine months ended | |||||||||||||||
12/31/2023 | 12/31/2022 | 12/31/2023 | 12/31/2022 | |||||||||||||
Overnight Air Cargo | $ | 1,690 | $ | 1,031 | $ | 5,830 | $ | 3,331 | ||||||||
Ground Equipment Sales | (485 | ) | 1,128 | (512 | ) | 3,252 | ||||||||||
Commercial Jet Engines and Parts | (121 | ) | 1,555 | 2,888 | 5,802 | |||||||||||
Corporate and Other | (1,486 | ) | (2,377 | ) | (5,711 | ) | (7,218 | ) | ||||||||
Adjusted EBITDA | $ | (402 | ) | $ | 1,337 | $ | 2,495 | $ | 5,167 |
NOTE REGARDING STAKEHOLDER QUESTIONS
If you have questions related to this release or other Air T matters, please use our interactive Q&A capability, through Slido.com, accessible from our website, to submit your questions. We intend to keep that link open and available for shareholder questions. Questions submitted through Slido will be answered "live" and in writing at our Annual Meeting, and via a written response on a quarterly basis. Note that legal and pragmatic requirements restrict us from answering every question posted, yet we intend to address all reasonable and relevant questions with a written answer.
ABOUT AIR T, INC.
Established in 1980, Air T Inc. is a portfolio of powerful businesses and financial assets, each of which is independent yet interrelated. Its core segments are overnight air cargo, aviation ground support equipment manufacturing and sales, commercial jet engines and parts, and corporate and other. We seek to expand, strengthen and diversify Air T's after-tax cash flow per share. Our goal is to build Air T's core businesses, and when appropriate, to expand into adjacent and other industries. We seek to activate growth and overcome challenges while delivering meaningful value for all stakeholders. For more information, visit www.airt.net. The information on our website is available for information purposes only and is not incorporated by reference into this press release.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release, including those contained in "Overview," are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the Company's financial condition, results of operations, plans, objectives, future performance and business. Forward-looking statements include those preceded by, followed by or that include the words "believes", "pending", "future", "expects," "anticipates," "estimates," "depends" or similar expressions. These forward-looking statements involve risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements, because of, among other things, potential risks and uncertainties, such as:
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.
CONTACT
Air T, Inc. Brian Ochocki, CFO
bochocki@airt.net
612-843-4302
SOURCE: Air T, Inc.