Air T Inc. (AIRT) filed Quarterly Report for the period ended 2009-09-30.
Air T Inc. through its subsidiaries MAC and CSA operates exclusively as contract carriers for overnight delivery of small package air freight throughout the eastern half of the United States and Canada and in Puerto Rico and the U.S. Virgin Islands. Over the past six fiscal years as a consequence of changes in customer preference MAC and CSA have shifted their focus away from operating company- owned aircraft to operating customer-owned aircraft under dry-lease service contracts. Air T Inc. has a market cap of $24.19 million; its shares were traded at around $9.98 with a P/E ratio of 5.8 and P/S ratio of 0.27. The dividend yield of Air T Inc. stocks is 3.31%. Air T Inc. had an annual average earning growth of 8.9% over the past 10 years.
Highlight of Business Operations:
GGS contributed approximately $16,196,000 and $22,051,000 to the Company s revenues for the six-month periods ended September 30, 2009 and 2008, respectively. The $5,855,000 (27%) decrease in revenues was due to a decrease in the number of military and commercial deicing units delivered in the current period. Those decreases have been partially offset by an increase in international deicer sales, particularly to the China market. At September 30, 2009, GGS s order backlog was $13.6 million compared to $18.6 million at September 30, 2008 and $14.8 million at June 30, 2009.
Consolidated revenue decreased $3,871,000 (16%) to $20,142,000 for the three-month period ended September 30, 2009 compared to its equivalent prior period. The decrease in revenues resulted from a number of factors. Revenues in the air cargo segment were down $1,747,000 (15%) primarily as a result of decreased flight and maintenance department costs passed through to its customer at cost as the number of aircraft operated at the end of the quarter decreased to 81 from 87 at September 30, 2008. The reduction in aircraft also resulted in a $93,000 decrease in administrative fee revenue from FedEx. Revenues in the ground equipment sales segment decreased $2,617,000 (24%) to $8,093,000 principally as a result of a decrease in both military and domestic commercial deicer deliveries during the second quarter of fiscal 2010 compared to the historically high level of deliveries in the prior year period. In addition, GAS provided revenues of $2,235,000 during the three-month period ended September 30, 2009, compared to revenue of $1,742,000 in the prior year comparable quarter, as it continues to add new customers and new service locations compared to a year ago.
Operating expenses decreased $3,183,000 (14%) to $18,811,000 for the three-month period ended September 30, 2009 compared to its equivalent prior period. The decrease was due to a number of factors. Operating expenses in the air cargo segment were down $1,480,000 (15%) primarily as a result of decreased flight and maintenance departments costs passed through to its customer at cost, resulting from the decrease in number of aircraft operated. Ground equipment sales segment operating costs decreased $1,907,000 (23%) driven primarily by the current quarter s decrease in military and domestic commercial deicing units and revenues. The ground support services segment reported a $313,000 (25%) increase in operating expenses directly related to the increased revenue provided by GAS this quarter. General and administrative expenses decreased $105,000 (4%) to $2,562,000 for the three-month period ended September 30, 2009 compared to its equivalent prior period, with a significant component being a profit sharing expense decrease of $69,000 in the current quarter based on the decrease in earnings.
Non-operating income, net, increased by $4,000 to $22,000 for the three-month period ended September 30, 2009. The principal differences were a decrease in interest expense of $19,000 offset by a decrease in investment income of $13,000, due to decreased investment rates in the current period.
Consolidated revenue decreased $7,339,000 (16%) to $39,090,000 for the six-month period ended September 30, 2009 compared to its equivalent prior period. The decrease in revenues resulted from a number of factors. Revenues in the air cargo segment were down $2,414,000 (11%) primarily as a result of decreased flight and maintenance department costs passed through to its customer at cost as the number of aircraft operated at the end of the period decreased to 81 from 87 at September 30, 2008. The reduction in aircraft also resulted in a $218,000 decrease in administrative fee revenue from FedEx. Revenues in the ground equipment sales segment decreased $5,855,000 (27%) to $16,196,000 principally as a result of a decrease in military and domestic commercial deicer revenues during the first six months of fiscal 2010. In addition, GAS provided revenues of $4,292,000 during the six-month period ended September 30, 2009, compared to revenue of $3,362,000 in the prior year comparable period, as it continues to add new customers and new service locations.
Operating expenses decreased $6,306,000 (15%) to $36,024,000 for the six-month period ended September 30, 2009 compared to its equivalent prior period. The decrease was due to a number of factors. Operating expenses in the air cargo segment were down $2,074,000 (12%) primarily as a result of decreased flight and maintenance departments costs passed through to its customer at cost, as a result of the decrease in the number of aircraft operated. Ground equipment sales segment operating costs decreased $4,199,000 (26%) driven primarily by the current period s decrease in military and domestic commercial units and revenues. The ground support services segment reported a $576,000 increase in operating expenses directly related to the increased revenue provided by GAS this period. General and administrative expenses decreased $598,000 (10%) to $5,212,000 for the six-month period ended September 30, 2009 compared to its equivalent prior period. There were a number of significant components comprising this decrease. First, the provision for doubtful accounts had increased by $160,000 in the prior year period compared with an increase of $30,000 in the current year period, a $130,000 reduction. In addition, travel, tradeshow and advertising expense decreased by approximately $160,000, period to period, while insurance and professional fee expense decreased by $52,000 and $70,000, respectively. Compensation expense relating to stock options is also declining and was $40,000 less in the current period. Finally, profit sharing expense was $130,000 less in the current period based on the decreased earnings.
Rate This Article: |
  |