Air T Inc. has a market cap of $24.9 million; its shares were traded at around $10.27 with a P/E ratio of 6.7 and P/S ratio of 0.3. The dividend yield of Air T Inc. stocks is 3.2%.AIRT is in the portfolios of Jim Simons of Renaissance Technologies LLC, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC.
Highlight of Business Operations:MAC and CSA combined contributed approximately $8,920,000 and $8,788,000 to the Company s revenues for the three-month periods ended June 30, 2010 and 2009, respectively, a minimal current year increase of $132,000 (1%).
GGS contributed approximately $3,926,000 and $8,103,000 to the Company s revenues for the three-month periods ended June 30, 2010 and 2009, respectively. The $4,177,000 (52%) decrease in revenues was due to no military deicing units being delivered in the current quarter. At June 30, 2010, GGS s order backlog was $8.8 million compared to $14.8 million at June 30, 2009 and $1.3 million at March 31, 2010.
Consolidated revenue decreased $3,925,000 (21%) to $15,023,000 for the three-month period ended June 30, 2010 compared to its equivalent prior period. The decrease in revenues can be directly attributed to a decrease in business in our ground equipment sales segment. Revenues in the ground equipment segment decreased $4,177,000 (52%) to $3,926,000, principally resulting from the lack of deicer sales to the U.S. Air Force during the first quarter of fiscal 2010. Revenues in the air cargo segment were essentially flat from the prior year quarter showing a $132,000 (1%) increase. Revenues in the ground support services segment were up $120,000 (6%) with no significant changes to that segment during the first quarter of this fiscal year.
Operating expenses decreased $2,600,000 (15%) to $14,613,000 for the three-month period ended June 30, 2010 compared to its equivalent prior period. The decrease was due primarily to the decrease in the ground equipment sales segment revenues. Ground equipment sales segment operating costs decreased $2,553,000 (44%) driven primarily by the current quarter s decrease in military units and revenues. Operating expenses in the air cargo segment were up $207,000 (3%), slightly outpacing the increase in revenues. The ground support services segment reported operating expenses within $1,000 of the prior year comparable quarter. General and administrative expenses decreased $248,000 (9%) to $2,403,000 for the three-month period ended June 30, 2010 compared to its equivalent prior period. The principal components of this decrease were an $85,000 decrease in compensation expense relating to stock options, and a $162,000 decrease in profit sharing expense due to the decreased earnings this quarter.
Operating income for the quarter ended June 30, 2010 was $410,000, a $1,325,000 (76%) decrease from the same quarter of the prior year. The overnight air cargo segment saw an 8% decrease in its operating income not due to any single significant factor, but rather, small operating cost increases in a variety of categories. The ground equipment sales segment experienced the greatest change, reflecting an operating loss of $163,000 in the quarter ended June 30, 2010 compared to operating income of $1,357,000 in the prior year comparable quarter. The reduction is directly the result of the 52% reduction in revenues primarily due to the lack of any deliveries to the U.S. Air Force in the current quarter. The ground support services segment saw a 17% increase in its operating income reflecting the benefit from the maturing of its business and individual locations over the past year.
Non-operating income, net, was $57,000 for the three-month period ended June 30, 2010 compared to $22,000 in the equivalent prior period. The principal difference was an increase in investment income of $30,000, due to increased cash and investment balances in the current period.
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