Global Ground Support Parent Company Reports Unaudited 3Q Earnings

Company also announced the appointment of Nick Swenson, current chairman of the board and interim CEO, as its CEO.


MAIDEN, N.C., Feb. 10, 2014 /PRNewswire/ -- Air T, Inc. (Air T) (NASDAQ: AIRT) today reported consolidated net earnings of $455,000 ($0.19 per diluted share) for fiscal 2014's third quarter ended December 31, 2013 compared to consolidated net earnings of $633,000 ($0.26 per diluted share) for the similar fiscal 2013 period.

Consolidated revenue increased $3,131,000 (12%) to $29,835,000 for the quarter ended December 31, 2013 compared to the same quarter in the prior fiscal year. Consolidated operating income decreased $191,000 (19%) for the quarter ended December 31, 2013 compared to the same quarter in the prior fiscal year. 

Ground equipment sales revenue increased $106,000 (1%) this quarter compared to the prior year comparable quarter.  Ground equipment sales operating income increased by $767,000 from the prior year comparable quarter, the result of a ten point increase in gross margins due to improved plant efficiencies and a substantial reduction in the sale of low margin flight-line tow tractor units to the military.

At December 31, 2013, ground equipment sales backlog was $10.2 million, compared to $9.2 million at December 31, 2012 and $6.5 million at March 31, 2013.  Our ground support services segment reported a $967,000 (29%) increase in revenue this quarter, driven by continuing growth in locations and in services offered to new and existing customers; operating income decreased by $154,000 as a result of increasing administrative salaries and costs. 

Overnight air cargo revenues increased $2,059,000 (17%) this quarter as a result of an increase in maintenance costs passed through to our customer at cost.  The segment's operating income decreased by $210,000 this quarter as a result of a variety of factors including a reduction in revenue aircraft, increased maintenance labor costs and increased maintenance facility costs this quarter.  Operating income for the quarter ended December 31, 2013 was also negatively impacted by the $566,000 severance payment paid to the Company's former CEO during the quarter.

Air T, Inc. also announced the appointment of Nick Swenson, current Chairman of the Board and Interim Chief Executive Officer, as its Chief Executive Officer.

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 December 31, 2013 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.

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