11/02/2012 | Press release

November 2, 2012 - Air T, Inc. Reports Unaudited Second Quarter Earnings

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November 2, 2012
Contact: John Parry
Chief Financial Officer
3524 Airport Road
Maiden, NC 28650
(828) 464-8741 Ext. 6677
FOR IMMEDIATE RELEASE

AIR T, INC. REPORTS UNAUDITED SECOND QUARTER EARNINGS

MAIDEN, NC - Air T, Inc. (Air T) (NASDAQ: AIRT) today reported consolidated net earnings of $227,000 ($0.09 per diluted share) for fiscal 2013's second quarter ended September 30, 2012 compared to consolidated net earnings of $593,000 ($0.24 per diluted share) for the similar fiscal 2012 period.
Consolidated revenues decreased $4,299,000 (17%) to $21,162,000 for the quarter ended September 30, 2012 compared to the same quarter in the prior fiscal year. This decrease resulted from a $5,089,000 (46%) decrease in ground equipment sales revenue. The majority of this decrease was due to a substantial decrease in deliveries to the U.S. Air Force this quarter compared to the prior year comparable quarter. At September 30, 2012, ground equipment sales backlog was $15.5 million, compared to $20.0 million at September 30, 2011 and $15.3 million at March 31, 2012. Our ground support services segment reported a $1,079,000 (55%) increase in revenues this quarter, driven by new customers and new stations.
Walter Clark, Chairman and Chief Executive Officer of Air T, commented "We are disappointed by the level of sales at our ground equipment sales segment this quarter. In addition to lower sales to the Air Force, there has been a decline in domestic market demand for commercial deicing units. We attribute part of that decline to the mild weather in the U.S. last winter. We continue to focus on all aspects of the segment's operations in an effort to improve the bottom line and have reorganized reporting lines and made personnel changes. This has resulted in further improvements in production efficiencies above what had been noted in the first quarter."
Mr. Clark continued, "We are encouraged by the level of growth at our ground support services segment. While income was down for the quarter due to start up costs associated with new stations, this segment continues to add new stations and work and should show bottom line improvement in the last half of the fiscal year."
FINANCIAL HIGHLIGHTS
(In thousands, except per share data)
Three Months Ended Six Months Ended

09/30/12 09/30/11 09/30/12 09/30/11
Operating Revenues $ 21,162$ 25,461$ 45,650$ 42,022
Net Earnings $ 227$ 593$ 644$ 761
Net Earnings Per Share - Diluted $ 0.09$ 0.24$ 0.26$ 0.31
Average Common Shares Outstanding 2,4502,4462,4542,450
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 September 30, 2012 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, future economic conditions and their impact on the Company's customers, customer requirements for ground support equipment and facilities maintenance services will be less than anticipated, the timing and amounts of future orders under our contract with the United States Air Force, inflation rates, the impact of competition, changes in technology or government regulation, and the impact of 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.

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