CHARLOTTE, NC / ACCESSWIRE / June 27, 2023 /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 year ended March 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:
"While Air T's businesses each have their own dynamic, on balance we continue to benefit from the robust state of global aviation. Brief highlights include the following: continued execution at Mountain Air Cargo is resulting in additional aircraft flown; available parts inventories along with a tighter market are driving sales at Stratus and Contrail; aircraft retirement and operational excellence are causing customers to choose Jet Yard; and a great team with thoughtful well-designed software is moving the ball forward at AHT. Yes we are also remembering and planning for the day when the economy slows down, with uncertain consequences for a demand-driven and capacity-constrained aviation market."
Business Segment Results
Overnight Air Cargo
Aviation Ground Equipment Manufacturing and Sales ("GGS")
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. Depreciation expense for leased engines totaled $1.6 million and $0.3 million for the fiscal year ended March 31, 2023, and 2022, respectively..
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 March 31, 2023, and 2022 (in thousands):
Twelve Months Ended | ||||||||
March 31, 2023 | March 31, 2022 | |||||||
Operating (loss) income from continuing operations | $ | (4,407 | ) | $ | 8,755 | |||
Depreciation and amortization (excluding leased engines depreciation) | 2,525 | 1,589 | ||||||
Asset impairment, restructuring or impairment charges1 | 7,840 | 805 | ||||||
Loss on sale of property and equipment | 8 | 5 | ||||||
Securities expenses | 63 | 252 | ||||||
Adjusted EBITDA | $ | 6,029 | $ | 11,406 |
The following table shows the Company's Adjusted EBITDA by segment for the periods ended March 31, 2023, and 2022 (in thousands):
Twelve Months Ended | ||||||||
March 31, 2023 | March 31, 2022 | |||||||
Overnight Air Cargo | $ | 4,505 | $ | 2,854 | ||||
Ground Equipment Sales | 3,314 | 3,455 | ||||||
Commercial Jet Engines and Parts | 7,105 | 5,200 | ||||||
Corporate and Other | (8,895 | ) | (103 | ) | ||||
Adjusted EBITDA | $ | 6,029 | $ | 11,406 |
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.
FORWARD-LOOKING STATEMENTS
Certain statements in this Report, 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.
1Included in the asset impairment, restructuring or impairment charges for the fiscal year ended March 31, 2023 was a write-down of $7.3 million on the commercial jet engines and parts segment's inventory, of which, $5.4 million was due to a management decision to monetize three engines by sale to a third party, in which the net carrying values exceeded the estimated proceeds. The remainder of the write-down was attributable to our evaluation of the carrying value of inventory as of March 31, 2023, where we compared its cost to its net realizable value and considered factors such as physical condition, sales patterns and expected future demand to estimate the amount necessary to write down any slow moving, obsolete or damaged inventory.
CONTACT
Air T, Inc.Brian Ochocki, CFObochocki@airt.net612-843-4302
SOURCE:Air T, Inc.
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