November 4, 2004
Contact: John Gioffre
Chief Financial Officer
3524 Airport Road
Maiden, NC 28650
(828) 464-8741 Ext. 6677
FOR IMMEDIATE RELEASE
AIR T, INC. REPORTS UNAUDITED SECOND QUARTER RESULTS
MAIDEN, NC - Air T, Inc. (AirT) (NASDAQ: AIRT) today reported
unaudited consolidated net earnings of $538,000 ($0.20 per share) for
fiscal 2005's second quarter ended September 30, 2004, compared to
net earnings of $358,000 ($0.13 per share) for the second quarter of
fiscal 2004. Consolidated revenues for fiscal 2005's second quarter
was $16,366,000 compared to $13,623,000 for the similar 2004 fiscal
quarter. Six month, year-to-date, consolidated revenues increased
$6,773,000, to $31,452,000, while net earnings increased $365,000 to
current year-to-date net earnings of $1,072,000.
AirT's fiscal 2005's net earnings for the three and six month periods
ended September 30, 2004 are, respectively, comprised of $538,000 and
$1,072,000 in net earnings from continuing operations, which include
residual costs associated with the discontinued operation of the
aviation parts and services business segment while the periods ended
September 30, 2003 are, respectively, comprised of $612,000 and
$1,056,000 in earnings from continuing operations, offset,
respectively, by $254,000 and $349,000 in losses from discontinued
operations.
The current three and six-month periods ended September 30, 2004
increased revenues resulted from both increased ground equipment and
air cargo revenues. The increased net earnings were due to increased
ground equipment segment earnings during the current periods and
losses on the discontinued operations of the Company's aviation parts
and service segment incurred in the prior periods ended September 30,
2003. The equipment sector's increase net earnings were partly
offset by a net earnings decrease in the air cargo sector. The net
earnings decrease in air cargo was due to a combination of
temporarily decreased administrative fees and higher levels of
current period administrative costs. The temporary reduction in
administrative fees resulted from delays in its customer's
introduction of newer technology aircraft, currently undergoing
conversion to cargo configuration, as older cargo aircraft are phased
out of service. Administrative costs increased as additional
staffing has been put in place to oversee the phase-in of the newer
aircraft and route expansion.
Walter Clark, Chairman and Chief Executive Officer of AirT, stated,
"These continued good earnings are indicative of strong relationships
with our core customers. Both freight delivery companies and the
equipment manufacturing company have long standing business
associations that continue to be significant. AirT strives to
provide the highest degree of service and reliability to all business
partners."
AirT, through its subsidiaries, provides overnight air freight
service to the express delivery industry and manufactures and
services aviation and other specialized equipment. AirT is one of
the largest small aircraft air cargo operators in the United States
and currently operates a fleet of single and twin engine turbo-prop
aircraft nightly in the eastern half of the United States and Canada,
South America, Puerto Rico and the Virgin Islands.
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 effects of economic, competitive and
market conditions in the aviation industry, the continuing impact of
terrorist activities and threats, continuation of contracts with the
significant customer of the company's air cargo segment, market
acceptance of new products and services and changes in government
regulations or technology. 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.
FINANCIAL HIGHLIGHTS
(In thousands, except per share data)
THREE MONTHS ENDED SIX MONTHS ENDED
09/30/04 09/30/03 09/30/04 09/30/03
Continuing Operations Revenues $16,366 $13,623 $31,452 $24,679
Earnings from Continuing Operations 538 612 1,072 1,056
Loss from Discontinued Operations - (254) - (349)
Net Earnings $ 538 $ 358 $ 1,072 $ 707
Net Earnings (Loss) Per Share-Diluted:
Continuing Operations $ 0.20 $ 0.22 $ 0.40 $ 0.39
Discontinued Operations - (0.09) - (0.13)
Total Net Earnings Per share-Diluted $ 0.20 $ 0.13 $ 0.40 $ 0.26
Weighted Average Common Shares
Outstanding-Diluted 2,693 2,734 2,703 2,726