Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | May 31, 2021 | Sep. 30, 2020 | |
Document Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --03-31 | ||
Document Period End Date | Mar. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-35476 | ||
Entity Registrant Name | Air T, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 52-1206400 | ||
Entity Address, Street | 5930 Balsom Ridge Road | ||
Entity Address, City | Denver | ||
Entity Address, State | NC | ||
Entity Address, Postal Zip Code | 28037 | ||
City Area Code | 828 | ||
Local Phone Number | 464 – 8741 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 11,799,796 | ||
Entity Common Stock, Shares Outstanding (in shares) | 2,881,853 | ||
Entity Central Index Key | 0000353184 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Stock | |||
Document Information | |||
Title of each class | Common Stock | ||
Trading Symbol(s) | AIRT | ||
Name of each exchange on which registered | NASDAQ | ||
Alpha Income Preferred Securities | |||
Document Information | |||
Title of each class | Alpha Income Preferred Securities (also referred to as 8% Cumulative Capital Securities) ("AIP")* | ||
Trading Symbol(s) | AIRTP | ||
Name of each exchange on which registered | NASDAQ | ||
Warrant | |||
Document Information | |||
Title of each class | Warrant to Purchase AIP* | ||
Trading Symbol(s) | AIRTW | ||
Name of each exchange on which registered | NASDAQ |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating Revenues: | ||
Revenue | $ 175,121 | $ 236,785 |
Operating Expenses: | ||
General and administrative | 34,264 | 39,781 |
Depreciation and amortization | 3,107 | 5,681 |
Write-down of inventory | 6,405 | 0 |
Impairment of property and equipment | 187 | 18 |
Gain on sale of property and equipment | (10) | (37) |
Operating Expenses | 184,296 | 229,494 |
Operating (Loss) Income from continuing operations | (9,175) | 7,291 |
Non-operating Income (Expense): | ||
Other-than-temporary impairment loss on investments | 0 | (2,305) |
Interest expense, net | (4,624) | (4,692) |
Gain on settlement of bankruptcy | 0 | 4,527 |
Loss from equity method investments | (723) | (910) |
Other | 2,741 | (1,287) |
Non-operating income (expense) | (2,606) | (4,667) |
(Loss) Income from continuing operations before income taxes | (11,781) | 2,624 |
Income Tax Benefit | (3,387) | (544) |
Net (Loss) Income from continuing operations | (8,394) | 3,168 |
Loss from discontinued operations, net of tax | 0 | (114) |
Gain on sale of discontinued operations, net of tax | 4 | 8,179 |
Net (Loss) Income | (8,390) | 11,233 |
Net Loss (Income) Attributable to Non-controlling Interests | 1,113 | (3,577) |
Net (Loss) Income Attributable to Air T, Inc. Stockholders | $ (7,277) | $ 7,656 |
Loss from continuing operations per share (Note 22) | ||
Basic (in dollars per share) | $ (2.53) | $ (0.15) |
Diluted (in dollars per share) | (2.53) | (0.15) |
Income from discontinued operations per share: | ||
Basic (in dollars per share) | 0 | 2.89 |
Diluted (in dollars per share) | 0 | 2.88 |
(Loss) Income per share: | ||
Basic (in dollars per share) | (2.53) | 2.74 |
Diluted (in dollars per share) | $ (2.53) | $ 2.73 |
Weighted Average Shares Outstanding: | ||
Basic (in shares) | 2,882,000 | 2,791,000 |
Diluted (in shares) | 2,882,000 | 2,798,000 |
Overnight air cargo | ||
Operating Revenues: | ||
Revenue | $ 66,251 | $ 75,275 |
Operating Expenses: | ||
Cost of sales | 58,351 | 67,391 |
Ground equipment sales | ||
Operating Revenues: | ||
Revenue | 60,679 | 59,156 |
Operating Expenses: | ||
Cost of sales | 45,282 | 46,472 |
Commercial jet engines and parts | ||
Operating Revenues: | ||
Revenue | 46,793 | 101,284 |
Operating Expenses: | ||
Cost of sales | 36,710 | 70,188 |
Corporate and other | ||
Operating Revenues: | ||
Revenue | $ 1,398 | $ 1,070 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) income | $ (8,390) | $ 11,233 |
Other Comprehensive Income: | ||
Foreign currency translation (loss) gain | (409) | 212 |
Unrealized loss of interest rate swaps, net of tax | 262 | (529) |
Reclassification of interest rate swaps into earnings | (18) | 0 |
Total Other Comprehensive Loss | (165) | (317) |
Total Comprehensive (Loss) Income | (8,555) | 10,916 |
Comprehensive Loss (Income) Attributable to Non-controlling Interests | 1,113 | (3,592) |
Comprehensive (Loss) Income Attributable to Air T, Inc. Stockholders | $ (7,442) | $ 7,324 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized loss on interest rate swaps, tax | $ 78 | $ 157 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 10,996 | $ 5,952 |
Marketable securities | 1,407 | 1,677 |
Restricted cash | 4,931 | 9,619 |
Restricted investments | 1,507 | 1,085 |
Accounts receivable, less allowance for doubtful accounts of $1,177 and $680 | 6,505 | 13,077 |
Income tax receivable | 4,389 | 1,174 |
Inventories, net | 71,971 | 60,623 |
Other current assets | 4,068 | 5,279 |
Total Current Assets | 105,774 | 98,486 |
Assets on lease or held for lease, net of accumulated depreciation of $436 and $6,526 | 2,131 | 27,945 |
Property and equipment, net of accumulated depreciation of $4,510 and $4,319 | 8,519 | 5,272 |
Right-of-use assets | 7,757 | 8,116 |
Equity method investments | 4,475 | 5,208 |
Goodwill | 4,227 | 4,227 |
Other assets | 7,867 | 2,173 |
Total Assets | 140,750 | 151,427 |
Current Liabilities: | ||
Accounts payable | 8,344 | 10,864 |
Income tax payable | 39 | 0 |
Accrued expenses and other (Note 11) | 12,787 | 13,024 |
Current portion of long-term debt | 5,639 | 42,684 |
Short-term lease liability | 1,370 | 1,174 |
Total Current Liabilities | 28,179 | 67,746 |
Long-term debt | 81,857 | 43,136 |
Long-term lease liability | 7,075 | 7,473 |
Deferred income tax liabilities, net | 595 | 579 |
Other non-current liabilities | 1,732 | 1,402 |
Total Liabilities | 119,438 | 120,336 |
Redeemable non-controlling interest | 6,598 | 6,080 |
Commitments and contingencies (Note 23) | ||
Equity: | ||
Preferred stock, $1.00 par value, 50,000 shares authorized | 0 | 0 |
Common stock, $0.25 par value; 4,000,000 shares authorized, 3,022,745 shares issued and 2,881,853 shares outstanding | 756 | 756 |
Treasury stock, 140,892 shares at $18.58 | (2,617) | (2,617) |
Additional paid-in capital | 0 | 2,636 |
Retained earnings | 16,270 | 23,768 |
Accumulated other comprehensive loss | (684) | (537) |
Total Air T, Inc. Stockholders' Equity | 13,725 | 24,006 |
Non-controlling Interests | 989 | 1,005 |
Total Equity | 14,714 | 25,011 |
Total Liabilities and Equity | $ 140,750 | $ 151,427 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1,177 | $ 680 |
Assets on lease, accumulated depreciation | 436 | 6,526 |
Property and equipment, accumulated depreciation | $ 4,510 | $ 4,319 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 50,000 | 50,000 |
Common stock, par value (in dollars per share) | $ 0.25 | $ 0.25 |
Common stock, shares authorized (in shares) | 4,000,000 | 4,000,000 |
Common stock, shares issued (in shares) | 3,022,745 | |
Common stock, shares outstanding (in shares) | 2,881,853 | |
Treasury stock (shares) | 140,892 | 140,892 |
Treasury stock, average price per share (in dollars per share) | $ 18.58 | $ 18.58 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss) income | $ (8,390) | $ 11,233 |
Loss from discontinued operations, net of income tax | 0 | 114 |
Gain on sale of discontinued operations, net of income tax | (4) | (8,179) |
Net (Loss) Income from continuing operations | (8,394) | 3,168 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 3,107 | 5,712 |
Impairment of investment | 0 | 2,305 |
Profit from sale of assets on lease and held for lease | (1,473) | (5,277) |
Gain on settlement of bankruptcy | 0 | (4,509) |
Write-down of inventory | 6,405 | 0 |
Other | 1,019 | 1,112 |
Change in operating assets and liabilities: | ||
Accounts receivable | 6,074 | (2,242) |
Inventories | (129) | (29,614) |
Accounts payable | (2,521) | 1,512 |
Accrued expenses | (341) | 2,145 |
Other | (5,570) | (543) |
Total adjustments | (2,487) | (28,742) |
Net cash used in operating activities - continuing operations | (1,823) | (26,231) |
Net cash provided by operating activities - discontinued operations | 4 | 1,157 |
Net cash used in operating activities | (1,819) | (25,074) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of marketable securities | (659) | (626) |
Sale of marketable securities | 2,452 | 239 |
Proceeds from sale of assets on lease and held for lease | 8,183 | 30,688 |
Acquisition of businesses, net of cash acquired | (536) | (500) |
Investment in unconsolidated entities | 0 | (2,812) |
Capital expenditures related to property & equipment | (3,899) | (2,439) |
Capital expenditures related to assets on lease or held for lease | (2,106) | (36,253) |
Other | (919) | 135 |
Net cash provided by (used in) investing activities - continuing operations | 2,516 | (11,568) |
Net cash provided by investing activities - discontinued operations | 0 | 20,173 |
Net cash provided by investing activities | 2,516 | 8,605 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from lines of credit | 66,383 | 174,647 |
Payments on lines of credit | (105,552) | (147,881) |
Proceeds from term loan | 59,278 | 35,949 |
Payments on term loan | (27,275) | (47,438) |
Proceeds from PPP loan | 8,215 | 0 |
Proceeds received from issuance of Trust Preferred Securities ("TruPs") | 1,341 | 8,522 |
Other | (2,319) | (4,559) |
Net cash provided by financing activities - continuing operations | 71 | 19,240 |
Effect of foreign currency exchange rates on cash and cash equivalents | (412) | 260 |
NET INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | 356 | 3,031 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD | 15,571 | 12,540 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 15,927 | 15,571 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES: | ||
Non-cash capital expenditures related to property & equipment | 31 | 0 |
Equipment leased or held for lease to customers transferred to Inventory | 19,623 | 4,932 |
Equipment in Inventory transferred to Assets on Lease | 0 | 501 |
Issuance of Debt - Trust Preferred Securities | 0 | 4,000 |
Issuance of warrant liability | 0 | 840 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Operating cash payments for operating leases | 1,683 | 1,485 |
Cash paid during the year for interest | 2,732 | 3,310 |
Cash paid during the year for income taxes | $ 477 | $ 1,485 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Total | Adjustment | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Retained EarningsAdjustment | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | ||
Balance at Mar. 31, 2019 | $ 23,358 | $ (41) | $ 506 | $ 2,867 | $ 21,191 | $ (41) | $ (205) | $ (1,001) | [1] | ||
Balance (in shares) at Mar. 31, 2019 | 2,023 | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income (loss) | [1] | 9,647 | 7,656 | 1,991 | |||||||
Stock Split | 0 | $ 252 | (252) | ||||||||
Stock split (in shares) | 1,010 | ||||||||||
Repurchase of common stock | (2,817) | $ (2) | $ (2,617) | (198) | |||||||
Repurchase of common stock (in shares) | (10) | 141 | |||||||||
Issuance of Debt - Trust Preferred Securities | (4,000) | (4,000) | |||||||||
Issuance of Warrants | (840) | (840) | |||||||||
Foreign currency translation (loss) gain | 212 | 197 | 15 | [1] | |||||||
Adjustment to fair value of redeemable non-controlling interest | 21 | 21 | |||||||||
Unrealized loss of interest rate swaps, net of tax | (529) | (529) | |||||||||
Balance at Mar. 31, 2020 | 25,011 | $ 756 | $ (2,617) | 2,636 | 23,768 | (537) | 1,005 | [1] | |||
Balance (in shares) at Mar. 31, 2020 | 3,023 | 141 | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income (loss) | [1] | (7,293) | (7,277) | (16) | |||||||
Foreign currency translation (loss) gain | (409) | (409) | |||||||||
Adjustment to fair value of redeemable non-controlling interest | (2,857) | (2,636) | (221) | ||||||||
Unrealized loss of interest rate swaps, net of tax | 262 | 262 | |||||||||
Balance at Mar. 31, 2021 | $ 14,714 | $ 756 | $ (2,617) | $ 0 | $ 16,270 | $ (684) | $ 989 | [1] | |||
Balance (in shares) at Mar. 31, 2021 | 3,023 | 141 | |||||||||
[1] | Excludes amount attributable to redeemable non-controlling interest in Contrail Aviation. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation – The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries as well as its non-wholly owned subsidiaries, Contrail Aviation and Delphax. All intercompany transactions and balances have been eliminated in consolidation. Certain reclassifications have been made to the prior period amounts to conform to the current presentation. Accounting Estimates – The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts of assets and liabilities and amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. COVID-19 and its impact on the current financial, economic and capital markets environment, and future developments in these and other areas present uncertainty and risk with respect to our financial condition and results of operations. Each of our businesses implemented measures to attempt to limit the impact of COVID-19 but we still experienced a number of disruptions, and we experienced and continue to experience a reduction in demand for commercial aircraft, jet engines and parts compared to historical periods. We currently expect that many of our businesses may continue to generate reduced operating cash flow and may operate at a loss during at least the first half of fiscal 2022 and potentially even longer. We expect that these impacts will continue to some extent if the outbreak persists. The fluidity of this situation precludes any prediction as to the ultimate adverse impact of COVID-19 on economic and market conditions, and, as a result, present material uncertainty and risk with respect to us and our results of operations. The Company believes the estimates and assumptions underlying the Company’s consolidated financial statements are reasonable and supportable based on the information available as of March 31, 2021, however; uncertainty over the ultimate impact COVID-19 will have on the global economy generally, and the Company’s business in particular, makes any estimates and assumptions as of March 31, 2021 inherently less certain than they would be absent the current and potential impacts of COVID-19. Segments - The Company has four reportable operating segments: overnight air cargo, ground equipment sales, commercial jet engine and parts and corporate and other. The Company assesses the performance of these segments on an individual basis (see Note 21 ). Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is its Chief Executive Officer. The Company’s Chief Executive Officer reviews financial information by business segment for purposes of allocating resources and evaluating financial performance. Each business segment has separate management teams and infrastructures that offer different products and services. We evaluate the performance of our business segments based on operating income. Variable Interest Entities – In accordance with the applicable accounting guidance for the consolidation of variable interest entities, the Company analyzes its variable interests to determine if an entity in which we have a variable interest is a variable interest entity. Our analysis includes both quantitative and qualitative reviews to determine if we must consolidate a variable interest entity as its primary beneficiary. Business Combinations – The Company accounts for business combinations in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations . Consistent with ASC 805, the Company accounts for each business combination by applying the acquisition method. Under the acquisition method, the Company records the identifiable assets acquired and liabilities assumed at their respective fair values on the acquisition date. Goodwill is recognized for the excess of the purchase consideration over the fair value of identifiable net assets acquired. Included in purchase consideration is the estimated acquisition date fair value of any earn-out obligation incurred. For business combinations where non-controlling interests remain after the acquisition, assets (including goodwill) and liabilities of the acquired business are recorded at the full fair value and the portion of the acquisition date fair value attributable to non-controlling interests is recorded as a separate line item within the equity section or, as applicable to redeemable non-controlling interests, between the liabilities and equity sections of the Company’s consolidated balance sheets . The acquisition method permits the Company a period of time after the acquisition date during which the Company may adjust the provisional amounts recognized in a business combination. This period of time is referred to as the “measurement period”. The measurement period provides an acquirer with a reasonable time to obtain the information necessary to identify and measure the assets acquired and liabilities assumed. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Company reports in its consolidated financial statements provisional amounts for the items for which the accounting is incomplete. Accordingly, the Company is required to recognize adjustments to the provisional amounts, with a corresponding adjustment to goodwill, in the reporting period in which the adjustments to the provisional amounts are determined. Thus, the Company would adjust its consolidated financial statements as needed, including recognizing in its current-period earnings the full effect of changes in depreciation, amortization, or other income effects, by line item, if any, as a result of the change to the provisional amounts calculated as if the accounting had been completed at the acquisition date. Income statement activity of an acquired business is reflected within the Company’s consolidated statements of income commencing with the date of acquisition. Amounts for pre-acquisition periods are excluded. Acquisition-related costs are costs the Company incurs to affect a business combination. Those costs may include such items as finder’s fees, advisory, legal, accounting, valuation, and other professional or consulting fees, and general administrative costs. The Company accounts for such acquisition-related costs as expenses in the period in which the costs are incurred and the services are received. Changes in estimate of the fair value of earn-out obligations subsequent to the acquisition date are not accounted for as part of the acquisition, rather, they are recognized directly in earnings. Cash and Cash Equivalents – Cash equivalents consist of liquid investments with maturities of three months or less when purchased. Financial Instruments Designated for Trading – Except for short sales of equity securities, the Company accounts for all other financial instruments (including derivative instruments) designated for trading in accordance with ASC 815. All changes in the fair value of the financial instruments designated for trading are recognized in earnings as they occur. Further, all gains and losses on derivative instruments designated for trading are presented net on the consolidated Statements of Income (Loss). The fair value of derivative instruments designated for trading in a gain position are recorded in Other Current Assets and the fair value of derivative instruments designated for trading in a loss position are recorded in Accrued Expenses and Other on the consolidated Balance Sheets. The Company accounts for short sales of equity securities in accordance with ASC 942 and ASC 860. The obligations incurred in short sales are reported in Accrued Expenses and Other on the consolidated Balance Sheets. They are subsequently measured at fair value through the income statement at each reporting date with gains and losses on securities. Interest on the short positions are accrued periodically and reported as interest expense. The market value of the Company’s equity securities and cash held by the broker are used as collateral against any outstanding margin account borrowings for purposes of short selling equities. This collateral is recorded in Other Current Assets on the consolidated Balance Sheets. The Company reports all cash receipts and payments resulting from the purchases and sales of securities, loans, and other assets that are acquired specifically for resale as operating cash flows. Inventories – Inventories are carried at the lower of cost or net realizable value. When finished goods units are leased to customers under operating leases, the units are transferred to Assets on Lease or Held For Lease. The classification of cash flows associated with the purchase and sale of finished goods is based on the activity that is likely to be the predominant source or use of cash flows for the items. Consistent with aviation industry practice, the Company includes expendable aircraft parts and supplies in current assets, although a certain portion of these inventories may not be used or sold within one year. The Company periodically evaluates the carrying value of inventory. In these evaluations, the Company is required to make estimates regarding the net realizable value, which includes the consideration of sales patterns and expected future demand. Any slow moving, obsolete or damaged inventory and inventory with costs exceeding net realizable value are evaluated for write-downs. These estimates could vary significantly from actual amounts based upon future economic conditions, customer inventory levels, or competitive factors that were not foreseen or did not exist when the estimated write-downs were made. In accordance with industry practice, all inventories are classified as a current asset including portions with long production cycles, some of which may not be realized within one year. Investments under the Equity Method – The Company utilizes the equity method to account for investments when the Company possesses the ability to exercise significant influence, but not control, over the operating and financial policies of the investee. The ability to exercise significant influence is presumed when an investor possesses more than 20% of the voting interests of the investee. This presumption may be overcome based on specific facts and circumstances that demonstrate that the ability to exercise significant influence is restricted. The Company applies the equity method to investments in common stock and to other investments when such other investments possess substantially identical subordinated interests to common stock. For investments that have a different fiscal year-end, if the difference is not more than three months, the Company elects a 3-month lag to record the change in the investment. The Company assesses the carrying value of its investments whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. The recoverability is measured by comparing the carrying amount of the investment to the estimated future undiscounted cash flows of the investment, which take into account current, and expectations for future, market conditions and the Company’s intent with respect to holding or disposing of the investment. Changes in economic and operating conditions, including those occurring as a result of the impact of the COVID-19 pandemic, that occur subsequent to a current impairment analysis and the Company’s ultimate use of the investment could impact the assumptions and result in future impairment losses to the investments. If the Company’s analysis indicates that the carrying value is not recoverable on an undiscounted cash flow basis, the Company will recognize an impairment loss for the amount by which the carrying value exceeds the fair value. The fair value is determined through quoted prices in active markets or various valuation techniques, including internally developed discounted cash flow models or comparable market transactions. Goodwill - The Company evaluates goodwill on an annual basis or anytime events or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. The Company is permitted to first assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying value, including goodwill. In qualitatively evaluating whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company assesses relevant events and circumstances such as macroeconomic conditions, industry and market developments, cost factors, and the overall financial performance of the reporting unit. If, after assessing these events and circumstances, it is determined that there may be an impairment, then a quantitative analysis is performed. In the first step of the quantitative method, recoverability of goodwill is evaluated by estimating the fair value of the reporting unit’s goodwill using multiple techniques, including a discounted cash flow model income approach and a market approach. The estimated fair value is then compared to the carrying value of the reporting unit. The Company will recognize an impairment charge for the amount by which the carrying value of the reporting unit exceeds its fair value, if any. Goodwill consisted of the following (in thousands): Year Ended March 31, 2021 2020 Goodwill, at original cost $ 4,603 $ 4,603 Less accumulated impairment (376) (376) Goodwill, net of impairment $ 4,227 $ 4,227 As of March 31, 2021, the entire $4.2 million goodwill balance is attributable to the acquisition of Contrail Aviation and included within the Commercial Jet Engines and Parts segment. We performed our annual impairment assessment for goodwill of the Contrail reporting unit at March 31, 2021. In the fiscal year 2021, COVID-19 greatly impacted the macroeconomic conditions and the outlook of the airline industry. Due to this, the Company performed a quantitative analysis using a combination of the income approach, utilizing a discounted cash flow analysis, and the market approach, utilizing the guideline public company method. Contrail's discounted cash flow analysis requires significant management judgment with respect to forecasts of revenue, operating margins, capital expenditures, and the selection and use of an appropriate discount rate. The forecasts and assumptions are based on our annual and long-term business plans. Contrail’s market approach requires management to make significant assumptions related to market multiples of revenue and earnings derived from comparable publicly-traded companies with similar operating characteristics as Contrail. Based on the results of our annual quantitative assessment conducted as of March 31, 2021, the fair value of our Contrail reporting unit exceeded its carrying value, and management concluded that no impairment charge was warranted. Intangible Assets – Amortizable intangible assets consist of acquired patents, tradenames, customer relationships, and other finite-lived identifiable intangibles. Such intangibles are initially recorded at fair value and subsequently subject to amortization. Amortization is recorded using the straight-line method over the estimated useful lives of the assets. In accordance with the applicable accounting guidance, the Company evaluates the recoverability of amortizable intangible assets whenever events occur that indicate potential impairment. In doing so, the Company assesses whether the carrying amount of the asset is unrecoverable by estimating the sum of the future cash flows expected to result from the asset, undiscounted and without interest charges. If the carrying amount is more than the recoverable amount, an impairment charge must be recognized based on the estimated fair value of the asset. The estimated amortizable lives of the intangible assets are as follows: Years Software 3 Trade names 5 Certification 5 Non-compete 5 License 5 Patents 9 Customer relationship 10 Property and Equipment and Assets on Lease or Held for Lease – Property and equipment is stated initially at cost, or fair value if purchased as part of a business combination. Depreciation and amortization are provided on a straight-line basis over the asset’s useful life. Equipment leased to customers is depreciated using the straight line method. Useful lives range from three years for computer equipment, seven years for flight equipment, ten years for deicers and other equipment leased to customers and thirty years for buildings. Engine assets on lease or held for lease are stated at cost, less accumulated depreciation. Certain costs incurred in connection with the acquisition of engine assets are capitalized as part of the cost of such assets. If assets are not actively being leased (i.e. held for lease), then they are not being depreciated. Major overhauls which improve functionality or extend original useful life are capitalized and depreciated over the engine assets' useful life to a residual value. The Company depreciates the engines on a straight-line basis over the assets' useful life from the acquisition date to a residual value. The Company adjusts its estimates annually for these older generation assets, including updating estimates of an engine’s or aircraft’s remaining operating life. The Company believes this methodology accurately reflects the typical holding period for the assets and, that the residual value assumption, which is dependent on the Company's eventual plan for the engine assets (i.e. whole asset sale, part-out, etc.), reasonably approximates the selling price of the assets. When engine assets are committed for sales, the assets are transferred to Inventory. The classification of cash flows associated with the purchase and sale of engine assets is based on the activity that is likely to be the predominant source or use of cash flows for the items. The Company assesses long-lived assets for impairment when events and circumstances indicate the assets may be impaired and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amount. When evaluating the future cash flows that an asset will generate, we make assumptions regarding the lease market for specific engine models, including estimates of market lease rates and future demand. These assumptions are based upon lease rates that we are obtaining in the current market as well as our expectation of future demand for the specific engine/aircraft model. We determine fair value of the assets by reference to independent appraisals, quoted market prices (e.g., an offer to purchase) and other factors such as current data from manufacturers as well as specific market sales. In the event it is determined that the carrying values of long-lived assets are in excess of the estimated undiscounted cash flows from those assets, the Company then will write-down the value of the assets by the excess of carrying value over fair value. Accounting for Debt - Trust Preferred Securities and Warrant Liability – On June 10, 2019, the Company issued an aggregate of 1.6 million TruPs in the amount of $4.0 million in a non-cash transaction. These TruPs are mandatorily redeemable preferred security obligations of the Company. In accordance with ASC 480, the Company presented mandatorily redeemable preferred securities that do not contain a conversion option as a liability on the balance sheet. In connection with the issuance of the TruPs, the Company also issued an aggregate of 8.4 million warrants (representing warrants to purchase $21.0 million in stated value of TruPs). A warrant for mandatorily redeemable shares conditionally obligates the issuer to ultimately transfer assets—the obligation is conditioned only on the warrant's being exercised because the shares will be redeemed. Thus, warrants for mandatorily redeemable shares are liabilities under ASC 480. Accordingly, the Warrants are recorded within "Other non-current liabilities" on our consolidated balance sheets. As of March 31, 2021, the Warrants are recorded at fair value. Fair value measurement was based on quoted price for a similar asset or liability as observed on the NASDAQ Global Market. The liability is classified as Level 2 in the hierarchy. See Note 5 . Income Taxes – Income taxes have been provided using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax laws and rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. A valuation allowance against net deferred tax assets is recorded when it is more likely than not that such assets will not be fully realized. Tax credits are accounted for as a reduction of income taxes in the year in which the credit originates. All deferred income taxes are classified as non-current in the consolidated balance sheets. The Company recognizes the benefit of a tax position taken on a tax return, if that position is more likely than not of being sustained on audit, based on the technical merits of the position. An uncertain income tax position is not recognized if it has a less than a 50% likelihood of being sustained. Accounting for Redeemable Non-Controlling Interest – In 2016, in connection with the Company's acquisition of Contrail Aviation, Contrail Aviation entered into an Operating Agreement (the “Operating Agreement”) with the Seller providing for the governance of and the terms of membership interests in Contrail Aviation. The Operating Agreement includes put and call options (“Put/Call Option”) with regard to the 21% non-controlling interest retained by the Seller. The Seller is the founder of Contrail Aviation and its current Chief Executive Officer. The Put/Call Option permits the Seller to require Contrail Aviation to purchase all of the Seller’s equity membership interests in Contrail Aviation commencing on the fifth anniversary of the acquisition, which is on July 18, 2021. Per the agreement, the price is to be agreed upon by the parties or, failing such agreement, to be determined pursuant to third-party appraisals in a process specified in the agreement. Applicable accounting guidance requires an equity instrument that is redeemable for cash or other assets to be classified outside of permanent equity if it is redeemable (a) at a fixed or determinable price on a fixed or determinable date, (b) at the option of the holder, or (c) upon the occurrence of an event that is not solely within the control of the issuer. As a result of this feature, the Company recorded the non-controlling interest as redeemable and classified it in temporary equity within its Consolidated Balance Sheets initially at its acquisition-date fair value. The non-controlling interest is adjusted each reporting period for income (or loss) attributable to the non-controlling interest as well as any applicable distributions made. A measurement period adjustment, if any, is then made to adjust the non-controlling interest to the higher of the redemption value (fair value) or carrying value each reporting period. These fair value adjustments are recognized through retained earnings and are not reflected in the Company's Consolidated Statements of Income. When calculating earnings per share attributable to the Company, the Company adjusts net income attributable to the Company for the measurement period adjustment to the extent the redemption value exceeds the fair value of the non-controlling interest on a cumulative basis. The fair value of the non-controlling interest is determined using a combination of the income approach, utilizing a discounted cash flow analysis, and the market approach, utilizing the guideline public company method. Contrail's discounted cash flow analysis requires significant management judgment with respect to forecasts of revenue, operating margins, capital expenditures, and the selection and use of an appropriate discount rate. The forecasts and assumptions are based on our annual and long-term business plans. Contrail’s market approach requires management to make significant assumptions related to market multiples of earnings derived from comparable publicly-traded companies with similar operating characteristics as Contrail. As of March 31, 2021, the fair value of the redeemable non-controlling interest is $6.6 million. The net change in the redemption value compared to March 31, 2020 is an increase of $0.5 million. The increase was driven by $2.9 million related to the net change in fair value during the fiscal year ended March 31, 2021, which is reflected on our consolidated statements of equity, partially offset by net loss attributable to and distributions made to the non-controlling interest. See Note 5 . The fair value increase is primarily attributable to the value associated with Contrail's potential investment in an aircraft asset management joint venture, which subsequently closed on May 5, 2021. See Note 24 . Revenue Recognition – Substantially all of the Company’s revenue is derived from contracts with an initial expected duration of one year or less. As a result, the Company has applied the practical expedient to exclude consideration of significant financing components from the determination of transaction price, to expense costs incurred to obtain a contract, and to not disclose the value of unsatisfied performance obligations.We evaluate gross versus net presentation on revenues from products or services purchased and resold in accordance with the revenue recognition criteria outlined in ASC 606-10, Principal Agent Considerations. The Company, under the terms of its overnight air cargo dry-lease service contracts, passes through to its air cargo customer certain cost components of its operations without markup. The cost of fuel, landing fees, outside maintenance, parts and certain other direct operating costs are included in operating expenses and billed to the customer, at cost, and included in overnight air cargo revenue on the accompanying statements of income. These pass-through costs totaled $19.9 million and $23.7 million for the years ended March 31, 2021 and 2020, respectively. Liquidity – The Company’s Credit Agreement with MBT (the Air T debt in Note 13 ) includes several covenants that are measured once a year at March 31, including, but not limited to, a financial covenant requiring a debt service coverage ratio of 1.25. The AirCo 1 Credit Agreement (the AirCo 1 debt in Note 13 ) contains an affirmative covenant relating to collateral valuation. As of March 31, 2021, the Company and AirCo 1 were in compliance with all financial covenants. The Contrail Credit Agreement (the Contrail debt in Note 13 ) contains affirmative and negative covenants, including covenants that restrict the ability of Contrail and its subsidiaries to, among other things, incur or guarantee indebtedness, incur liens, dispose of assets, engage in mergers and consolidations, make acquisitions or other investments, make changes in the nature of its business, and engage in transactions with affiliates. The Contrail Credit Agreement also contains quarterly financial covenants applicable to Contrail and its subsidiaries, including a minimum debt service coverage ratio of 1.25 to 1.0 and a minimum TNW of $15 million. On September 25, 2020, Contrail entered into a Third Amendment to Supplement #2 to Master Loan Agreement dated June 24, 2019 with Old National Bank ("ONB"). The material changes within the Third Amendment were: (a) to extend the date for compliance with the provision where Contrail is required to pay down the total outstanding principal balance of its revolver to zero for at least thirty consecutive days to September 5, 2021; and (b) to extend the date for compliance with the required quarterly debt service coverage ratio covenant such that Contrail shall commence compliance with the covenant commencing on March 31, 2022 and on the last day of each fiscal quarter thereafter. Due primarily to the impact of COVID-19 on its business, as of March 31, 2021, Contrail was not in compliance with maintaining the minimum TNW of $15 million. As of the issuance date of this report, pursuant to the existing terms of the Contrail Credit Agreement, the Company and the non-controlling interest owner of Contrail made total capital contributions to Contrail in the amount of $1.4 million, which had the effect of curing this financial covenant non-compliance. Contrail and ONB are also in discussions to reduce the minimum TNW to $8 million, in exchange for certain amendments to its credit agreement, including renewing its revolving line of credit at a lower amount than the current agreement. However, there is no assurance that Contrail will be successful in reducing the minimum TNW financial covenant. The obligations of Contrail under the Contrail Credit Agreement are guaranteed by the Company, up to a maximum of $1.6 million, plus costs of collection. The Company is not liable for any other assets or liabilities of Contrail and there are no cross-default provisions with respect to Contrail’s debt in any of the Company’s debt agreements with other lenders. In the possible absence of Contrail’s operation as a going concern, the Company believes it, along with the rest of its businesses, will continue to operate as a going concern, given the maximum guarantee of Contrail’s obligations of $1.6 million. On November 24, 2020, Contrail and ONB entered into Supplement #8 to Master Loan Agreement and related documentation for a loan in the aggregate amount of $43.6 million for which ONB served as lender pursuant to the Main Street Priority Loan Facility as established by the U.S. Federal Reserve. The Contrail Main Street Loan was approved by the Fed and completed by December 8, 2020. The proceeds were used to pay down the Contrail Revolver. The loan proceeds are also to be used as working capital to support the operations of Contrail in the ordinary course of business, which includes the acquisition from time to time of aircraft and engines. The indebtedness incurred is subject to the terms and provisions of the Master Loan Agreement. The principal terms of the Contrail Main Street Loan are detailed in Note 13 . On December 11, 2020, AirCo 1 and PSB entered into a loan in the aggregate amount of $6.2 million for which PSB served as lender pursuant to the Main Street Priority Loan Facility as established by the Fed. The AirCo 1 Main Street Loan was approved by the Fed and completed by December 22, 2020. The loan proceeds were used to pay off the AirCo 1 revolving line of credit with MBT. The principal terms of the Term Loan - PSB are detailed in Note 13 . The revolving line of credit at Air T with MBT has a due date or expires within the next twelve months. We are currently seeking to refinance this obligation prior to August 31, 2021; however, there is no assurance that we will be able to execute this refinancing or, if we are able to refinance this obligation, that the terms of such refinancing would be as favorable as the terms of our existing credit facility. In April 2020, the Company obtained loans under the Payroll Protection Program ("PPP loan"), as authorized by the CARES Act, of $8.2 million to help pay for payroll costs, mortgage interest, rent and utility costs. The Company has applied to MBT for forgiveness of the PPP Loan; however, forgiveness is not fully assured. The Company believes it is probable that the cash on hand (including that obtained from the PPP and other current financings), net cash provided by operations from its remaining operating segments, together with its current revolving lines of credit, as amended or replaced, will be |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS On September 30, 2019, the Company completed the sale of 100% of the equity ownership in the Company’s wholly-owned subsidiary, GAS to PrimeFlight Aviation Services, Inc., a Delaware corporation. The agreement included a purchase price of $21 million as well as an earn-out provision of $4 million if certain performance metrics were achieved by March 31, 2020. Those metrics were not achieved per the final settlement statement received during the second quarter ended September 30, 2020. The Company received approximately $20.5 million of total proceeds at closing after the initial net working capital adjustment. The Company recognized a pre-tax gain on the sale of GAS of approximately $10.5 million with a tax impact of $2.3 million for a net of tax gain of $8.2 million. Summarized results of operations of GAS for the year ended March 31, 2021 and 2020 through the date of disposition are as follows (in thousands): Year ended March 31, March 31, 2021 March 31, 2020 Net sales $ — $ 16,637 Operating Income (Expense) 4 (17,319) Gain/(Loss) from discontinued operations before income taxes 4 (682) Income tax benefit — (568) Income/(Loss) from discontinued operations, net of tax $ 4 $ (114) The following table presents capital expenditures, depreciation and amortization and other significant operating non-cash items of our discontinued operations for fiscal 2021 and 2020 (in thousands): Fiscal year 2021 2020 Capital expenditures — 82 Depreciation and amortization — 165 Goodwill and asset impairments — 405 |
MAJOR CUSTOMER
MAJOR CUSTOMER | 12 Months Ended |
Mar. 31, 2021 | |
Contract with Customer, Liability [Abstract] | |
MAJOR CUSTOMER | MAJOR CUSTOMERApproximately 37% and 30% of the Company’s consolidated revenues were derived from services performed for FedEx Corporation in fiscal 2021 and 2020, respectively. Approximately 35% and 16% of the Company’s consolidated accounts receivable at March 31, 2021 and 2020, respectively, were due from FedEx Corporation. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES A variable interest entity ("VIE") is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support, or (ii) has equity investors who lack the characteristics of a controlling financial interest. Under ASC 810 - Consolidation , an entity that holds a variable interest in a VIE and meets certain requirements would be considered to be the primary beneficiary of the VIE and required to consolidate the VIE in its consolidated financial statements. In order to be considered the primary beneficiary of a VIE, an entity must hold a variable interest in the VIE and have both: • the power to direct the activities that most significantly impact the economic performance of the VIE; and • the right to receive benefits from, or the obligation to absorb losses of, the VIE that could be potentially significant to the VIE. The Company concluded that its investments in Delphax’s equity and debt, and its investment in the Delphax warrant, each constituted a variable interest. In addition, the Company concluded that it became the primary beneficiary of Delphax on November 24, 2015. The Company consolidated Delphax in its consolidated financial statements beginning on that date. Delphax is included within our Corporate and other segment. Upon petition by the Company, on August 8, 2017 the Ontario Superior Court of Justice in Bankruptcy and Insolvency adjudged Delphax Canada to be bankrupt. As a result, Delphax Canada ceased to have capacity to deal with its property, which then vested in the trustee in bankruptcy of Delphax Canada subject to the rights of secured creditors. As of June 30, 2019, the bankruptcy proceedings were finalized in accordance with Canadian law and, therefore, Delphax Canada was legally discharged of its liabilities. The conclusion of the bankruptcy proceedings also resulted in the dissolution of Delphax Canada. In addition, on June 11, 2019, the Company also fully dissolved Delphax UK. As such, the only Delphax entity that remains in existence as of March 31, 2021 is Delphax France. The Company extinguished the assets and liabilities of Delphax Canada and Delphax UK during the quarter ended June 30, 2019 and recognized a gain on dissolution of entities of $4.5 million. Delphax had total assets and liabilities with carrying values of $8.0 thousand and $0.5 million, as of March 31, 2021 and $11.0 thousand and $0.5 million, as of March 31, 2020. Delphax’s components of net income (loss) are included in our consolidated statements of income and comprehensive income herein. For the fiscal years ended March 31, 2021 and 2020, Delphax did not recognize any revenue, respectively. For the fiscal year ended March 31, 2021, Delphax recorded net loss and operating loss of $48.0 thousand. For the fiscal year ended March 31, 2020, Delphax recorded net income of $6.1 million, broken out between an operating loss of $0.2 million and non-operating income of $6.3 million, the majority of which was the result of the gain on dissolution of entities of $4.5 million. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS The Company measures and reports financial assets and liabilities at fair value. Fair value measurement is classified and disclosed in one of the following three categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Quoted prices in markets that are not active or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Assets Measured and Recorded at Fair Value on a Recurring Basis The following consolidated balance sheet items are measured at fair value on a recurring basis (in thousands): Fair Value Measurements at March 31, 2021 2020 Marketable securities (Level 1) $ 2,914 $ 3,240 Interest rate swaps (Level 2) $ 593 $ 914 Debt - Trust Preferred Securities (Level 2) $ 14,289 12,877 Warrants Liability (Level 2) $ 414 485 Redeemable non-controlling interest (Level 3) $ 6,598 $ 6,080 The fair values of our interest rate swaps are based on the market standard methodology of netting the discounted expected future variable cash receipts and the discounted future fixed cash payments. The variable cash receipts are based on an expectation of future interest rates derived from observed market interest rate forward curves. Since these inputs are observable in active markets over the terms that the instruments are held, the derivatives are classified as Level 2 in the hierarchy. See Note 9 . The fair value of the Debt - Trust Preferred Securities was based on quoted prices as observed on the NASDAQ Global Market. The fair value of the Warrants was derived from quoted prices for a similar asset or liability as observed on the NASDAQ Global Market. Both of these items are classified as Level 2 in the hierarchy. The fair value of the redeemable non-controlling interest is based on a combination of market approach and income approach and is classified as Level 3 in the hierarchy. The fair value measurements which use significant observable inputs (Level 3), changed due to the following (in thousands): Redeemable Non- Beginning Balance as of April 1, 2020 $ 6,080 Contribution from non-controlling member — Distribution to non-controlling member (1,244) Net loss attributable to non-controlling interests (1,095) Fair value adjustment 2,857 Ending Balance as of March 31, 2021 $ 6,598 The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash, accounts receivable, notes receivable and accounts payable approximate their fair values at March 31, 2021 and 2020. Assets Measured and Recorded at Fair Value on a Nonrecurring Basis The Company determines fair value of engine assets on lease or held for lease by reference to independent appraisals, quoted market prices (e.g. an offer to purchase) and other factors such as current data from manufacturers as well as specific market sales. An impairment charge is recorded when the carrying value of the asset exceeds its fair value. The Company used Level 2 inputs to measure write-downs of engine assets on lease or held for lease. As of March 31, 2021, as a result of our year-end valuation, we did not identify any impairment on our engine assets on lease or held for lease. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following (in thousands): Year Ended March 31, 2021 2020 Ground equipment manufacturing: Raw materials 4,695 4,192 Work in process 5,820 2,731 Finished goods 1,691 1,725 Corporate and Other: Raw materials 462 464 Finished goods 889 910 Commercial jet engines and parts: 60,516 51,084 Total inventories 74,073 61,106 Reserves (2,102) (483) Total, net of reserves $ 71,971 $ 60,623 |
ASSETS ON LEASE
ASSETS ON LEASE | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
ASSETS ON LEASE | ASSETS ON LEASE The Company leases equipment to third parties, primarily through Contrail which leases engines to aviation customers with lease terms between 1 and 3 years under operating lease agreements. For the assets currently on lease, there are no options for the lessees to purchase the assets at the end of the leases. The Company depreciates the engines on a straight-line basis over the assets' useful life from the acquisition date to a residual value. Depreciation expense relating to engines on lease was $1.9 million and $4.4 million for the fiscal years ended March 31, 2021 and 2020, respectively. Future minimum rental payments to be received do not include contingent rentals that may be received under certain leases because amounts are based on usage. Contingent rent earned totaled approximately $4.9 thousand and $3.7 million for the fiscal years ended March 31, 2021 and 2020, respectively. As of March 31, 2021, future minimum rental payments to be received under non-cancelable leases are as follows (in thousands): Year ended March 31, 2022 $ 825 2023 4,262 2024 73 2025 — 2026 — Thereafter — Total $ 5,160 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment consisted of the following (in thousands): Year Ended March 31, 2021 2020 Furniture, fixtures and equipment $ 4,852 $ 5,243 Leasehold improvements 5,541 2,390 Building 2,636 1,958 13,029 9,591 Less accumulated depreciation (4,510) (4,319) Property and equipment, net $ 8,519 $ 5,272 |
INVESTMENTS IN SECURITIES AND D
INVESTMENTS IN SECURITIES AND DERIVATIVE INSTRUMENTS | 12 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS IN SECURITIES AND DERIVATIVE INSTRUMENTS | INVESTMENTS IN SECURITIES AND DERIVATIVE INSTRUMENTS As part of the Company’s interest rate risk management strategy, the Company, from time to time, uses derivative instruments to minimize significant unanticipated earnings fluctuations that may arise from rising variable interest rate costs associated with existing borrowings (Air T Term Note A and Term Note D). To meet these objectives, the Company entered into interest rate swaps with notional amounts consistent with the outstanding debt to provide a fixed rate of 4.56% and 5.09%, respectively, on Term Notes A and D. The swaps mature in January 2028. As of August 1, 2018, these swap contracts are designated as effective cash flow hedging instruments in accordance with ASC 815. The effective portion of changes in the fair value on these instruments is recorded in other comprehensive income and is reclassified into the consolidated statement of income as interest expense in the same period in which the underlying hedged transaction affects earnings. The interest rate swaps are considered Level 2 fair value measurements. As of March 31, 2021 and March 31, 2020, the fair value of the interest-rate swap contracts was a liability of $0.6 million and $0.9 million, respectively, which is included within Other Non-Current Liabilities in the consolidated balance sheets. During the twelve months ended March 31, 2021 and 2020, the Company recorded a loss of approximately $0.3 million and a gain of $0.5 million, net of tax, respectively, in the consolidated statement of comprehensive income (loss) for changes in the fair value of the instruments. The Company may, from time to time, employ trading strategies designed to profit from market anomalies and opportunities it identifies. Management uses derivative financial instruments to execute those strategies, which may include options, and futures contracts. These derivative instruments are priced using publicly quoted market prices and are considered Level 1 fair value measurements. During the fiscal year ended March 31, 2021, related to these derivative instruments, the Company had a gross gain aggregating to $0.8 million and a gross loss aggregating to $23.7 thousand. During the fiscal year ended March 31, 2020, related to these derivative instruments, the Company had a gross gain aggregating to $1.7 thousand and a gross loss aggregating to $0.3 million. The Company also invests in exchange-traded marketable securities and accounts for that activity in accordance with ASC 321, Investments- Equity Securities. Marketable equity securities are carried at fair value, with changes in fair market value included in the determination of net income. The fair market value of marketable equity securities is determined based on quoted market prices in active markets. During the fiscal year ended March 31, 2021, the Company had a gross unrealized gain aggregating to $1.2 million and a gross unrealized loss aggregating to $1.2 million. During the fiscal year ended March 31, 2020, the Company had a gross unrealized gain aggregating to $8.4 thousand and a gross unrealized loss aggregating to $0.5 million. These unrealized gains and losses are included in Other Income (Loss) on the consolidated Statement of Income. The market value of the Company’s equity securities and cash held by the broker are periodically used as collateral against any outstanding margin account borrowings. As of March 31, 2021 and 2020, the Company had outstanding borrowings of $0 and $0.4 million under its margin account, respectively, which is reflected in accrued expenses and other on the consolidated balance sheets. As of March 31, 2021 and 2020, the Company had cash margin balances related to exchange-traded equity securities and securities sold short of $0.9 million and $1.3 million, respectively, which is reflected in other current assets on the consolidated balance sheets. The interest rate on margin account borrowings was 9.4% as of March 31, 2021. |
EQUITY METHOD INVESTMENTS
EQUITY METHOD INVESTMENTS | 12 Months Ended |
Mar. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY METHOD INVESTMENTS | EQUITY METHOD INVESTMENTS The Company’s investment in Insignia is accounted for under the equity method of accounting. The Company has elected a three-month lag upon adoption of the equity method. On December 31, 2020, Insignia effected a seven-for-one reverse stock split of its outstanding common stock. As such, as of March 31, 2021, the number of Insignia's shares owned by the Company was adjusted to 0.5 million, representing approximately 28% of the outstanding shares. For the fiscal years ended March 31, 2021 and 2020, the Company recorded approximately $1.2 million and $1.5 million as its share of Insignia’s net loss for the twelve months ended December 31, 2020 and 2019, respectively, along with a basis difference adjustment of approximately $96.1 thousand. In addition to the current year's loss attribution, the previous impairments taken in prior fiscal years have accelerated the Company's net investment basis in Insignia to be zero as of March 31, 2021. On November 8, 2019, the Company made an investment of $2.8 million to purchase a 19.90% ownership stake in CCI, subsequently reduced to a 18.98% ownership stake as of September 30, 2020. The Company accounts for this investment under the equity method of accounting. Due to the differing fiscal year-ends, the Company has elected a three-month lag to record the CCI investment at cost, with a basis difference of $0.3 million. For the fiscal year ended March 31, 2021, the Company recorded a gain of $0.4 million as its share of CCI's net income for the twelve months ended December 31, 2020, along with a basis difference adjustment of $49.9 thousand. The Company's net investment basis in CCI is $3.8 million as of March 31, 2021. Summarized audited financial information for the Company's equity method investees for the twelve months ended December 31, 2020 and December 31, 2019 are as follows (in thousands): Twelve Months Ended Twelve Months Ended December 31, 2019 Revenue $ 91,245 $ 108,751 Gross Profit 4,589 7,570 Operating loss (10,551) (2,653) Net loss (1,960) (3,645) Net loss attributable to Air T, Inc. stockholders $ (760) $ (887) |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | ACCRUED EXPENSES Year ended March 31, (In thousands) 2021 2020 Salaries, wages and related items $ 5,427 $ 3,616 Profit sharing and bonus 2,706 3,349 Other deposits 1,251 1,722 Other 3,403 4,337 Total $ 12,787 $ 13,024 |
LEASE ARRANGEMENTS
LEASE ARRANGEMENTS | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
LEASE ARRANGEMENTS | LEASE ARRANGEMENTS The Company has operating leases for the use of real estate, machinery, and office equipment. The majority of our leases have a lease term of 2 to 5 years; however, we have certain leases with longer terms of up to 30 years. Many of our leases include options to extend the lease for an additional period. The lease term for all of the Company’s leases includes the non-cancellable period of the lease, plus any additional periods covered by either a Company option to extend the lease that the Company is reasonably certain to exercise, or an option to extend the lease controlled by the lessor that is considered likely to be exercised. Payments due under the lease contracts include fixed payments plus, for some of our leases, variable payments. Variable payments are typically operating costs associated with the underlying asset and are recognized when the event, activity, or circumstance in the lease agreement on which those payments are assessed occurs. Our leases do not contain residual value guarantees. The Company has elected to combine lease and non-lease components as a single component and not to recognize leases on the balance sheet with an initial term of one year or less. The interest rate implicit in lease contracts is typically not readily determinable, and as such the Company utilizes the incremental borrowing rate to calculate lease liabilities, which is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The components of lease cost for the twelve months ended March 31, 2021 and 2020 are as follows (in thousands): Twelve Months Ended March 31, 2021 Twelve Months Ended March 31, 2020 Operating lease cost $ 2,134 $ 2,093 Short-term lease cost 316 439 Variable lease cost 760 342 Total lease cost $ 3,210 $ 2,874 Amounts reported in the consolidated balance sheets for leases where we are the lessee as of the years ended March 31, 2021 and 2020 were as follows (in thousands): March 31, 2021 March 31, 2020 Operating leases Operating lease ROU assets $ 7,757 $ 8,116 Operating lease liabilities 8,445 8,647 Weighted-average remaining lease term Operating leases 13 years, 9 months 14 years, 4 months Weighted-average discount rate Operating leases 4.37 % 4.50 % Maturities of lease liabilities under non-cancellable leases where we are the lessee as of the year ended March 31, 2021 are as follows (in thousands): Operating Leases 2022 $ 1,814 2023 1,680 2024 1,316 2025 1,013 2026 712 Thereafter 5,893 Total undiscounted lease payments 12,428 Less: Interest (3,439) Less: Discount (544) Total lease liabilities $ 8,445 |
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
FINANCING ARRANGEMENTS | FINANCING ARRANGEMENTS Borrowings of the Company and its subsidiaries are summarized below at March 31, 2021 and March 31, 2020, respectively. On April 13, 2020, the Company entered into a loan with MBT in a principal amount of $8.2 million pursuant to a PPP Loan under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The PPP Loan is evidenced by a promissory note (“Note”). The Note provides for customary events of default including, among other things, cross-defaults on any other loan with MBT. The PPP Loan may be accelerated upon the occurrence of an event of default. The PPP Loan is unsecured and guaranteed by the United States Small Business Administration ("SBA"). The Company has applied to MBT for forgiveness of the PPP Loan, with the amount which may be forgiven equal to the sum of payroll costs, covered rent and mortgage obligations, and covered utility payments incurred by the Company during the 24-week period beginning on April 13, 2020, calculated in accordance with the terms of the CARES Act. The PPP Loan bears interest at a fixed annual rate of one percent (1%). Once the forgiveness determination is made, the Company will be required to make repayments plus interest on any unforgiven amount. As of March 31, 2021, the Company has used the funds received from the PPP loan on eligible expenses as outlined in the CARES Act. On September 25, 2020, Contrail entered into a Third Amendment to Supplement #2 to Master Loan Agreement dated June 24, 2019 with ONB. The material changes within the Third Amendment are: (a) to extend the date for compliance with the provision where Contrail is required to pay down the total outstanding principal balance of its revolver to zero for at least thirty consecutive days to September 5, 2021; and (b) to extend the date for compliance with the required quarterly debt service coverage ratio covenant such that Contrail shall commence compliance with the covenant commencing on March 31, 2022 and on the last day of each fiscal quarter thereafter. On November 24, 2020, Contrail and ONB entered into Supplement #8 to Master Loan Agreement and related documentation for a loan in the aggregate amount of $43.6 million for which ONB served as lender pursuant to the Main Street Priority Loan Facility as established by the U.S. Federal Reserve. The Contrail Main Street Loan was approved by the Fed and completed by December 8, 2020. The proceeds were used to pay down the Contrail Revolver. The loan proceeds are also to be used as working capital to support the operations of Contrail in the ordinary course of business, which includes the acquisition from time to time of aircraft and engines. The indebtedness incurred is subject to the terms and provisions of the Master Loan Agreement. The principal terms of the Contrail Main Street Loan ("Term Note G") are: (a) interest on the loan accrues at a floating rate of LIBOR plus 3.00% and interest is payable commencing November 24, 2021; (b) 15% principal payments plus 15% of the amount of capitalized interest are due on November 24, 2023 and 2024, with the remainder due on the loan maturity date – November 24, 2025; (c) the loan is not guaranteed; and, (d) a 2% origination fee was paid on funding of the loan. The loan contains affirmative covenants as to cash flow coverage and tangible net worth. The terms of the loan provide for customary events of default, including, among others, those relating to a failure to make payment, breaches of representations and covenants, and the occurrence of certain events. The loan is secured by a security interest in the assets of Contrail. On December 11, 2020, AirCo 1 and PSB entered into a loan in the aggregate amount of $6.2 million for which PSB served as lender pursuant to the Main Street Priority Loan Facility as established by the U.S. Federal Reserve. The AirCo 1 Main Street Loan was approved by the Fed and completed by December 22, 2020. The loan proceeds were used to pay off the AirCo 1 revolving line of credit with MBT. The principal terms of the Term Loan - PSB are: (a) interest on the loan accrues at a floating rate of 3-month LIBOR plus 3.00% and interest is payable commencing December 11, 2021; (b) 15% principal payments (including any capitalized interest accrued thereon) are due on December 11, 2023, and 2024, with the remainder due on the loan maturity date – December 11, 2025; (c) the loan is not guaranteed; and, (d) a 2% origination fee was paid on funding of the loan. The loan contains an affirmative covenant relating to collateral valuation. The terms of the loan provide for customary events of default, including, among others, those relating to a failure to make payment, breaches of representations and covenants, and the occurrence of certain events. The loan is secured by a security interest in the assets of AirCo 1 and a pledge of AirCo’s membership interest in AirCo 1. The following table provides certain information about the current financing arrangements of the Company's and its subsidiaries as of March 31, 2021 and 2020: March 31, 2021 March 31, 2020 Maturity Date Interest Rate Unused commitments Air T Debt Revolver - MBT $ — $ — 8/31/21 Greater of 2.5% or Prime - 1% $ 17,000 Supplemental Revolver - MBT — 9,550 6/30/20 Greater of 1-month LIBOR + 1.25% or 3% Term Note A - MBT 6,750 7,750 1/1/28 1-month LIBOR + 2% Term Note B - MBT 3,375 3,875 1/1/28 4.50% Term Note D - MBT 1,472 1,540 1/1/28 1-month LIBOR + 2% Term Note E - MBT 4,706 — 6/25/25 Greater of LIBOR + 1.5% or 2.5% Debt - Trust Preferred Securities 14,289 12,877 6/7/49 8% PPP Loan 8,215 — 12/24/22 1 1% Total 38,807 35,592 AirCo 1 Debt Revolver - MBT — 8,335 8/31/21 2 Greater of 6.5% or Prime + 2% — Term Loan - PSB 6,200 — 12/11/25 3-month LIBOR + 3% Total 6,200 8,335 Contrail Debt Revolver - ONB — 21,284 9/5/21 1-month LIBOR + 3.45% 40,000 Term Loan A - ONB — 6,285 1/26/21 1-month LIBOR + 3.75% Term Loan E - ONB — 6,320 12/1/22 1-month LIBOR + 3.75% Term Loan F - ONB — 8,358 5/1/25 1-month LIBOR + 3.75% Term Loan G - ONB 43,598 — 11/24/25 1-month LIBOR + 3.00% Total 43,598 42,247 Delphax Solutions Debt Canadian Emergency Business Account Loan 32 — 12/31/25 5% 32 — Total Debt 88,637 86,174 Less: Unamortized Debt Issuance Costs (1,141) (354) Total Debt, net $ 87,496 $ 85,820 Fiscal 2021's weighted average interest rate on short term borrowings outstanding was 0.0% due to the fact that all short-term borrowings outstanding as of March 31, 2021 have zero balances. The weighted average interest rate on short term borrowings outstanding as of March 31, 2020 was 3.7%. The Air T revolving credit facility and the Contrail revolving credit facility contain affirmative and negative covenants, including covenants that restrict the ability of the Company and its subsidiaries to, among other things, incur or guarantee indebtedness, incur liens, dispose of assets, engage in mergers and consolidations, make acquisitions or other investments, make changes in the nature of its business, and engage in transactions with affiliates. The obligations of Contrail under the Contrail Credit Agreement with ONB are secured by a first-priority security interest in substantially all of the assets of Contrail. The obligations of Contrail under the Contrail Credit Agreement are also guaranteed by the Company, up to a maximum of $1.6 million, plus costs of collection. The Company is not liable for any other assets or liabilities of Contrail and there are no cross-default provisions with respect to Contrail’s debt in any of the Company’s debt agreements with MBT. At March 31, 2021, our contractual financing obligations, including payments due by period, are as follows (in thousands): Fiscal year ended Amount 2022 $ 5,639 2023 5,711 2024 9,037 2025 9,037 2026 41,163 Thereafter 18,050 88,637 Less: Unamortized Debt Issuance Costs (1,141) $ 87,496 The Company assumes various financial obligations and commitments in the normal course of its operations and financing activities. Financial obligations are considered to represent known future cash payments that the Company is required to make under existing contractual arrangements such as debt and lease agreements. Fair Value of Debts - As of March 31, 2021 and 2020, the carrying amounts reported in the consolidated balance sheets for the Company’s debt instruments approximate the fair values. Estimated fair values are determined by comparing current borrowing rates and risk spreads offered in the market (Level 2 fair value measures) or quoted market prices (Level 1 fair value measures), when available, to the stated interest rates and spreads on the Company’s debts. Interest Expense, net - The components of net interest expense during the years ended March 31, 2021 and March 31, 2020 are as follows (in thousands): March 31, 2021 March 31, 2020 Contractual interest 4,352 4,458 Amortization of deferred financing costs 288 237 Interest income (16) (3) Total 4,624 4,692 Other - On June 10, 2019, the Company completed a transaction with all holders of the Company’s Common Stock to receive a special, pro-rata distribution of the securities enumerated below: • A dividend of one additional share for every two shares already held (a 50% stock dividend, or the equivalent of a 3-for-2 stock split). See Note 22 . • The Company issued and distributed to existing common shareholders, via a non-cash transaction from equity, an aggregate of 1.6 million trust preferred capital security shares (aggregate $4.0 million stated value) and an aggregate of 8.4 million warrants (representing warrants to purchase $21.0 million in stated value of TruPs). On January 14, 2020, Air T effected a one-for-ten reverse split of its TruPs. As a result of the reverse split, the stated value of the TruPs currently is $25.00 per share. Further, each Warrant conferred upon its holder the right to purchase one-tenth of a share of TruPs for $2.40, representing a 4% discount to the new stated value of $2.50 for one-tenth of a share. As of March 31, 2021, approximately 4.1 million Warrants have been exercised. As a result, the amount outstanding on the Company's Debt - Trust Preferred Securities is $14.3 million as of March 31, 2021. At March 31, 2021, the Company had Warrants outstanding and exercisable to purchase approximately 4.3 million shares of its TruPs at an exercise price of $2.40 per one-tenth of a share. The Warrants will expire on August 30, 2021 or earlier upon redemption or liquidation. |
RELATED PARTY MATTERS
RELATED PARTY MATTERS | 12 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY MATTERS | RELATED PARTY MATTERS Contrail Aviation Support, LLC leases its corporate and operating facilities at Verona, Wisconsin from Cohen Kuhn Properties, LLC, a limited liability company whose membership interests are owned by Mr. Joseph Kuhn, Contrail's Chief Executive Officer and Mrs. Miriam Cohen-Kuhn, Contrail's Chief Financial Officer, equally. The facility consists of approximately 21,000 square feet of warehouse and office space. The Company paid aggregate rental payments of approximately $0.2 million to Cohen Kuhn Properties, LLC pursuant to such lease during the period from April 1, 2020 through March 31, 2021. The lease for this facility originally was to expire on June 30, 2021, however; in April 2021, the Company executed the option to renew the lease for an additional period of 5 years on the same terms. The lease agreement provides that the Company shall be responsible for maintenance of the leased facilities and for utilities, taxes and insurance. The Company believes that the terms of such leases are no less favorable to the Company than would be available from an independent third party. Gary S. Kohler, a director of the Company, entered into an employment agreement with Blue Clay Capital Management, a wholly-owned subsidiary of the Company, in the Corporate and other segment, to serve as its Chief Investment Officer in return for an annual salary of $50.0 thousand plus variable compensation based on the management and incentive fees to be paid to the subsidiary by certain of these investment funds and eligibility to participate in discretionary annual bonuses. Nick Swenson, CEO of the Company, is also the majority shareholder of CCI. As of March 31, 2021, Mr. Swenson owned 66.7% of ownership interests in CCI. Under the VIE model, Mr. Swenson is the primary beneficiary of CCI due to the high extent of his ownership relative to other shareholders of CCI, |
EMPLOYEE AND NON-EMPLOYEE STOCK
EMPLOYEE AND NON-EMPLOYEE STOCK OPTIONS | 12 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
EMPLOYEE AND NON-EMPLOYEE STOCK OPTIONS | EMPLOYEE AND NON-EMPLOYEE STOCK OPTIONS Air T, Inc. maintains a stock option plan for the benefit of certain eligible employees and directors. In addition, Delphax maintains a number of stock option plans. Compensation expense is recognized over the requisite service period for stock options which are expected to vest based on their grant-date fair values. The Company uses the Black-Scholes option pricing model to value stock options granted under the Air T, Inc. plan and the Delphax plans. The key assumptions for this valuation method include the expected term of the option, stock price volatility, risk-free interest rate and dividend yield. Many of these assumptions are judgmental and highly sensitive in the determination of compensation expense. No options were granted under Air T, Inc.’s stock option plan during the fiscal years ended March 31, 2021 and 2020. No stock-based compensation expense with respect to this plan was recognized for the year ended March 31, 2021 and 2020, respectively. At March 31, 2021, there was no unrecognized compensation expense related to the Air T Inc. stock options. There was no activity during the fiscal years ended March 31, 2021 and 2020 under the Delphax option plans. Option activity during the fiscal years ended March 31, 2020 (retrospectively adjusted to account for the stock split on June 10, 2019) and 2021 is summarized below: Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Life (Years) Aggregate Intrinsic Value Outstanding at March 31, 2019 11,250 $ 6.61 4.07 $ 152,075 Granted — — Exercised — — Forfeited — — Repurchased — — Outstanding at March 31, 2020 11,250 6.61 3.07 66,388 Granted — — Exercised — — Forfeited — — Repurchased — — Outstanding at March 31, 2021 11,250 $ 6.61 2.07 $ 193,063 Exercisable at March 31, 2021 11,250 $ 6.61 2.07 $ 193,063 |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Mar. 31, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION Performance Obligations The following is a description of the Company’s performance obligations as of March 31, 2021: Type of Revenue Nature, Timing of Satisfaction of Performance Obligations, and Significant Payment Terms Product Sales The Company generates revenue from sales of various distinct products such as parts, aircraft equipment, printing equipment, jet engines, airframes, and scrap metal to its customers. A performance obligation is created when the Company accepts an order from a customer to provide a specified product. Each product ordered by a customer represents a performance obligation. The Company recognizes revenue when obligations under the terms of the contract are satisfied; generally, this occurs at a point-in-time upon shipment or when control is transferred to the customer. Transaction prices are based on contracted terms, which are at fixed amounts based on standalone selling prices. While the majority of the Company's contracts do not have variable consideration, for the limited number of contracts that do, the Company records revenue based on the standalone selling price less an estimate of variable consideration (such as rebates, discounts or prompt payment discounts). The Company estimates these amounts based on the expected incentive amount to be provided to customers and reduces revenue accordingly. Performance obligations are short-term in nature and customers are typically billed upon transfer of control. The Company records all shipping and handling fees billed to customers as revenue. The terms and conditions of the customer purchase orders or contracts are dictated by either the Company’s standard terms and conditions or by a master service agreement or by the contract. Support Services The Company provides a variety of support services such as aircraft maintenance, printer maintenance, and short-term repair services to its customers. Additionally, the Company operates certain aircraft routes on behalf of FedEx. A performance obligation is created when the Company agrees to provide a particular service to a customer. For each service, the Company recognizes revenues over time as the customer simultaneously receives the benefits provided by the Company's performance. This revenue recognition can vary from when the Company has a right to invoice to the output or input method depending on the structure of the contract and management’s analysis. For repair-type services, the Company records revenue over-time based on an input method of costs incurred to total estimated costs. The Company believes this is appropriate as the Company is performing labor hours and installing parts to enhance an asset that the customer controls. The vast majority of repair-services are short term in nature and are typically billed upon completion of the service. Some of the Company’s contracts contain a promise to stand ready as the Company is obligated to perform certain maintenance or administrative services. For most of these contracts, the Company applies the 'as invoiced' practical expedient as the Company has a right to consideration from the customer in an amount that corresponds directly with the value of the entity's performance completed to date. A small number of contracts are accounted for as a series and recognized equal to the amount of consideration the Company is entitled to less an estimate of variable consideration (typically rebates). These services are typically ongoing and are generally billed on a monthly basis. In addition to the above type of revenues, the Company also has Leasing Revenue, which is in scope under Topic 842 (Leases) and out of scope under Topic 606 and Other Revenues (Freight, Management Fees, etc.) which are immaterial for disclosure under Topic 606. In the current fiscal year, the Company also generated revenue from the sale of assets on lease or held for lease. The following table summarizes disaggregated revenues by type (in thousands): Year Ended March 31, 2021 March 31, 2020 Product Sales Air Cargo $ 19,892 $ 23,690 Ground equipment sales 59,794 58,082 Commercial jet engines and parts 40,066 86,625 Corporate and other 327 261 Support Services Air Cargo 46,330 51,469 Ground equipment sales 291 485 Commercial jet engines and parts 4,743 3,675 Corporate and other 132 146 Leasing Revenue Air Cargo — — Ground equipment sales 149 189 Commercial jet engines and parts 1,730 10,797 Corporate and other 136 152 Other Air Cargo 29 116 Ground equipment sales 445 400 Commercial jet engines and parts 254 187 Corporate and other 803 511 Total $ 175,121 $ 236,785 See Note 20 for the Company's disaggregated revenues by geographic region and Note 21 for the Company’s disaggregated revenues by segment. These notes disaggregate revenue recognized from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Contract Balances and Costs Contract liabilities relate to deferred revenue and advanced customer deposits with respect to product sales. The following table presents outstanding contract liabilities as of April 1, 2020 and March 31, 2021 and the amount of contract liabilities that were recognized as revenue during the year ended March 31, 2021 (in thousands): Outstanding Contract Liabilities Outstanding Contract Liabilities As of March 31, 2021 $ 1,358 As of April 1, 2020 $ 1,853 For the year ended March 31, 2021 $ 777 |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Mar. 31, 2021 | |
Defined Benefit Plan, Expected Future Employer Contributions [Abstract] | |
EMPLOYEE BENEFITS | EMPLOYEE BENEFITS The Company has a 401(k) defined contribution plan covering domestic employees and an 1165(e) defined contribution plan covering Puerto Rico based employees (“Plans”). All employees of the Company are immediately eligible to participate in the Plans. The Company’s contribution to the Plans for the years ended March 31, 2021 and 2020 was approximately $0.5 million and $0.6 million, respectively, and was recorded in the consolidated statements of income. The Company, in each of the past three years, has paid a discretionary profit sharing bonus in which all employees have participated. Profit sharing expense in fiscal 2021 and 2020 was approximately $1.5 million and $3.5 million, respectively, and was recorded in general and administrative expenses in the consolidated statements of income. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense (benefit) attributable to (loss) income from continuing operations consists of (in thousands): Year Ended March 31, 2021 2020 Current: Federal $ (3,330) $ 43 State 130 (8) Foreign 39 — Total current (3,161) 35 Deferred: Federal 91 (481) State (317) (98) Total deferred (226) (579) Total $ (3,387) $ (544) Income tax expense attributable to (loss) income from continuing operations differed from the amounts computed by applying the U.S. Federal income tax rate of 21% to pretax (loss) income from continuing operations as follows (in thousands): Year Ended March 31, 2021 2020 Expected Federal income tax (benefit)/ expense U.S. statutory rate $ (2,472) 21.0 % $ 551 21.0 % State income taxes, net of federal benefit (271) 2.3 % (519) -19.8 % Nontaxable cancellation of debt income — 0.0 % (1,331) -50.7 % Micro-captive insurance benefit (217) 1.8 % (172) -6.6 % Change in valuation allowance 621 -5.3 % (7,789) -296.8 % Income attributable to minority interest - Contrail 247 -2.1 % (325) -12.4 % Write-off Delphax tax attributes — 0.0 % 9,353 356.4 % Acquired Net Operating Loss ("NOL") carrybacks; CARES Act — 0.0 % (363) -13.8 % NOL Carryback - Rate Differential (1,468) 12.5 % — 0.0 % Other differences, net 173 -1.4 % 51 1.9 % Income tax benefit $ (3,387) 28.8 % $ (544) -20.7 % The Company did not record any liabilities for uncertain tax positions for the fiscal years ended March 31, 2021 and March 31, 2020. During the fiscal period ended March 31, 2020, the Company sold GAS. See Note 2 . The tax benefit related to this entity allocated to discontinued operations for March 31, 2020 was $0.6 million. In addition, a gain on the sale of discontinued operations was recognized, resulting in a net of tax gain of $8.2 million. The Company has state gross operating losses of $6.4 million at March 31, 2021. These net operating losses will begin to expire in tax year 2030. The Company has foreign tax credits of $0.5 million that will begin to expire in tax year 2026. DSI and Delphax (collectively known as the “Delphax entities”) are not included in Air T’s consolidated tax return. During the year ended March 31, 2021, DSI and Delphax accounted for $0.3 million and $(0.1) million, respectively, of fiscal year 2021's valuation allowance effect. During the year ended March 31, 2020, each entity, respectively, accounted for $0.2 million and $(8.9) million of the fiscal year 2020's valuation allowance effect. The valuation allowance release in March 31, 2020 relates to attribute reduction for cancellation of debt income and dissolution of the Canadian and UK subsidiaries (See Note 4 ). Impairment on investments and changes in unrealized losses related to available-for-sale securities and foreign tax credits accounted for the remaining valuation allowance effect for each year. In March of 2020, the CARES Act was enacted and made significant changes to federal tax laws, including certain changes that were retroactive to the March 31, 2020 tax year. Changes in tax laws are accounted for in the period of enactment and the retroactive effects are recognized in these financial statements. Of the changes impactful to the Company, the CARES act permits favorable treatment of deductible interest expense as well as the ability to carryback tax losses incurred in the March 31, 2021 fiscal year up to 5 years and recoup previously paid federal income taxes; under which the Company was subject to a higher federal tax rate. The benefit of the recoupment of these taxes are included in these consolidated financial statements and the Company expects to receive a refund of $3.4 million. Deferred tax assets and liabilities were comprised of the following (in thousands): 2021 2020 Net operating loss & attribute carryforwards $ 4,094 $ 3,524 Unrealized losses on investments 1,504 1,693 Investment in foreign subsidiaries 1,331 1,369 Investment in partnerships 821 840 Lease liabilities 1,999 1,909 Other deferred tax assets 1,991 1,019 Total deferred tax assets 11,740 10,354 Bargain purchase gain (470) (385) Property and equipment (1,184) (485) Right-of-use assets (1,838) (1,791) Capital gain deferment (1,782) (1,700) Other deferred tax liabilities (35) (167) Total deferred tax liabilities (5,309) (4,528) Net deferred tax asset $ 6,431 $ 5,826 Less valuation allowance (7,026) (6,405) Net deferred tax liability $ (595) $ (579) Delphax entities As described in Note 4 , effective on November 24, 2015, Air T, Inc. purchased interests in Dephax. With an equity investment level by the Company of approximately 67%, Delphax is required to continue filing a separate United States corporate tax return. Furthermore, Delphax has foreign subsidiaries located in France, and historically had foreign subsidiaries located in Canada and the United Kingdom; all of which file(d) tax returns in those jurisdictions. With few exceptions, Delphax, is no longer subject to examinations by income tax authorities for tax years before 2015. Delphax maintains a September 30 fiscal year end and DSI maintains a March 31 fiscal year end. The returns for the fiscal years ended September 30, 2020 and March 31, 2021 have not yet been filed. Included in the deferred tax balances above and related to the Delphax entities are estimated foreign and U.S. federal loss carryforwards of $6.1 million and $8.5 million, respectively. The net operating losses expire in varying amounts beginning in the tax year 2027. The provisions of ASC 740 require an assessment of both positive and negative evidence when determining whether it is more-likely-than-not that deferred tax assets will be recovered. In accounting for the Delphax entities' tax attributes, the Company has established a full valuation allowance of $5.0 million at March 31, 2021, and $4.8 million at March 31, 2020. The cumulative tax losses incurred by the Delphax entities in recent years was the primary basis for the Company’s determination that a full valuation allowance should be established against the Delphax entities’ net deferred tax assets. The Company continues to assert that it will permanently reinvest any foreign earnings of DSI in a foreign country and will not repatriate those earnings back to the U.S. As a result of its permanent reinvestment assertion, the Company has not recorded deferred taxes related to DSI under the indefinite exception. |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Mar. 31, 2021 | |
Quarterly Financial Data [Abstract] | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter 2021 Operating Revenues $ 36,970 $ 35,604 $ 55,819 $ 46,728 (Loss) Income from continuing operations, net of tax (956) (3,357) 1,763 (5,844) Less: Loss attributable to non-controlling interests 115 433 335 230 (Loss) Income from continuing operations attributable to Air T, Inc. Stockholders (841) (2,924) 2,098 (5,614) Income from discontinued operations, net of tax — 4 — — Basic (Loss) Income per share from continuing operations (0.29) (1.01) 0.73 (1.96) Basic Income (Loss) per share from discontinued operations — — — — Basic (Loss) Income per share (0.29) (1.01) 0.73 (1.96) Diluted (Loss) Income per share from continuing operations (0.29) (1.01) 0.73 (1.96) Diluted Income (loss) per share from discontinued operations — — — — Diluted Loss per share $ (0.29) $ (1.01) $ 0.73 $ (1.96) Antidilutive shares Excluded from Computation of income (loss) per share from continuing operations (in shares) 5 5 — 8 Antidilutive shares Excluded from Computation of income (loss) per share from discontinued operations (in shares) — — — — Antidilutive shares Excluded from Computation of income (loss) per share (in shares) 5 5 — 8 2020 Operating Revenues $ 47,188 $ 50,693 $ 73,300 $ 65,604 Income (Loss) from continuing operations, net of tax 3,991 (2,122) 581 718 Less: Net (Income) Loss attributable to non-controlling interests (2,373) (287) (789) (128) Income (Loss) from continuing operations attributable to Air T, Inc. Stockholders 1,618 (2,409) (208) 590 Income (Loss) from discontinued operations, net of tax 165 8,124 (222) (2) Basic Income (loss) per share from continuing operations 0.72 (0.80) (0.07) 0.20 Basic Income (Loss) per share from discontinued operations 0.07 2.69 (0.07) — Basic Income (Loss) per share 0.79 1.89 (0.14) 0.20 Diluted Income (Loss) per share from continuing operations 0.72 (0.80) (0.07) 0.20 Diluted Income (loss) per share from discontinued operations 0.07 2.68 (0.07) — Diluted Income (Loss) per share $ 0.79 $ 1.88 $ (0.14) $ 0.20 Antidilutive shares Excluded from Computation of income (loss) per share from continuing operations (in shares) — 5 6 — Antidilutive shares Excluded from Computation of income (loss) per share from discontinued operations (in shares) — — 6 7 Antidilutive shares Excluded from Computation of income (loss) per share (in shares) — — 6 — |
GEOGRAPHICAL INFORMATION
GEOGRAPHICAL INFORMATION | 12 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
GEOGRAPHICAL INFORMATION | GEOGRAPHICAL INFORMATION Total tangible long-lived assets, net of accumulated depreciation, located in the United States, the Company's country of domicile, and similar tangible long-lived assets, net of accumulated depreciation, held outside the United States are summarized in the following table as of March 31, 2021 and March 31, 2020 (in thousands): March 31, March 31, United States $ 8,632 $ 19,086 Foreign 2,018 14,131 Total tangible long-lived assets, net $ 10,650 $ 33,217 The Company’s tangible long-lived assets, net of accumulated depreciation, held outside of the United States represent primarily engines on lease or held for lease at March 31, 2021. The net book value located within each individual country at March 31, 2021 is listed below (in thousands): Country March 31, 2021 March 31, 2020 Netherlands — 4,778 Estonia — 7,408 Macau 1,896 — Mexico — 1,845 Other 122 100 $ 2,018 $ 14,131 Total revenue, located in the United States, and outside the United States is summarized in the following table as of March 31, 2021 and March 31, 2020 (in thousands): March 31, March 31, United States $ 147,010 $ 187,710 Foreign 28,111 49,075 Total revenue $ 175,121 $ 236,785 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company has four reportable segments: overnight air cargo, ground equipment sales, commercial jet engine and parts and corporate and other. Due to insignificance, the Company combined the previous printing and equipment segment into corporate and other. We have presented prior periods based on the current presentation. Segment data is summarized as follows (in thousands): Year Ended March 31, 2021 2020 Operating Revenues: Overnight Air Cargo $ 66,251 $ 75,275 Ground Equipment Sales: Domestic 51,558 54,108 International 9,121 5,048 Total Ground Equipment Sales 60,679 59,156 Commercial Jet Engines and Parts Domestic 28,235 57,528 International 18,558 43,756 Total Commercial Jet Engines and Parts 46,793 101,284 Corporate and Other Domestic 967 799 International 431 271 Total Corporate and Other 1,398 1,070 Total $ 175,121 $ 236,785 Operating Income (Loss): Overnight Air Cargo $ 2,178 $ 749 Ground Equipment Sales 8,948 7,302 Commercial Jet Engines and Parts (10,882) 8,322 Corporate and Other (9,419) (9,082) Total $ (9,175) $ 7,291 Capital Expenditures: Overnight Air Cargo $ 74 $ 299 Ground Equipment Sales 124 881 Commercial Jet Engines and Parts 5,774 34,873 Corporate and Other 33 1,096 Total $ 6,005 $ 37,149 Depreciation and Amortization: Overnight Air Cargo $ 66 $ 72 Ground Equipment Sales 184 261 Commercial Jet Engines and Parts 2,438 4,771 Corporate and Other 419 577 Total $ 3,107 $ 5,681 |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE Basic earnings per share has been calculated by dividing net income attributable to Air T, Inc. stockholders by the weighted average number of common shares outstanding during each period. For purposes of calculating diluted earnings per share, shares issuable under stock options were considered potential common shares and were included in the weighted average common shares unless they were anti-dilutive. The computation of earnings per common share is as follows (in thousands, except per share data): Year Ended March 31, 2021 2020 Net (loss) income from continuing operations $ (8,394) $ 3,168 Net loss (income) from continuing operations attributable to non-controlling interests 1,113 (3,577) Net loss from continuing operations attributable to Air T, Inc. Stockholders (7,281) (409) Loss from continuing operations per share: Basic $ (2.53) $ (0.15) Diluted $ (2.53) $ (0.15) Antidilutive shares Excluded from Computation of loss per share from continuing operations 6 7 Loss from discontinued operations, net of tax — (114) Gain on sale of discontinued operations, net of tax 4 8,179 Gain from discontinued operations attributable to Air T, Inc. stockholders 4 8,065 Income from discontinued operations per share: Basic $ — $ 2.89 Diluted $ — $ 2.88 Antidilutive shares Excluded from Computation of income per share from discontinued operations — — (Loss) Income per share: Basic $ (2.53) $ 2.74 Diluted $ (2.53) $ 2.73 Antidilutive shares Excluded from Computation of (loss) income per share 6 — Weighted Average Shares Outstanding: Basic 2,882 2,791 Diluted 2,882 2,798 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Impact of COVID-19 — As further discussed in Note 1 , the full extent and duration of the impact of COVID-19 on the U.S. and world economies generally, and the Company’s business in particular, is uncertain. As of March 31, 2021, no contingencies have been recorded on the Company’s consolidated balance sheet as a result of COVID-19, however, the global pandemic could have long-term impacts on the Company’s financial condition, results of operations, and cash flows and the pandemic could once again worsen in the future. Refer to Note 1 for further discussion of COVID-19. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Aircraft capital joint venture On May 6, 2021, the Company announced the May 5, 2021 formation of a new aircraft asset management business called Contrail Asset Management, LLC (“CAM”), and a new aircraft capital joint venture called Contrail JV II LLC (“CJVII”). The new joint venture was formed as a scalable asset management platform to complement the Company’s existing operating businesses. The new venture will focus on acquiring commercial aircraft and jet engines for leasing, trading and disassembly. CJVII will target investments in current generation narrow-body aircraft and engines, building on Contrail Aviation’s origination and asset management expertise. CJVII will initially be capitalized with up to $408 million of equity from Air T and three institutional investor partners, consisting of $108 million in initial commitments and $300 million in upsize capacity, contingent on underwriting and transaction appeal. The three investor partners bring significant aviation experience to the joint venture. The Company and Mill Road Capital (“MRC”) have agreed to became common members in CAM, the aircraft asset management business. CAM will serve two separate and distinct functions: 1) to direct the sourcing, acquisition and management of aircraft assets owned by CJVII (“Asset Management Function”), and 2) to directly invest into CJVII alongside other institutional investment partners (“Investment Function”). The Company and its affiliates will perform the services required for the Asset Management Function in exchange for 90% of the economic interest derived therefrom. For the Asset Management Function, CAM will receive origination fees, management fees, consignment fees (where applicable) and a carried interest. For its Investment Function, CAM has an initial commitment to CJVII of approximately $53 million, which is comprised of an $8 million initial commitment from the Company and an approximately $45 million initial commitment from MRC. Any investment returns will be shared pro-rata between the Company and MRC. The CAM LLC Agreement provides that the limited liability company and each series will continue for a period of seven (7) years from the closing date, provided that the term of the company and each series may be extended for two (2) consecutive one-year periods after the initial term. At the Market Offering On May 14, 2021, the Company and Air T Funding (the “Trust”) entered into an At the Market Offering Agreement (the “ATM Agreement”) with Ascendiant Capital Markets, LLC (the “sales agent” or “Ascendiant”), pursuant to which the Trust may sell and issue its Alpha Income Preferred Securities having an aggregate offering price of up to $8 million (the “Capital Securities”) from time to time through Ascendiant, as the Trust’s sales agent (the “ATM Offering”). The Trust has no obligation to sell any of the Capital Securities, and may at any time suspend offers under the ATM Agreement or terminate the ATM Agreement. Sales of the Capital Securities, if any, under the ATM Agreement may be made in transactions that are deemed to be “at-the-market” equity offerings as defined in Rule 415 under the Securities Act of 1933, as amended, including sales made by means of ordinary brokers’ transactions, including on the NASDAQ Stock Market. Subject to the terms and conditions of the ATM Agreement, the sales agent will use its reasonable efforts to sell the Capital Securities from time to time based upon the Trust’s instructions (including any price, time, or size limits or other parameters or conditions the Trust may impose). The Trust or the Company will pay the sales agent a commission of up to 3.0% of the gross sales price of any Capital Securities sold under the ATM Agreement. The Trust has also provided the sales agent with customary indemnification rights. The Capital Securities will be offered and sold pursuant to the Company’s and the Trust’s shelf registration statement on Form S-3 (File Nos. 333-254110-01 and 333-254110). On May 14, 2021, the Company and the Trust filed a prospectus supplement relating to the ATM Offering with the Securities and Exchange Commission. Under the terms of the ATM Agreement, the Trust may also sell Capital Securities to Ascendiant as principal for its own account at a price agreed upon at the time of the sale, subject to the Trust entering into a separate terms agreement with Ascendiant for any such sale. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation – The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries as well as its non-wholly owned subsidiaries, Contrail Aviation and Delphax. All intercompany transactions and balances have been eliminated in consolidation. Certain reclassifications have been made to the prior period amounts to conform to the current presentation. |
Accounting Estimates | Accounting Estimates – The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts of assets and liabilities and amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. COVID-19 and its impact on the current financial, economic and capital markets environment, and future developments in these and other areas present uncertainty and risk with respect to our financial condition and results of operations. Each of our businesses implemented measures to attempt to limit the impact of COVID-19 but we still experienced a number of disruptions, and we experienced and continue to experience a reduction in demand for commercial aircraft, jet engines and parts compared to historical periods. We currently expect that many of our businesses may continue to generate reduced operating cash flow and may operate at a loss during at least the first half of fiscal 2022 and potentially even longer. We expect that these impacts will continue to some extent if the outbreak persists. The fluidity of this situation precludes any prediction as to the ultimate adverse impact of COVID-19 on economic and market conditions, and, as a result, present material uncertainty and risk with respect to us and our results of operations. The Company believes the estimates and assumptions underlying the Company’s consolidated financial statements are reasonable and supportable based on the information available as of March 31, 2021, however; uncertainty over the ultimate impact COVID-19 will have on the global economy generally, and the Company’s business in particular, makes any estimates and assumptions as of March 31, 2021 inherently less certain than they would be absent the current and potential impacts of COVID-19. |
Segments | Segments - The Company has four reportable operating segments: overnight air cargo, ground equipment sales, commercial jet engine and parts and corporate and other. The Company assesses the performance of these segments on an individual basis (see Note 21 ). Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is its Chief Executive Officer. The Company’s Chief Executive Officer reviews financial information by business segment for purposes of allocating resources and evaluating financial performance. Each business segment has separate management teams and infrastructures that offer different products and services. We evaluate the performance of our business segments based on operating income. |
Variable Interest Entities | Variable Interest Entities – In accordance with the applicable accounting guidance for the consolidation of variable interest entities, the Company analyzes its variable interests to determine if an entity in which we have a variable interest is a variable interest entity. Our analysis includes both quantitative and qualitative reviews to determine if we must consolidate a variable interest entity as its primary beneficiary. |
Business Combinations | Business Combinations – The Company accounts for business combinations in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations . Consistent with ASC 805, the Company accounts for each business combination by applying the acquisition method. Under the acquisition method, the Company records the identifiable assets acquired and liabilities assumed at their respective fair values on the acquisition date. Goodwill is recognized for the excess of the purchase consideration over the fair value of identifiable net assets acquired. Included in purchase consideration is the estimated acquisition date fair value of any earn-out obligation incurred. For business combinations where non-controlling interests remain after the acquisition, assets (including goodwill) and liabilities of the acquired business are recorded at the full fair value and the portion of the acquisition date fair value attributable to non-controlling interests is recorded as a separate line item within the equity section or, as applicable to redeemable non-controlling interests, between the liabilities and equity sections of the Company’s consolidated balance sheets . The acquisition method permits the Company a period of time after the acquisition date during which the Company may adjust the provisional amounts recognized in a business combination. This period of time is referred to as the “measurement period”. The measurement period provides an acquirer with a reasonable time to obtain the information necessary to identify and measure the assets acquired and liabilities assumed. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Company reports in its consolidated financial statements provisional amounts for the items for which the accounting is incomplete. Accordingly, the Company is required to recognize adjustments to the provisional amounts, with a corresponding adjustment to goodwill, in the reporting period in which the adjustments to the provisional amounts are determined. Thus, the Company would adjust its consolidated financial statements as needed, including recognizing in its current-period earnings the full effect of changes in depreciation, amortization, or other income effects, by line item, if any, as a result of the change to the provisional amounts calculated as if the accounting had been completed at the acquisition date. Income statement activity of an acquired business is reflected within the Company’s consolidated statements of income commencing with the date of acquisition. Amounts for pre-acquisition periods are excluded. Acquisition-related costs are costs the Company incurs to affect a business combination. Those costs may include such items as finder’s fees, advisory, legal, accounting, valuation, and other professional or consulting fees, and general administrative costs. The Company accounts for such acquisition-related costs as expenses in the period in which the costs are incurred and the services are received. Changes in estimate of the fair value of earn-out obligations subsequent to the acquisition date are not accounted for as part of the acquisition, rather, they are recognized directly in earnings. |
Cash and Cash Equivalents | Cash and Cash Equivalents – Cash equivalents consist of liquid investments with maturities of three months or less when purchased. |
Financial Instruments Designated For Trading | Financial Instruments Designated for Trading – Except for short sales of equity securities, the Company accounts for all other financial instruments (including derivative instruments) designated for trading in accordance with ASC 815. All changes in the fair value of the financial instruments designated for trading are recognized in earnings as they occur. Further, all gains and losses on derivative instruments designated for trading are presented net on the consolidated Statements of Income (Loss). The fair value of derivative instruments designated for trading in a gain position are recorded in Other Current Assets and the fair value of derivative instruments designated for trading in a loss position are recorded in Accrued Expenses and Other on the consolidated Balance Sheets. The Company accounts for short sales of equity securities in accordance with ASC 942 and ASC 860. The obligations incurred in short sales are reported in Accrued Expenses and Other on the consolidated Balance Sheets. They are subsequently measured at fair value through the income statement at each reporting date with gains and losses on securities. Interest on the short positions are accrued periodically and reported as interest expense. The market value of the Company’s equity securities and cash held by the broker are used as collateral against any outstanding margin account borrowings for purposes of short selling equities. This collateral is recorded in Other Current Assets on the consolidated Balance Sheets. The Company reports all cash receipts and payments resulting from the purchases and sales of securities, loans, and other assets that are acquired specifically for resale as operating cash flows. |
Inventories | Inventories – Inventories are carried at the lower of cost or net realizable value. When finished goods units are leased to customers under operating leases, the units are transferred to Assets on Lease or Held For Lease. The classification of cash flows associated with the purchase and sale of finished goods is based on the activity that is likely to be the predominant source or use of cash flows for the items. Consistent with aviation industry practice, the Company includes expendable aircraft parts and supplies in current assets, although a certain portion of these inventories may not be used or sold within one year. The Company periodically evaluates the carrying value of inventory. In these evaluations, the Company is required to make estimates regarding the net realizable value, which includes the consideration of sales patterns and expected future demand. Any slow moving, obsolete or damaged inventory and inventory with costs exceeding net realizable value are evaluated for write-downs. These estimates could vary significantly from actual amounts based upon future economic conditions, customer inventory levels, or competitive factors that were not foreseen or did not exist when the estimated write-downs were made. In accordance with industry practice, all inventories are classified as a current asset including portions with long production cycles, some of which may not be realized within one year. |
Investments under the Equity Method | Investments under the Equity Method – The Company utilizes the equity method to account for investments when the Company possesses the ability to exercise significant influence, but not control, over the operating and financial policies of the investee. The ability to exercise significant influence is presumed when an investor possesses more than 20% of the voting interests of the investee. This presumption may be overcome based on specific facts and circumstances that demonstrate that the ability to exercise significant influence is restricted. The Company applies the equity method to investments in common stock and to other investments when such other investments possess substantially identical subordinated interests to common stock. For investments that have a different fiscal year-end, if the difference is not more than three months, the Company elects a 3-month lag to record the change in the investment. The Company assesses the carrying value of its investments whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. The recoverability is measured by comparing the carrying amount of the investment to the estimated future undiscounted cash flows of the investment, which take into account current, and expectations for future, market conditions and the Company’s intent with respect to holding or disposing of the investment. Changes in economic and operating conditions, including those occurring as a result of the impact of the COVID-19 pandemic, that occur subsequent to a current impairment analysis and the Company’s ultimate use of the investment could impact the assumptions and result in future impairment losses to the investments. If the Company’s analysis indicates that the carrying value is not recoverable on an undiscounted cash flow basis, the Company will recognize an impairment loss for the amount by which the carrying value exceeds the fair value. The fair value is determined through quoted prices in active markets or various valuation techniques, including internally developed discounted cash flow models or comparable market transactions. |
Goodwill | Goodwill - The Company evaluates goodwill on an annual basis or anytime events or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. The Company is permitted to first assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying value, including goodwill. In qualitatively evaluating whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company assesses relevant events and circumstances such as macroeconomic conditions, industry and market developments, cost factors, and the overall financial performance of the reporting unit. If, after assessing these events and circumstances, it is determined that there may be an impairment, then a quantitative analysis is performed. In the first step of the quantitative method, recoverability of goodwill is evaluated by estimating the fair value of the reporting unit’s goodwill using multiple techniques, including a discounted cash flow model income approach and a market approach. The estimated fair value is then compared to the carrying value of the reporting unit. The Company will recognize an impairment charge for the amount by which the carrying value of the reporting unit exceeds its fair value, if any. |
Intangible Assets | Intangible Assets – Amortizable intangible assets consist of acquired patents, tradenames, customer relationships, and other finite-lived identifiable intangibles. Such intangibles are initially recorded at fair value and subsequently subject to amortization. Amortization is recorded using the straight-line method over the estimated useful lives of the assets. In accordance with the applicable accounting guidance, the Company evaluates the recoverability of amortizable intangible assets whenever events occur that indicate potential impairment. In doing so, the Company assesses whether the carrying amount of the asset is unrecoverable by estimating the sum of the future cash flows expected to result from the asset, undiscounted and without interest charges. If the carrying amount is more than the recoverable amount, an impairment charge must be recognized based on the estimated fair value of the asset. |
Property and Equipment and Assets on Lease or Held for Lease | Property and Equipment and Assets on Lease or Held for Lease – Property and equipment is stated initially at cost, or fair value if purchased as part of a business combination. Depreciation and amortization are provided on a straight-line basis over the asset’s useful life. Equipment leased to customers is depreciated using the straight line method. Useful lives range from three years for computer equipment, seven years for flight equipment, ten years for deicers and other equipment leased to customers and thirty years for buildings. Engine assets on lease or held for lease are stated at cost, less accumulated depreciation. Certain costs incurred in connection with the acquisition of engine assets are capitalized as part of the cost of such assets. If assets are not actively being leased (i.e. held for lease), then they are not being depreciated. Major overhauls which improve functionality or extend original useful life are capitalized and depreciated over the engine assets' useful life to a residual value. The Company depreciates the engines on a straight-line basis over the assets' useful life from the acquisition date to a residual value. The Company adjusts its estimates annually for these older generation assets, including updating estimates of an engine’s or aircraft’s remaining operating life. The Company believes this methodology accurately reflects the typical holding period for the assets and, that the residual value assumption, which is dependent on the Company's eventual plan for the engine assets (i.e. whole asset sale, part-out, etc.), reasonably approximates the selling price of the assets. When engine assets are committed for sales, the assets are transferred to Inventory. The classification of cash flows associated with the purchase and sale of engine assets is based on the activity that is likely to be the predominant source or use of cash flows for the items. The Company assesses long-lived assets for impairment when events and circumstances indicate the assets may be impaired and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amount. When evaluating the future cash flows that an asset will generate, we make assumptions regarding the lease market for specific engine models, including estimates of market lease rates and future demand. These assumptions are based upon lease rates that we are obtaining in the current market as well as our expectation of future demand for the specific engine/aircraft model. We determine fair value of the assets by reference to independent appraisals, quoted market prices (e.g., an offer to purchase) and other factors such as current data from manufacturers as well as specific market sales. In the event it is determined that the carrying values of long-lived assets are in excess of the estimated undiscounted cash flows from those assets, the Company then will write-down the value of the assets by the excess of carrying value over fair value. |
Accounting for Debt - Trust Preferred Securities and Warrant Liability | Accounting for Debt - Trust Preferred Securities and Warrant Liability – On June 10, 2019, the Company issued an aggregate of 1.6 million TruPs in the amount of $4.0 million in a non-cash transaction. These TruPs are mandatorily redeemable preferred security obligations of the Company. In accordance with ASC 480, the Company presented mandatorily redeemable preferred securities that do not contain a conversion option as a liability on the balance sheet. In connection with the issuance of the TruPs, the Company also issued an aggregate of 8.4 million warrants (representing warrants to purchase $21.0 million in stated value of TruPs). A warrant for mandatorily redeemable shares conditionally obligates the issuer to ultimately transfer assets—the obligation is conditioned only on the warrant's being exercised because the shares will be redeemed. Thus, warrants for mandatorily redeemable shares are liabilities under ASC 480. Accordingly, the Warrants are recorded within "Other non-current liabilities" on our consolidated balance sheets. As of March 31, 2021, the Warrants are recorded at fair value. Fair value measurement was based on quoted price for a similar asset or liability as observed on the NASDAQ Global Market. The liability is classified as Level 2 in the hierarchy. See Note 5 . |
Income Tax | Income Taxes – Income taxes have been provided using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax laws and rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. A valuation allowance against net deferred tax assets is recorded when it is more likely than not that such assets will not be fully realized. Tax credits are accounted for as a reduction of income taxes in the year in which the credit originates. All deferred income taxes are classified as non-current in the consolidated balance sheets. The Company recognizes the benefit of a tax position taken on a tax return, if that position is more likely than not of being sustained on audit, based on the technical merits of the position. An uncertain income tax position is not recognized if it has a less than a 50% likelihood of being sustained. |
Accounting for Redeemable Non-Controlling Interest | Accounting for Redeemable Non-Controlling Interest – In 2016, in connection with the Company's acquisition of Contrail Aviation, Contrail Aviation entered into an Operating Agreement (the “Operating Agreement”) with the Seller providing for the governance of and the terms of membership interests in Contrail Aviation. The Operating Agreement includes put and call options (“Put/Call Option”) with regard to the 21% non-controlling interest retained by the Seller. The Seller is the founder of Contrail Aviation and its current Chief Executive Officer. The Put/Call Option permits the Seller to require Contrail Aviation to purchase all of the Seller’s equity membership interests in Contrail Aviation commencing on the fifth anniversary of the acquisition, which is on July 18, 2021. Per the agreement, the price is to be agreed upon by the parties or, failing such agreement, to be determined pursuant to third-party appraisals in a process specified in the agreement. Applicable accounting guidance requires an equity instrument that is redeemable for cash or other assets to be classified outside of permanent equity if it is redeemable (a) at a fixed or determinable price on a fixed or determinable date, (b) at the option of the holder, or (c) upon the occurrence of an event that is not solely within the control of the issuer. |
Revenue Recognition | Revenue Recognition – Substantially all of the Company’s revenue is derived from contracts with an initial expected duration of one year or less. As a result, the Company has applied the practical expedient to exclude consideration of significant financing components from the determination of transaction price, to expense costs incurred to obtain a contract, and to not disclose the value of unsatisfied performance obligations.We evaluate gross versus net presentation on revenues from products or services purchased and resold in accordance with the revenue recognition criteria outlined in ASC 606-10, Principal Agent Considerations. |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This standard significantly changes how entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income, including trade receivables. The standard requires an entity to estimate its lifetime “expected credit loss” for such assets at inception, and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The Company adopted this standard on April 1, 2020. As of March 31, 2021, the standard did not have a material impact on the Company's consolidated financial statements and disclosures. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU simplifies how an entity is required to test goodwill for impairment by eliminating Step Two from the goodwill impairment test. Step Two measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under this standard, an entity will recognize an impairment charge for the amount by which the carrying value of a reporting unit exceeds its fair value. The Company adopted this amendment on April 1, 2020. As of March 31, 2021, the amendment did not have a material impact on the Company's consolidated financial statements and disclosures. In October 2018, the FASB updated the Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities of the Accounting Standards Codification. The amendments in this update affect reporting entities that are required to determine whether they should consolidate a legal entity under the guidance within the Variable Interest Entities Subsections of Subtopic 810-10, Consolidation—Overall. Indirect interests held through related parties in common control arrangements should be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests. The Company adopted this amendment on April 1, 2020. As of March 31, 2021, the amendment did not have a material impact on the Company's consolidated financial statements and disclosures. In December 2019, the FASB updated the Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes of the Accounting Standards Codification. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The amendments in this Update simplify the accounting for income taxes by removing the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items (for example, discontinued operations or other comprehensive income), among other changes. The Company early adopted this amendment as of April 1, 2020. The amendment resulted in an immaterial impact to its consolidated financial statements and disclosures. Recently Issued Accounting Pronouncements In January 2020, the FASB updated the Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)—Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. The Company is currently evaluating the impact of this amendment on its consolidated financial statements and disclosures. In March 2020, the FASB issued ASU 2020-04- Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this Update provide optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this Update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. Further, in accordance with the amendments in this Update, an entity may make a one-time election to sell, transfer, or both sell and transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform and that are classified as held to maturity before January 1, 2020. The amendments are effective for all entities from the beginning of an interim period that includes the issuance date of this ASU. An entity may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact of this amendment on our contracts, hedging relationships, and other transactions affected by reference rate reform. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Goodwill | Goodwill consisted of the following (in thousands): Year Ended March 31, 2021 2020 Goodwill, at original cost $ 4,603 $ 4,603 Less accumulated impairment (376) (376) Goodwill, net of impairment $ 4,227 $ 4,227 |
Schedule of Finite-Lived Intangible Assets | The estimated amortizable lives of the intangible assets are as follows: Years Software 3 Trade names 5 Certification 5 Non-compete 5 License 5 Patents 9 Customer relationship 10 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | Summarized results of operations of GAS for the year ended March 31, 2021 and 2020 through the date of disposition are as follows (in thousands): Year ended March 31, March 31, 2021 March 31, 2020 Net sales $ — $ 16,637 Operating Income (Expense) 4 (17,319) Gain/(Loss) from discontinued operations before income taxes 4 (682) Income tax benefit — (568) Income/(Loss) from discontinued operations, net of tax $ 4 $ (114) The following table presents capital expenditures, depreciation and amortization and other significant operating non-cash items of our discontinued operations for fiscal 2021 and 2020 (in thousands): Fiscal year 2021 2020 Capital expenditures — 82 Depreciation and amortization — 165 Goodwill and asset impairments — 405 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following consolidated balance sheet items are measured at fair value on a recurring basis (in thousands): Fair Value Measurements at March 31, 2021 2020 Marketable securities (Level 1) $ 2,914 $ 3,240 Interest rate swaps (Level 2) $ 593 $ 914 Debt - Trust Preferred Securities (Level 2) $ 14,289 12,877 Warrants Liability (Level 2) $ 414 485 Redeemable non-controlling interest (Level 3) $ 6,598 $ 6,080 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The fair value measurements which use significant observable inputs (Level 3), changed due to the following (in thousands): Redeemable Non- Beginning Balance as of April 1, 2020 $ 6,080 Contribution from non-controlling member — Distribution to non-controlling member (1,244) Net loss attributable to non-controlling interests (1,095) Fair value adjustment 2,857 Ending Balance as of March 31, 2021 $ 6,598 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following (in thousands): Year Ended March 31, 2021 2020 Ground equipment manufacturing: Raw materials 4,695 4,192 Work in process 5,820 2,731 Finished goods 1,691 1,725 Corporate and Other: Raw materials 462 464 Finished goods 889 910 Commercial jet engines and parts: 60,516 51,084 Total inventories 74,073 61,106 Reserves (2,102) (483) Total, net of reserves $ 71,971 $ 60,623 |
ASSETS ON LEASE (Tables)
ASSETS ON LEASE (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of Future Fixed Rental Payments | As of March 31, 2021, future minimum rental payments to be received under non-cancelable leases are as follows (in thousands): Year ended March 31, 2022 $ 825 2023 4,262 2024 73 2025 — 2026 — Thereafter — Total $ 5,160 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property and equipment consisted of the following (in thousands): Year Ended March 31, 2021 2020 Furniture, fixtures and equipment $ 4,852 $ 5,243 Leasehold improvements 5,541 2,390 Building 2,636 1,958 13,029 9,591 Less accumulated depreciation (4,510) (4,319) Property and equipment, net $ 8,519 $ 5,272 |
EQUITY METHOD INVESTMENTS (Tabl
EQUITY METHOD INVESTMENTS (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | Summarized audited financial information for the Company's equity method investees for the twelve months ended December 31, 2020 and December 31, 2019 are as follows (in thousands): Twelve Months Ended Twelve Months Ended December 31, 2019 Revenue $ 91,245 $ 108,751 Gross Profit 4,589 7,570 Operating loss (10,551) (2,653) Net loss (1,960) (3,645) Net loss attributable to Air T, Inc. stockholders $ (760) $ (887) |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Year ended March 31, (In thousands) 2021 2020 Salaries, wages and related items $ 5,427 $ 3,616 Profit sharing and bonus 2,706 3,349 Other deposits 1,251 1,722 Other 3,403 4,337 Total $ 12,787 $ 13,024 |
LEASE ARRANGEMENTS (Tables)
LEASE ARRANGEMENTS (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of Lease Cost | The components of lease cost for the twelve months ended March 31, 2021 and 2020 are as follows (in thousands): Twelve Months Ended March 31, 2021 Twelve Months Ended March 31, 2020 Operating lease cost $ 2,134 $ 2,093 Short-term lease cost 316 439 Variable lease cost 760 342 Total lease cost $ 3,210 $ 2,874 Amounts reported in the consolidated balance sheets for leases where we are the lessee as of the years ended March 31, 2021 and 2020 were as follows (in thousands): March 31, 2021 March 31, 2020 Operating leases Operating lease ROU assets $ 7,757 $ 8,116 Operating lease liabilities 8,445 8,647 Weighted-average remaining lease term Operating leases 13 years, 9 months 14 years, 4 months Weighted-average discount rate Operating leases 4.37 % 4.50 % |
Schedule of Maturities of Lease Liabilities under Non-cancellable leases | Maturities of lease liabilities under non-cancellable leases where we are the lessee as of the year ended March 31, 2021 are as follows (in thousands): Operating Leases 2022 $ 1,814 2023 1,680 2024 1,316 2025 1,013 2026 712 Thereafter 5,893 Total undiscounted lease payments 12,428 Less: Interest (3,439) Less: Discount (544) Total lease liabilities $ 8,445 |
FINANCING ARRANGEMENTS (Tables)
FINANCING ARRANGEMENTS (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | March 31, 2021 March 31, 2020 Maturity Date Interest Rate Unused commitments Air T Debt Revolver - MBT $ — $ — 8/31/21 Greater of 2.5% or Prime - 1% $ 17,000 Supplemental Revolver - MBT — 9,550 6/30/20 Greater of 1-month LIBOR + 1.25% or 3% Term Note A - MBT 6,750 7,750 1/1/28 1-month LIBOR + 2% Term Note B - MBT 3,375 3,875 1/1/28 4.50% Term Note D - MBT 1,472 1,540 1/1/28 1-month LIBOR + 2% Term Note E - MBT 4,706 — 6/25/25 Greater of LIBOR + 1.5% or 2.5% Debt - Trust Preferred Securities 14,289 12,877 6/7/49 8% PPP Loan 8,215 — 12/24/22 1 1% Total 38,807 35,592 AirCo 1 Debt Revolver - MBT — 8,335 8/31/21 2 Greater of 6.5% or Prime + 2% — Term Loan - PSB 6,200 — 12/11/25 3-month LIBOR + 3% Total 6,200 8,335 Contrail Debt Revolver - ONB — 21,284 9/5/21 1-month LIBOR + 3.45% 40,000 Term Loan A - ONB — 6,285 1/26/21 1-month LIBOR + 3.75% Term Loan E - ONB — 6,320 12/1/22 1-month LIBOR + 3.75% Term Loan F - ONB — 8,358 5/1/25 1-month LIBOR + 3.75% Term Loan G - ONB 43,598 — 11/24/25 1-month LIBOR + 3.00% Total 43,598 42,247 Delphax Solutions Debt Canadian Emergency Business Account Loan 32 — 12/31/25 5% 32 — Total Debt 88,637 86,174 Less: Unamortized Debt Issuance Costs (1,141) (354) Total Debt, net $ 87,496 $ 85,820 |
Schedule of Maturities of Long-term Debt | At March 31, 2021, our contractual financing obligations, including payments due by period, are as follows (in thousands): Fiscal year ended Amount 2022 $ 5,639 2023 5,711 2024 9,037 2025 9,037 2026 41,163 Thereafter 18,050 88,637 Less: Unamortized Debt Issuance Costs (1,141) $ 87,496 |
Interest Income and Interest Expense Disclosure | The components of net interest expense during the years ended March 31, 2021 and March 31, 2020 are as follows (in thousands): March 31, 2021 March 31, 2020 Contractual interest 4,352 4,458 Amortization of deferred financing costs 288 237 Interest income (16) (3) Total 4,624 4,692 |
EMPLOYEE AND NON-EMPLOYEE STO_2
EMPLOYEE AND NON-EMPLOYEE STOCK OPTIONS (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Option Activity | Option activity during the fiscal years ended March 31, 2020 (retrospectively adjusted to account for the stock split on June 10, 2019) and 2021 is summarized below: Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Life (Years) Aggregate Intrinsic Value Outstanding at March 31, 2019 11,250 $ 6.61 4.07 $ 152,075 Granted — — Exercised — — Forfeited — — Repurchased — — Outstanding at March 31, 2020 11,250 6.61 3.07 66,388 Granted — — Exercised — — Forfeited — — Repurchased — — Outstanding at March 31, 2021 11,250 $ 6.61 2.07 $ 193,063 Exercisable at March 31, 2021 11,250 $ 6.61 2.07 $ 193,063 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Disaggregation of Revenue | The following table summarizes disaggregated revenues by type (in thousands): Year Ended March 31, 2021 March 31, 2020 Product Sales Air Cargo $ 19,892 $ 23,690 Ground equipment sales 59,794 58,082 Commercial jet engines and parts 40,066 86,625 Corporate and other 327 261 Support Services Air Cargo 46,330 51,469 Ground equipment sales 291 485 Commercial jet engines and parts 4,743 3,675 Corporate and other 132 146 Leasing Revenue Air Cargo — — Ground equipment sales 149 189 Commercial jet engines and parts 1,730 10,797 Corporate and other 136 152 Other Air Cargo 29 116 Ground equipment sales 445 400 Commercial jet engines and parts 254 187 Corporate and other 803 511 Total $ 175,121 $ 236,785 |
Contract with Customer, Liability | The following table presents outstanding contract liabilities as of April 1, 2020 and March 31, 2021 and the amount of contract liabilities that were recognized as revenue during the year ended March 31, 2021 (in thousands): Outstanding Contract Liabilities Outstanding Contract Liabilities As of March 31, 2021 $ 1,358 As of April 1, 2020 $ 1,853 For the year ended March 31, 2021 $ 777 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) attributable to (loss) income from continuing operations consists of (in thousands): Year Ended March 31, 2021 2020 Current: Federal $ (3,330) $ 43 State 130 (8) Foreign 39 — Total current (3,161) 35 Deferred: Federal 91 (481) State (317) (98) Total deferred (226) (579) Total $ (3,387) $ (544) |
Schedule of Effective Income Tax Rate Reconciliation | Income tax expense attributable to (loss) income from continuing operations differed from the amounts computed by applying the U.S. Federal income tax rate of 21% to pretax (loss) income from continuing operations as follows (in thousands): Year Ended March 31, 2021 2020 Expected Federal income tax (benefit)/ expense U.S. statutory rate $ (2,472) 21.0 % $ 551 21.0 % State income taxes, net of federal benefit (271) 2.3 % (519) -19.8 % Nontaxable cancellation of debt income — 0.0 % (1,331) -50.7 % Micro-captive insurance benefit (217) 1.8 % (172) -6.6 % Change in valuation allowance 621 -5.3 % (7,789) -296.8 % Income attributable to minority interest - Contrail 247 -2.1 % (325) -12.4 % Write-off Delphax tax attributes — 0.0 % 9,353 356.4 % Acquired Net Operating Loss ("NOL") carrybacks; CARES Act — 0.0 % (363) -13.8 % NOL Carryback - Rate Differential (1,468) 12.5 % — 0.0 % Other differences, net 173 -1.4 % 51 1.9 % Income tax benefit $ (3,387) 28.8 % $ (544) -20.7 % |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities were comprised of the following (in thousands): 2021 2020 Net operating loss & attribute carryforwards $ 4,094 $ 3,524 Unrealized losses on investments 1,504 1,693 Investment in foreign subsidiaries 1,331 1,369 Investment in partnerships 821 840 Lease liabilities 1,999 1,909 Other deferred tax assets 1,991 1,019 Total deferred tax assets 11,740 10,354 Bargain purchase gain (470) (385) Property and equipment (1,184) (485) Right-of-use assets (1,838) (1,791) Capital gain deferment (1,782) (1,700) Other deferred tax liabilities (35) (167) Total deferred tax liabilities (5,309) (4,528) Net deferred tax asset $ 6,431 $ 5,826 Less valuation allowance (7,026) (6,405) Net deferred tax liability $ (595) $ (579) |
QUARTERLY FINANCIAL INFORMATI_2
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Quarterly Financial Data [Abstract] | |
Summary of Quarterly Financial Information | (in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter 2021 Operating Revenues $ 36,970 $ 35,604 $ 55,819 $ 46,728 (Loss) Income from continuing operations, net of tax (956) (3,357) 1,763 (5,844) Less: Loss attributable to non-controlling interests 115 433 335 230 (Loss) Income from continuing operations attributable to Air T, Inc. Stockholders (841) (2,924) 2,098 (5,614) Income from discontinued operations, net of tax — 4 — — Basic (Loss) Income per share from continuing operations (0.29) (1.01) 0.73 (1.96) Basic Income (Loss) per share from discontinued operations — — — — Basic (Loss) Income per share (0.29) (1.01) 0.73 (1.96) Diluted (Loss) Income per share from continuing operations (0.29) (1.01) 0.73 (1.96) Diluted Income (loss) per share from discontinued operations — — — — Diluted Loss per share $ (0.29) $ (1.01) $ 0.73 $ (1.96) Antidilutive shares Excluded from Computation of income (loss) per share from continuing operations (in shares) 5 5 — 8 Antidilutive shares Excluded from Computation of income (loss) per share from discontinued operations (in shares) — — — — Antidilutive shares Excluded from Computation of income (loss) per share (in shares) 5 5 — 8 2020 Operating Revenues $ 47,188 $ 50,693 $ 73,300 $ 65,604 Income (Loss) from continuing operations, net of tax 3,991 (2,122) 581 718 Less: Net (Income) Loss attributable to non-controlling interests (2,373) (287) (789) (128) Income (Loss) from continuing operations attributable to Air T, Inc. Stockholders 1,618 (2,409) (208) 590 Income (Loss) from discontinued operations, net of tax 165 8,124 (222) (2) Basic Income (loss) per share from continuing operations 0.72 (0.80) (0.07) 0.20 Basic Income (Loss) per share from discontinued operations 0.07 2.69 (0.07) — Basic Income (Loss) per share 0.79 1.89 (0.14) 0.20 Diluted Income (Loss) per share from continuing operations 0.72 (0.80) (0.07) 0.20 Diluted Income (loss) per share from discontinued operations 0.07 2.68 (0.07) — Diluted Income (Loss) per share $ 0.79 $ 1.88 $ (0.14) $ 0.20 Antidilutive shares Excluded from Computation of income (loss) per share from continuing operations (in shares) — 5 6 — Antidilutive shares Excluded from Computation of income (loss) per share from discontinued operations (in shares) — — 6 7 Antidilutive shares Excluded from Computation of income (loss) per share (in shares) — — 6 — |
GEOGRAPHICAL INFORMATION (Table
GEOGRAPHICAL INFORMATION (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Long-lived Assets by Geographic Areas | Total tangible long-lived assets, net of accumulated depreciation, located in the United States, the Company's country of domicile, and similar tangible long-lived assets, net of accumulated depreciation, held outside the United States are summarized in the following table as of March 31, 2021 and March 31, 2020 (in thousands): March 31, March 31, United States $ 8,632 $ 19,086 Foreign 2,018 14,131 Total tangible long-lived assets, net $ 10,650 $ 33,217 Country March 31, 2021 March 31, 2020 Netherlands — 4,778 Estonia — 7,408 Macau 1,896 — Mexico — 1,845 Other 122 100 $ 2,018 $ 14,131 |
Revenue from External Customers by Geographic Areas | Total revenue, located in the United States, and outside the United States is summarized in the following table as of March 31, 2021 and March 31, 2020 (in thousands): March 31, March 31, United States $ 147,010 $ 187,710 Foreign 28,111 49,075 Total revenue $ 175,121 $ 236,785 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Segment data is summarized as follows (in thousands): Year Ended March 31, 2021 2020 Operating Revenues: Overnight Air Cargo $ 66,251 $ 75,275 Ground Equipment Sales: Domestic 51,558 54,108 International 9,121 5,048 Total Ground Equipment Sales 60,679 59,156 Commercial Jet Engines and Parts Domestic 28,235 57,528 International 18,558 43,756 Total Commercial Jet Engines and Parts 46,793 101,284 Corporate and Other Domestic 967 799 International 431 271 Total Corporate and Other 1,398 1,070 Total $ 175,121 $ 236,785 Operating Income (Loss): Overnight Air Cargo $ 2,178 $ 749 Ground Equipment Sales 8,948 7,302 Commercial Jet Engines and Parts (10,882) 8,322 Corporate and Other (9,419) (9,082) Total $ (9,175) $ 7,291 Capital Expenditures: Overnight Air Cargo $ 74 $ 299 Ground Equipment Sales 124 881 Commercial Jet Engines and Parts 5,774 34,873 Corporate and Other 33 1,096 Total $ 6,005 $ 37,149 Depreciation and Amortization: Overnight Air Cargo $ 66 $ 72 Ground Equipment Sales 184 261 Commercial Jet Engines and Parts 2,438 4,771 Corporate and Other 419 577 Total $ 3,107 $ 5,681 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The computation of earnings per common share is as follows (in thousands, except per share data): Year Ended March 31, 2021 2020 Net (loss) income from continuing operations $ (8,394) $ 3,168 Net loss (income) from continuing operations attributable to non-controlling interests 1,113 (3,577) Net loss from continuing operations attributable to Air T, Inc. Stockholders (7,281) (409) Loss from continuing operations per share: Basic $ (2.53) $ (0.15) Diluted $ (2.53) $ (0.15) Antidilutive shares Excluded from Computation of loss per share from continuing operations 6 7 Loss from discontinued operations, net of tax — (114) Gain on sale of discontinued operations, net of tax 4 8,179 Gain from discontinued operations attributable to Air T, Inc. stockholders 4 8,065 Income from discontinued operations per share: Basic $ — $ 2.89 Diluted $ — $ 2.88 Antidilutive shares Excluded from Computation of income per share from discontinued operations — — (Loss) Income per share: Basic $ (2.53) $ 2.74 Diluted $ (2.53) $ 2.73 Antidilutive shares Excluded from Computation of (loss) income per share 6 — Weighted Average Shares Outstanding: Basic 2,882 2,791 Diluted 2,882 2,798 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | Jun. 10, 2019USD ($)shares | Apr. 30, 2020USD ($) | Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($) | Dec. 11, 2020USD ($) | Nov. 24, 2020USD ($) |
New Accounting Pronouncements or Change in Accounting Principle | ||||||
Number of reportable segments | segment | 4 | |||||
Goodwill | $ 4,227,000 | $ 4,227,000 | ||||
Redeemable non-controlling interest | 6,598,000 | 6,080,000 | ||||
Noncontrolling interest, period increase (decrease) | 500,000 | |||||
Adjustment to fair value of redeemable non-controlling interest | 2,857,000 | (21,000) | ||||
Passthrough cost | $ 19,900,000 | $ 23,700,000 | ||||
Minimum debt service coverage ratio | 1.25 | |||||
Minimum tangible net worth | $ 15,000,000 | |||||
Commercial Jet Engines and Parts | ||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||
Goodwill | 4,200,000 | |||||
Contrail Agreement | ||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||
Payment Of Capital Commitments | 1,400,000 | |||||
Contrail Agreement | Maximum | ||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||
Capital commitment | 1,600,000 | |||||
Scenario, Plan | ||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||
Minimum tangible net worth | $ 8,000,000 | |||||
AIRT Small Business Administration S B A C A R E S Act Paycheck Protection Program | ||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||
Payments for (proceeds from) loans and leases | $ 8,200,000 | |||||
Term Loan G - ONB | ||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||
Minimum net worth required for compliance | $ 43,600,000 | |||||
Term Loan - PSB | ||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||
Minimum net worth required for compliance | $ 6,200,000 | |||||
Computer Equipment | ||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||
Property, plant and equipment, useful life | 3 years | |||||
Flight Equipment | ||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||
Property, plant and equipment, useful life | 7 years | |||||
Equipment Leased to Other Party | ||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||
Property, plant and equipment, useful life | 10 years | |||||
Building | ||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||
Property, plant and equipment, useful life | 30 years | |||||
Air T Funding | Trust Preferred Capital Security | ||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||
Stock issued during period (in shares) | shares | 1,600,000 | |||||
Stock issued during period | $ 4,000,000 | |||||
Warrant | Air T Funding | ||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||
Stock issued during period (in shares) | shares | 8,400,000 | |||||
Stock issued during period | $ 21,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of goodwill (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Accounting Policies [Abstract] | ||
Goodwill, at original cost | $ 4,603 | $ 4,603 |
Less accumulated impairment | (376) | (376) |
Goodwill, net of impairment | $ 4,227 | $ 4,227 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of finite-lived intangible asset useful lives (Details) | 12 Months Ended |
Mar. 31, 2021 | |
Software | |
Finite-Lived Intangible Assets | |
Intangible asset, useful life (year) | 3 years |
Trade names | |
Finite-Lived Intangible Assets | |
Intangible asset, useful life (year) | 5 years |
Certification | |
Finite-Lived Intangible Assets | |
Intangible asset, useful life (year) | 5 years |
Non-compete | |
Finite-Lived Intangible Assets | |
Intangible asset, useful life (year) | 5 years |
License | |
Finite-Lived Intangible Assets | |
Intangible asset, useful life (year) | 5 years |
Patents | |
Finite-Lived Intangible Assets | |
Intangible asset, useful life (year) | 9 years |
Customer relationship | |
Finite-Lived Intangible Assets | |
Intangible asset, useful life (year) | 10 years |
DISCONTINUED OPERATIONS - Narra
DISCONTINUED OPERATIONS - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2019 | Mar. 31, 2021 | Mar. 31, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||||
Gain on sale of discontinued operations, net of tax | $ 4 | $ 8,179 | ||
Discontinued Operations, Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||||
Gain on sale of discontinued operations, net of tax | $ 8,200 | |||
Discontinued Operations, Disposed of by Sale | Global Aviation Services, LLC | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||||
Ownership percentage | 100.00% | 100.00% | ||
Purchase price consideration | $ 21,000 | $ 21,000 | ||
Consideration earn-out provision | 4,000 | 4,000 | ||
Proceeds from divestiture of businesses | $ 20,500 | |||
Recognition of pre-tax gain on sale of GAS | 10,500 | |||
Tax expense on disposal | 2,300 | |||
Gain on sale of discontinued operations, net of tax | $ 8,200 |
DISCONTINUED OPERATIONS - Incom
DISCONTINUED OPERATIONS - Income Statement Summary of Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||
Income/(Loss) from discontinued operations, net of tax | $ 0 | $ (114) |
Discontinued Operations, Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||
Income tax benefit | 600 | |
Discontinued Operations, Disposed of by Sale | Global Aviation Services, LLC | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||
Net sales | 0 | 16,637 |
Operating Income (Expense) | 4 | (17,319) |
Gain/(Loss) from discontinued operations before income taxes | 4 | (682) |
Income tax benefit | 0 | (568) |
Income/(Loss) from discontinued operations, net of tax | $ 4 | $ (114) |
DISCONTINUED OPERATIONS - Capit
DISCONTINUED OPERATIONS - Capital Expenditures, Depreciation, and Amortization (Details) - Discontinued Operations, Disposed of by Sale - Global Aviation Services, LLC - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||
Capital expenditures | $ 0 | $ 82 |
Depreciation and amortization | 0 | 165 |
Goodwill and asset impairments | $ 0 | $ 405 |
MAJOR CUSTOMER (Details)
MAJOR CUSTOMER (Details) - FedEx Corporation - Customer Concentration Risk | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue Benchmark | ||
Concentration Risk | ||
Concentration risk percentage | 37.00% | 30.00% |
Accounts Receivable | ||
Concentration Risk | ||
Concentration risk percentage | 35.00% | 16.00% |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Variable Interest Entity | |||
Gain on settlement of bankruptcy | $ 0 | $ 4,527,000 | |
Total assets | 140,750,000 | 151,427,000 | |
Total liabilities | 119,438,000 | 120,336,000 | |
Net (loss) income | (8,390,000) | 11,233,000 | |
Operating loss | (9,175,000) | 7,291,000 | |
Non-operating expense, net | (2,606,000) | (4,667,000) | |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity | |||
Gain on settlement of bankruptcy | $ 4,500,000 | 4,500,000 | |
Total assets | 8,000 | 11,000 | |
Total liabilities | 500,000 | 500,000 | |
Net (loss) income | 6,100,000 | ||
Operating loss | $ (48,000) | (200,000) | |
Non-operating expense, net | $ 6,300,000 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Marketable securities (Level 1) | $ 2,914 | $ 3,240 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Interest rate swaps (Level 2) | 593 | 914 |
Debt - Trust Preferred Securities (Level 2) | 14,289 | 12,877 |
Warrants Liability (Level 2) | 414 | 485 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Redeemable non-controlling interest (Level 3) | $ 6,598 | $ 6,080 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - Redeemable Non- Controlling Interest $ in Thousands | 12 Months Ended |
Mar. 31, 2021USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | |
Beginning balance | $ 6,080 |
Contribution from non-controlling member | 0 |
Distribution to non-controlling member | (1,244) |
Net loss attributable to non-controlling interests | (1,095) |
Fair value adjustment | 2,857 |
Ending balance | $ 6,598 |
INVENTORIES - Schedule of Inven
INVENTORIES - Schedule of Inventories (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Inventory, Net | |||
Commercial jet engines and parts: | $ 60,516 | $ 51,084 | |
Total inventories | 74,073 | 61,106 | |
Reserves | (2,102) | (483) | |
Inventories, net | 71,971 | 60,623 | |
Write-down of inventory | 6,405 | 0 | |
Commercial Jet Engines and Parts | |||
Inventory, Net | |||
Write-down of inventory | 6,400 | ||
Ground equipment manufacturing | |||
Inventory, Net | |||
Raw materials | 4,695 | 4,192 | |
Work in process | 5,820 | 2,731 | |
Finished goods | 1,691 | 1,725 | |
Corporate and other | |||
Inventory, Net | |||
Raw materials | 462 | 464 | |
Finished goods | $ 889 | $ 910 | |
Engine | Commercial Jet Engines and Parts | |||
Inventory, Net | |||
Write-down of inventory | $ 500 |
ASSETS ON LEASE - Narratives (D
ASSETS ON LEASE - Narratives (Details) | 12 Months Ended | |
Mar. 31, 2021USD ($)engine | Mar. 31, 2020USD ($) | |
Lessor, Lease, Description | ||
Depreciation and amortization | $ 3,107,000 | $ 5,712,000 |
Contingent rent receivables | 4,900 | 3,700,000 |
Flight Equipment | ||
Lessor, Lease, Description | ||
Depreciation and amortization | $ 1,900,000 | $ 4,400,000 |
Number Of engines (engine) | engine | 1 | |
Fixed engine compensation | $ 3,600,000 | |
Engine compensation | $ 4,100,000 | |
Minimum | ||
Lessor, Lease, Description | ||
Term of contract | 1 year | |
Maximum | ||
Lessor, Lease, Description | ||
Term of contract | 3 years |
ASSETS ON LEASE (Details)
ASSETS ON LEASE (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Lessor, Operating Lease, Payments | |
2022 | $ 825 |
2023 | 4,262 |
2024 | 73 |
2025 | 0 |
2026 | 0 |
Thereafter | 0 |
Total | $ 5,160 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Property, Plant and Equipment, Net | ||
Property and equipment, gross | $ 13,029 | $ 9,591 |
Less accumulated depreciation | (4,510) | (4,319) |
Property and equipment, net | 8,519 | 5,272 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment, Net | ||
Property and equipment, gross | 4,852 | 5,243 |
Leasehold improvements | ||
Property, Plant and Equipment, Net | ||
Property and equipment, gross | 5,541 | 2,390 |
Building | ||
Property, Plant and Equipment, Net | ||
Property and equipment, gross | $ 2,636 | $ 1,958 |
INVESTMENTS IN SECURITIES AND_2
INVESTMENTS IN SECURITIES AND DERIVATIVE INSTRUMENTS - Narratives (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Derivatives, Fair Value | |||
Unrealized loss of interest rate swaps, net of tax | $ 262,000 | $ (529,000) | |
Gross gain from derivative instrument | 800,000 | 1,700 | |
Gross loss from derivative instrument | 23,700 | 300,000 | |
Gain from equity investments | 1,200,000 | 500,000 | |
Loss from equity investments | 1,200,000 | 8,400 | |
Margin accounts outstanding | 0 | 400,000 | |
Cash margin balances related to exchange-traded equity securities | $ 900,000 | 1,300,000 | |
Interest rate on margin account borrowings (percent) | 9.40% | ||
Fair Value, Inputs, Level 2 | |||
Derivatives, Fair Value | |||
Derivative liability | $ 593,000 | 914,000 | |
Interest Rate Swap | |||
Derivatives, Fair Value | |||
Unrealized loss of interest rate swaps, net of tax | (300,000) | 500,000 | |
Interest Rate Swap | Other Noncurrent Liabilities | Fair Value, Inputs, Level 2 | |||
Derivatives, Fair Value | |||
Derivative liability | $ 600,000 | $ 900,000 | |
Term Note A - MBT | Interest Rate Swap | Unsecured Debt | |||
Derivatives, Fair Value | |||
Fixed interest rate | 4.56% | ||
Term Note D - MBT | Interest Rate Swap | Unsecured Debt | |||
Derivatives, Fair Value | |||
Fixed interest rate | 5.09% |
EQUITY METHOD INVESTMENTS - Nar
EQUITY METHOD INVESTMENTS - Narrative (Details) shares in Millions | Dec. 31, 2020USD ($) | Nov. 08, 2019USD ($) | Jun. 10, 2019 | Mar. 31, 2021USD ($)shares | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2020 |
Schedule of Equity Method Investments | |||||||
Equity method investments | $ 4,475,000 | $ 5,208,000 | |||||
Loss from equity method investments | $ (723,000) | $ (910,000) | |||||
Stock split conversion ratio | 1.5 | ||||||
Insignia | |||||||
Schedule of Equity Method Investments | |||||||
Number of shares held (in shares) | shares | 0.5 | ||||||
Ownership percentage | 28.00% | ||||||
Equity method investments | $ 0 | ||||||
Loss from equity method investments | (1,200,000) | $ (1,500,000) | |||||
Difference between carrying amount and underlying equity | (96,100) | ||||||
Stock split conversion ratio | 0.143 | ||||||
Cadillac Castings, Inc | |||||||
Schedule of Equity Method Investments | |||||||
Ownership percentage | 19.90% | 18.98% | |||||
Equity method investments | 3,800,000 | ||||||
Loss from equity method investments | $ 400,000 | ||||||
Difference between carrying amount and underlying equity | $ (49,900) | $ 300,000 | |||||
Payments to acquire additional interest in subsidiaries | $ 2,800,000 |
EQUITY METHOD INVESTMENTS - Sch
EQUITY METHOD INVESTMENTS - Schedule of Equity Method Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments | ||||||||||||
Revenue | $ 46,728 | $ 55,819 | $ 35,604 | $ 36,970 | $ 65,604 | $ 73,300 | $ 50,693 | $ 47,188 | $ 175,121 | $ 236,785 | ||
Operating loss | (9,175) | 7,291 | ||||||||||
Net loss | (7,277) | 7,656 | ||||||||||
Net loss attributable to Air T, Inc. stockholders | $ (723) | $ (910) | ||||||||||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||||||||||
Schedule of Equity Method Investments | ||||||||||||
Revenue | $ 91,245 | $ 108,751 | ||||||||||
Gross Profit | 4,589 | 7,570 | ||||||||||
Operating loss | (10,551) | (2,653) | ||||||||||
Net loss | (1,960) | (3,645) | ||||||||||
Net loss attributable to Air T, Inc. stockholders | $ (760) | $ (887) |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Payables and Accruals [Abstract] | ||
Salaries, wages and related items | $ 5,427 | $ 3,616 |
Profit sharing and bonus | 2,706 | 3,349 |
Other deposits | 1,251 | 1,722 |
Other | 3,403 | 4,337 |
Total | $ 12,787 | $ 13,024 |
LEASE ARRANGEMENTS - Narrative
LEASE ARRANGEMENTS - Narrative (Details) | Mar. 31, 2021 |
Real Estate | |
Lessee, Lease, Description | |
Lease term | 30 years |
Minimum | |
Lessee, Lease, Description | |
Lease term | 2 years |
Maximum | |
Lessee, Lease, Description | |
Lease term | 5 years |
LEASE ARRANGEMENTS - Lease, Cos
LEASE ARRANGEMENTS - Lease, Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 2,134 | $ 2,093 |
Short-term lease cost | 316 | 439 |
Variable lease cost | 760 | 342 |
Total lease cost | 3,210 | 2,874 |
Operating leases | ||
Operating lease ROU assets | 7,757 | 8,116 |
Operating lease liabilities | $ 8,445 | $ 8,647 |
Weighted-average remaining lease term | ||
Operating leases | 13 years 9 months | 14 years 4 months |
Weighted-average discount rate | ||
Operating leases | 4.37% | 4.50% |
LEASE ARRANGEMENTS - Lessee, Op
LEASE ARRANGEMENTS - Lessee, Operating Lease, Liability, Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Leases [Abstract] | ||
2022 | $ 1,814 | |
2023 | 1,680 | |
2024 | 1,316 | |
2025 | 1,013 | |
2026 | 712 | |
Thereafter | 5,893 | |
Total undiscounted lease payments | 12,428 | |
Less: Interest | (3,439) | |
Less: Discount | (544) | |
Total lease liabilities | $ 8,445 | $ 8,647 |
FINANCING ARRANGEMENTS - Schedu
FINANCING ARRANGEMENTS - Schedule of Debt (Details) - USD ($) $ in Thousands | Nov. 24, 2020 | Mar. 31, 2021 | Apr. 13, 2020 | Mar. 31, 2020 |
Debt Instrument | ||||
Long-term debt gross | $ 88,637 | $ 86,174 | ||
Less: Unamortized Debt Issuance Costs | (1,141) | (354) | ||
Total Debt, net | 87,496 | 85,820 | ||
AirCo | Unsecured Debt | ||||
Debt Instrument | ||||
Long-term debt gross | 6,200 | 8,335 | ||
Contrail Aviation Inc. | Unsecured Debt | ||||
Debt Instrument | ||||
Long-term debt gross | 43,598 | 42,247 | ||
Delphax Solutions Debt | Notes Payable to Banks | ||||
Debt Instrument | ||||
Long-term debt gross | 32 | 0 | ||
Revolver - MBT | AirCo | Unsecured Debt | ||||
Debt Instrument | ||||
Long-term debt gross | $ 0 | 8,335 | ||
Interest rate stated percentage (as a percentage) | 6.50% | |||
Unused commitments | $ 0 | |||
Revolver - MBT | AirCo | Prime Rate | Unsecured Debt | ||||
Debt Instrument | ||||
Basis spread on variable rate | 2.00% | |||
Term Loan - PSB | London Interbank Offered Rate (LIBOR) | Unsecured Debt | ||||
Debt Instrument | ||||
Basis spread on variable rate | 3.00% | |||
Term Loan - PSB | AirCo | Unsecured Debt | ||||
Debt Instrument | ||||
Long-term debt gross | $ 6,200 | 0 | ||
Term Loan - PSB | AirCo | 1 Month LIBOR | Unsecured Debt | ||||
Debt Instrument | ||||
Basis spread on variable rate | 3.00% | |||
Revolver - ONB | Contrail Aviation Inc. | Unsecured Debt | ||||
Debt Instrument | ||||
Long-term debt gross | $ 0 | 21,284 | ||
Unused commitments | $ 40,000 | |||
Revolver - ONB | Contrail Aviation Inc. | 1 Month LIBOR | Unsecured Debt | ||||
Debt Instrument | ||||
Basis spread on variable rate | 3.45% | |||
Term Loan A - ONB | Contrail Aviation Inc. | Unsecured Debt | ||||
Debt Instrument | ||||
Long-term debt gross | $ 0 | 6,285 | ||
Term Loan A - ONB | Contrail Aviation Inc. | 1 Month LIBOR | Unsecured Debt | ||||
Debt Instrument | ||||
Basis spread on variable rate | 3.75% | |||
Term Loan E - ONB | Contrail Aviation Inc. | Unsecured Debt | ||||
Debt Instrument | ||||
Long-term debt gross | $ 0 | 6,320 | ||
Term Loan E - ONB | Contrail Aviation Inc. | 1 Month LIBOR | Unsecured Debt | ||||
Debt Instrument | ||||
Basis spread on variable rate | 3.75% | |||
Term Loan F - ONB | Contrail Aviation Inc. | Unsecured Debt | ||||
Debt Instrument | ||||
Long-term debt gross | $ 0 | 8,358 | ||
Term Loan F - ONB | Contrail Aviation Inc. | 1 Month LIBOR | Unsecured Debt | ||||
Debt Instrument | ||||
Basis spread on variable rate | 3.75% | |||
Term Loan G - ONB | London Interbank Offered Rate (LIBOR) | Unsecured Debt | ||||
Debt Instrument | ||||
Basis spread on variable rate | 3.00% | |||
Term Loan G - ONB | Contrail Aviation Inc. | Unsecured Debt | ||||
Debt Instrument | ||||
Long-term debt gross | $ 43,598 | 0 | ||
Term Loan G - ONB | Contrail Aviation Inc. | 1 Month LIBOR | Unsecured Debt | ||||
Debt Instrument | ||||
Basis spread on variable rate | 3.00% | |||
Canadian Emergency Business Account Loan | Delphax Solutions Debt | Notes Payable to Banks | ||||
Debt Instrument | ||||
Long-term debt gross | $ 32 | 0 | ||
Interest rate stated percentage (as a percentage) | 5.00% | |||
Parent Company | Unsecured Debt | ||||
Debt Instrument | ||||
Long-term debt gross | $ 38,807 | 35,592 | ||
Parent Company | Revolver - MBT | Unsecured Debt | ||||
Debt Instrument | ||||
Long-term debt gross | $ 0 | 0 | ||
Interest rate stated percentage (as a percentage) | 2.50% | |||
Unused commitments | $ 17,000 | |||
Parent Company | Revolver - MBT | Prime Rate | Unsecured Debt | ||||
Debt Instrument | ||||
Basis spread on variable rate | 1.00% | |||
Parent Company | Supplemental Revolver - MBT | Unsecured Debt | ||||
Debt Instrument | ||||
Long-term debt gross | $ 0 | 9,550 | ||
Parent Company | Supplemental Revolver - MBT | 1 Month LIBOR | Unsecured Debt | ||||
Debt Instrument | ||||
Basis spread on variable rate | 1.25% | |||
Interest rate stated percentage (as a percentage) | 3.00% | |||
Parent Company | Term Note A - MBT | Unsecured Debt | ||||
Debt Instrument | ||||
Long-term debt gross | $ 6,750 | 7,750 | ||
Parent Company | Term Note A - MBT | 1 Month LIBOR | Unsecured Debt | ||||
Debt Instrument | ||||
Basis spread on variable rate | 2.00% | |||
Parent Company | Term Note B - MBT | Unsecured Debt | ||||
Debt Instrument | ||||
Long-term debt gross | $ 3,375 | 3,875 | ||
Interest rate stated percentage (as a percentage) | 4.50% | |||
Parent Company | Term Note D - MBT | Unsecured Debt | ||||
Debt Instrument | ||||
Long-term debt gross | $ 1,472 | 1,540 | ||
Parent Company | Term Note D - MBT | 1 Month LIBOR | Unsecured Debt | ||||
Debt Instrument | ||||
Basis spread on variable rate | 2.00% | |||
Parent Company | Term Note E - MBT | Unsecured Debt | ||||
Debt Instrument | ||||
Long-term debt gross | $ 4,706 | 0 | ||
Interest rate stated percentage (as a percentage) | 2.50% | |||
Parent Company | Term Note E - MBT | London Interbank Offered Rate (LIBOR) | Unsecured Debt | ||||
Debt Instrument | ||||
Basis spread on variable rate | 1.50% | |||
Parent Company | Debt - Trust Preferred Securities | Unsecured Debt | ||||
Debt Instrument | ||||
Long-term debt gross | $ 14,289 | 12,877 | ||
Interest rate stated percentage (as a percentage) | 8.00% | |||
Parent Company | PPP Loan | Unsecured Debt | ||||
Debt Instrument | ||||
Long-term debt gross | $ 8,215 | $ 0 | ||
Interest rate stated percentage (as a percentage) | 1.00% | 1.00% |
FINANCING ARRANGEMENTS - Narrat
FINANCING ARRANGEMENTS - Narrative (Details) | Nov. 24, 2020USD ($) | Jan. 14, 2020$ / shares | Jun. 10, 2019USD ($)shares | Mar. 31, 2021USD ($)$ / sharesshares | Dec. 11, 2020USD ($) | Apr. 13, 2020USD ($) | Mar. 31, 2020USD ($) |
Debt Instrument | |||||||
Guarantor obligations | $ 1,600,000 | ||||||
Common stock dividend rate percentage | 0.50 | ||||||
Exercise price of warrant (in USD per share) | $ / shares | $ 2.40 | $ 2.40 | |||||
Discount from market price | 4.00% | ||||||
Face value price of warrants (in USD per share) | $ / shares | $ 2.50 | ||||||
Warrant exercised (in shares) | shares | 4,100,000 | ||||||
Long-term debt gross | $ 88,637,000 | $ 86,174,000 | |||||
Warrants outstanding and exercisable (in shares) | shares | 4,300,000 | ||||||
Stock split conversion ratio | 1.5 | ||||||
Short-term Debt | |||||||
Debt Instrument | |||||||
Weighted average interest rate | 0.00% | 3.70% | |||||
PPP Loan | Unsecured Debt | |||||||
Debt Instrument | |||||||
Minimum net worth required for compliance | $ 8,200,000 | ||||||
Term Loan G - ONB | |||||||
Debt Instrument | |||||||
Minimum net worth required for compliance | $ 43,600,000 | ||||||
Term Loan G - ONB | Unsecured Debt | |||||||
Debt Instrument | |||||||
Minimum net worth required for compliance | $ 43,600,000 | ||||||
Debt instrument, periodic payment, principal percentage | 15.00% | ||||||
Debt instrument, capitalized interest rate | 15.00% | ||||||
Debt instrument fee, origination fee percentage | 2.00% | ||||||
Term Loan G - ONB | Unsecured Debt | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument | |||||||
Basis spread on variable rate | 3.00% | ||||||
Term Loan - PSB | |||||||
Debt Instrument | |||||||
Minimum net worth required for compliance | $ 6,200,000 | ||||||
Term Loan - PSB | Unsecured Debt | |||||||
Debt Instrument | |||||||
Minimum net worth required for compliance | $ 6,200,000 | ||||||
Debt instrument, periodic payment, principal percentage | 15.00% | ||||||
Debt instrument fee, origination fee percentage | 2.00% | ||||||
Term Loan - PSB | Unsecured Debt | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument | |||||||
Basis spread on variable rate | 3.00% | ||||||
Parent Company | Unsecured Debt | |||||||
Debt Instrument | |||||||
Long-term debt gross | $ 38,807,000 | $ 35,592,000 | |||||
Parent Company | Term Note A - MBT | Unsecured Debt | |||||||
Debt Instrument | |||||||
Long-term debt gross | 6,750,000 | 7,750,000 | |||||
Parent Company | Term Note D - MBT | Unsecured Debt | |||||||
Debt Instrument | |||||||
Long-term debt gross | 1,472,000 | 1,540,000 | |||||
Parent Company | Term Note E - MBT | |||||||
Debt Instrument | |||||||
Long-term debt gross | 14,300,000 | ||||||
Parent Company | PPP Loan | Unsecured Debt | |||||||
Debt Instrument | |||||||
Long-term debt gross | $ 8,215,000 | $ 0 | |||||
Interest rate stated percentage (as a percentage) | 1.00% | 1.00% | |||||
Air T Funding | Warrant | |||||||
Debt Instrument | |||||||
Stock issued during period (in shares) | shares | 8,400,000 | ||||||
Stock issued during period | $ 21,000,000 | ||||||
Trust Preferred Capital Security | |||||||
Debt Instrument | |||||||
Stated value per share (in USD per share) | $ / shares | $ 25 | ||||||
Stock split conversion ratio | 0.10 | ||||||
Trust Preferred Capital Security | Air T Funding | |||||||
Debt Instrument | |||||||
Stock issued during period (in shares) | shares | 1,600,000 | ||||||
Stock issued during period | $ 4,000,000 |
FINANCING ARRANGEMENTS - Sche_2
FINANCING ARRANGEMENTS - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Long-term Debt, Fiscal Year Maturity | ||
2022 | $ 5,639 | |
2023 | 5,711 | |
2024 | 9,037 | |
2025 | 9,037 | |
2026 | 41,163 | |
Thereafter | 18,050 | |
Long-term debt gross | 88,637 | $ 86,174 |
Less: Unamortized Debt Issuance Costs | (1,141) | (354) |
Total debt, net | $ 87,496 | $ 85,820 |
FINANCING ARRANGEMENTS - Intere
FINANCING ARRANGEMENTS - Interest Income and Interest Expense Disclosure (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Debt Disclosure [Abstract] | ||
Contractual interest | $ 4,352 | $ 4,458 |
Amortization of deferred financing costs | 288 | 237 |
Interest income | (16) | (3) |
Total | $ 4,624 | $ 4,692 |
RELATED PARTY MATTERS (Details)
RELATED PARTY MATTERS (Details) | Dec. 31, 2020 | Jun. 10, 2019 | Mar. 31, 2021USD ($)ft² | Mar. 31, 2020USD ($) | Sep. 30, 2020 | Nov. 08, 2019 |
Related Party Transaction | ||||||
Operating cash payments for operating leases | $ 1,683,000 | $ 1,485,000 | ||||
Stock split conversion ratio | 1.5 | |||||
Cadillac Castings, Inc | ||||||
Related Party Transaction | ||||||
Ownership percentage | 18.98% | 19.90% | ||||
Insignia | ||||||
Related Party Transaction | ||||||
Ownership percentage | 28.00% | |||||
Stock split conversion ratio | 0.143 | |||||
Contrail Aviation Support, Inc. | Contrail | ||||||
Related Party Transaction | ||||||
Area of real estate property | ft² | 21,000 | |||||
Operating cash payments for operating leases | $ 200,000 | |||||
Lessee, operating lease, renewal term | 5 years | |||||
Chief Investment Officer | ||||||
Related Party Transaction | ||||||
Payment for earnest money deposit | $ 50,000 | |||||
Chief Executive Officer | Cadillac Castings, Inc | ||||||
Related Party Transaction | ||||||
Ownership percentage | 66.70% |
EMPLOYEE AND NON-EMPLOYEE STO_3
EMPLOYEE AND NON-EMPLOYEE STOCK OPTIONS - Narrative (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options, grants in period (in shares) | 0 | 0 |
Employee and Non Employee Director Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options, grants in period (in shares) | 0 | 0 |
Stock-based compensation expense | $ 0 | $ 0 |
Unrecognized compensation expense | $ 0 |
EMPLOYEE AND NON-EMPLOYEE STO_4
EMPLOYEE AND NON-EMPLOYEE STOCK OPTIONS - Share-based Payment Arrangement, Option, Activity (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Shares | |||
Outstanding beginning balance (in shares) | 11,250 | 11,250 | |
Granted (in shares) | 0 | 0 | |
Exercised (in shares) | 0 | 0 | |
Forfeited (in shares) | 0 | 0 | |
Repurchased (in shares) | 0 | 0 | |
Outstanding ending balance (in shares) | 11,250 | 11,250 | 11,250 |
Exercisable (in shares) | 11,250 | ||
Weighted Average Exercise Price Per Share | |||
Outstanding beginning balance (in USD per share) | $ 6.61 | $ 6.61 | |
Granted (in USD per share) | 0 | 0 | |
Exercised (in USD per share) | 0 | 0 | |
Forfeited (in USD per share) | 0 | 0 | |
Repurchased (in USD per share) | 0 | 0 | |
Outstanding ending balance (in USD per share) | 6.61 | $ 6.61 | $ 6.61 |
Exercisable (in USD per share) | $ 6.61 | ||
Weighted Average Remaining Life (Years) | 2 years 25 days | 3 years 25 days | 4 years 25 days |
Weighted Average Remaining Life, Exercisable (Years) | 2 years 25 days | ||
Aggregate Intrinsic Value | $ 193,063 | $ 66,388 | $ 152,075 |
Aggregate Intrinsic Value, Exercisable | $ 193,063 |
REVENUE RECOGNITION - Disaggreg
REVENUE RECOGNITION - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue | ||
Revenue | $ 175,121 | $ 236,785 |
Product Sales | Air Cargo | ||
Disaggregation of Revenue | ||
Revenue | 19,892 | 23,690 |
Product Sales | Ground equipment sales | ||
Disaggregation of Revenue | ||
Revenue | 59,794 | 58,082 |
Product Sales | Commercial jet engines and parts | ||
Disaggregation of Revenue | ||
Revenue | 40,066 | 86,625 |
Product Sales | Corporate and other | ||
Disaggregation of Revenue | ||
Revenue | 327 | 261 |
Support Services | Air Cargo | ||
Disaggregation of Revenue | ||
Revenue | 46,330 | 51,469 |
Support Services | Ground equipment sales | ||
Disaggregation of Revenue | ||
Revenue | 291 | 485 |
Support Services | Commercial jet engines and parts | ||
Disaggregation of Revenue | ||
Revenue | 4,743 | 3,675 |
Support Services | Corporate and other | ||
Disaggregation of Revenue | ||
Revenue | 132 | 146 |
Leasing Revenue | Air Cargo | ||
Disaggregation of Revenue | ||
Revenue | 0 | 0 |
Leasing Revenue | Ground equipment sales | ||
Disaggregation of Revenue | ||
Revenue | 149 | 189 |
Leasing Revenue | Commercial jet engines and parts | ||
Disaggregation of Revenue | ||
Revenue | 1,730 | 10,797 |
Leasing Revenue | Corporate and other | ||
Disaggregation of Revenue | ||
Revenue | 136 | 152 |
Other | Air Cargo | ||
Disaggregation of Revenue | ||
Revenue | 29 | 116 |
Other | Ground equipment sales | ||
Disaggregation of Revenue | ||
Revenue | 445 | 400 |
Other | Commercial jet engines and parts | ||
Disaggregation of Revenue | ||
Revenue | 254 | 187 |
Other | Corporate and other | ||
Disaggregation of Revenue | ||
Revenue | $ 803 | $ 511 |
REVENUE RECOGNITION - Contract
REVENUE RECOGNITION - Contract with Customer, Asset and Liability (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2021USD ($) | |
Contract With Customers | |
Contract with customer, liabilities, beginning balance | $ 1,853 |
Outstanding contract liabilities recognized as revenue | 777 |
Contract with customer, liabilities, ending balance | $ 1,358 |
EMPLOYEE BENEFITS (Details)
EMPLOYEE BENEFITS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plan, Expected Future Employer Contributions [Abstract] | ||
Employer discretionary contribution amount | $ 0.5 | $ 0.6 |
Profit sharing expenses | $ 1.5 | $ 3.5 |
INCOME TAXES - Schedule of Comp
INCOME TAXES - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Current: | ||
Federal | $ (3,330) | $ 43 |
State | 130 | (8) |
Foreign | 39 | 0 |
Total current | (3,161) | 35 |
Deferred: | ||
Federal | 91 | (481) |
State | (317) | (98) |
Total deferred | (226) | (579) |
Income tax benefit | $ (3,387) | $ (544) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Aug. 24, 2015 | |
Income Tax Examination | |||
Expected Federal income tax (benefit)/ expense U.S. statutory rate | 21.00% | 21.00% | |
Gain on sale of discontinued operations, net of tax | $ 4 | $ 8,179 | |
Foreign tax credit carryforward | 500 | ||
Change in valuation allowance | 621 | (7,789) | |
Valuation allowance | 7,026 | 6,405 | |
Received refunds | 3,400 | ||
Delphax | |||
Income Tax Examination | |||
Ownership percentage | 67.00% | ||
State | |||
Income Tax Examination | |||
Total operating loss carryforwards | 6,400 | ||
Delphax Solutions | |||
Income Tax Examination | |||
Change in valuation allowance | 300 | ||
Delphax Technologies | |||
Income Tax Examination | |||
Change in valuation allowance | 200 | ||
Delphax | |||
Income Tax Examination | |||
Change in valuation allowance | (100) | (8,900) | |
Delphax | Foreign Tax Authority | |||
Income Tax Examination | |||
Total operating loss carryforwards | 6,100 | ||
Delphax | Foreign Tax Authority | Research Tax Credit Carryforward | |||
Income Tax Examination | |||
Valuation allowance | 5,000 | 4,800 | |
Delphax | Federal Tax Authority | |||
Income Tax Examination | |||
Total operating loss carryforwards | 8,500 | ||
Discontinued Operations, Disposed of by Sale | |||
Income Tax Examination | |||
Income tax benefit (loss) | $ 600 | ||
Gain on sale of discontinued operations, net of tax | $ 8,200 |
INCOME TAXES - Schedule of Effe
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Effective Income Tax Rate Reconciliation, Amount | ||
Expected Federal income tax (benefit)/ expense U.S. statutory rate | $ (2,472) | $ 551 |
State income taxes, net of federal benefit | (271) | (519) |
Nontaxable cancellation of debt income | 0 | (1,331) |
Micro-captive insurance benefit | (217) | (172) |
Change in valuation allowance | 621 | (7,789) |
Income attributable to minority interest - Contrail | 247 | (325) |
Write-off Delphax tax attributes | 0 | 9,353 |
Acquired Net Operating Loss ("NOL") carrybacks; CARES Act | 0 | 363 |
NOL Carryback - Rate Differential | (1,468) | 0 |
Other differences, net | 173 | 51 |
Income tax benefit | $ (3,387) | $ (544) |
Effective Income Tax Rate Reconciliation, Percent | ||
Expected Federal income tax (benefit)/ expense U.S. statutory rate | 21.00% | 21.00% |
State income taxes, net of federal benefit | 2.30% | (19.80%) |
Nontaxable cancellation of debt income | 0.00% | (50.70%) |
Micro-captive insurance benefit | 1.80% | (6.60%) |
Change in valuation allowance | (5.30%) | (296.80%) |
Income attributable to minority interest - Contrail | (2.10%) | (12.40%) |
Write-off Delphax tax attributes | 0.00% | 356.40% |
Acquired Net Operating Loss ("NOL") carrybacks; CARES Act | 0.00% | (13.80%) |
NOL Carryback - Rate Differential | 12.50% | 0.00% |
Other differences, net | (1.40%) | 1.90% |
Income tax benefit | 28.80% | (20.70%) |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Components of Deferred Tax Assets [Abstract] | ||
Net operating loss & attribute carryforwards | $ 4,094 | $ 3,524 |
Unrealized losses on investments | 1,504 | 1,693 |
Investment in foreign subsidiaries | 1,331 | 1,369 |
Investment in partnerships | 821 | 840 |
Lease liabilities | 1,999 | 1,909 |
Other deferred tax assets | 1,991 | 1,019 |
Total deferred tax assets | 11,740 | 10,354 |
Components of Deferred Tax Liabilities [Abstract] | ||
Bargain purchase gain | (470) | (385) |
Property and equipment | (1,184) | (485) |
Right-of-use assets | (1,838) | (1,791) |
Capital gain deferment | (1,782) | (1,700) |
Other deferred tax liabilities | (35) | (167) |
Total deferred tax liabilities | (5,309) | (4,528) |
Net deferred tax asset | 6,431 | 5,826 |
Less valuation allowance | (7,026) | (6,405) |
Net deferred tax liability | $ (595) | $ (579) |
QUARTERLY FINANCIAL INFORMATI_3
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Interim Period, Costs Not Allocable | ||||||||||
Revenue | $ 46,728 | $ 55,819 | $ 35,604 | $ 36,970 | $ 65,604 | $ 73,300 | $ 50,693 | $ 47,188 | $ 175,121 | $ 236,785 |
(Loss) Income from continuing operations, net of tax | (5,844) | 1,763 | (3,357) | (956) | 718 | 581 | (2,122) | 3,991 | (8,394) | 3,168 |
Less: Loss attributable to non-controlling interests | 230 | 335 | 433 | 115 | (128) | (789) | (287) | (2,373) | 1,113 | (3,577) |
(Loss) Income from continuing operations attributable to Air T, Inc. Stockholders | (5,614) | 2,098 | (2,924) | (841) | 590 | (208) | (2,409) | 1,618 | (7,281) | (409) |
Income from discontinued operations, net of tax | $ 0 | $ 0 | $ 4 | $ 0 | $ (2) | $ (222) | $ 8,124 | $ 165 | $ 4 | $ 8,065 |
Basic Income (Loss) per share from continuing operations (in dollars per share) | $ (1.96) | $ 0.73 | $ (1.01) | $ (0.29) | $ 0.20 | $ (0.07) | $ (0.80) | $ 0.72 | $ (2.53) | $ (0.15) |
Basic Income (Loss) per share from discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 | 0 | (0.07) | 2.69 | 0.07 | 0 | 2.89 |
Basic Earnings (Loss) per share (in dollars per share) | (1.96) | 0.73 | (1.01) | (0.29) | 0.20 | (0.14) | 1.89 | 0.79 | (2.53) | 2.74 |
Diluted Income (Loss) per share from continuing operations (in dollars per share) | (1.96) | 0.73 | (1.01) | (0.29) | 0.20 | (0.07) | (0.80) | 0.72 | (2.53) | (0.15) |
Diluted Income (loss) per share from discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 | 0 | (0.07) | 2.68 | 0.07 | 0 | 2.88 |
Diluted Earnings (Loss) per share (in dollars per share) | $ (1.96) | $ 0.73 | $ (1.01) | $ (0.29) | $ 0.20 | $ (0.14) | $ 1.88 | $ 0.79 | $ (2.53) | $ 2.73 |
Antidilutive shares Excluded from Computation of income (loss) per share (in shares) | 8 | 0 | 5 | 5 | 0 | 6 | 0 | 0 | 6,000 | 0 |
Continuing Operations | ||||||||||
Interim Period, Costs Not Allocable | ||||||||||
Antidilutive shares Excluded from Computation of income (loss) per share (in shares) | 8 | 0 | 5 | 5 | 0 | 6 | 5 | 0 | 6,000 | 7,000 |
Discontinued Operations | ||||||||||
Interim Period, Costs Not Allocable | ||||||||||
Antidilutive shares Excluded from Computation of income (loss) per share (in shares) | 0 | 0 | 0 | 0 | 7 | 6 | 0 | 0 | 0 | 0 |
GEOGRAPHICAL INFORMATION - Long
GEOGRAPHICAL INFORMATION - Long-lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Segment Reporting Information | ||
Total tangible long-lived assets, net | $ 10,650 | $ 33,217 |
United States | ||
Segment Reporting Information | ||
Total tangible long-lived assets, net | 8,632 | 19,086 |
Foreign | ||
Segment Reporting Information | ||
Total tangible long-lived assets, net | 2,018 | 14,131 |
Netherlands | ||
Segment Reporting Information | ||
Total tangible long-lived assets, net | 0 | 4,778 |
Estonia | ||
Segment Reporting Information | ||
Total tangible long-lived assets, net | 0 | 7,408 |
Macau | ||
Segment Reporting Information | ||
Total tangible long-lived assets, net | 1,896 | 0 |
Mexico | ||
Segment Reporting Information | ||
Total tangible long-lived assets, net | 0 | 1,845 |
Other | ||
Segment Reporting Information | ||
Total tangible long-lived assets, net | $ 122 | $ 100 |
GEOGRAPHICAL INFORMATION - Reve
GEOGRAPHICAL INFORMATION - Revenue from External Customers by Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue, Major Customer | ||||||||||
Revenues | $ 46,728 | $ 55,819 | $ 35,604 | $ 36,970 | $ 65,604 | $ 73,300 | $ 50,693 | $ 47,188 | $ 175,121 | $ 236,785 |
United States | ||||||||||
Revenue, Major Customer | ||||||||||
Revenues | 147,010 | 187,710 | ||||||||
Foreign | ||||||||||
Revenue, Major Customer | ||||||||||
Revenues | $ 28,111 | $ 49,075 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 12 Months Ended |
Mar. 31, 2021segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 4 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information | ||||||||||
Revenues | $ 46,728 | $ 55,819 | $ 35,604 | $ 36,970 | $ 65,604 | $ 73,300 | $ 50,693 | $ 47,188 | $ 175,121 | $ 236,785 |
Operating loss | (9,175) | 7,291 | ||||||||
Capital expenditures | 6,005 | 37,149 | ||||||||
Depreciation and amortization | 3,107 | 5,681 | ||||||||
Overnight air cargo | ||||||||||
Segment Reporting Information | ||||||||||
Revenues | 66,251 | 75,275 | ||||||||
Ground equipment sales | ||||||||||
Segment Reporting Information | ||||||||||
Revenues | 60,679 | 59,156 | ||||||||
Corporate and other | ||||||||||
Segment Reporting Information | ||||||||||
Revenues | 1,398 | 1,070 | ||||||||
Operating Segments | Overnight air cargo | ||||||||||
Segment Reporting Information | ||||||||||
Revenues | 66,251 | 75,275 | ||||||||
Operating loss | 2,178 | 749 | ||||||||
Capital expenditures | 74 | 299 | ||||||||
Depreciation and amortization | 66 | 72 | ||||||||
Operating Segments | Ground equipment sales | ||||||||||
Segment Reporting Information | ||||||||||
Revenues | 60,679 | 59,156 | ||||||||
Operating loss | 8,948 | 7,302 | ||||||||
Capital expenditures | 124 | 881 | ||||||||
Depreciation and amortization | 184 | 261 | ||||||||
Operating Segments | Ground equipment sales | Domestic | ||||||||||
Segment Reporting Information | ||||||||||
Revenues | 51,558 | 54,108 | ||||||||
Operating Segments | Ground equipment sales | International | ||||||||||
Segment Reporting Information | ||||||||||
Revenues | 9,121 | 5,048 | ||||||||
Operating Segments | Commercial Jet Engines and Parts | ||||||||||
Segment Reporting Information | ||||||||||
Revenues | 46,793 | 101,284 | ||||||||
Operating loss | (10,882) | 8,322 | ||||||||
Capital expenditures | 5,774 | 34,873 | ||||||||
Depreciation and amortization | 2,438 | 4,771 | ||||||||
Operating Segments | Commercial Jet Engines and Parts | Domestic | ||||||||||
Segment Reporting Information | ||||||||||
Revenues | 28,235 | 57,528 | ||||||||
Operating Segments | Commercial Jet Engines and Parts | International | ||||||||||
Segment Reporting Information | ||||||||||
Revenues | 18,558 | 43,756 | ||||||||
Operating Segments | Corporate and other | ||||||||||
Segment Reporting Information | ||||||||||
Revenues | 1,398 | 1,070 | ||||||||
Operating loss | (9,419) | (9,082) | ||||||||
Capital expenditures | 33 | 1,096 | ||||||||
Depreciation and amortization | 419 | 577 | ||||||||
Operating Segments | Corporate and other | Domestic | ||||||||||
Segment Reporting Information | ||||||||||
Revenues | 967 | 799 | ||||||||
Operating Segments | Corporate and other | International | ||||||||||
Segment Reporting Information | ||||||||||
Revenues | $ 431 | $ 271 |
EARNINGS PER COMMON SHARE - Sch
EARNINGS PER COMMON SHARE - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||||||||
Net (Loss) Income from continuing operations | $ (5,844) | $ 1,763 | $ (3,357) | $ (956) | $ 718 | $ 581 | $ (2,122) | $ 3,991 | $ (8,394) | $ 3,168 |
Net Loss (Income) Attributable to Non-controlling Interests | 230 | 335 | 433 | 115 | (128) | (789) | (287) | (2,373) | 1,113 | (3,577) |
Net loss from continuing operations attributable to Air T, Inc. Stockholders | $ (5,614) | $ 2,098 | $ (2,924) | $ (841) | $ 590 | $ (208) | $ (2,409) | $ 1,618 | $ (7,281) | $ (409) |
Loss from continuing operations per share (Note 22) | ||||||||||
Basic (in dollars per share) | $ (1.96) | $ 0.73 | $ (1.01) | $ (0.29) | $ 0.20 | $ (0.07) | $ (0.80) | $ 0.72 | $ (2.53) | $ (0.15) |
Diluted (in dollars per share) | $ (1.96) | $ 0.73 | $ (1.01) | $ (0.29) | $ 0.20 | $ (0.07) | $ (0.80) | $ 0.72 | $ (2.53) | $ (0.15) |
Antidilutive shares Excluded from Computation of income (loss) per share (in shares) | 8 | 0 | 5 | 5 | 0 | 6 | 0 | 0 | 6,000 | 0 |
Loss from discontinued operations, net of tax | $ 0 | $ (114) | ||||||||
Gain on sale of discontinued operations, net of tax | 4 | 8,179 | ||||||||
Gain from discontinued operations attributable to Air T, Inc. stockholders | $ 0 | $ 0 | $ 4 | $ 0 | $ (2) | $ (222) | $ 8,124 | $ 165 | $ 4 | $ 8,065 |
Income from discontinued operations per share: | ||||||||||
Basic (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ (0.07) | $ 2.69 | $ 0.07 | $ 0 | $ 2.89 |
Diluted (in dollars per share) | 0 | 0 | 0 | 0 | 0 | (0.07) | 2.68 | 0.07 | 0 | 2.88 |
(Loss) Income per share: | ||||||||||
Basic (in dollars per share) | (1.96) | 0.73 | (1.01) | (0.29) | 0.20 | (0.14) | 1.89 | 0.79 | (2.53) | 2.74 |
Diluted (in dollars per share) | $ (1.96) | $ 0.73 | $ (1.01) | $ (0.29) | $ 0.20 | $ (0.14) | $ 1.88 | $ 0.79 | $ (2.53) | $ 2.73 |
Weighted Average Shares Outstanding: | ||||||||||
Basic (in shares) | 2,882,000 | 2,791,000 | ||||||||
Diluted (in shares) | 2,882,000 | 2,798,000 | ||||||||
Continuing Operations | ||||||||||
Loss from continuing operations per share (Note 22) | ||||||||||
Antidilutive shares Excluded from Computation of income (loss) per share (in shares) | 8 | 0 | 5 | 5 | 0 | 6 | 5 | 0 | 6,000 | 7,000 |
Discontinued Operations | ||||||||||
Loss from continuing operations per share (Note 22) | ||||||||||
Antidilutive shares Excluded from Computation of income (loss) per share (in shares) | 0 | 0 | 0 | 0 | 7 | 6 | 0 | 0 | 0 | 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | May 14, 2021USD ($) | May 06, 2021USD ($)partner | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) |
Subsequent Event | ||||
Equity method investments | $ 4,475,000 | $ 5,208,000 | ||
Subsequent Event | The Trust | ATM | Preferred Stock | ||||
Subsequent Event | ||||
Sale of stock, agent commission | $ 0.030 | |||
Subsequent Event | The Trust | Maximum | ATM | Preferred Stock | ||||
Subsequent Event | ||||
Shares authorized for distribution, value | $ 8,000,000 | |||
Subsequent Event | C JV II | ||||
Subsequent Event | ||||
Equity method investments | $ 408,000,000 | |||
Number of institutional partners (partner) | partner | 3 | |||
Capital commitment | $ 8,000,000 | |||
Subsequent Event | C JV II | Institutional Investor Partners | ||||
Subsequent Event | ||||
Capital commitment | 108,000,000 | |||
Subsequent Event | C JV II | Institutional Investor Partners | Maximum | ||||
Subsequent Event | ||||
Capital commitment | 300,000,000 | |||
Subsequent Event | C JV II | CAM | ||||
Subsequent Event | ||||
Capital commitment | 53,000,000 | |||
Subsequent Event | C JV II | MRC | ||||
Subsequent Event | ||||
Capital commitment | $ 45,000,000 | |||
Subsequent Event | CAM | ||||
Subsequent Event | ||||
Asset management function in exchange interest | 90.00% |
Uncategorized Items - airt-2021
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201602Member |