Cover
Cover - shares | 3 Months Ended | |
Jun. 30, 2021 | Jul. 31, 2021 | |
Document Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-35476 | |
Entity Registrant Name | Air T, Inc. | |
Entity Incorporation, State | DE | |
Entity Tax Identification Number | 52-1206400 | |
Entity Address, Street Address | 5930 Balsom Ridge Road | |
Entity Address, City | Denver | |
Entity Address, State | NC | |
Entity Address, Zip Code | 28037 | |
City Area Code | 828 | |
Local Phone Number | 464 – 8741 | |
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 Common Stock, Shares Outstanding (in shares) | 2,881,853 | |
Entity Central Index Key | 0000353184 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
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 | |
Cumulative Capital 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 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Loss) - USD ($) shares in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating Revenues: | ||
Total revenue | $ 36,968,000 | $ 36,970,000 |
Operating Expenses: | ||
General and administrative | 8,219,000 | 7,550,000 |
Depreciation and amortization | 380,000 | 609,000 |
Loss (Gain) on sale of property and equipment | 3,000 | (2,000) |
Operating Expenses | 36,972,000 | 37,236,000 |
Operating Loss | (4,000) | (266,000) |
Non-operating Income (Expense): | ||
Interest expense | (939,000) | (1,161,000) |
Gain (Loss) from equity method investments | 83,000 | (558,000) |
Other | 1,182,000 | 729,000 |
Nonoperating income (expense) | 326,000 | (990,000) |
Income (Loss) before income taxes | 322,000 | (1,256,000) |
Income Taxes Benefit | (5,000) | (300,000) |
Net Income (Loss) | 327,000 | (956,000) |
Net (Income) Loss Attributable to Non-controlling Interests | (38,000) | 115,000 |
Net Income (Loss) Attributable to Air T, Inc. Stockholders | $ 289,000 | $ (841,000) |
Income (Loss) per share (Note 5) | ||
Basic (in dollars per share) | $ 0.10 | $ (0.29) |
Diluted (in dollars per share) | $ 0.10 | $ (0.29) |
Weighted Average Shares Outstanding: | ||
Basic (in shares) | 2,882 | 2,882 |
Diluted (in shares) | 2,890 | 2,882 |
Overnight air cargo | ||
Operating Revenues: | ||
Total revenue | $ 18,851,000 | $ 16,171,000 |
Operating Expenses: | ||
Cost of Revenue | 16,744,000 | 14,167,000 |
Operating Loss | 732,000 | 555,000 |
Ground equipment sales | ||
Operating Revenues: | ||
Total revenue | 8,182,000 | 15,828,000 |
Operating Expenses: | ||
Cost of Revenue | 5,529,000 | 12,198,000 |
Operating Loss | 1,423,000 | 2,216,000 |
Commercial jet engines and parts | ||
Operating Revenues: | ||
Total revenue | 9,594,000 | 4,693,000 |
Operating Expenses: | ||
Cost of Revenue | 6,097,000 | 2,714,000 |
Corporate and other | ||
Operating Revenues: | ||
Total revenue | 341,000 | 278,000 |
Operating Expenses: | ||
Operating Loss | $ (1,921,000) | $ (2,135,000) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income (Loss) | $ 327 | $ (956) |
Foreign currency translation loss | (49) | (67) |
Unrealized gain (loss) on interest rate swaps | 11 | (26) |
Reclassification of interest rate swaps into earnings | (1) | 0 |
Total Other Comprehensive Loss | (39) | (93) |
Total Comprehensive Income (Loss) | 288 | (1,049) |
Comprehensive (Income) Loss Attributable to Non-controlling Interests | (38) | 115 |
Comprehensive Income (Loss) Attributable to Air T, Inc. Stockholders | $ 250 | $ (934) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 7,085 | $ 10,996 |
Marketable securities | 2,294 | 1,407 |
Restricted cash | 4,342 | 4,931 |
Restricted investments | 964 | 1,507 |
Accounts receivable, net of allowance for doubtful accounts of $1,515 and $1,177 | 10,915 | 6,505 |
Income tax receivable | 4,394 | 4,389 |
Inventories, net | 75,770 | 71,971 |
Other current assets | 3,666 | 4,068 |
Total Current Assets | 109,430 | 105,774 |
Assets on lease or held for lease, net of accumulated depreciation of $562 and $436 | 2,005 | 2,131 |
Property and equipment, net of accumulated depreciation of $4,622 and $4,510 | 8,457 | 8,519 |
Right-of-use assets | 7,330 | 7,757 |
Equity method investments | 5,643 | 4,475 |
Goodwill | 4,227 | 4,227 |
Other assets | 8,028 | 7,867 |
Total Assets | 145,120 | 140,750 |
Current Liabilities: | ||
Accounts payable | 9,587 | 8,344 |
Income tax payable | 39 | 39 |
Accrued expenses and other (Note 3) | 9,779 | 12,787 |
Current portion of long-term debt | 9,537 | 5,639 |
Short-term lease liability | 1,311 | 1,370 |
Total Current Liabilities | 30,253 | 28,179 |
Long-term debt | 83,804 | 81,857 |
Deferred income tax liabilities, net | 593 | 595 |
Long-term lease liability | 6,761 | 7,075 |
Other non-current liabilities | 1,826 | 1,732 |
Total Liabilities | 123,237 | 119,438 |
Redeemable non-controlling interest | 7,004 | 6,598 |
Commitments and contingencies (Note 13) | ||
Equity: | ||
Preferred stock, $1.00 par value, 50,000 shares authorized | 0 | 0 |
Common stock, $.25 par value; 4,000,000 shares authorized, 3,022,745 shares issued, 2,881,853 shares outstanding | 756 | 756 |
Treasury stock, 140,892 shares at $18.58 | (2,617) | (2,617) |
Additional paid-in capital | 0 | 0 |
Retained earnings | 16,321 | 16,270 |
Accumulated other comprehensive loss | (723) | (684) |
Total Air T, Inc. Stockholders' Equity | 13,737 | 13,725 |
Non-controlling Interests | 1,142 | 989 |
Total Equity | 14,879 | 14,714 |
Total Liabilities and Equity | $ 145,120 | $ 140,750 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1,515 | $ 1,177 |
Assets on lease, accumulated depreciation | 562 | 436 |
Property and equipment, accumulated depreciation | $ 4,622 | $ 4,510 |
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 | 3,022,745 |
Common stock, shares outstanding (in shares) | 2,881,853 | 2,881,853 |
Treasury stock (in shares) | 140,892 | 140,892 |
Treasury stock average price (in dollars per share) | $ 18.58 | $ 18.58 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income (Loss) | $ 327 | $ (956) |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 380 | 609 |
Other | (492) | 369 |
Change in operating assets and liabilities: | ||
Accounts receivable | (4,747) | 2,570 |
Inventories | (3,286) | (663) |
Accounts payable | 1,243 | (3,141) |
Accrued expenses | (3,187) | 971 |
Other | 941 | (3,094) |
Net cash used in operating activities | (8,821) | (3,335) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of marketable securities | 0 | (482) |
Sale of marketable securities | 0 | 658 |
Investment in unconsolidated entities | (1,085) | 0 |
Capital expenditures related to property & equipment | (136) | (586) |
Capital expenditures related to assets on lease or held for lease | 0 | (60) |
Other | (228) | (78) |
Net cash used in investing activities | (1,449) | (548) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from lines of credit | 14,156 | 8,006 |
Payments on lines of credit | (11,636) | (18,205) |
Proceeds from term loan | 0 | 9,478 |
Payments on term loan | (1,042) | (2,437) |
Proceeds from Payroll Protection Program loan ("PPP loan") | 0 | 8,215 |
Proceeds received from issuance of Trust Preferred Securities ("TruPs") | 4,291 | 0 |
Other | 50 | (17) |
Net cash provided by financing activities | 5,819 | 5,040 |
Effect of foreign currency exchange rates on cash and cash equivalents | (49) | (72) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (4,500) | 1,085 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD | 15,927 | 15,571 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | $ 11,427 | $ 16,656 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interests | |
Balance at Mar. 31, 2020 | $ 25,011 | $ 756 | $ (2,617) | $ 2,636 | $ 23,768 | $ (537) | $ 1,005 | |
Balance (in shares) at Mar. 31, 2020 | 3,023 | 141 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income (loss) | [1] | (846) | (841) | (5) | ||||
Unrealized gain (loss) on interest rate swaps, net of tax | (26) | (26) | ||||||
Foreign currency translation loss | (67) | (67) | 0 | |||||
Adjustment to fair value of redeemable non-controlling interests | 429 | 429 | ||||||
Balance at Jun. 30, 2020 | 24,501 | $ 756 | $ (2,617) | 3,065 | 22,927 | (630) | 1,000 | |
Balance (in shares) at Jun. 30, 2020 | 3,023 | 141 | ||||||
Balance at Mar. 31, 2021 | 14,714 | $ 756 | $ (2,617) | 0 | 16,270 | (684) | 989 | |
Balance (in shares) at Mar. 31, 2021 | 3,023 | 141 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income (loss) | [1] | 442 | 289 | 153 | ||||
Unrealized gain (loss) on interest rate swaps, net of tax | 11 | 11 | ||||||
Foreign currency translation loss | (49) | (49) | ||||||
Adjustment to fair value of redeemable non-controlling interests | (238) | (238) | ||||||
Reclassification of interest rate swaps into earnings | (1) | (1) | ||||||
Balance at Jun. 30, 2021 | $ 14,879 | $ 756 | $ (2,617) | $ 0 | $ 16,321 | $ (723) | $ 1,142 | |
Balance (in shares) at Jun. 30, 2021 | 3,023 | 141 | ||||||
[1] | Excludes amount attributable to redeemable non-controlling interest in Contrail. |
Financial Statement Presentatio
Financial Statement Presentation | 3 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Financial Statement Presentation | Financial Statement Presentation The condensed consolidated financial statements of Air T, Inc. (“Air T”, the “Company”, “we”, “us” or “our”) have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of the results for the periods presented have been made. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended March 31, 2021. The results of operations for the period ended June 30, 2021 are not necessarily indicative of the operating results for the full year. Formation of new entities On May 5, 2021, the Company formed 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 Company and Mill Road Capital (“MRC”) have agreed to become common members in CAM. 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”). 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. COVID-19 Pandemic 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 substantial 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. 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. We expect that the impact of COVID-19 will continue to some extent. The fluidity of this situation precludes any prediction as to the ultimate adverse impact of COVID-19 on economic and market conditions and our businesses in particular, and, as a result, present material uncertainty and risk with respect to us and our results of operations. Recently Adopted 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. 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 adopted this amendment on April 1, 2021. As of June 30, 2021, the amendments did not have a material impact on the Company's consolidated financial statements and disclosures. Recently Issued Accounting Pronouncements 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. 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. In July 2021, the FASB updated the Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments. The amendments in this Update address stakeholders’ concerns by amending the lease classification requirements for lessors to align them with practice under Topic 840. Lessors should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if both of the following criteria are met: 1. The lease would have been classified as a sales-type lease or a direct financing lease in accordance with the classification criteria in paragraphs 842-10-25-2 through 25-3. 2. The lessor would have otherwise recognized a day-one loss. When a lease is classified as operating, the lessor does not recognize a net investment in the lease, does not derecognize the underlying asset, and, therefore, does not recognize a selling profit or loss. The leased asset continues to be subject to the measurement and impairment requirements under other applicable GAAP. The amendments in this Update are effective for fiscal years beginning after December 15, 2021, for all entities, and interim periods within those fiscal years for public business entities. The Company is currently evaluating the impact of this amendment on its consolidated financial statements and disclosures. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Substantially all of the Company’s non-lease 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. The following is a description of the Company’s performance obligations: 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. The following table summarizes disaggregated revenues by type (in thousands): Three Months Ended June 30, 2021 2020 Product Sales Air Cargo $ 6,573 $ 4,315 Ground equipment sales 7,998 15,738 Commercial jet engines and parts 7,292 2,695 Corporate and other 76 33 Support Services Air Cargo 12,273 11,850 Ground equipment sales 65 18 Commercial jet engines and parts 2,102 1,625 Corporate and other 64 18 Leasing Revenue Ground equipment sales 39 48 Commercial jet engines and parts 166 373 Corporate and other 38 34 Other Air Cargo 5 6 Ground equipment sales 80 24 Commercial jet engines and parts 35 — Corporate and other 162 193 Total $ 36,968 $ 36,970 See Note 11 for the Company's disaggregated revenues by geographic region and Note 12 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 income and advanced customer deposits with respect to product sales. The following table presents outstanding contract liabilities as of April 1, 2021 and June 30, 2021 and the amount of contract liabilities as of April 1, 2021 that were recognized as revenue during the three-month period ended June 30, 2021 (in thousands): Outstanding contract liabilities Outstanding contract liabilities as of April 1, 2021 As of June 30, 2021 $ 1,957 As of April 1, 2021 1,358 For the quarter ended June 30, 2021 450 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses (in thousands) June 30, 2021 March 31, 2021 Salaries, wages and related items $ 4,659 $ 5,427 Profit sharing and bonus 487 2,706 Other Deposits 1,632 1,251 Other 3,001 3,403 Total $ 9,779 $ 12,787 |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes During the three-month period ended June 30, 2021, the Company recorded $5.0 thousand in income tax benefit at an effective tax rate ("ETR") of (1.6)%. The Company records income taxes using an estimated annual effective tax rate for interim reporting. The primary factors contributing to the difference between the federal statutory rate of 21.0% and the Company's effective tax rate for the three-month period ended June 30, 2021 were the change in valuation allowance related to the Company's subsidiaries in the corporate and other segment, Delphax Solutions, Inc. and Delphax Technologies, Inc. (collectively known as "Delphax") and other capital losses, the estimated benefit for the exclusion of income for the Company's captive insurance company subsidiary ("SAIC") under Section 831(b), and the exclusion from the tax provision of the minority owned portion of the pretax income of Contrail. During the three-month period ended June 30, 2020, the Company recorded $0.3 million in income tax benefit at an ETR of 23.9%. The primary factors contributing to the difference between the federal statutory rate of 21.0% and the Company's effective tax rate for the three-month period ended June 30, 2020 were the change in valuation allowance related to Delphax, the estimated benefit for the exclusion of income for SAIC under Section 831(b) and the exclusion from the tax provision of the minority owned portion of the pretax income of Contrail. |
Net Earnings (Loss) Per Share
Net Earnings (Loss) Per Share | 3 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Earnings (Loss) Per Share | Net Earnings (Loss) Per Share Basic earnings per share has been calculated by dividing net income (loss) attributable to Air T, Inc. stockholders by the weighted average number of common shares outstanding during each period. For purposes of calculating diluted earnings (loss) 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 basic and diluted earnings per common share is as follows (in thousands, except for per share figures): Three Months Ended June 30, 2021 2020 Net income (loss) $ 327 $ (956) Net (income) loss attributable to non-controlling interests (38) 115 Net income (loss) attributable to Air T, Inc. Stockholders 289 (841) Income (Loss) per share: Basic $ 0.10 $ (0.29) Diluted $ 0.10 $ (0.29) Antidilutive shares excluded from computation of income (loss) per share — 5 Weighted Average Shares Outstanding: Basic 2,882 2,882 Diluted 2,890 2,882 |
Investments in Securities and D
Investments in Securities and Derivative Instruments | 3 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [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. 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 condensed consolidated statement of income (loss) 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 June 30, 2021 and March 31, 2021, the fair value of the interest-rate swap contracts was a liability of $0.6 million, which is included within other non-current liabilities in the condensed consolidated balance sheets. During the three months ended June 30, 2021 and June 30, 2020, the Company recorded a gain of approximately $11.0 thousand and a loss of approximately $26.0 thousand, net of tax, in the condensed 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 three months ended June 30, 2021, related to these derivative instruments, the Company did not record any gain or loss. During the three months ended June 30, 2020, related to these derivative instruments, the Company had a gross gain aggregating to $0.4 million and no gross loss. 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 three months ended June 30, 2021, the Company had a gross unrealized gain aggregating to $0.4 million and a gross unrealized loss aggregating to $49.0 thousand. During the three months ended June 30, 2020, the Company had a gross unrealized gain aggregating to $0.6 million and a gross unrealized loss aggregating to $0.4 million. These unrealized gains and losses are included in Other Income (Loss) on the condensed consolidated statement of income (loss). |
Equity Method Investments
Equity Method Investments | 3 Months Ended |
Jun. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments The Company’s investment in Insignia Systems, Inc. (“Insignia”) is accounted for under the equity method of accounting. The Company has elected a three-month lag upon adoption of the equity method. As of June 30, 2021, the number of Insignia's shares owned by the Company was 0.5 million, representing approximately 28% of the outstanding shares. During the fiscal year ended March 31, 2021, due to loss attributions and impairments taken in prior fiscal years, the Company's net investment basis in Insignia was reduced to $0. As such, the Company did not record any additional share of Insignia's net loss as of June 30, 2021. The Company's 18.98% investment in Cadillac Casting, Inc. ("CCI") is accounted for 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. The Company recorded a loss of $0.3 million as its share of CCI's net loss for the three months ended June 30, 2021, along with a basis difference adjustment of $12.0 thousand. The Company's net investment basis in CCI is $3.5 million as of June 30, 2021. Summarized unaudited financial information for the Company's equity method investees for the three months ended March 31, 2021 and 2020 is as follows (in thousands): Three Months Ended March 31, 2021 March 31, 2020 Revenue $ 30,273 $ 21,936 Gross Profit 807 805 Operating loss (3,095) (2,378) Net loss (2,145) (2,286) Net loss attributable to Air T, Inc. stockholders $ (295) $ (570) |
Inventories
Inventories | 3 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in thousands): June 30, March 31, Ground equipment manufacturing: Raw materials $ 4,497 $ 4,695 Work in process 5,360 5,820 Finished goods 7,327 1,691 Corporate and Other: Raw materials 519 462 Finished goods 889 889 Commercial jet engines and parts: 59,014 60,516 Total inventories $ 77,606 $ 74,073 Reserves (1,836) (2,102) Total inventories, net of reserves $ 75,770 $ 71,971 |
Leases
Leases | 3 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases 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 three months ended June 30, 2021 and 2020 are as follows (in thousands): Three Months Ended June 30, 2021 2020 Operating lease cost $ 447 $ 571 Short-term lease cost 282 62 Variable lease cost 147 75 Total lease cost $ 876 $ 708 Amounts reported in the consolidated balance sheets for leases where we are the lessee as of June 30, 2021 and March 31, 2021 were as follows (in thousands): June 30, 2021 March 31, 2021 Operating leases Operating lease right-of-use assets $ 7,330 $ 7,757 Operating lease liabilities 8,072 8,445 Weighted-average remaining lease term Operating leases 14 years 13 years, 9 months Weighted-average discount rate Operating leases 4.4 % 4.4 % Maturities of lease liabilities under non-cancellable leases where we are the lessee as of June 30, 2021 are as follows (in thousands): Operating Leases 2022 (excluding the three months ended June 30, 2021) $ 1,351 2023 1,677 2024 1,314 2025 1,011 2026 712 2027 593 Thereafter 5,300 Total undiscounted lease payments $ 11,958 Less: Interest (3,362) Less: Discount (524) Total lease liabilities $ 8,072 |
Financing Arrangements
Financing Arrangements | 3 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements The Company’s Credit Agreement with Minnesota Bank & Trust, a Minnesota state banking corporation (“MBT”) 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. AirCo 1, LLC ("AirCo 1") and Contrail Aviation Support, LLC ("Contrail") are subsidiaries of the Company in the Commercial Jet Engines and Parts segment. The AirCo 1 Credit Agreement contains an affirmative covenant relating to collateral valuation. The Contrail Credit Agreement 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 tangible net worth ("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 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 $0 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. As of June 30, 2021, the Company, AirCo 1 and Contrail were in compliance with all financial covenants. 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. Contrail and ONB are also in discussions to reduce the minimum TNW covenant 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. On April 13, 2020, the Company entered into a loan with MBT in a principal amount of $8.2 million pursuant to the Payroll Protection Program ("PPP Loan"), backed by the Small Business Administration ("SBA"), under 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 the SBA 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 June 30, 2021, the Company has used the funds received from the PPP loan on eligible expenses as outlined in the CARES Act. The following table provides certain information about the current financing arrangements of the Company's and its subsidiaries as of June 30, 2021: (In Thousands) June 30, March 31, Maturity Date Interest Rate Unused commitments Air T Debt Revolver - MBT $ 2,521 $ — August 31, 2021 Greater of 2.5% or Prime - 1% $ 14,479 Term Note A - MBT $ 6,500 $ 6,750 January 1, 2028 1-month LIBOR + 2% Term Note B - MBT $ 3,250 $ 3,375 January 1, 2028 4.50% Term Note D - MBT $ 1,455 $ 1,472 January 1, 2028 1-month LIBOR + 2% Term Note E - MBT $ 4,056 $ 4,706 June 25, 2025 Greater of LIBOR + 1.5% or 2.5% Debt - Trust Preferred Securities $ 18,580 $ 14,289 June 7, 2049 8.00% PPP Loan $ 8,215 $ 8,215 December 24, 2022 1 1.00% Total $ 44,577 $ 38,807 AirCo 1 Debt Revolver - MBT $ — $ — August 31, 2021 2 Greater of 6.50% or Prime + 2% Term Loan - PSB $ 6,200 $ 6,200 December 11, 2025 3-month LIBOR + 3.00% Total $ 6,200 $ 6,200 Contrail Debt Revolver - ONB $ — $ — September 5, 2021 1-month LIBOR + 3.45% $ 40,000 Term Loan G - ONB $ 43,598 $ 43,598 November 24, 2025 1-month LIBOR + 3.00% Total $ 43,598 $ 43,598 Delphax Solutions Debt Canadian Emergency Business Account Loan $ 33 $ 32 December 31, 2025 5.00% Total $ 33 $ 32 Total Debt $ 94,408 $ 88,637 Less: Unamortized Debt Issuance Costs $ (1,067) $ (1,141) Total Debt, net $ 93,341 $ 87,496 At June 30, 2021, our contractual financing obligations, including payments due by period, are as follows (in thousands): Due by Amount June 30, 2022 $ 9,537 June 30, 2023 4,333 June 30, 2024 9,037 June 30, 2025 13,093 June 30, 2026 36,459 Thereafter 21,949 94,408 Less: Unamortized Debt Issuance Costs (1,067) $ 93,341 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 three securities as 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). • The Company issued and distributed to existing common stockholders an aggregate of 1.6 million trust preferred capital security ("TruPs") shares (aggregate $4.0 million stated value) and an aggregate of 8.4 million warrants ("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 will be $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 June 30, 2021, 4.1 million Warrants have been exercised. At June 30, 2021, the Company had 4.3 million Warrants outstanding and exercisable to purchase shares of its TruPs at an exercise price of $2.40 per one-tenth of a share. On January 11, 2021, the Company announced the extension of the expiration date of the Warrants, previously scheduled to expire on January 15, 2021, to August 30, 2021 or earlier upon redemption or liquidation. On June 23, 2021, the Company announced that it will not extend the expiration date of its Warrants beyond August 30, 2021. Fair Value Measurement as of June 30, 2021 Warrant liability (Level 2) 180,000 As of June 30, 2021, the Warrants are recorded within "Other non-current liabilities" on our condensed consolidated balance sheets. Fair value measurement was based on market activity and trading volume as observed on the NASDAQ Global Market. The liability is classified as Level 2 in the hierarchy (Level 2 is defined as 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). On May 14, 2021, the Company entered into an At the Market Offering Agreement (the “ATM Agreement”) with Ascendiant Capital Markets, LLC (the “sales agent” or “Ascendiant”), pursuant to which it may sell and issue its TruPs having an aggregate offering price of up to $8 million from time to time. The Company has no obligation to sell any TruPs, and may at any time suspend offers under the ATM Agreement or terminate the ATM Agreement. As of June 30, 2021, the Company has sold 184.0 thousand shares of TruPs under the ATM agreement for net proceeds of $4.4 million. |
Geographical Information
Geographical Information | 3 Months Ended |
Jun. 30, 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 held outside the United States are summarized in the following table as of June 30, 2021 and March 31, 2021 (in thousands): June 30, 2021 March 31, 2021 United States $ 8,550 $ 8,632 Foreign 1,912 2,018 Total tangible long-lived assets, net $ 10,462 $ 10,650 The Company's tangible long-lived assets, net of accumulated depreciation, held outside of the United States represent engines and aircraft on lease at June 30, 2021. The net book value located within each individual country at June 30, 2021 and March 31, 2021 is listed below (in thousands): June 30, 2021 March 31, 2021 Macau 1,795 1,896 Other 117 122 Total tangible long-lived assets, net 1,912 2,018 Total revenue, in and outside the United States, is summarized in the following table for the three months ended June 30, 2021 and June 30, 2020 (in thousands): June 30, 2021 June 30, 2020 United States $ 31,769 $ 34,649 Foreign 5,199 2,321 Total revenue 36,968 36,970 |
Segment Information
Segment Information | 3 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has four business segments: overnight air cargo, ground equipment sales, commercial jet engine and parts segment and corporate and other. Due to insignificance, the Company combined the previous printing and equipment segment into corporate and other during the quarter ended September 30, 2020. We have presented prior periods based on the current presentation. Segment data is summarized as follows (in thousands): (In Thousands) Three Months Ended 2021 2020 Operating Revenues by Segment: Overnight Air Cargo Domestic $ 18,768 $ 16,171 International 83 — Total Overnight Air Cargo 18,851 16,171 Ground Equipment Sales: Domestic 5,978 15,811 International 2,204 17 Total Ground Equipment Sales 8,182 15,828 Commercial Jet Engines and Parts: Domestic 6,769 2,470 International 2,825 2,223 Total Commercial Jet Engines and Parts 9,594 4,693 Corporate and other: Domestic 254 197 International 87 81 Total Corporate and other 341 278 Total $ 36,968 $ 36,970 Operating Income (Loss): Overnight Air Cargo 732 555 Ground Equipment Sales 1,423 2,216 Commercial Jet Engines and Parts (238) (902) Corporate and other (1,921) (2,135) Total $ (4) $ (266) Capital Expenditures: Overnight Air Cargo 23 51 Ground Equipment Sales 13 111 Commercial Jet Engines and Parts 92 457 Corporate and other 8 27 Total $ 136 $ 646 Depreciation and Amortization: Overnight Air Cargo 13 16 Ground Equipment Sales 32 68 Commercial Jet Engines and Parts 265 382 Corporate and other 70 143 Total $ 380 $ 609 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contrail Aviation entered into an Operating Agreement (the “Contrail Operating Agreement”) in connection with the acquisition of Contrail Aviation in 1996 providing for the governance of and the terms of membership interests in Contrail Aviation and including put and call options with the Seller of Contrail (“Contrail Put/Call Option”). The Contrail 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 was on July 18, 2021. The Company has presented this redeemable non-controlling interest in Contrail Aviation ("Contrail RNCI") between the liabilities and equity sections of the accompanying condensed consolidated balance sheets. In addition, the Company has elected to recognize changes in the redemption value immediately as they occur and adjust the carrying amount of the instrument to equal the redemption value at the end of each reporting period. The fair value of the redeemable non-controlling interest is $7.0 million as of June 30, 2021. The change in the redemption value compared to March 31, 2021 is an increase of $0.4 million. The increase was driven by $0.3 million of contributions made from the non-controlling interest and $0.2 million of the net change in fair value, partially offset by $0.1 million of net loss attributable to the non-controlling interest during the three months ended June 30, 2021. As of the date of this filing, neither the Seller nor Air T has indicated the intent to exercise the put and call options. If either side were to exercise the option, the Company anticipates that the price would approximate the fair value of the Contrail RNCI, as determined on the transaction date. The Company currently expects that it would fund any required payment from cash provided by operations. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsManagement performs an evaluation of events that occur after the balance sheet date but before condensed consolidated financial statements are issued for potential recognition or disclosure of such events in its condensed consolidated financial statements. |
Financial Statement Presentat_2
Financial Statement Presentation (Policies) | 3 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Pronouncements | Recently Adopted 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. 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 adopted this amendment on April 1, 2021. As of June 30, 2021, the amendments did not have a material impact on the Company's consolidated financial statements and disclosures. Recently Issued Accounting Pronouncements 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. 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. In July 2021, the FASB updated the Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments. The amendments in this Update address stakeholders’ concerns by amending the lease classification requirements for lessors to align them with practice under Topic 840. Lessors should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if both of the following criteria are met: 1. The lease would have been classified as a sales-type lease or a direct financing lease in accordance with the classification criteria in paragraphs 842-10-25-2 through 25-3. 2. The lessor would have otherwise recognized a day-one loss. When a lease is classified as operating, the lessor does not recognize a net investment in the lease, does not derecognize the underlying asset, and, therefore, does not recognize a selling profit or loss. The leased asset continues to be subject to the measurement and impairment requirements under other applicable GAAP. The amendments in this Update are effective for fiscal years beginning after December 15, 2021, for all entities, and interim periods within those fiscal years for public business entities. The Company is currently evaluating the impact of this amendment on its consolidated financial statements and disclosures. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Performance Obligation Terms | The following is a description of the Company’s performance obligations: 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. |
Disaggregation of Revenue | The following table summarizes disaggregated revenues by type (in thousands): Three Months Ended June 30, 2021 2020 Product Sales Air Cargo $ 6,573 $ 4,315 Ground equipment sales 7,998 15,738 Commercial jet engines and parts 7,292 2,695 Corporate and other 76 33 Support Services Air Cargo 12,273 11,850 Ground equipment sales 65 18 Commercial jet engines and parts 2,102 1,625 Corporate and other 64 18 Leasing Revenue Ground equipment sales 39 48 Commercial jet engines and parts 166 373 Corporate and other 38 34 Other Air Cargo 5 6 Ground equipment sales 80 24 Commercial jet engines and parts 35 — Corporate and other 162 193 Total $ 36,968 $ 36,970 |
Contract with Customer, Asset and Liability | The following table presents outstanding contract liabilities as of April 1, 2021 and June 30, 2021 and the amount of contract liabilities as of April 1, 2021 that were recognized as revenue during the three-month period ended June 30, 2021 (in thousands): Outstanding contract liabilities Outstanding contract liabilities as of April 1, 2021 As of June 30, 2021 $ 1,957 As of April 1, 2021 1,358 For the quarter ended June 30, 2021 450 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule Accrued Expenses | (in thousands) June 30, 2021 March 31, 2021 Salaries, wages and related items $ 4,659 $ 5,427 Profit sharing and bonus 487 2,706 Other Deposits 1,632 1,251 Other 3,001 3,403 Total $ 9,779 $ 12,787 |
Net Earnings (Loss) Per Share (
Net Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The computation of basic and diluted earnings per common share is as follows (in thousands, except for per share figures): Three Months Ended June 30, 2021 2020 Net income (loss) $ 327 $ (956) Net (income) loss attributable to non-controlling interests (38) 115 Net income (loss) attributable to Air T, Inc. Stockholders 289 (841) Income (Loss) per share: Basic $ 0.10 $ (0.29) Diluted $ 0.10 $ (0.29) Antidilutive shares excluded from computation of income (loss) per share — 5 Weighted Average Shares Outstanding: Basic 2,882 2,882 Diluted 2,890 2,882 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized Unaudited Financial Information | Summarized unaudited financial information for the Company's equity method investees for the three months ended March 31, 2021 and 2020 is as follows (in thousands): Three Months Ended March 31, 2021 March 31, 2020 Revenue $ 30,273 $ 21,936 Gross Profit 807 805 Operating loss (3,095) (2,378) Net loss (2,145) (2,286) Net loss attributable to Air T, Inc. stockholders $ (295) $ (570) |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories consisted of the following (in thousands): June 30, March 31, Ground equipment manufacturing: Raw materials $ 4,497 $ 4,695 Work in process 5,360 5,820 Finished goods 7,327 1,691 Corporate and Other: Raw materials 519 462 Finished goods 889 889 Commercial jet engines and parts: 59,014 60,516 Total inventories $ 77,606 $ 74,073 Reserves (1,836) (2,102) Total inventories, net of reserves $ 75,770 $ 71,971 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Lease, Cost | The components of lease cost for the three months ended June 30, 2021 and 2020 are as follows (in thousands): Three Months Ended June 30, 2021 2020 Operating lease cost $ 447 $ 571 Short-term lease cost 282 62 Variable lease cost 147 75 Total lease cost $ 876 $ 708 Amounts reported in the consolidated balance sheets for leases where we are the lessee as of June 30, 2021 and March 31, 2021 were as follows (in thousands): June 30, 2021 March 31, 2021 Operating leases Operating lease right-of-use assets $ 7,330 $ 7,757 Operating lease liabilities 8,072 8,445 Weighted-average remaining lease term Operating leases 14 years 13 years, 9 months Weighted-average discount rate Operating leases 4.4 % 4.4 % |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities under non-cancellable leases where we are the lessee as of June 30, 2021 are as follows (in thousands): Operating Leases 2022 (excluding the three months ended June 30, 2021) $ 1,351 2023 1,677 2024 1,314 2025 1,011 2026 712 2027 593 Thereafter 5,300 Total undiscounted lease payments $ 11,958 Less: Interest (3,362) Less: Discount (524) Total lease liabilities $ 8,072 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table provides certain information about the current financing arrangements of the Company's and its subsidiaries as of June 30, 2021: (In Thousands) June 30, March 31, Maturity Date Interest Rate Unused commitments Air T Debt Revolver - MBT $ 2,521 $ — August 31, 2021 Greater of 2.5% or Prime - 1% $ 14,479 Term Note A - MBT $ 6,500 $ 6,750 January 1, 2028 1-month LIBOR + 2% Term Note B - MBT $ 3,250 $ 3,375 January 1, 2028 4.50% Term Note D - MBT $ 1,455 $ 1,472 January 1, 2028 1-month LIBOR + 2% Term Note E - MBT $ 4,056 $ 4,706 June 25, 2025 Greater of LIBOR + 1.5% or 2.5% Debt - Trust Preferred Securities $ 18,580 $ 14,289 June 7, 2049 8.00% PPP Loan $ 8,215 $ 8,215 December 24, 2022 1 1.00% Total $ 44,577 $ 38,807 AirCo 1 Debt Revolver - MBT $ — $ — August 31, 2021 2 Greater of 6.50% or Prime + 2% Term Loan - PSB $ 6,200 $ 6,200 December 11, 2025 3-month LIBOR + 3.00% Total $ 6,200 $ 6,200 Contrail Debt Revolver - ONB $ — $ — September 5, 2021 1-month LIBOR + 3.45% $ 40,000 Term Loan G - ONB $ 43,598 $ 43,598 November 24, 2025 1-month LIBOR + 3.00% Total $ 43,598 $ 43,598 Delphax Solutions Debt Canadian Emergency Business Account Loan $ 33 $ 32 December 31, 2025 5.00% Total $ 33 $ 32 Total Debt $ 94,408 $ 88,637 Less: Unamortized Debt Issuance Costs $ (1,067) $ (1,141) Total Debt, net $ 93,341 $ 87,496 |
Schedule of Maturities of Long-term Debt | At June 30, 2021, our contractual financing obligations, including payments due by period, are as follows (in thousands): Due by Amount June 30, 2022 $ 9,537 June 30, 2023 4,333 June 30, 2024 9,037 June 30, 2025 13,093 June 30, 2026 36,459 Thereafter 21,949 94,408 Less: Unamortized Debt Issuance Costs (1,067) $ 93,341 |
Schedule of Warrant Fair Value | Fair Value Measurement as of June 30, 2021 Warrant liability (Level 2) 180,000 |
Geographical Information (Table
Geographical Information (Tables) | 3 Months Ended |
Jun. 30, 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 held outside the United States are summarized in the following table as of June 30, 2021 and March 31, 2021 (in thousands): June 30, 2021 March 31, 2021 United States $ 8,550 $ 8,632 Foreign 1,912 2,018 Total tangible long-lived assets, net $ 10,462 $ 10,650 The Company's tangible long-lived assets, net of accumulated depreciation, held outside of the United States represent engines and aircraft on lease at June 30, 2021. The net book value located within each individual country at June 30, 2021 and March 31, 2021 is listed below (in thousands): June 30, 2021 March 31, 2021 Macau 1,795 1,896 Other 117 122 Total tangible long-lived assets, net 1,912 2,018 |
Revenue from External Customers by Geographic Areas | Total revenue, in and outside the United States, is summarized in the following table for the three months ended June 30, 2021 and June 30, 2020 (in thousands): June 30, 2021 June 30, 2020 United States $ 31,769 $ 34,649 Foreign 5,199 2,321 Total revenue 36,968 36,970 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Segment data is summarized as follows (in thousands): (In Thousands) Three Months Ended 2021 2020 Operating Revenues by Segment: Overnight Air Cargo Domestic $ 18,768 $ 16,171 International 83 — Total Overnight Air Cargo 18,851 16,171 Ground Equipment Sales: Domestic 5,978 15,811 International 2,204 17 Total Ground Equipment Sales 8,182 15,828 Commercial Jet Engines and Parts: Domestic 6,769 2,470 International 2,825 2,223 Total Commercial Jet Engines and Parts 9,594 4,693 Corporate and other: Domestic 254 197 International 87 81 Total Corporate and other 341 278 Total $ 36,968 $ 36,970 Operating Income (Loss): Overnight Air Cargo 732 555 Ground Equipment Sales 1,423 2,216 Commercial Jet Engines and Parts (238) (902) Corporate and other (1,921) (2,135) Total $ (4) $ (266) Capital Expenditures: Overnight Air Cargo 23 51 Ground Equipment Sales 13 111 Commercial Jet Engines and Parts 92 457 Corporate and other 8 27 Total $ 136 $ 646 Depreciation and Amortization: Overnight Air Cargo 13 16 Ground Equipment Sales 32 68 Commercial Jet Engines and Parts 265 382 Corporate and other 70 143 Total $ 380 $ 609 |
Financial Statement Presentat_3
Financial Statement Presentation - Textual (Details) - CJVII - Capital Commitments - USD ($) $ in Millions | Jun. 30, 2021 | May 07, 2021 |
New Accounting Pronouncements or Change in Accounting Principle | ||
Other commitments | $ 6.9 | $ 8 |
CAM | ||
New Accounting Pronouncements or Change in Accounting Principle | ||
Other commitments | 53 | |
MRC | ||
New Accounting Pronouncements or Change in Accounting Principle | ||
Other commitments | $ 43.9 | $ 45 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue | ||
Revenue from customer contracts | $ 36,968 | $ 36,970 |
Total revenue | 36,968 | 36,970 |
Air Cargo | ||
Disaggregation of Revenue | ||
Revenue from customer contracts | 18,851 | 16,171 |
Total revenue | 18,851 | 16,171 |
Air Cargo | Product Sales | ||
Disaggregation of Revenue | ||
Revenue from customer contracts | 6,573 | 4,315 |
Air Cargo | Support Services | ||
Disaggregation of Revenue | ||
Revenue from customer contracts | 12,273 | 11,850 |
Air Cargo | Other | ||
Disaggregation of Revenue | ||
Revenue not from customer contracts | 5 | 6 |
Ground equipment sales | ||
Disaggregation of Revenue | ||
Revenue from customer contracts | 8,182 | 15,828 |
Total revenue | 8,182 | 15,828 |
Ground equipment sales | Product Sales | ||
Disaggregation of Revenue | ||
Revenue from customer contracts | 7,998 | 15,738 |
Ground equipment sales | Support Services | ||
Disaggregation of Revenue | ||
Revenue from customer contracts | 65 | 18 |
Ground equipment sales | Leasing Revenue | ||
Disaggregation of Revenue | ||
Revenue not from customer contracts | 39 | 48 |
Ground equipment sales | Other | ||
Disaggregation of Revenue | ||
Revenue not from customer contracts | 80 | 24 |
Commercial jet engines and parts | ||
Disaggregation of Revenue | ||
Total revenue | 9,594 | 4,693 |
Commercial jet engines and parts | Product Sales | ||
Disaggregation of Revenue | ||
Revenue from customer contracts | 7,292 | 2,695 |
Commercial jet engines and parts | Support Services | ||
Disaggregation of Revenue | ||
Revenue from customer contracts | 2,102 | 1,625 |
Commercial jet engines and parts | Leasing Revenue | ||
Disaggregation of Revenue | ||
Revenue not from customer contracts | 166 | 373 |
Commercial jet engines and parts | Other | ||
Disaggregation of Revenue | ||
Revenue not from customer contracts | 35 | 0 |
Corporate and other | ||
Disaggregation of Revenue | ||
Revenue from customer contracts | 341 | 278 |
Total revenue | 341 | 278 |
Corporate and other | Product Sales | ||
Disaggregation of Revenue | ||
Revenue from customer contracts | 76 | 33 |
Corporate and other | Support Services | ||
Disaggregation of Revenue | ||
Revenue from customer contracts | 64 | 18 |
Corporate and other | Leasing Revenue | ||
Disaggregation of Revenue | ||
Revenue not from customer contracts | 38 | 34 |
Corporate and other | Other | ||
Disaggregation of Revenue | ||
Revenue not from customer contracts | $ 162 | $ 193 |
Revenue Recognition - Contract
Revenue Recognition - Contract with Customer, Asset and Liability (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2021USD ($) | |
Contract With Customers | |
Contract with customer, liabilities, beginning balance | $ 1,358 |
Outstanding contract liabilities recognized as revenue | 450 |
Contract with customer, liabilities, ending balance | $ 1,957 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Payables and Accruals [Abstract] | ||
Salaries, wages and related items | $ 4,659 | $ 5,427 |
Profit sharing and bonus | 487 | 2,706 |
Other Deposits | 1,632 | 1,251 |
Other | 3,001 | 3,403 |
Total | $ 9,779 | $ 12,787 |
Income Taxes - Textual (Details
Income Taxes - Textual (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income tax benefit | $ 5,000 | $ 300,000 |
Effective income tax rate, percent | (1.60%) | 23.90% |
Net Earnings (Loss) Per Share -
Net Earnings (Loss) Per Share - Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||
Net (Loss) Income | $ 327 | $ (956) |
Net (income) loss attributable to non-controlling interests | (38) | 115 |
Net Income (Loss) Attributable to Air T, Inc. Stockholders | $ 289 | $ (841) |
Income (Loss) per share (Note 5) | ||
Basic (in dollars per share) | $ 0.10 | $ (0.29) |
Diluted (in dollars per share) | $ 0.10 | $ (0.29) |
Antidilutive shares excluded from computation of income (loss) per share (shares) | 0 | 5,000 |
Weighted Average Shares Outstanding: | ||
Basic (in shares) | 2,882,000 | 2,882,000 |
Diluted (in shares) | 2,890,000 | 2,882,000 |
Investments in Securities and_2
Investments in Securities and Derivative Instruments - Textual (Details) - USD ($) | 3 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | |
Derivatives, Fair Value | |||
Unrealized gain (loss) on interest rate swaps | $ 11,000 | $ (26,000) | |
Gain from equity investments | 400,000 | 600,000 | |
Loss from equity investments | 49,000 | 400,000 | |
Margin accounts outstanding | 0 | 2,400,000 | |
Cash margin balances related to exchange-traded equity securities | 22,000 | 3,000,000 | |
Level 1 | |||
Derivatives, Fair Value | |||
Gross gain from derivative instrument | 400,000 | ||
Gross loss from derivative instrument | 0 | ||
Interest Rate Swap | |||
Derivatives, Fair Value | |||
Unrealized gain (loss) on interest rate swaps | 11,000 | $ (26,000) | |
Interest Rate Swap | Level 2 | Other non-current liabilities | |||
Derivatives, Fair Value | |||
Derivative liability | $ 600,000 | $ 600,000 | |
Unsecured Debt | Interest Rate Swap | Term Note A - MBT | |||
Derivatives, Fair Value | |||
Interest rate | 4.56% | ||
Unsecured Debt | Interest Rate Swap | Term Note D - MBT | |||
Derivatives, Fair Value | |||
Interest rate | 5.09% |
Equity Method Investments- Text
Equity Method Investments- Textuals (Details) shares in Millions | Dec. 31, 2020 | Jun. 04, 2019 | Jun. 30, 2021USD ($)shares | Jun. 30, 2020USD ($) | Mar. 31, 2021USD ($) | Sep. 30, 2020 | Nov. 08, 2019USD ($) |
Schedule of Equity Method Investments | |||||||
Equity method investments | $ 5,643,000 | $ 4,475,000 | |||||
Loss from equity method investments | $ (83,000) | $ 558,000 | |||||
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 | 0 | ||||||
Stock split conversion ratio | 0.143 | ||||||
Cadillac Castings, Inc | |||||||
Schedule of Equity Method Investments | |||||||
Ownership percentage | 18.98% | ||||||
Equity method investments | 3,500,000 | ||||||
Loss from equity method investments | 300,000 | ||||||
Difference between carrying amount and underlying equity | $ 300,000 | ||||||
Investment realized gain (loss) on disposal | $ (12,000) |
Equity Method Investments - Sum
Equity Method Investments - Summarized Unaudited Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | |
Schedule of Equity Method Investments | ||||
Revenue | $ 36,968 | $ 36,970 | ||
Operating loss | (4) | (266) | ||
Net loss | 289 | (841) | ||
Net loss attributable to Air T, Inc. stockholders | $ 83 | $ (558) | ||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||
Schedule of Equity Method Investments | ||||
Revenue | $ 30,273 | $ 21,936 | ||
Gross Profit | 807 | 805 | ||
Operating loss | (3,095) | (2,378) | ||
Net loss | (2,145) | (2,286) | ||
Net loss attributable to Air T, Inc. stockholders | $ (295) | $ (570) |
Inventories - Inventories (Deta
Inventories - Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Corporate and Other: | ||
Commercial jet engines and parts: | $ 59,014 | $ 60,516 |
Total inventories | 77,606 | 74,073 |
Reserves | (1,836) | (2,102) |
Total inventories, net of reserves | 75,770 | 71,971 |
Ground equipment manufacturing: | ||
Ground equipment manufacturing: | ||
Raw materials | 4,497 | 4,695 |
Work in process | 5,360 | 5,820 |
Finished goods | 7,327 | 1,691 |
Corporate and Other: | ||
Raw materials | 4,497 | 4,695 |
Finished goods | 7,327 | 1,691 |
Corporate and Other: | ||
Ground equipment manufacturing: | ||
Raw materials | 519 | 462 |
Finished goods | 889 | 889 |
Corporate and Other: | ||
Raw materials | 519 | 462 |
Finished goods | $ 889 | $ 889 |
Leases - Textual (Details)
Leases - Textual (Details) | Jun. 30, 2021 |
Minimum | |
Lessee, Lease, Description | |
Lease term | 2 years |
Maximum | |
Lessee, Lease, Description | |
Lease term | 5 years |
Real Estate | |
Lessee, Lease, Description | |
Lease term | 30 years |
Leases - Component of Lease Cos
Leases - Component of Lease Cost and Consolidated Balance Sheet Amounts (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | |
Leases [Abstract] | |||
Operating lease cost | $ 447 | $ 571 | |
Short-term lease cost | 282 | 62 | |
Variable lease cost | 147 | 75 | |
Total lease cost | 876 | $ 708 | |
Operating leases | |||
Operating lease right-of-use assets | 7,330 | $ 7,757 | |
Operating lease liabilities | $ 8,072 | $ 8,445 | |
Weighted-average remaining lease term | |||
Operating leases | 14 years | 13 years 9 months | |
Weighted-average discount rate | |||
Operating leases | 4.40% | 4.40% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Operating Leases | ||
2022 (excluding the three months ended June 30, 2021) | $ 1,351 | |
2023 | 1,677 | |
2024 | 1,314 | |
2025 | 1,011 | |
2026 | 712 | |
2027 | 593 | |
Thereafter | 5,300 | |
Total undiscounted lease payments | 11,958 | |
Less: Interest | (3,362) | |
Less: Discount | (524) | |
Total lease liabilities | $ 8,072 | $ 8,445 |
Financing Arrangements - Textua
Financing Arrangements - Textual (Details) | Jan. 14, 2020$ / shares | Jun. 10, 2019USD ($)shares | Jun. 04, 2019 | Jun. 30, 2021USD ($)$ / sharesshares | May 14, 2021USD ($) | Apr. 13, 2020USD ($) |
Debt Instrument | ||||||
Common stock dividend rate percentage | 50.00% | |||||
Stock split conversion ratio | 1.5 | |||||
Exercise price of warrants (in usd per share) | $ / shares | $ 2.40 | $ 2.40 | ||||
Discount from market price (as a percentage) | 4.00% | |||||
Face value price of warrant (in usd per share) | $ / shares | $ 2.50 | |||||
Warrants exercised (in shares) | shares | 4,100,000 | |||||
Warrants outstanding and exercisable (in shares) | shares | 4,300,000 | |||||
Trust Preferred Capital Security | ||||||
Debt Instrument | ||||||
Stock split conversion ratio | 0.10 | |||||
Stockholders equity note stock split stated value per share (in dollars per share) | $ / shares | $ 25 | |||||
Trust Preferred Capital Security | ATM | ||||||
Debt Instrument | ||||||
Issuance of Common Stock (in shares) | shares | 184,000 | |||||
Shares authorized for distribution | $ 8,000,000 | |||||
Proceeds from sale | $ 4,400,000 | |||||
Amount outstanding | 18,600,000 | |||||
ONB | ||||||
Debt Instrument | ||||||
Required principal balance to extend date for compliance | 0 | |||||
Air T Funding | Trust Preferred Capital Security | ||||||
Debt Instrument | ||||||
Issuance of Common Stock (in shares) | shares | 1,600,000 | |||||
Value of new issues | $ 4,000,000 | |||||
Air T Funding | Warrant | ||||||
Debt Instrument | ||||||
Issuance of Common Stock (in shares) | shares | 8,400,000 | |||||
Value of new issues | $ 21,000,000 | |||||
Scenario, Plan | Contrail Aviation Inc. | ||||||
Debt Instrument | ||||||
Minimum net worth required for compliance | $ 8,000,000 | |||||
MBT Credit Agreement | ||||||
Debt Instrument | ||||||
Minimum debt service coverage ratio | 1.25 | |||||
Contrail Credit Agreement | ||||||
Debt Instrument | ||||||
Minimum debt service coverage ratio | 1.25 | |||||
Minimum net worth required for compliance | $ 15,000,000 | |||||
Unsecured Debt | PPP Loan | MBT | ||||||
Debt Instrument | ||||||
Principle amount | $ 8,200,000 | |||||
Unsecured Debt | PPP Loan | Parent Company | ||||||
Debt Instrument | ||||||
Interest rate stated percentage (as a percentage) | 1.00% | 1.00% | ||||
Unsecured Debt | Debt - Trust Preferred Securities | Parent Company | ||||||
Debt Instrument | ||||||
Interest rate stated percentage (as a percentage) | 8.00% |
Financing Arrangements - Long-t
Financing Arrangements - Long-term Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2021 | Mar. 31, 2021 | Apr. 13, 2020 | |
Debt Instrument | |||
Long-term debt, gross | $ 94,408 | $ 88,637 | |
Less: Unamortized Debt Issuance Costs | (1,067) | (1,141) | |
Total Debt, net | 93,341 | 87,496 | |
Unsecured Debt | AirCo 1 | |||
Debt Instrument | |||
Long-term debt, gross | 6,200 | 6,200 | |
Unsecured Debt | Contrail Aviation Inc. | |||
Debt Instrument | |||
Long-term debt, gross | 43,598 | 43,598 | |
Unsecured Debt | Revolver - MBT | AirCo 1 | |||
Debt Instrument | |||
Long-term debt, gross | $ 0 | 0 | |
Interest rate stated percentage (as a percentage) | 6.50% | ||
Unsecured Debt | Term Loan - PSB | AirCo 1 | |||
Debt Instrument | |||
Long-term debt, gross | $ 6,200 | 6,200 | |
Unsecured Debt | Revolver - ONB | Contrail Aviation Inc. | |||
Debt Instrument | |||
Long-term debt, gross | 0 | 0 | |
Unused commitments | 40,000 | ||
Unsecured Debt | Term Loan G - ONB | Contrail Aviation Inc. | |||
Debt Instrument | |||
Long-term debt, gross | $ 43,598 | 43,598 | |
Unsecured Debt | Prime Rate | Revolver - MBT | AirCo 1 | |||
Debt Instrument | |||
Basis spread on variable rate | 2.00% | ||
Unsecured Debt | 1-month LIBOR | Revolver - ONB | Contrail Aviation Inc. | |||
Debt Instrument | |||
Basis spread on variable rate | 3.45% | ||
Unsecured Debt | 1-month LIBOR | Term Loan G - ONB | Contrail Aviation Inc. | |||
Debt Instrument | |||
Basis spread on variable rate | 3.00% | ||
Unsecured Debt | 3-month LIBOR | Term Loan - PSB | AirCo 1 | |||
Debt Instrument | |||
Basis spread on variable rate | 3.00% | ||
Unsecured Debt | Parent Company | |||
Debt Instrument | |||
Long-term debt, gross | $ 44,577 | 38,807 | |
Unsecured Debt | Parent Company | Revolver - MBT | |||
Debt Instrument | |||
Long-term debt, gross | 2,521 | 0 | |
Unused commitments | 14,479 | ||
Unsecured Debt | Parent Company | Term Note A - MBT | |||
Debt Instrument | |||
Long-term debt, gross | 6,500 | 6,750 | |
Unsecured Debt | Parent Company | Term Note B - MBT | |||
Debt Instrument | |||
Long-term debt, gross | $ 3,250 | 3,375 | |
Interest rate stated percentage (as a percentage) | 4.50% | ||
Unsecured Debt | Parent Company | Term Note D - MBT | |||
Debt Instrument | |||
Long-term debt, gross | $ 1,455 | 1,472 | |
Unsecured Debt | Parent Company | Term Note E - MBT | |||
Debt Instrument | |||
Long-term debt, gross | $ 4,056 | 4,706 | |
Interest rate stated percentage (as a percentage) | 2.50% | ||
Unsecured Debt | Parent Company | Debt - Trust Preferred Securities | |||
Debt Instrument | |||
Long-term debt, gross | $ 18,580 | 14,289 | |
Interest rate stated percentage (as a percentage) | 8.00% | ||
Unsecured Debt | Parent Company | PPP Loan | |||
Debt Instrument | |||
Long-term debt, gross | $ 8,215 | 8,215 | |
Interest rate stated percentage (as a percentage) | 1.00% | 1.00% | |
Unsecured Debt | Parent Company | Prime Rate | Revolver - MBT | |||
Debt Instrument | |||
Basis spread on variable rate | 1.00% | ||
Unsecured Debt | Parent Company | LIBOR | Revolver - MBT | |||
Debt Instrument | |||
Basis spread on variable rate | 2.50% | ||
Unsecured Debt | Parent Company | LIBOR | Term Note E - MBT | |||
Debt Instrument | |||
Basis spread on variable rate | 1.50% | ||
Unsecured Debt | Parent Company | 1-month LIBOR | Term Note A - MBT | |||
Debt Instrument | |||
Basis spread on variable rate | 2.00% | ||
Unsecured Debt | Parent Company | 1-month LIBOR | Term Note D - MBT | |||
Debt Instrument | |||
Basis spread on variable rate | 2.00% | ||
Notes Payable to Banks | Delphax Solutions Debt | |||
Debt Instrument | |||
Long-term debt, gross | $ 33 | 32 | |
Notes Payable to Banks | Canadian Emergency Business Account Loan | Delphax Solutions Debt | |||
Debt Instrument | |||
Long-term debt, gross | $ 33 | $ 32 | |
Interest rate stated percentage (as a percentage) | 5.00% |
Financing Arrangements - Contra
Financing Arrangements - Contractual Financing Obligations (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Due by | ||
June 30, 2022 | $ 9,537 | |
June 30, 2023 | 4,333 | |
June 30, 2024 | 9,037 | |
June 30, 2025 | 13,093 | |
June 30, 2026 | 36,459 | |
Thereafter | 21,949 | |
Long-term debt, gross | 94,408 | $ 88,637 |
Less: Unamortized Debt Issuance Costs | (1,067) | (1,141) |
Total Debt, net | $ 93,341 | $ 87,496 |
Financing Arrangements - Schedu
Financing Arrangements - Schedule of Warrant Fair Value (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Debt Disclosure [Abstract] | |
Warrant liability (Level 2) | $ 180 |
Geographical Information - Long
Geographical Information - Long-lived Assets By Geographic Region (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Revenues from External Customers and Long-Lived Assets | ||
Total tangible long-lived assets, net | $ 10,462 | $ 10,650 |
United States | ||
Revenues from External Customers and Long-Lived Assets | ||
Total tangible long-lived assets, net | 8,550 | 8,632 |
Foreign | ||
Revenues from External Customers and Long-Lived Assets | ||
Total tangible long-lived assets, net | 1,912 | 2,018 |
Macau | ||
Revenues from External Customers and Long-Lived Assets | ||
Total tangible long-lived assets, net | 1,795 | 1,896 |
Other | ||
Revenues from External Customers and Long-Lived Assets | ||
Total tangible long-lived assets, net | $ 117 | $ 122 |
Geographical Information - Reve
Geographical Information - Revenue by Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue, Major Customer | ||
Total revenue | $ 36,968 | $ 36,970 |
United States | ||
Revenue, Major Customer | ||
Total revenue | 31,769 | 34,649 |
Foreign | ||
Revenue, Major Customer | ||
Total revenue | $ 5,199 | $ 2,321 |
Segment Information - Textual (
Segment Information - Textual (Details) | 3 Months Ended |
Jun. 30, 2021segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 4 |
Segment Information - Segment D
Segment Information - Segment Data (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information | ||
Operating revenues | $ 36,968 | $ 36,970 |
Operating income (loss) | (4) | (266) |
Capital expenditures | 136 | 646 |
Depreciation and amortization | 380 | 609 |
Air Cargo | ||
Segment Reporting Information | ||
Operating revenues | 18,851 | 16,171 |
Operating income (loss) | 732 | 555 |
Capital expenditures | 23 | 51 |
Depreciation and amortization | 13 | 16 |
Air Cargo | Domestic | ||
Segment Reporting Information | ||
Operating revenues | 18,768 | 16,171 |
Air Cargo | International | ||
Segment Reporting Information | ||
Operating revenues | 83 | 0 |
Ground equipment sales | ||
Segment Reporting Information | ||
Operating revenues | 8,182 | 15,828 |
Operating income (loss) | 1,423 | 2,216 |
Capital expenditures | 13 | 111 |
Depreciation and amortization | 32 | 68 |
Ground equipment sales | Domestic | ||
Segment Reporting Information | ||
Operating revenues | 5,978 | 15,811 |
Ground equipment sales | International | ||
Segment Reporting Information | ||
Operating revenues | 2,204 | 17 |
Commercial Jet Engines and Parts | ||
Segment Reporting Information | ||
Operating revenues | 9,594 | 4,693 |
Operating income (loss) | (238) | (902) |
Capital expenditures | 92 | 457 |
Depreciation and amortization | 265 | 382 |
Commercial Jet Engines and Parts | Domestic | ||
Segment Reporting Information | ||
Operating revenues | 6,769 | 2,470 |
Commercial Jet Engines and Parts | International | ||
Segment Reporting Information | ||
Operating revenues | 2,825 | 2,223 |
Corporate and other | ||
Segment Reporting Information | ||
Operating revenues | 341 | 278 |
Operating income (loss) | (1,921) | (2,135) |
Capital expenditures | 8 | 27 |
Depreciation and amortization | 70 | 143 |
Corporate and other | Domestic | ||
Segment Reporting Information | ||
Operating revenues | 254 | 197 |
Corporate and other | International | ||
Segment Reporting Information | ||
Operating revenues | $ 87 | $ 81 |
Commitments and Contingencies -
Commitments and Contingencies - Textual (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Mar. 31, 2021 | May 07, 2021 | |
Long-termCommitment | |||
Fair value of redeemable non-controlling interest | $ 7,000 | ||
Change in redemption value | $ 400 | ||
Contributions from redeemable non-controlling interest | 300 | ||
Adjustment to fair value of redeemable non-controlling interests | 200 | ||
Net loss attributable to and and distributions non-controlling interest | 100 | ||
CJVII | Capital Commitments | |||
Long-termCommitment | |||
Other commitments | 6,900 | $ 8,000 | |
CAM | CJVII | Capital Commitments | |||
Long-termCommitment | |||
Other commitments | 53,000 | ||
MRC | CJVII | Capital Commitments | |||
Long-termCommitment | |||
Other commitments | $ 43,900 | $ 45,000 |