Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Dec. 31, 2015 | Jan. 29, 2016 | |
Entity Registrant Name | AIR T INC | |
Entity Central Index Key | 353,184 | |
Trading Symbol | airt | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 2,372,527 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Overnight Air Cargo [Member] | ||||
Operating Revenues | $ 18,674,458 | $ 12,973,810 | $ 48,949,401 | $ 36,626,144 |
Depreciation and amortization | 37,068 | 39,371 | 106,161 | 118,411 |
Operating Income | 1,413,667 | 602,776 | 3,394,326 | 1,425,692 |
Ground Equipment Sales [Member] | ||||
Operating Revenues | 20,344,287 | 12,639,354 | 45,666,664 | 35,902,468 |
Depreciation and amortization | 165,401 | 135,585 | 364,465 | 393,767 |
Operating Income | 3,874,921 | 1,704,445 | 8,013,932 | 4,448,349 |
Ground Support Services [Member] | ||||
Operating Revenues | 6,559,110 | 5,279,822 | 17,974,239 | 14,767,637 |
Depreciation and amortization | 60,993 | 40,645 | 149,560 | 126,540 |
Operating Income | 25,829 | $ 262,099 | (392,002) | $ 574,212 |
Printing Equipment and Maintenance [Member] | ||||
Operating Revenues | 1,035,000 | 1,035,000 | ||
Depreciation and amortization | 17,000 | 17,000 | ||
Operating Income | (883,000) | (883,000) | ||
Leasing [Member] | ||||
Operating Revenues | 5,718 | 5,718 | ||
Depreciation and amortization | 2,195 | 2,195 | ||
Operating Income | 1,378 | 1,378 | ||
Operating Revenues | 46,618,573 | $ 30,892,986 | 113,631,022 | $ 87,296,249 |
Flight-air cargo | 9,823,987 | 5,641,402 | 25,597,653 | 15,943,068 |
Maintenance-air cargo | 6,499,073 | 6,174,155 | 17,061,811 | 16,684,148 |
Ground equipment sales | 14,629,183 | 9,474,732 | 33,229,603 | 27,429,825 |
Ground support services | 5,358,593 | $ 4,366,863 | 15,137,050 | $ 12,160,830 |
Printing equipment and maintenance | 1,376,000 | 1,376,000 | ||
Research and development | 216,000 | 216,000 | ||
General and administrative | 4,585,364 | $ 3,654,280 | 12,050,479 | $ 10,636,068 |
Depreciation and amortization | 296,474 | 221,654 | 667,595 | 660,825 |
Gain on sale of property and equipment | (56,218) | (780,920) | (50,837) | (1,054,781) |
42,728,456 | 28,752,166 | 105,285,354 | 82,459,983 | |
Operating Income | 3,890,117 | 2,140,820 | 8,345,668 | 4,836,266 |
Non-operating Income (Expense): | ||||
Realized gain | $ 4,163 | 78 | $ 4,163 | 8,487 |
Investment income | 970 | 8,698 | ||
Interest expense and other | $ 50,920 | (2,798) | $ 21,289 | (19,079) |
55,083 | (1,750) | 25,452 | (1,894) | |
Income Before Income Taxes | 3,945,200 | 2,139,070 | 8,371,120 | 4,834,372 |
Income Taxes | 1,499,000 | 690,617 | 2,867,000 | 1,494,821 |
Net Income | 2,446,200 | $ 1,448,453 | 5,504,120 | $ 3,339,551 |
Net Loss Attributable to the Non-controlling Interest | 525,140 | 525,140 | ||
Net Income Attributable to Air T, Inc. Stockholders | $ 2,971,340 | $ 1,448,453 | $ 6,029,260 | $ 3,339,551 |
Earnings Per Share: | ||||
Basic (in dollars per share) | $ 1.25 | $ 0.61 | $ 2.54 | $ 1.42 |
Diluted (in dollars per share) | $ 1.24 | $ 0.61 | $ 2.52 | $ 1.41 |
Weighted Average Shares Outstanding: | ||||
Basic (in shares) | 2,372,527 | 2,357,637 | 2,372,527 | 2,355,901 |
Diluted (in shares) | 2,396,999 | 2,381,214 | 2,396,645 | 2,373,500 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income | $ 2,446,200 | $ 1,448,453 | $ 5,504,120 | $ 3,339,551 |
Other comprehensive income (loss): | ||||
Foreign currency translation | (18,000) | (18,000) | ||
Unrealized gains on investment securities available for sale | 1,030,265 | $ 672,620 | 163,835 | $ 550,787 |
Tax effect of unrealized gains on investment securities available for sale | (370,895) | (242,139) | (58,981) | (197,676) |
Total unrealized gains on investment securities available for sale, net of tax | 659,370 | 430,481 | 104,854 | 353,111 |
Reclassification of (gains) losses on investment securities available for sale included in net income | 6,837 | (78) | 6,837 | (8,487) |
Tax effect of reclassification of (gains) losses on investment securities available for sale included in net income | (2,461) | 24 | (2,461) | 3,093 |
Reclassification adjustment for realized gains, net of tax | 4,376 | (54) | 4,376 | (5,394) |
Total other comprehensive income | 645,746 | 430,427 | 91,230 | 347,717 |
Total comprehensive income | 3,091,946 | $ 1,878,880 | 5,595,350 | $ 3,687,268 |
Comprehensive loss attributable to the non-controlling interests | 536,140 | 536,140 | ||
Comprehensive income attributable to Air T, Inc. stockholders | $ 3,628,086 | $ 1,878,880 | $ 6,131,490 | $ 3,687,268 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Dec. 31, 2015 | [1] | Mar. 31, 2015 | |
Current Assets: | ||||
Cash and cash equivalents | $ 5,287,316 | $ 14,165,120 | [2] | |
Marketable securities | 3,921,690 | 5,278,752 | ||
Accounts receivable, less allowance for doubtful accounts of $183,000 and $222,000 | 14,969,012 | 9,534,563 | [2] | |
Notes and other receivables-current | $ 954,240 | 816,606 | [2] | |
Income tax receivable | 195,000 | [2] | ||
Inventories | $ 11,557,592 | 7,789,649 | ||
Deferred income taxes | 216,559 | 278,000 | [2] | |
Prepaid expenses and other | 1,189,235 | 612,334 | [2] | |
Total Current Assets | 38,095,644 | $ 38,670,023 | [2] | |
Investments in Available-For-Sale Securities | 4,744,406 | [2] | ||
Property and Equipment, net | 4,516,440 | $ 2,571,499 | [2] | |
Cash Surrender Value of Life Insurance Policies | 2,110,830 | 1,990,671 | [2] | |
Other Assets | 289,967 | 224,188 | [2] | |
Total Assets | 49,757,287 | 43,456,382 | [2] | |
Current Liabilities: | ||||
Accounts payable | 5,629,318 | $ 4,715,709 | [2] | |
Income tax payable | 872,267 | [2] | ||
Accrued expenses | 5,456,011 | $ 3,529,451 | [2] | |
Short-term debt | 208,000 | [2] | ||
Total Current Liabilities | 12,165,596 | $ 8,245,160 | [2] | |
Long-term Debt | 11,000 | 5,000,000 | [2] | |
Deferred Income Taxes | 416,000 | $ 416,000 | [2] | |
Other Non-current Liabilities | 53,690 | [2] | ||
Equity: | ||||
Preferred stock, $1.00 par value, 50,000 shares authorized, | 0 | $ 0 | [2] | |
Common stock, $.25 par value; 4,000,000 shares authorized, 2,372,527 shares issued and outstanding | 593,131 | 593,131 | [2] | |
Additional paid-in capital | 4,936,518 | 4,929,090 | [2] | |
Retained earnings | 30,437,175 | 24,407,915 | [2] | |
Accumulated other comprehensive loss | (32,683) | (134,913) | [2] | |
Total Air T, Inc. Stockholders' Equity | 35,934,141 | $ 29,795,223 | [2] | |
Non-controlling Interests | 1,176,860 | [2] | ||
Total Equity | 37,111,001 | $ 29,795,223 | [2] | |
Total Liabilities and Equity | $ 49,757,287 | $ 43,456,382 | [2] | |
[1] | Includes VIE assets of $8,015,000 and VIE liabilities of $3,617,000 - Note 9 | |||
[2] | Derived from audited financial statements |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Dec. 31, 2015 | Mar. 31, 2015 | ||
Delphax [Member] | ||||
VIE Assets | $ 8,015,000 | |||
VIE Liabilities | 3,617,000 | |||
Allowance for doubtful accounts | 183,000 | [1] | $ 222,000 | [2] |
VIE Assets | $ 49,757,287 | [3] | $ 43,456,382 | [4] |
Preferred stock, par value (in dollars per share) | $ 1 | [1] | $ 1 | [2] |
Preferred stock, authorized (in shares) | 50,000 | [1] | 50,000 | [2] |
Common stock, par value (in dollars per share) | $ 0.25 | [1] | $ 0.25 | [2] |
Common stock, authorized (in shares) | 4,000,000 | [1] | 4,000,000 | [2] |
Common stock, issued (in shares) | 2,372,527 | [1] | 2,372,527 | [2] |
Common stock, outstanding (in shares) | 2,372,527 | [1] | 2,372,527 | [2] |
[1] | Includes VIE assets of $8,015,000 and VIE liabilities of $3,617,000 - Note 9 | |||
[2] | Derived from audited financial statements | |||
[3] | Includes VIE assets of $8,015,000 and VIE liabilities of $3,617,000 - Note 9 | |||
[4] | Derived from audited financial statements |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 5,504,120 | $ 3,339,551 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Loss (Gain) on sale of marketable securities | 6,837 | (8,487) | |
Gain on sale of property and equipment | (50,837) | (1,054,781) | |
Change in accounts receivable and inventory reserves | (157,059) | (245,358) | |
Depreciation and amortization | 667,595 | 660,825 | |
Change in cash surrender value of life insurance | (120,159) | (117,305) | |
Warranty reserve. | (93,228) | 103,065 | |
Compensation expense related to stock options | 31,000 | 8,958 | |
Change in operating assets and liabilities: | |||
Accounts receivable | (3,576,456) | (3,146,977) | |
Notes receivable and other non-trade receivables | (137,634) | 475,715 | |
Inventories | 383,383 | 4,574,019 | |
Prepaid expenses and other | 80,138 | 214,623 | |
Accounts payable | (565,144) | (27,889) | |
Accrued expenses | 152,974 | 1,041,090 | |
Income tax payable | 897,266 | $ 1,257,385 | |
Non-current liabilities | (34,310) | ||
Total adjustments | (2,515,634) | $ 3,734,883 | |
Net cash provided by operating activities | 2,988,486 | 7,074,434 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of marketable securities | (3,278,466) | (4,109,201) | |
Proceeds from sale of investment securities available for sale | 54,958 | $ 515,045 | |
Cash inflow from acquisition of Delphax interests | 78,000 | ||
Capital expenditures | (1,051,055) | $ (1,774,495) | |
Proceeds from sale of property and equipment | 185,830 | 3,357,810 | |
Net cash used in investing activities | (4,010,733) | (2,010,841) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from line of credit | 14,472,273 | 1,330,888 | |
Payment on line of credit | (19,291,273) | $ (1,330,888) | |
Payment on Delphax senior credit facility | (3,031,000) | ||
Proceeds from lease funding | $ 7,428 | ||
Proceeds from exercise of stock options | $ 124,350 | ||
Repurchase of stock options | (130,335) | ||
Net cash used in financing activities | $ (7,842,572) | $ (5,985) | |
Effect of foreign currency exchange rates on cash and cash equivalents | (12,985) | ||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (8,877,804) | $ 5,057,608 | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 14,165,120 | [1] | 3,758,888 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 5,287,316 | [2] | 8,816,496 |
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING ACTIVITIES: | |||
Finished goods inventory transferred to equipment leased to customers | 1,288,474 | 1,132,115 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Interest | 56,546 | 19,152 | |
Income taxes | $ 1,966,881 | $ 240,618 | |
[1] | Derived from audited financial statements | ||
[2] | Includes VIE assets of $8,015,000 and VIE liabilities of $3,617,000 - Note 9 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Total | |
Balance (in shares) at Mar. 31, 2014 | 2,355,027 | ||||||
Balance at Mar. 31, 2014 | $ 588,756 | $ 4,855,093 | $ 21,923,988 | $ (7,780) | $ 27,360,057 | ||
Net income | 3,339,551 | 3,339,551 | |||||
Unrealized gain from marketable securities, net of tax | 347,717 | $ 347,717 | |||||
Exercise of stock options (in shares) | 15,000 | 15,000 | |||||
Exercise of stock options | $ 3,750 | 120,600 | $ 124,350 | ||||
Compensation expense related to stock options | 8,957 | 8,957 | |||||
Repurchase of stock options | (130,335) | (130,335) | |||||
Balance (in shares) at Dec. 31, 2014 | 2,370,027 | ||||||
Balance at Dec. 31, 2014 | $ 592,506 | 4,854,315 | 25,263,539 | 339,937 | 31,050,297 | ||
Balance (in shares) at Mar. 31, 2015 | 2,372,527 | ||||||
Balance at Mar. 31, 2015 | $ 593,131 | 4,929,090 | 24,407,915 | (134,913) | 29,795,223 | [1] | |
Net income | 6,029,260 | $ (525,140) | 5,504,120 | ||||
Unrealized gain from marketable securities, net of tax | 109,230 | $ 109,230 | |||||
Exercise of stock options (in shares) | 0 | ||||||
Balance (in shares) at Dec. 31, 2015 | 2,372,527 | ||||||
Balance at Dec. 31, 2015 | $ 593,131 | 4,936,518 | $ 30,437,175 | (32,683) | 1,176,860 | $ 37,111,001 | [2] |
Initial consolidation of Delphax | 1,713,000 | 1,713,000 | |||||
Foreign currency translation | $ (7,000) | $ (11,000) | (18,000) | ||||
Funding on residual sharing agreements | $ 7,428 | $ 7,428 | |||||
[1] | Derived from audited financial statements | ||||||
[2] | Includes VIE assets of $8,015,000 and VIE liabilities of $3,617,000 - Note 9 |
Note 1 - Financial Statement Pr
Note 1 - Financial Statement Presentation | 9 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 1. Financial Statement Presentation The condensed consolidated financial statements of Air T, Inc. (the “Company”) 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. It is suggested that these condensed consolidated financial statements 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, 2015. The results of operations for the periods ended December 31 are not necessarily indicative of the operating results for the full year. Certain reclassifications have been made to the prior period amounts to conform to the current presentation. New Accounting Pronouncement s In May 2014, a comprehensive new revenue recognition standard was issued that will supersede nearly all existing revenue recognition guidance. The new guidance introduces a five-step model in which an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Management is currently evaluating the new guidance, including possible transition alternatives, to determine the impact it will have on the Company’s consolidated financial statements. In February 2015, a standard was issued that amends the guidance that reporting entities apply when evaluating whether certain legal entities should be consolidated. The Company will be required to adopt the standard as of the first quarter of its fiscal year ending March 31, 2017. The Company is currently evaluating the impact of adoption on its consolidated financial statements. In April 2015, a standard was issued that amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. It is effective for annual reporting periods beginning after December 15, 2015, but early adoption is permitted. The Company is evaluating the impact of adoption of the standard on its consolidated financial statements. In July 2015, a standard was issued that amends existing guidance to simplify the measurement of inventory by requiring certain inventory to be measured at the lower of cost or net realizable value. It is effective for fiscal years beginning after December 15, 2016 and for interim periods therein. The Company is evaluating the impact of the adoption of the standard on its consolidated financial statements. In September 2015, a standard was issued that simplifies the accounting for measurement period adjustments associated with a business combination by eliminating the requirement to restate prior period financial statements for measurement period adjustments when measurements were incomplete as of the end of the reporting period that includes the business combination. The new guidance requires that the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. It is effective for interim and annual periods beginning after December 15, 2015, with early adoption permitted. The Company is currently evaluating whether it will adopt this new standard during the fiscal year ended March 31, 2016, or wait until required adoption in the following fiscal year. In January 2016, the Financial Accounting Standard Board (FASB) published Accounting Standards Update (ASU) 2016-01 Financial Instruments Overall: Recognition and Measurement of Financial Assets and Financial Liabilities |
Note 2 - Acquisition of Interes
Note 2 - Acquisition of Interests in Delphax | 9 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 2. Acquisition of Interests in Delphax Pursuant to a Securities Purchase Agreement dated as of October 2, 2015 (the “Securities Purchase Agreement”) among the Company, Delphax Technologies Inc. (“Delphax”) and its subsidiary, Delphax Technologies Canada Limited (“Delphax Canada”), on November 24, 2015 (the “Closing Date”), the Company purchased (i) at face value a $2,500,000 principal amount Five-Year Senior Subordinated Promissory Note (the “Senior Subordinated Note”) issued by Delphax Canada for a combination of cash and the surrender of outstanding principal of $500,000 and accrued and unpaid interest under, and cancellation of, a 90-Day Senior Subordinated Note purchased at face value by the Company from Delphax Canada on October 2, 2015 pursuant to the Securities Purchase Agreement and (ii) for $1,050,000 in cash a total of 43,000 shares of Delphax’s Series B Preferred Stock (the “Series B Preferred Stock”) and a Stock Purchase Warrant (the “Warrant”) to acquire an additional 95,600 shares of Series B Preferred Stock at a price of $33.4728 per share (subject to adjustment for specified dilutive events). Principal under the Senior Subordinated Note is due on October 24, 2020 and bears interest at an annual rate of 8.5%. Interest is to be paid in kind until, in the absence of specified events, November 24, 2017. Thereafter, interest is to be paid in cash. Interest in kind is to be paid monthly, while interest payable in cash is to be paid quarterly. The Senior Subordinated Note is guaranteed by Delphax and is secured by security interests granted by Delphax and Delphax Canada in their respective inventories, equipment, accounts receivable, cash, deposit accounts, contract rights and other specified property, as well as a pledge by Delphax of the outstanding capital stock of its subsidiaries, including Delphax Canada. Pursuant to the terms of a subordination agreement (the “Subordination Agreement”) entered into on October 2, 2015 by Delphax, Delphax Canada, the Company and the senior lender (the “Senior Lender”) that provides a revolving credit facility under an agreement with Delphax and Delphax Canada (the “Senior Credit Agreement”), the Company’s rights with respect to payment under and enforcement of the Senior Subordinated Note, and enforcement of its security interests are subordinated to the rights of the Senior Lender under the Senior Credit Agreement. Each share of Series B Preferred Stock is convertible into 100 shares of common stock of Delphax, subject to anti-dilution adjustments, and has no liquidation preference over shares of common stock of Delphax. No dividends are required to be paid with respect to the shares of Series B Preferred Stock, except that ratable dividends (on an as-converted basis) are to be paid in the event that dividends are paid on the common stock of Delphax. Based on the number of shares of Delphax common stock outstanding and reserved for issuance under Delphax’s employee stock option plans at the Closing Date, the number of shares of common stock underlying the Series B Preferred Stock purchased by the Company represent approximately 38% of the shares of Delphax common stock that would be outstanding assuming conversion of Series B Preferred Stock held by the Company and approximately 31% of the outstanding shares of common stock assuming conversion of the Series B Preferred Stock and the issuance of all the shares of Delphax common stock reserved for issuance under Delphax’s employee stock option plans. Pursuant to the terms of the Series B Preferred Stock, for so long as amounts are owed to the Company under the Senior Subordinated Note or the Company continues to hold a specified number of the Series B Preferred Stock and interests in the Warrant sufficient to permit it to acquire up to 50% of the number of shares of Series B Preferred Stock initially purchasable under the Warrant (or holds shares of Series B Preferred Stock acquired in connection with the exercise of the Warrant equal to 50% of the number of shares of Series B Preferred Stock initially purchasable under the Warrant), then ● holders of the Series B Preferred Stock, voting as a separate class, would be entitled to elect (and exercise rights of removal and replacement) with respect to three-sevenths of the board of directors of Delphax, and after June 1, 2016 the holders of the Series B Preferred Stock, voting as a separate class, would be entitled to elect (and to exercise rights of removal and replacement of) with respect to four-sevenths of the members of the board of directors of Delphax; and ● without the written consent or waiver of the Company, Delphax may not enter into specified corporate transactions. Pursuant to the provision described above, beginning on November 24, 2015, three designees of the Company were elected to the board of directors of Delphax, which had a total of seven members following their election. The Warrant expires on November 24, 2021. The Warrant provides that, prior to any exercise of the Warrant, the holder of the Warrant must first make a good faith written tender offer to existing holders of Delphax common stock to purchase an aggregate amount of common stock equal to the number of shares of common stock issuable upon conversion of the Series B Preferred Stock that would be purchased upon such exercise of the Warrant. The Warrant requires that the per share purchase price to be offered in such tender offer would be equal to the then-current exercise price of the Warrant divided by the then-current conversion rate of the Series B Preferred Stock. To the extent that shares of common stock are purchased by the holder in the tender offer, the amount of shares of Series B Preferred Stock purchasable under the Warrant held by such holder is to be ratably reduced. The Warrant is to provide that it may be exercised for cash, by surrender of principal and interest under the Senior Subordinated Note equal to 0.95 times the aggregate exercise price or by surrender of a portion of the Warrant having a value equal to the aggregate exercise price based on the difference between the Warrant exercise price per share and an average market value, measured over a 20-trading day period, of Delphax common stock that would be acquired upon conversion of one share of Series B Preferred Stock. As a result of the above transactions, the Company determined that it had obtained control over Delphax and it included Delphax in its consolidated financial statements beginning on November 24, 2015. The following table summarizes the preliminary fair values of consolidated Delphax assets and liabilities as of the Closing Date: November 24, 2015 (Unaudited) ASSETS Cash and cash equivalents $ 586,000 Accounts receivable, net 1,820,000 Inventories 5,327,000 Other current assets 722,000 Property and equipment 408,000 Total assets $ 8,863,000 LIABILITIES Accounts payable $ 1,482,000 Accrued expenses 1,833,000 Income tax payable 170,000 Debt 3,577,000 Other long-term liabilities 88,000 Total liabilities $ 7,150,000 Net Assets $ 1,713,000 The above table reflects the assets and liabilities of Delphax immediately prior to the Company’s investments. As such, the Company’s equity and debt investments of $1,050,000 and $2,500,000, respectively, are not reflected. Delphax’s debt at that time included approximately $508,000 due under the 90-Day Senior Subordinated Note. The Company’s accounting for its acquisition of interests in Delphax is currently incomplete. Therefore, as permitted by ASC 805, the above amounts are provisional. The Company anticipates finalizing its accounting for this business combination in the fourth quarter of the current fiscal year. Direct costs relating to the above transactions of $110,000 were expensed as incurred during the three and nine-month periods ended December 31, 2015, and are included in general and administrative expenses in the condensed consolidated statements of income and comprehensive income. |
Note 3 - Income Taxes
Note 3 - Income Taxes | 9 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 3. Income Tax es 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 consolidated 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. The income tax provision for the nine-month period ended December 31, 2015 differs from the federal statutory rate partially due to the effect of state income taxes, the federal domestic production activities deduction, and the Company’s share of Delphax’s consolidated net loss. The effective tax rate for the nine-month period ended December 31, 2015 also reflects the estimated benefit for the exclusion of income for the Company’s captive insurance company subsidiary afforded under Section 831(b). During the nine-month periods ended December 31, 2015 and 2014, the Company recorded income tax expense of $2,867,000 and $1,495,000, respectively. For the three-month period ended December 31, 2015, the tax expense was $1,499,000 compared to $691,000 of tax expense recorded for the prior comparable quarter. As described in Note 2, effective on November 24, 2015, Air T, Inc. purchased interests in Delphax. With an equity investment level by the Company of approximately 38%, Delphax is required to continue filing a separate United States corporate tax return. Furthermore, Delphax has three foreign subsidiaries located in Canada, France, and the United Kingdom which file tax returns in those jurisdictions. With few exceptions, Delphax is no longer subject to examinations by income tax authorities for tax years before 2011. Delphax maintains a September 30 fiscal year. As of September 30, 2015, Delphax and its subsidiaries had estimated foreign and domestic tax loss carryforwards of $13.9 million and $8.0 million, respectively. As of that date, they had estimated foreign research and development credit carryforwards of $3.9 million, which are available to offset future income tax. The credits and net operating losses expire in varying amounts beginning in the year 2023. Domestic alternative minimum tax credits of approximately $325,000 are available to offset future income tax with no expiration date. Should there be an ownership change for purposes of Section 382 or any equivalent foreign tax rules, the utilization of the previously mentioned carryforwards may be significantly limited. 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 acquisition on November 24, 2015, the Company established a full valuation allowance against Delphax’s net deferred tax assets of approximately $11,661,000. The corresponding valuation allowance at December 31, 2015 was approximately $12,003,000. The cumulative losses incurred by Delphax in recent years was the primary basis for the Company’s determination that a full valuation allowance should be established. |
Note 4 - Net Earnings Per Share
Note 4 - Net Earnings Per Share | 9 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 4. Net Earnings Per Share Basic earnings per share have been calculated by dividing net earnings 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 employee and director 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: Three Months Ended December 31, Nine Months Ended December 31, 2015 2014 2015 2014 Net earnings attributable to Air T, Inc. Stockholders $ 2,971,340 $ 1,448,453 $ 6,029,260 $ 3,339,551 Earnings Per Share: Basic $ 1.25 $ 0.61 $ 2.54 $ 1.42 Diluted $ 1.24 $ 0.61 $ 2.52 $ 1.41 Weighted Average Shares Outstanding: Basic 2,372,527 2,357,637 2,372,527 2,355,901 Diluted 2,396,999 2,381,214 2,396,645 2,373,500 For the three and nine-month periods ended December 31, 2015 and 2014, there were no stock options outstanding that were anti-dilutive. |
Note 5 - Investment Securities
Note 5 - Investment Securities Available For Sale | 9 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 5. Investment Securities Available For Sale The marketable securities held by the Company as of December 31, 2015 and March 31, 2015 are classified as available for sale securities. Available-for-sale securities at December 31, 2015 consisted of investments in publicly traded companies with a fair market value of $8,666,000, an aggregate cost basis of $8,706,000, gross unrealized gains aggregating $477,000 and gross unrealized losses aggregating $517,000. Marketable securities at March 31, 2015 consisted of investments with a fair value of $5,279,000, an aggregate cost basis of $5,490,000, gross unrealized gains aggregating $0 and gross unrealized losses aggregating $211,000. Securities in a loss position at December 31, 2015 had a fair market value of $6,255,000 and have been in a continuous loss position in the amount of $517,000 for less than twelve months. Securities in a loss position at March 31, 2015 had a fair value of $4,168,000 and had been in a continuous loss position in the amount of $176,000 for less than twelve months and securities in a loss position in the amount of $35,000 for greater than twelve months had a fair value of $1,111,000. The Company realized gains of $859 and $78 from the sale of securities during the three-month period ended December 31, 2015 and December 31, 2014 respectively. For the nine-month period ended December 31, 2015, the Company realized a loss of $7,696 and no loss for the prior comparable period for the sale of marketable securities. A gain of $859 and $8,487 was also realized for the nine-month periods ended December 31, 2015 and December 31, 2014 respectively. The marketable securities held by the Company as of December 31, 2015 and March 31, 2015 are classified as available for sale securities. The Company does not intend to liquidate marketable securities holdings in Insignia Systems, Inc. (“Insignia”) within twelve months; as a result, the fair value of marketable securities in Insignia were reclassified from current to non-current assets during the quarter ended June 30, 2015 and are reported as investments in available-for-sale securities at December 31, 2015. Investments in Insignia at December 31, 2015 had an aggregate cost basis of $5,106,000 and sustained gross unrealized losses aggregating $362,000. All securities are priced using publicly quoted market prices and are considered Level 1 fair value measurements. |
Note 6 - Inventories
Note 6 - Inventories | 9 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 6. Inventories Inventories consisted of the following: December 31, 2015 March 31, 2015 Ground support service parts $ 1,529,931 $ 938,072 Printing equipment and maintenance Raw materials 3,702,883 - Work in process 354,408 - Finished goods 937,166 - Ground equipment manufacturing: Raw materials 2,270,630 2,583,797 Work in process 964,274 1,535,152 Finished goods 2,117,512 3,045,761 Total inventories 11,876,804 8,102,782 Reserves (319,212 ) (313,133 ) Total inventories, net $ 11,557,592 $ 7,789,650 |
Note 7 - Stock Based Compensati
Note 7 - Stock Based Compensation | 9 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 7. Stock-Based Compensation The Company 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 for stock options based on their grant-date fair values over the requisite service period. The Company and Delphax use the Black-Scholes option pricing model to value stock options. 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 or exercised under the Company’s stock option plan during the three and nine-month periods ended December 31, 2015. During the three-month period ended December 31, 2014, options for 15,000 shares were exercised, options for 2,500 shares were repurchased by the Company and cancelled, and options for 6,000 shares expired. For the nine-month period ended December 31, 2014, options for 15,000 shares were exercised, options for 32,000 shares were repurchased by the Company and cancelled, and options for 6,000 shares expired. Stock-based compensation expense in the amount of $0 and $8,958 was recognized for the Company’s stock option plan in the nine-month periods ended December 31, 2015 and 2014, respectively. At December 31, 2015, there was no unrecognized compensation expense related to the Company stock option plan. As noted above, Delphax maintains a number of stock option plans. These plans were in place at the time of the Company’s acquisition of interests in Delphax. Subsequent to this acquisition, Delphax granted 1.2 million non-qualified options to purchase shares of its common stock to certain of its employees at an exercise price of $0.33 per share. For the period from the acquisition through December 31, 2015 there was approximately $31,000 of stock-based compensation expense recorded related to Delphax’s stock-based compensation arrangements. As of December 31, 2015, Delphax had a total of approximately $373,000 in unrecognized compensation cost associated with its stock option plans. |
Note 8 - Financing Arrangements
Note 8 - Financing Arrangements | 9 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 8. Financing Arrangements On April 1, 2015, the Company replaced its existing $7.0 million credit line with a senior secured revolving credit facility of $20.0 million (the “Revolving Credit Facility”). The Revolving Credit Facility includes a sublimit for issuances of letters of credit of up to $500,000. Under the Revolving Credit Facility, each of the Company and its wholly-owned operating subsidiaries may make borrowings. Initially, borrowings under the Revolving Credit Facility bear interest (payable monthly) at an annual rate of one-month LIBOR plus 1.50%, although the interest rates under the Revolving Credit Facility are subject to incremental increases based on a consolidated leverage ratio. In addition, a commitment fee accrues with respect to the unused amount of the Revolving Credit Facility at an annual rate of 0.15%. Amounts applied to repay borrowings under the Revolving Credit Facility may be reborrowed, subject to the terms of the facility. The Revolving Credit Facility matures on April 1, 2017. Borrowings under the Revolving Credit Facility, together with hedging obligations, if any, owing to the lender under the Revolving Credit Facility or any affiliate of such lender, are secured by a first-priority security interest in substantially all assets of the Company and the other borrowers (including, without limitation, accounts receivable, equipment, inventory and other goods, intellectual property, contract rights and other general intangibles, cash, deposit accounts, equity interests in subsidiaries and joint ventures, investment property, documents and instruments, and proceeds of the foregoing), but excluding interests in real property. The agreement governing the Revolving Credit Facility contains affirmative and negative covenants, including covenants that restrict the ability of the Company and the other borrowers 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 their business, enter into certain operating leases, and make certain capital expenditures. The Credit Agreement also contains financial covenants, including a minimum consolidated tangible net worth of $22.0 million, a minimum consolidated fixed charge coverage ratio of 1.35 to 1.0, a minimum consolidated asset coverage ratio of 1.75 to 1.0, and a maximum consolidated leverage ratio of 3.5 to 1.0. The agreement governing the Revolving Credit Facility contains events of default including, without limitation, nonpayment of principal, interest or other obligations, violation of covenants, misrepresentation, cross-default to other debt, bankruptcy and other insolvency events, judgments, certain ERISA events, certain changes of control of the Company, termination of, or modification to materially reduce the scope of the services required to be provided under, certain agreements with FedEx Corporation, and the occurrence of a material adverse effect upon the Company and the other borrowers as a whole. As of December 31, 2015, pursuant to the Senior Credit Agreement, Delphax maintained a $7.0 million revolving senior credit facility, subject to a borrowing base of Delphax’s North American accounts receivable and inventories. The facility, which is secured by substantially all of Delphax’s North American assets, expires in November 2018, prohibits payment of cash dividends by Delphax, and is subject to certain financial covenants. The facility provides for interest based upon the prime rate plus a margin (4.25% as of December 31, 2015). As of December 31, 2015, Delphax had aggregate borrowings of approximately $181,000 outstanding under the facility. As of December 31, 2015, an additional $2,828,000 was available under the facility. Delphax also has a secured equipment loan with its senior lender. This loan had an original principal amount of $134,000 and provides for monthly payments of $2,000, plus interest based on the prime rate plus a margin (4.50% as of December 31, 2015). As of December 31, 2015, the remaining balance of this loan was $38,000. 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. |
Note 9 - Variable Interest Enti
Note 9 - Variable Interest Entities | 9 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Variable Interest Entity Disclosure [Text Block] | 9. 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, 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. As described in Note 2, the Company acquired Delphax Series B Preferred Stock, loaned funds to Delphax, and acquired the Warrant. In accordance with ASC 810, the Company evaluated whether Delphax was a VIE as of November 24, 2015. Based principally on the fact that the Company granted Delphax subordinated financial support, the Company determined that Delphax was a VIE on that date. Therefore, it was necessary for the Company to assess whether it held any “variable interests”, as defined in ASC 810, in Delphax. The Company concluded that its investments in Delphax’s equity and debt, and its investment in the Warrant, each constituted a variable interest. Based on its determination that it held variable interests in a VIE, the Company was required to assess whether it was Delphax’s “primary beneficiary”, as defined in ASC 810. After considering all relevant facts and circumstances, the Company concluded that it became the primary beneficiary of Delphax on November 24, 2015. While various factors informed the Company’s determination, particular weight was given to the Company’s current representation on Delphax’s board of directors and the provision described in Note 2 which grants the Company control of such board beginning June 1, 2016. Since the Company became Delphax’s primary beneficiary on November 24, 2015, the Company included Delphax in its consolidated financial statements beginning on that date. Refer to Note 2 for the provisional fair value of the assets and liabilities of Delphax on the acquisition date. The following table sets forth the carrying values of assets and liabilities of Delphax as of December 31, 2015: December 31, 2015 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 276,000 Accounts receivable, net 1,838,000 Inventories 4,869,000 Other current assets 612,000 Total current assets 7,595,000 Property and equipment 391,000 Other Assets 29,000 Total assets $ 8,015,000 LIABILITIES Current liabilities: Accounts payable $ 1,197,000 Income tax payable 170,000 Accrued expenses 1,982,000 Short-term debt 208,000 Total current liabilities 3,557,000 Long-term debt 2,511,000 Other long-term liabilities 49,000 Total liabilities $ 6,117,000 Net Assets $ 1,898,000 Long-term debt as reflected in the above table includes $2,500,000 due to the Company from Delphax Canada under the Senior Subordinated Note. This debt was eliminated for purposes of the Company’s accompanying December 31, 2015 condensed consolidated balance sheet. The assets of Delphax and its subsidiaries can only be used to satisfy the obligations of Delphax and subsidiaries. Furthermore, the creditors of Delphax and its subsidiaries do not have recourse to the assets of Air T, Inc. or its subsidiaries. Revenue and Expenses of Delphax Three and Nine Months Ended December 31, 2015 (Unaudited) Operating Revenues $ 1,035,000 Operating Expenses: Cost of sales 1,376,000 General and administrative 309,000 Research and development 216,000 Depreciation and amortization 17,000 1,918,000 Operating Loss (883,000 ) Non-operating Income 36,000 Loss Before Income Taxes (847,000 ) Income Taxes - Net Loss $ (847,000 ) |
Note 10 - Geographical Informat
Note 10 - Geographical Information | 9 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Geographical Reporting Disclosure [Text Block] | 10. 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 December 31, 2015 and March 31, 2015: December 31, 2015 March 31, 2015 United States, the Company’s country of domicile $ 4,135,440 $ 2,571,499 Foreign 381,000 - Total tangible long-lived assets $ 4,516,440 $ 2,571,499 |
Note 11 - Segment Information
Note 11 - Segment Information | 9 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 11. Segment information The Company has five business segments. The overnight air cargo segment, comprised of the Company’s Mountain Air Cargo, Inc. (“MAC”) and CSA Air, Inc. (“CSA”) subsidiaries, operates in the air express delivery services industry. The ground equipment sales segment, comprised of the Company’s Global Ground Support, LLC (“GGS”) subsidiary, manufactures and provides mobile deicers and other specialized equipment products to passenger and cargo airlines, airports, the U.S. military and industrial customers. The ground support services segment, comprised of the Company’s Global Aviation Services, LLC (“GAS”) subsidiary, provides ground support equipment maintenance and facilities maintenance services to domestic airlines and aviation service providers. The printing equipment and maintenance segment is comprised of Delphax and its subsidiaries, which was consolidated for financial accounting purposes beginning November 24, 2015. Delphax designs, manufactures and sells advanced digital print production equipment, maintenance contracts, spare parts, supplies and consumable items for these systems. The equipment is sold through Delphax and its subsidiaries located in Canada, the United Kingdom and France. A significant portion of Delphax’s net sales is related to service and support provided after the sale. Delphax has a significant presence in the check production marketplace in North America, Europe, Latin America, Asia and the Middle East. The Company’s newly established leasing segment, comprised of the Company’s Air T Global Leasing, LLC subsidiary, provides funding for equipment leasing transactions, which may include transactions for the leasing of equipment manufactured by GGS and transactions initiated by third parties unrelated to equipment manufactured by the Company or any of its subsidiaries. Air T Global Leasing, LLC commenced operations during the quarter ended December 31, 2015. Each business segment has separate management teams and infrastructures that offer different products and services. The Company evaluates the performance of its business segments based on operating income. Segment data is summarized as follows: Three Months Ended December 31, Nine Months Ended December 31, 2015 2014 2015 2014 Operating Revenues: Overnight Air Cargo $ 18,674,458 $ 12,973,810 $ 48,949,401 $ 36,626,144 Ground Equipment Sales: Domestic 19,024,052 9,142,043 41,165,115 23,775,339 International 1,320,235 3,497,312 4,501,549 12,127,129 Total Ground Equipment Sales 20,344,287 12,639,355 45,666,664 35,902,468 Ground Support Services 6,559,110 5,279,822 17,974,239 14,767,637 Printing Equipment and Maintenance Domestic 789,000 - 789,000 - International 246,000 - 246,000 - Total Printing Equipment and Maintenance 1,035,000 - 1,035,000 - Leasing 5,718 - 5,718 - Total $ 46,618,573 $ 30,892,987 $ 113,631,022 $ 87,296,249 Operating Income (Loss): Overnight Air Cargo $ 1,413,667 $ 602,776 $ 3,394,326 $ 1,425,692 Ground Equipment Sales 3,874,921 1,704,445 8,013,932 4,448,349 Ground Support Services 25,829 262,099 (392,002 ) 574,212 Printing Equipment and Maintenance (883,000 ) - (883,000 ) - Leasing 1,378 - 1,378 - Corporate (542,678 ) (428,500 ) (1,788,966 ) (1,611,987 ) Total $ 3,890,117 $ 2,140,820 $ 8,345,668 $ 4,836,266 Capital Expenditures: Overnight Air Cargo $ 6,618 $ 152,606 $ 82,607 $ 240,945 Ground Equipment Sales 119,455 8,299 338,194 1,357,847 Ground Support Services 220,816 60,367 429,588 175,703 Printing Equipment and Maintenance - - - - Corporate 190,733 - 200,666 - Total $ 537,622 $ 221,272 $ 1,051,055 $ 1,774,495 Depreciation and Amortization: Overnight Air Cargo $ 37,068 $ 39,371 $ 106,161 $ 118,411 Ground Equipment Sales 165,401 135,585 364,465 393,767 Ground Support Services 60,993 40,645 149,560 126,540 Printing Equipment and Maintenance 17,000 - 17,000 - Leasing 2,195 - 2,195 - Corporate 13,817 6,054 28,214 22,107 Total $ 296,474 $ 221,655 $ 667,595 $ 660,825 |
Note 12 - Commitments and Conti
Note 12 - Commitments and Contingencies | 9 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 12. Commitments and Contingencies The Company is currently involved in certain product liability-related matters and employment and other matters, which involve pending or threatened legal proceedings. Management believes that these threatened or pending legal proceedings, if adversely decided, would not have a material adverse effect on the Company's results of operations or financial position. |
Note 13 - Subsequent Events
Note 13 - Subsequent Events | 9 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 13. Subsequent Events Management performs an evaluation of events that occur after the consolidated balance sheet date, but before the consolidated financial statements are issued, for potential recognition or disclosure of such events in the Company’s consolidated financial statements. Overnight Air Cargo At December 31, 2015, MAC and CSA operated an aggregate of 18 ATR aircraft and an aggregate of 61 Cessna Caravan aircraft under agreements with FedEx Corporation. In January 2016, FedEx advised MAC that effective at the end of February 2016 it would be transferring an ATR aircraft operated by MAC to another feeder operator to meet scheduling needs. The administrative revenue related to an ATR aircraft is significantly greater than the administrative revenue related to the operation of a Cessna Caravan. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncement s In May 2014, a comprehensive new revenue recognition standard was issued that will supersede nearly all existing revenue recognition guidance. The new guidance introduces a five-step model in which an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Management is currently evaluating the new guidance, including possible transition alternatives, to determine the impact it will have on the Company’s consolidated financial statements. In February 2015, a standard was issued that amends the guidance that reporting entities apply when evaluating whether certain legal entities should be consolidated. The Company will be required to adopt the standard as of the first quarter of its fiscal year ending March 31, 2017. The Company is currently evaluating the impact of adoption on its consolidated financial statements. In April 2015, a standard was issued that amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. It is effective for annual reporting periods beginning after December 15, 2015, but early adoption is permitted. The Company is evaluating the impact of adoption of the standard on its consolidated financial statements. In July 2015, a standard was issued that amends existing guidance to simplify the measurement of inventory by requiring certain inventory to be measured at the lower of cost or net realizable value. It is effective for fiscal years beginning after December 15, 2016 and for interim periods therein. The Company is evaluating the impact of the adoption of the standard on its consolidated financial statements. In September 2015, a standard was issued that simplifies the accounting for measurement period adjustments associated with a business combination by eliminating the requirement to restate prior period financial statements for measurement period adjustments when measurements were incomplete as of the end of the reporting period that includes the business combination. The new guidance requires that the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. It is effective for interim and annual periods beginning after December 15, 2015, with early adoption permitted. The Company is currently evaluating whether it will adopt this new standard during the fiscal year ended March 31, 2016, or wait until required adoption in the following fiscal year. In January 2016, the Financial Accounting Standard Board (FASB) published Accounting Standards Update (ASU) 2016-01 Financial Instruments Overall: Recognition and Measurement of Financial Assets and Financial Liabilities |
Note 2 - Acquisition of Inter22
Note 2 - Acquisition of Interests in Delphax (Tables) | 9 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | November 24, 2015 (Unaudited) ASSETS Cash and cash equivalents $ 586,000 Accounts receivable, net 1,820,000 Inventories 5,327,000 Other current assets 722,000 Property and equipment 408,000 Total assets $ 8,863,000 LIABILITIES Accounts payable $ 1,482,000 Accrued expenses 1,833,000 Income tax payable 170,000 Debt 3,577,000 Other long-term liabilities 88,000 Total liabilities $ 7,150,000 Net Assets $ 1,713,000 |
Note 4 - Net Earnings Per Sha23
Note 4 - Net Earnings Per Share (Tables) | 9 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended December 31, Nine Months Ended December 31, 2015 2014 2015 2014 Net earnings attributable to Air T, Inc. Stockholders $ 2,971,340 $ 1,448,453 $ 6,029,260 $ 3,339,551 Earnings Per Share: Basic $ 1.25 $ 0.61 $ 2.54 $ 1.42 Diluted $ 1.24 $ 0.61 $ 2.52 $ 1.41 Weighted Average Shares Outstanding: Basic 2,372,527 2,357,637 2,372,527 2,355,901 Diluted 2,396,999 2,381,214 2,396,645 2,373,500 |
Note 6 - Inventories (Tables)
Note 6 - Inventories (Tables) | 9 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 31, 2015 March 31, 2015 Ground support service parts $ 1,529,931 $ 938,072 Printing equipment and maintenance Raw materials 3,702,883 - Work in process 354,408 - Finished goods 937,166 - Ground equipment manufacturing: Raw materials 2,270,630 2,583,797 Work in process 964,274 1,535,152 Finished goods 2,117,512 3,045,761 Total inventories 11,876,804 8,102,782 Reserves (319,212 ) (313,133 ) Total inventories, net $ 11,557,592 $ 7,789,650 |
Note 9 - Variable Interest En25
Note 9 - Variable Interest Entities (Tables) - Delphax [Member] | 9 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Condensed Balance Sheet [Table Text Block] | December 31, 2015 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 276,000 Accounts receivable, net 1,838,000 Inventories 4,869,000 Other current assets 612,000 Total current assets 7,595,000 Property and equipment 391,000 Other Assets 29,000 Total assets $ 8,015,000 LIABILITIES Current liabilities: Accounts payable $ 1,197,000 Income tax payable 170,000 Accrued expenses 1,982,000 Short-term debt 208,000 Total current liabilities 3,557,000 Long-term debt 2,511,000 Other long-term liabilities 49,000 Total liabilities $ 6,117,000 Net Assets $ 1,898,000 |
Condensed Income Statement [Table Text Block] | Three and Nine Months Ended December 31, 2015 (Unaudited) Operating Revenues $ 1,035,000 Operating Expenses: Cost of sales 1,376,000 General and administrative 309,000 Research and development 216,000 Depreciation and amortization 17,000 1,918,000 Operating Loss (883,000 ) Non-operating Income 36,000 Loss Before Income Taxes (847,000 ) Income Taxes - Net Loss $ (847,000 ) |
Note 10 - Geographical Inform26
Note 10 - Geographical Information (Tables) | 9 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Long-lived Assets by Geographic Areas [Table Text Block] | December 31, 2015 March 31, 2015 United States, the Company’s country of domicile $ 4,135,440 $ 2,571,499 Foreign 381,000 - Total tangible long-lived assets $ 4,516,440 $ 2,571,499 |
Note 11 - Segment Information (
Note 11 - Segment Information (Tables) | 9 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended December 31, Nine Months Ended December 31, 2015 2014 2015 2014 Operating Revenues: Overnight Air Cargo $ 18,674,458 $ 12,973,810 $ 48,949,401 $ 36,626,144 Ground Equipment Sales: Domestic 19,024,052 9,142,043 41,165,115 23,775,339 International 1,320,235 3,497,312 4,501,549 12,127,129 Total Ground Equipment Sales 20,344,287 12,639,355 45,666,664 35,902,468 Ground Support Services 6,559,110 5,279,822 17,974,239 14,767,637 Printing Equipment and Maintenance Domestic 789,000 - 789,000 - International 246,000 - 246,000 - Total Printing Equipment and Maintenance 1,035,000 - 1,035,000 - Leasing 5,718 - 5,718 - Total $ 46,618,573 $ 30,892,987 $ 113,631,022 $ 87,296,249 Operating Income (Loss): Overnight Air Cargo $ 1,413,667 $ 602,776 $ 3,394,326 $ 1,425,692 Ground Equipment Sales 3,874,921 1,704,445 8,013,932 4,448,349 Ground Support Services 25,829 262,099 (392,002 ) 574,212 Printing Equipment and Maintenance (883,000 ) - (883,000 ) - Leasing 1,378 - 1,378 - Corporate (542,678 ) (428,500 ) (1,788,966 ) (1,611,987 ) Total $ 3,890,117 $ 2,140,820 $ 8,345,668 $ 4,836,266 Capital Expenditures: Overnight Air Cargo $ 6,618 $ 152,606 $ 82,607 $ 240,945 Ground Equipment Sales 119,455 8,299 338,194 1,357,847 Ground Support Services 220,816 60,367 429,588 175,703 Printing Equipment and Maintenance - - - - Corporate 190,733 - 200,666 - Total $ 537,622 $ 221,272 $ 1,051,055 $ 1,774,495 Depreciation and Amortization: Overnight Air Cargo $ 37,068 $ 39,371 $ 106,161 $ 118,411 Ground Equipment Sales 165,401 135,585 364,465 393,767 Ground Support Services 60,993 40,645 149,560 126,540 Printing Equipment and Maintenance 17,000 - 17,000 - Leasing 2,195 - 2,195 - Corporate 13,817 6,054 28,214 22,107 Total $ 296,474 $ 221,655 $ 667,595 $ 660,825 |
Note 2 - Acquisition of Inter28
Note 2 - Acquisition of Interests in Delphax (Details Textual) - Delphax [Member] | Nov. 24, 2015USD ($)$ / sharesshares |
Series B Preferred Stock of Delphax [Member] | |
Preferred Stock, Dividend Rate, Percentage | 0.00% |
Preferred Stock, Liquidation Preference Per Share | $ / shares | $ 0 |
Business Combination, Shares Acquired | shares | 43,000 |
Business Combination, Warrants Acquired, Number of Securities Called by Warrants | shares | 95,600 |
Business Combination, Warrants Acquired, Exercise Price Per Share | $ / shares | $ 33.4728 |
Convertible Preferred Stock, Shares Issued upon Conversion | shares | 100 |
Business Combination, Shares Acquired, Percentage of the Shares of Acquired Entity's Common Stock that Would Be Outstanding Assuming Conversion | 38.00% |
Business Combination, Shares Acquired, Percentage of the Shares of Acquired Entity's Common Stock that Would Be Outstanding Assuming Conversion and Issuance of All Shares Reserved for Issuance Under Employee Stock Option Plans | 31.00% |
Percentage of Preferred Stock Initially Purchasable under Warrant Permitted to Acquire | 50.00% |
Shares of Preferred Stock Acquired in Connection With the Exercise of the Warrant as a Percentage of the Number of Preferred Shares Initially Purchasable under the Warrant | 50.00% |
Five Year Senior Subordinated Promissory Note [Member] | |
Debt Instrument, Face Amount | $ 2,500,000 |
Debt Instrument, Term | 5 years |
Debt Instrument, Interest Rate, Stated Percentage | 8.50% |
Delphax 90-Day Senior Subordinated Note [Member] | |
Debt Instrument, Cancellation, Outstanding Principal Surrendered | $ 500,000 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 508,000 |
Payments to Acquire Businesses, Gross | $ 1,050,000 |
Business Combination, Warrants Acquired, Condition Under Which Warrants May Be Exercised for Cash, Number of Times the Aggregate Exercise Price | 0.95 |
Business Combination, Warrants Acquired, Exercise for Cash, Measurement Period | 20 days |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | $ 3,577,000 |
Business Combination, Acquisition Related Costs | $ 110,000 |
Note 2 - Assets Acquired and Li
Note 2 - Assets Acquired and Liabilities Assumed in Delphax Acquisition (Details) | Nov. 24, 2015USD ($) |
Delphax [Member] | |
ASSETS | |
Accounts receivable, net | $ 1,820,000 |
Other current assets | 722,000 |
LIABILITIES | |
Accounts payable | 1,482,000 |
Accrued expenses | 1,833,000 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 3,577,000 |
Other long-term liabilities | 88,000 |
Cash and cash equivalents | 586,000 |
Inventories | 5,327,000 |
Property and equipment | 408,000 |
Total assets | 8,863,000 |
Income tax payable | 170,000 |
Total liabilities | 7,150,000 |
Net Assets | $ 1,713,000 |
Note 3 - Income Taxes (Details
Note 3 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 24, 2015 | Sep. 30, 2015 | Nov. 25, 2014 | |
Delphax [Member] | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 38.00% | ||||||
Delphax [Member] | Domestic Tax Authority [Member] | Alternative Minimum Tax Credit Carryforward [Member] | |||||||
Tax Credit Carryforward, Amount | $ 325,000 | ||||||
Delphax [Member] | Domestic Tax Authority [Member] | |||||||
Operating Loss Carryforwards | 13,900,000 | ||||||
Delphax [Member] | Foreign Tax Authority [Member] | Research Tax Credit Carryforward [Member] | |||||||
Tax Credit Carryforward, Amount | 3,900,000 | ||||||
Delphax [Member] | Foreign Tax Authority [Member] | |||||||
Operating Loss Carryforwards | $ 8,000,000 | ||||||
Income Tax Expense (Benefit) | $ 1,499,000 | $ 690,617 | $ 2,867,000 | $ 1,494,821 | |||
Deferred Tax Assets, Valuation Allowance | $ 12,003,000 | $ 12,003,000 | $ 11,661,000 |
Note 4 - Net Earnings Per Sha31
Note 4 - Net Earnings Per Share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 0 | 0 |
Note 4 - Earnings Per Common Sh
Note 4 - Earnings Per Common Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Income Attributable to Air T, Inc. Stockholders | $ 2,971,340 | $ 1,448,453 | $ 6,029,260 | $ 3,339,551 |
Earnings Per Share: | ||||
Basic (in dollars per share) | $ 1.25 | $ 0.61 | $ 2.54 | $ 1.42 |
Diluted (in dollars per share) | $ 1.24 | $ 0.61 | $ 2.52 | $ 1.41 |
Weighted Average Shares Outstanding: | ||||
Basic (in shares) | 2,372,527 | 2,357,637 | 2,372,527 | 2,355,901 |
Diluted (in shares) | 2,396,999 | 2,381,214 | 2,396,645 | 2,373,500 |
Note 5 - Investment Securitie33
Note 5 - Investment Securities Available For Sale (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | |||||
Insignia [Member] | ||||||||||
Available-for-sale Securities, Gross Unrealized Loss | $ 362,000 | |||||||||
Available-for-sale Securities, Noncurrent | $ 5,106,000 | 5,106,000 | ||||||||
Available-for-sale Securities, Gross Realized Losses | 7,696 | $ 0 | ||||||||
Marketable Securities | 8,666,000 | 8,666,000 | ||||||||
Available-for-sale Securities, Amortized Cost Basis | 8,706,000 | $ 5,490,000 | 8,706,000 | $ 5,490,000 | ||||||
Available-for-sale Securities, Gross Unrealized Gain | 477,000 | 0 | ||||||||
Available-for-sale Securities, Gross Unrealized Loss | 517,000 | 211,000 | ||||||||
Marketable Securities, Current | 3,921,690 | [1] | 5,278,752 | 3,921,690 | [1] | 5,278,752 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 6,255,000 | 4,168,000 | 6,255,000 | 4,168,000 | ||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | 176,000 | 517,000 | ||||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | 35,000 | |||||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 1,111,000 | $ 1,111,000 | ||||||||
Available-for-sale Securities, Gross Realized Gains | 859 | $ 78 | 859 | $ 8,487 | ||||||
Available-for-sale Securities, Noncurrent | $ 4,744,406 | [1] | [2] | $ 4,744,406 | [1] | [2] | ||||
[1] | Includes VIE assets of $8,015,000 and VIE liabilities of $3,617,000 - Note 9 | |||||||||
[2] | Derived from audited financial statements |
Note 6 - Inventories (Details)
Note 6 - Inventories (Details) - USD ($) | Dec. 31, 2015 | Mar. 31, 2015 | |
Printing Equipment and Maintenance [Member] | |||
Raw materials | $ 3,702,883 | ||
Work in process | 354,408 | ||
Finished goods | 937,166 | ||
Ground Equipment Manufacturing [Member] | |||
Raw materials | 2,270,630 | $ 2,583,797 | |
Work in process | 964,274 | 1,535,152 | |
Finished goods | 2,117,512 | 3,045,761 | |
Ground support service parts | 1,529,931 | 938,072 | |
Total inventories | 11,876,804 | 8,102,782 | |
Reserves | (319,212) | (313,133) | |
Total inventories, net | $ 11,557,592 | [1] | $ 7,789,649 |
[1] | Includes VIE assets of $8,015,000 and VIE liabilities of $3,617,000 - Note 9 |
Note 7 - Stock Based Compensa35
Note 7 - Stock Based Compensation (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Delphax [Member] | Certain Employees of Delphax [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,200,000 | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0.33 | ||||
Delphax [Member] | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 373,000 | $ 373,000 | $ 373,000 | ||
Delphax [Member] | |||||
Allocated Share-based Compensation Expense | $ 31,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 15,000 | 0 | 15,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 0 | $ 0 | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 2,500 | 32,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 6,000 | 6,000 | |||
Allocated Share-based Compensation Expense | $ 0 | $ 8,958 |
Note 8 - Financing Arrangemen36
Note 8 - Financing Arrangements (Details Textual) | 9 Months Ended | |
Dec. 31, 2015USD ($) | Mar. 31, 2015USD ($) | |
Revolving Credit Facility [Member] | Letter of Credit [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000 | |
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Derivative, Basis Spread on Variable Rate | 1.50% | |
Revolving Credit Facility [Member] | Delphax [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 7,000,000 | |
Debt Instrument, Interest Rate, Effective Percentage | 4.25% | |
Long-term Line of Credit | $ 181,000 | |
Line of Credit Facility, Additional Borrowing Capacity | 2,828,000 | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 20,000,000 | |
Line of Credit Facility, Commitment Fee Percentage | 0.15% | |
Minimum Consolidated Tangible Net Worth | $ 22,000,000 | |
Minimum Fixed Charge Coverage Ratio | 1.35 | |
Minimum Asset Coverage Ratio | 1.75 | |
Maximum Leverage Ratio | 3.5 | |
Delphax [Member] | Secured Equipment Loan [Member] | ||
Debt Instrument, Interest Rate, Effective Percentage | 4.50% | |
Debt Instrument, Face Amount | $ 134,000 | |
Debt Instrument, Periodic Payment, Principal | 2,000 | |
Long-term Debt | $ 38,000 | |
Secured Long-term Debt, Noncurrent | $ 7,000,000 |
Note 9 - Variable Interest En37
Note 9 - Variable Interest Entities (Details Textual) | Nov. 24, 2015USD ($) |
Delphax [Member] | |
Loan Due from Variable Interest Entity | $ 2,500,000 |
Note 9 - Carrying Values of Ass
Note 9 - Carrying Values of Assets and Liabilities of Delphax Included on the Company's Consolidated Balance Sheet (Unaudited) (Details) | Dec. 31, 2015USD ($) | |
Delphax [Member] | Reportable Legal Entities [Member] | ||
Cash and cash equivalents | $ 276,000 | |
Accounts receivable, net | 1,838,000 | |
Inventories | 4,869,000 | |
Other current assets | 612,000 | |
Total current assets | 7,595,000 | |
Property and equipment | 391,000 | |
Other Assets | 29,000 | |
Total assets | 8,015,000 | |
Accounts payable | 1,197,000 | |
Income tax payable | 170,000 | |
Accrued expenses | 1,982,000 | |
Short-term debt | 208,000 | |
Total current liabilities | 3,557,000 | |
Long-term debt | 2,511,000 | |
Other long-term liabilities | 49,000 | |
Total liabilities | 6,117,000 | |
Net Assets | 1,898,000 | |
Delphax [Member] | ||
Total assets | 8,015,000 | |
Total liabilities | 3,617,000 | |
Cash and cash equivalents | 5,287,316 | [1] |
Accounts receivable, net | 14,969,012 | [1] |
Inventories | 11,557,592 | [1] |
Other current assets | 1,189,235 | [1] |
Total current assets | 38,095,644 | [1] |
Property and equipment | 4,516,440 | [1] |
Other Assets | 289,967 | [1] |
Total assets | 49,757,287 | [1] |
Accounts payable | 5,629,318 | [1] |
Income tax payable | 872,267 | [1] |
Accrued expenses | 5,456,011 | [1] |
Short-term debt | 208,000 | [1] |
Total current liabilities | 12,165,596 | [1] |
Long-term debt | 11,000 | [1] |
Other long-term liabilities | $ 53,690 | [1] |
[1] | Includes VIE assets of $8,015,000 and VIE liabilities of $3,617,000 - Note 9 |
Note 9 - Revenue and Expenses o
Note 9 - Revenue and Expenses of Delphax Included in the Company's Consolidated Statements of Operations (Unaudited) (Details) | 9 Months Ended |
Dec. 31, 2015USD ($) | |
Delphax [Member] | |
Operating Revenues | $ 1,035,000 |
Cost of sales | 1,376,000 |
General and administrative | 309,000 |
Research and development | 216,000 |
Depreciation and amortization | 17,000 |
1,918,000 | |
Operating Loss | (883,000) |
Non-operating Income | 36,000 |
Loss Before Income Taxes | $ (847,000) |
Income Tax Expense (Benefit) | |
Net income | $ (847,000) |
Operating Revenues | 113,631,022 |
General and administrative | 12,050,479 |
Research and development | 216,000 |
Depreciation and amortization | 667,595 |
105,285,354 | |
Operating Loss | 8,345,668 |
Non-operating Income | 25,452 |
Loss Before Income Taxes | 8,371,120 |
Income Tax Expense (Benefit) | 2,867,000 |
Net income | $ 5,504,120 |
Note 10 - Long-lived Assets By
Note 10 - Long-lived Assets By Geographic Region (Details) - USD ($) | Dec. 31, 2015 | Nov. 24, 2015 |
UNITED STATES | ||
Tangible long-lived assets | $ 4,135,440 | $ 2,571,499 |
Non-US [Member] | ||
Tangible long-lived assets | 381,000 | |
Tangible long-lived assets | $ 4,516,440 | $ 2,571,499 |
Note 11 - Segment Information41
Note 11 - Segment Information (Details Textual) | 9 Months Ended |
Dec. 31, 2015 | |
Number of Operating Segments | 5 |
Note 11 - Segment Data (Details
Note 11 - Segment Data (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Overnight Air Cargo [Member] | ||||
Operating Revenues: | ||||
Revenues | $ 18,674,458 | $ 12,973,810 | $ 48,949,401 | $ 36,626,144 |
Operating Income (Loss): | ||||
Operating Income (Loss) | 1,413,667 | 602,776 | 3,394,326 | 1,425,692 |
Capital Expenditures: | ||||
Capital Expenditures | 6,618 | 152,606 | 82,607 | 240,945 |
Depreciation and Amortization: | ||||
Depreciation and Amortization | 37,068 | 39,371 | 106,161 | 118,411 |
Ground Equipment Sales [Member] | Domestic [Member] | ||||
Operating Revenues: | ||||
Revenues | 19,024,052 | 9,142,043 | 41,165,115 | 23,775,339 |
Ground Equipment Sales [Member] | International [Member] | ||||
Operating Revenues: | ||||
Revenues | 1,320,235 | 3,497,312 | 4,501,549 | 12,127,129 |
Ground Equipment Sales [Member] | ||||
Operating Revenues: | ||||
Revenues | 20,344,287 | 12,639,354 | 45,666,664 | 35,902,468 |
Operating Income (Loss): | ||||
Operating Income (Loss) | 3,874,921 | 1,704,445 | 8,013,932 | 4,448,349 |
Capital Expenditures: | ||||
Capital Expenditures | 119,455 | 8,299 | 338,194 | 1,357,847 |
Depreciation and Amortization: | ||||
Depreciation and Amortization | 165,401 | 135,585 | 364,465 | 393,767 |
Ground Support Services [Member] | ||||
Operating Revenues: | ||||
Revenues | 6,559,110 | 5,279,822 | 17,974,239 | 14,767,637 |
Operating Income (Loss): | ||||
Operating Income (Loss) | 25,829 | 262,099 | (392,002) | 574,212 |
Capital Expenditures: | ||||
Capital Expenditures | 220,816 | 60,367 | 429,588 | 175,703 |
Depreciation and Amortization: | ||||
Depreciation and Amortization | 60,993 | $ 40,645 | 149,560 | $ 126,540 |
Printing Equipment and Maintenance [Member] | Domestic [Member] | ||||
Operating Revenues: | ||||
Revenues | 789,000 | 789,000 | ||
Printing Equipment and Maintenance [Member] | International [Member] | ||||
Operating Revenues: | ||||
Revenues | 246,000 | 246,000 | ||
Printing Equipment and Maintenance [Member] | ||||
Operating Revenues: | ||||
Revenues | 1,035,000 | 1,035,000 | ||
Operating Income (Loss): | ||||
Operating Income (Loss) | $ (883,000) | $ (883,000) | ||
Capital Expenditures: | ||||
Capital Expenditures | ||||
Depreciation and Amortization: | ||||
Depreciation and Amortization | $ 17,000 | $ 17,000 | ||
Leasing [Member] | ||||
Operating Revenues: | ||||
Revenues | 5,718 | 5,718 | ||
Operating Income (Loss): | ||||
Operating Income (Loss) | 1,378 | 1,378 | ||
Depreciation and Amortization: | ||||
Depreciation and Amortization | 2,195 | 2,195 | ||
Corporate Segment [Member] | ||||
Operating Income (Loss): | ||||
Operating Income (Loss) | (542,678) | $ (428,500) | (1,788,966) | $ (1,611,987) |
Capital Expenditures: | ||||
Capital Expenditures | 190,733 | 200,666 | ||
Depreciation and Amortization: | ||||
Depreciation and Amortization | 13,817 | $ 6,054 | 28,214 | $ 22,107 |
Revenues | 46,618,573 | 30,892,986 | 113,631,022 | 87,296,249 |
Operating Income (Loss) | 3,890,117 | 2,140,820 | 8,345,668 | 4,836,266 |
Capital Expenditures | 537,622 | 221,272 | 1,051,055 | 1,774,495 |
Depreciation and Amortization | $ 296,474 | $ 221,654 | $ 667,595 | $ 660,825 |