FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Quarterly Report Under Section 13 or 15 (d)
of the Securities Exchange Act of 1934
For Quarter Ended December 31, 2000
Commission File Number 0-11720
AIR T, INC.
(Exact name of registrant as specified in its charter)
Delaware 52-1206400
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Post Office Box 488, Denver, North Carolina 28037
(Address of principal executive offices)
(704) 377-2109
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15 (d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.
Yes X No
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
2,705,453 Common Shares, par value of $.25 per share were outstanding
as of February 9, 2001.
This filing contains 26 pages.
The exhibit index is on page 16.
AIRT, INC. AND SUBSIDIARIES
INDEX
Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Statements of Earnings (Loss)
for the three and nine-month periods ended
December 31, 2000 and 1999 (Unaudited) 3
Condensed Consolidated Balance Sheets at
December 31, 2000 (Unaudited)
and March 31, 2000 4
Condensed Consolidated Statements of Cash
Flows for the nine-month periods
ended December 31, 2000 and 1999 (Unaudited) 5
Notes to Condensed Consolidated Financial
Statements (Unaudited) 6-7
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations 8-12
Item 3. Quantitative and Qualitative Disclosure
About Market Risk 13
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 14
Item 6. Exhibits and Reports on Form 8-K 14-15
Exhibit Index 16
Exhibits 17-26
2
AIRT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) (UNAUDITED)
Three Months Ended Nine months Ended
December 31, December 31,
2000 1999 2000 1999
Operating Revenues:
Cargo $5,092,020 $4,762,519 $14,071,350 $13,733,496
Maintenance 2,288,298 2,842,958 7,129,545 9,777,530
Ground equipment 11,133,140 5,573,038 23,369,693 10,227,571
Aircraft services and other 2,068,899 2,400,631 5,533,680 6,536,989
20,582,357 15,579,146 50,104,268 40,275,586
Operating Expenses:
Flight operations 3,691,669 3,340,241 10,018,156 9,901,360
Maintenance and brokerage 3,969,676 4,680,162 11,505,174 14,854,505
Ground equipment 9,375,995 4,696,544 19,867,998 9,075,590
General and administrative 2,279,638 1,864,927 6,136,572 5,490,636
Depreciation and amortization 214,573 236,108 661,244 700,510
19,531,551 14,817,982 48,189,144 40,022,601
Operating Income 1,050,806 761,164 1,915,124 252,985
Non-operating Expense (Income):
Interest 197,549 165,199 556,658 467,531
Deferred retirement expense 6,249 6,249 18,747 19,003
Investment income (13,967) (38,579) (84,576) (129,620)
Loss on asset sale 39,438 26,108 41,047 26,108
229,269 158,977 531,876 383,022
Earnings (Loss) Before
Income Taxes 821,537 602,187 1,383,248 (130,037)
Income Tax Provision (Benefit) 323,537 228,000 552,996 (50,000)
Net Earnings (Loss) $ 498,000 $ 374,187 $ 830,252 $ (80,037)
Net Earnings (Loss) Per Share:
Basic $ 0.18 $ 0.14 $ 0.30 $ (0.03)
Diluted $ 0.18 $ 0.13 $ 0.30 $ (0.03)
Average Shares Outstanding:
Basic 2,731,220 2,759,153 2,742,853 2,762,820
Diluted 2,780,372 2,831,312 2,774,472 2,762,820
See notes to condensed consolidated financial statements.
3
AIRT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2000 MARCH 31, 2000
ASSETS (Unaudited)
Current Assets:
Cash and cash equivalents $ 85,539 $ 144,513
Marketable securities 794,594 1,295,678
Accounts receivable, net 11,544,509 7,960,978
Costs and estimated earnings in excess
of billings on uncompleted contracts 270,781 210,178
Inventories 12,298,207 9,741,675
Deferred tax asset, net 437,097 321,097
Prepaid expenses and other 129,075 228,757
Total Current Assets 25,559,802 19,902,876
Property and Equipment 6,921,182 6,461,984
Less accumulated depreciation (4,475,679) (3,867,778)
2,445,503 2,594,206
Deferred Tax Asset 419,554 438,554
Intangible Pension Asset 520,778 430,778
Other Assets 506,873 570,033
Total Assets $29,452,510 $ 23,936,447
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Notes payable to bank $ 7,539,194 $ 3,988,191
Accounts payable 8,644,140 7,517,640
Accrued expenses 1,426,735 1,090,838
Income taxes payable 452,025 470,247
Current portion of long-term obligations 64,833 64,833
Total Current Liabilities 18,126,927 13,131,749
Capital Lease Obligation (less current
Portion) 37,527 36,440
Deferred Retirement Obligation (less current
Portion) 1,632,872 1,512,377
Stockholders' Equity:
Preferred stock, $1 par value, authorized
10,000,000 shares, none issued - -
Common stock, par value $.25; authorized
4,000,000 shares; 2,705,453 and
2,740,353 shares issued 676,363 684,416
Additional paid in capital 6,825,981 6,976,795
Accumulated other comprehensive loss (595,118) (597,904)
Retained earnings 2,747,958 2,192,574
9,655,184 9,255,881
Total Liabilities and Stockholders' Equity $29,452,510 $ 23,936,447
See notes to condensed consolidated financial statements.
4
AIRT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Nine Months Ended
December 31,
2000 1999
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings (loss) $ 830,252 $ (80,037)
Adjustments to reconcile net earnings (loss)
to net cash used in operations:
Depreciation and amortization 661,244 700,510
Loss (Gain) on sale of asset 41,047 (26,108)
Change in assets and liabilities:
Accounts receivable (3,583,531) (388,072)
Cost and estimated earnings in excess of
billings on uncompleted contracts (60,603) -
Inventories (2,556,532) (3,013,654)
Prepaid expenses and other 72,842 (321,476)
Deferred tax asset (97,000) -
Accounts payable 1,126,500 1,644,519
Accrued expenses 335,897 (226,500)
Retirement obligation 120,495 4,605
Income taxes payable (18,222) 150,444
Total adjustments (3,957,863) (1,475,732)
Net cash used in operating activities (3,127,611) (1,555,769)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (618,795) (430,551)
Purchase of marketable securities - (100,000)
Sale of marketable securities 570,164 674,998
Net cash (used in) provided by investing activities (48,631) 144,447
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from line of credit , net 3,551,003 1,512,566
Payment of cash dividend (274,858) (220,278)
Repurchase of common stock (189,377) (53,107)
Proceeds from exercise of stock options 30,500 -
Net cash provided by financing activities 3,117,268 1,239,181
NET DECREASE IN CASH & CASH EQUIVALENTS (58,974) (172,141)
CASH & CASH EQUIVALENTS AT BEGINNING OF PERIOD 144,513 263,362
CASH & CASH EQUIVALENTS AT END OF PERIOD $ 85,539 $ 91,221
SUPPLEMENTAL SCHEDULE OF NON-CASH ACTIVITIES:
Other comprehensive gain (loss) $ 2,776 $ (282,777)
Equipment capital lease 19,894 -
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest $ 526,320 $ 454,618
Income/Franchise taxes 669,192 50,746
See notes to condensed consolidated financial statements.
5
AIRT, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
A. Financial Statements
The Condensed Consolidated Balance Sheet as of December 31, 2000, the
Condensed Consolidated Statements of Earnings (Loss) for the three and nine-
month periods ended December 31, 2000 and 1999 and the Condensed
Consolidated Statements of Cash Flows for the nine-month periods ended
December 31, 2000 and 1999 have been prepared by AirT, Inc. (the Company)
without audit. In the opinion of management, all adjustments (consisting
only of normal recurring adjustments) necessary to present fairly the
financial position, results of operations and cash flows as of December 31,
2000, and for prior periods presented, have been made.
It is suggested that these financial statements be read in conjunction
with the financial statements and notes thereto included in the Company's
Annual Report on Form 10-K for the year ended March 31, 2000. The results
of operations for the period ended December 31 are not necessarily
indicative of the operating results for the full year.
B. Income Taxes
The tax effect of temporary differences, primarily asset reserves and
accrued liabilities, gave rise to the Company's deferred tax assets in the
accompanying December 31, 2000 and March 31, 2000 consolidated balance
sheets.
The income tax provisions for the nine-months ended December 31, 2000
and 1999 differ from the federal statutory rate primarily as a result of
state income taxes and permanent timing differences.
C. Net Earnings (Loss) Per Share
Basic earnings (loss) per share has been calculated by dividing net
earnings (loss) by the weighted average number of common shares outstanding
during each period. For purposes of calculating diluted earnings per
share, shares issuable under employee stock options were considered common
share equivalents and were included in the weighted average common shares
unless their effect on basic earnings (loss) per share was considered anti-
dilutive.
6
The computation of basic and diluted earnings (loss) per common share is as
follows:
Three Months Ended Nine months Ended
December 31, December 31,
2000 1999 2000 1999
Net earnings (loss) $ 498,000 $ 374,187 $ 830,252 $ (80,037)
Weighted average common shares:
Shares outstanding - basic 2,731,220 2,759,153 2,742,853 2,762,820
Dilutive stock options 49,152 72,159 31,620 -
Shares outstanding - diluted 2,780,372 2,831,312 2,774,473 2,762,820
Net earnings (loss) per common share:
Basic $ 0.18 $ 0.14 $ 0.30 $ (0.03)
Diluted $ 0.18 $ 0.13 $ 0.30 $ (0.03)
D New Accounting Standard
On April 1, 2001, the Company is required to adopt Statement of
Financial Accounting Standard No. 133, "Accounting for Derivative
Instruments and Hedging Activities" (SFAS 133). This statement established
accounting and reporting standards for derivative instruments, including
certain derivative instruments embedded in other contracts, and for other
hedging activities. It requires that an entity recognize all derivatives
as either assets or liabilities in the statement of financial position and
measure these instruments at fair value. The Company is currently
assessing the impact, if any, that the adoption of SFAS 133 will have on
the Company's financial statements.
7
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Overview
Statements in this "Management's Discussion and Analysis of Financial
Condition and Results of Operations" or made by management of the Company
which contain more than historical information may be considered forward-
looking statements (as such term is defined in the Private Securities
Litigation Reform Act of 1995) which are subject to risks and
uncertainties. Actual results may differ materially from those expressed
in the forward-looking statements because of important risks and
uncertainties, including but not limited to the effects of economic,
competitive and market conditions in the aviation industry.
Year to date, the Company's most significant components of revenue
were generated through Global Ground Support, LLC (Global) (47%), its deice
manufacturing subsidiary, and Mountain Air Cargo, Inc. (MAC) and CSA Air,
Inc. (CSA) (42%), its air cargo subsidiaries. MAC and CSA are short-haul
express air freight carriers flying nightly contracts for a major express
delivery company out of 80 cities, principally located in 30 states in the
eastern half of the United States and in Puerto Rico, Canada and the Virgin
Islands.
Global manufactures, services and supports aircraft deicers and other
aircraft ground support equipment on a worldwide basis. Global contributed
approximately $23,370,000 and $10,228,000 to revenue for the nine-month
periods ended December 31, 2000 and 1999, respectively.
Separate agreements cover the three types of aircraft operated by MAC
and CSA-Cessna Caravan, Fokker F-27 and Short Brothers SD3-30. Cessna
Caravan and Fokker F-27 aircraft (a total of 93 aircraft at December 31,
2000) are owned by and dry-leased from a major air express company
(Customer), and Short Brothers SD3-30 aircraft (two aircraft at December
31, 2000) are owned by the Company and periodically operated under wet-
lease arrangements with the Customer. Pursuant to such agreements, the
Customer determines the type of aircraft and schedule of routes to be flown
by MAC and CSA, with all other operational decisions made by the Company.
Under the terms of the dry-lease service agreements, which currently cover
approximately 98% of the revenue aircraft operated, the Company passes
through to its customer certain cost components of its operations without
markup. The cost of fuel, flight crews, landing fees, outside maintenance,
parts and certain other direct operating costs are included in operating
expenses and billed to the customer as cargo and maintenance revenue, at
cost.
8
Agreements are renewable annually and may be terminated by the
Customer at any time upon 15 to 30 days' notice. The Company believes that
the short term and other provisions of its agreements with the Customer are
standard within the air freight contract delivery service industry. The
Company is not contractually precluded from providing such services to
other firms, and has done so in the past. Loss of its contracts with the
Customer would have a material adverse effect on the Company.
MAC and CSA contributed approximately $21,257,000 and $23,601,000 to
revenue for the nine-month periods ended December 31, 2000 and 1999,
respectively.
The Company's Mountain Aircraft Services, LLC (MAS) subsidiary, which
offers aircraft component repair and parts brokerage services, contributed
$5,460,000 and $6,429,000 to the Company's revenues for the nine-month
periods ended December 31, 2000 and 1999, respectively.
Seasonality
Global's business has historically been highly seasonal. In general,
the bulk of Global's revenues and earnings have occurred during the second
and third fiscal quarters, and comparatively little has occurred during the
first and fourth fiscal quarters due to the nature of its product line.
The Company is currently reducing Global's seasonal fluctuation in revenues
and earnings by broadening its product line and customer base to increase
revenues and earnings in the first and fourth fiscal quarters. The Company
expended exceptional effort in fiscal 1999 and 2000 to design and produce
prototype equipment to expand its product line to include additional deicer
models and two models of scissor-lift equipment for catering and cabin
service of aircraft. These costs were expensed as incurred. In June 1999,
the Company was awarded a four-year contract to supply deicing equipment to
the United States Air Force (USAF) for a total amount of approximately $25
million. Although the first shipments under this contract did not commence
until the quarter ended March 31, 2000, revenue from this contract will
contribute to management's plan to reduce Global's seasonal fluctuation in
revenues. Revenue from the USAF contract contributed 46% and 17%,
respectively, for the nine and three-month periods ended December 31, 2000.
The remainder of the Company's business is not materially seasonal.
Results of Operations
Consolidated revenue increased $9,829,000 (24.4%) to $50,104,000 and
increased $5,003,000 (32.1%) to $20,582,000, respectively, for the nine and
three-month periods ended December 31, 2000 compared to their equivalent
1999 periods. The nine and three-month current period net increase in
revenue primarily resulted from increased Air Force contract revenue at
Global. Decreases in maintenance and component repair services were
primarily due to the timing of scheduled major overhauls at MAC in fiscal
2000 compared to the current period and the expiration of an overhaul
contract at MAS in place during fiscal 2000.
9
Results of Operations (Cont'd)
Operating expenses increased $8,167,000 (20.4%) to $48,189,000 for the
nine-month period ended December 31, 2000 and $4,714,000 (31.8%) to
$19,532,000 for the three-month period ended December 31, 2000 compared to
their equivalent 1999 periods. The change in operating expenses for the
nine-month period consisted of the following: cost of flight operations
increased $117,000 (1.2%), primarily as a result of increases in costs
associated with airport fees and fuel costs, partially offset by decreased
pilot travel costs; maintenance and brokerage expense decreased $3,349,000
(22.6%), primarily as a result of decreases associated with cost of parts,
labor and outside maintenance related to the overhaul and repair operations
of MAC and MAS; ground equipment increased $10,792,000 (118.9%), as a
result of cost of parts and labor associated with increased Global sales;
depreciation and amortization decreased $39,000 (5.6%) primarily as a
result of decreased depreciation related to the completion of certain
assets' depreciable lives; general and administrative expense increased
$646,000 (11.8%) primarily as a result of increased wages, performance
based bonuses and benefits, particularly related to the increased earnings
of Global, partially offset by decreased professional fees and telephone
expense.
The change in operating expenses for the three-month period consisted
of the following: cost of flight operations increased a net of $351,000
(10.5%), primarily as a result of increased personnel, travel cost, airport
fees and fuel cost; maintenance and brokerage expense decreased $710,000
(15.2%), primarily as a result of decreases associated with cost of parts,
labor and outside maintenance related to the overhaul and repair operations
of MAC and MAS; ground equipment increased $4,679,000 (99.6%), as a result
of cost of parts and labor associated with Global increased sales;
depreciation and amortization decreased $22,000 (9.1%) as a result of
decreased depreciation related to the completion of certain assets'
depreciable lives related to the expansion of MAS and Global; general and
administrative expense increased $415,000 (22.2%) primarily as a result of
increased wages, performance based bonuses and benefits, particularly
related to the increased earnings of Global, partially offset by decreased
advertising and telephone expense.
Non-operating expense increased $149,000 and $70,000, respectively,
for the nine and three-month periods ended December 31, 2000 and September
30, 1999. The increases were principally due to increased credit-line
interest expense and decreased investment income.
10
Results of Operations (Cont'd)
Pretax earnings increased $1,513,000 and $219,000, respectively, for
the nine and three-month periods ended December 31, 2000, compared to their
respective December 31, 1999 periods. The nine-month increase was
principally due to a $1,918,000 increase in profitability at Global and
increased earnings at MAC, partially offset by a decrease in AIRT and MAS
earnings. For the three-month period ended December 31, 2000 compared to
1999 Global's earnings increased $783,000, Global's increase was supported
by increased earnings at MAC and partially offset by decreased
profitability at MAS and AIRT. The substantial increase in Global's
current period profit was primarily due to increased revenue.
The provision for income taxes increased $603,000 and $96,000 for the
nine and three-month periods ended December 31, 2000, respectively compared
to their respective 1999 periods due to increased taxable income.
Liquidity and Capital Resources
As of December 31, 2000 the Company's working capital amounted to
$7,433,000, an increase of $662,000 compared to March 31, 2000.
A separate, unsecured, line of credit was set up in November 2000 to
fund the purchase of rotable aircraft parts. The Company's unsecured lines
of credit, which increased by $1,145,000 during the current third quarter,
matures on August 31, 2001, provide credit up to $8,645,000. Amounts
advanced under the line of credit bear interest at the 30-day "LIBOR" rate
plus 137 basis points.
Under the terms of the lines of credit the Company must maintain
certain financial ratios and may not encumber certain real or personal
property. At December 31, 2000, the Company was in compliance with these
covenants. At December 31, 2000 the Company was in a net borrowing position
against its credit lines of $7,539,000. Management believes that funds
anticipated from operations and the continuation of existing credit
facilities will provide adequate cash flow to meet the Company's future
financial needs.
The respective nine-month periods ended December 31, 2000 and 1999
resulted in the following changes in cash flow: operating activities used
$3,128,000 and $1,556,000, investing activities used $49,000 and provided
$144,000 and financing activities provided $3,117,000 and $1,239,000. Net
cash decreased $59,000 and $172,000 for the respective nine-month periods
ended December 31, 2000 and 1999.
11
Liquidity and Capital Resources (Cont'd)
Cash used in operating activities was $1,572,000 more for the nine-
months ended December 31, 2000 compared to the similar 1999 period,
principally due to increased accounts receivable and decreased accounts
payable, partially offset by increased profitability, accrued expenses, and
inventory.
During the current nine-month period ended December 31, 2000 the
Company repurchased 60,900 shares of its common stock at a total cost of
$189,377. In December 2000 the Company's Board of Directors authorized the
repurchase of an additional $200,000 of Company stock. As of December 2000
$187,000 remains available for repurchase of common stock.
Cash used in investing activities for the nine-months ended December
31, 2000 was approximately $193,000 more than the comparable period in,
1999, principally due to increased capital expenditures.
Cash provided by financing activities for the nine-months ended
December 31, 2000 was approximately $1,878,000 more than the comparable
1999 period, principally due to an increase in borrowings under the line of
credit in 2000.
There are currently no commitments for significant capital
expenditures. The Company's Board of Directors, on August 7, 1998, adopted
the policy to pay an annual cash dividend in the first quarter of each
fiscal year, in an amount to be determined by the board. The Company paid
a $0.10 per share cash dividend in June 2000.
Deferred Retirement Obligation
The Company's former Chairman and Chief Executive Officer passed away
on April 18, 1997. In addition to amounts previously expensed, under the
terms of his supplemental retirement agreement, death benefits with a
present value of approximately $420,000 were expensed in the first quarter
1998. The death benefits are payable in the amount of $75,000 per year for
10 years.
Impact of Inflation
The Company believes the impact of inflation and changing prices on
its revenues and net earnings will not have a material effect on its
manufacturing operations because increased costs due to inflation could be
passed on to its customers, or on its air cargo business since the major
cost components of its operations, consisting principally of fuel, crew and
certain maintenance costs are reimbursed, without markup, under current
contract terms.
12
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
The Company does not hold or issue derivative financial instruments
for trading or other purposes. The Company is exposed to changes in
interest rates on its line of credit, which bears interest based on the 30-
day LIBOR rate plus 137 basis points. If the LIBOR interest rate had been
increased by one percentage point, based on the quarter-end balance of the
line of credit, annual interest expense would have increased by
approximately $75,000.
13
PART II -- OTHER INFORMATION
Item 1. Legal Proceedings
The Company's subsidiary, Global Ground Support, LLC, is a
party to a lawsuit against FMC Corporation pending in United States
District Court for the Western District of North Carolina. Global
commenced the lawsuit against FMC on May 8, 2000 as a declaratory
judgment proceeding to confirm that aspects of Global's de-icing
equipment did not infringe a patent held by FMC and to have FMC's
patent declared unenforceable. On August 21, 2000, FMC filed an
answer and counterclaim against both Global and the Company alleging
that aspects of Global's de-icing equipment infringe a patent held
by FMC seeking injunctive relief and unquantified damages.
Discovery has not yet commenced. The Company and Global are
vigorously defending the counterclaim.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
No. Description
3.1 Certificate of Incorporation, as amended, incorporated by
reference to Exhibit 3.1 of the Company's Annual Report on
Form 10-K for the fiscal year ended March 31, 1994
3.2 By-laws of the Company, incorporated by reference to
Exhibit 3.2 of the Company's Annual Report on Form 10-K
for the fiscal year ended March 31, 1996
4.1 Specimen Common Stock Certificate, incorporated by
reference to exhibit 4.1 of the Company's Annual Report on
Form 10-K for the fiscal year ended March 31, 1994
10.1 Loan agreement among Bank of America, the Company and its
subsidiaries, dated August 31, 2000.
10.2 Loan agreement among Bank of America, the Company and its
subsidiaries, dated November 21, 2000.
21.1 List of subsidiaries of the Company, incorporated by reference to
Exhibit 21.1 of the Company's Quarterly Report on Form 10-Q for
the period ended September 30, 1997
27.1 Financial Data Schedule (For SEC use only)
_______________________
b. Reports on Form 8-K
No Current Reports on Form 8-K were filed in the first nine months
of the fiscal year ending March 31, 2001.
14
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
AIRT, INC.
(Registrant)
Date: February 9, 2001 /s/ Walter Clark
Walter Clark, Chief Executive Officer
Date: February 9, 2001 /s/ John Gioffre
John J. Gioffre, Chief Financial Officer
15
AIRT, INC.
EXHIBIT INDEX
EXHIBIT PAGE
10.2 Loan Agreement among Bank of America, the Company
and its subsidiaries, dated November 21, 2000. 17-28
16