June 22, 2004
Contact: John J. Gioffre
Chief Financial Officer
3524 Airport Road
Maiden, NC 28650
(828) 464-8741 Ext. 215
FOR IMMEDIATE RELEASE
AIR T, INC. REPORTS AUDITED FISCAL 2004 RESULTS
MAIDEN, NC - Air T, Inc. (AirT) (NASDAQ: AIRT) today reported
consolidated net earnings of $1,738,000 ($0.64 per diluted share)
for fiscal 2004, which ended March 31, 2004, compared to a
consolidated net loss of $1,224,000 (($0.45) per diluted share) for
fiscal 2003. Fiscal 2004's net earnings was comprised of
$2,164,000 ($0.80 per diluted share) in earnings from continuing
operations, offset by a $426,000 (($0.16) per diluted share) loss
from discontinued operations.
During the fourth quarter of fiscal 2003, Company management agreed
to a plan to sell the assets of its Mountain Aircraft Services, LLC
(MAS) subsidiary and to discontinue the operations of the Company's
aviation service sector business. In conjunction with the
anticipated sale, the Company reclassified $1,591,000, net of
taxes, to discontinued operations during of fiscal 2003. In August
2003, the Company completed the sale of certain assets of MAS for
consideration of $1,885,000. Amounts recorded in discontinued
operations in fiscal 2004 relate to the net revenues and expenses
of MAS. As detailed in Financial Highlights below, the Company's
financial statements reflect the results of MAS as a discontinued
operation.
The Company's remaining subsidiaries continue to operate in two
business segments, Mountain Air Cargo, Inc. (MAC) and CSA Air, Inc.
(CSA) provide overnight air cargo services to the air express
delivery sector and Global Ground Support, LLC (Global)
manufactures, sells and services aviation and other specialized
ground support equipment products to passenger and cargo airlines,
the U.S. Government, airports and commercial customers.
Consolidated revenue from continuing operations increased
$13,125,000 (30.6%) to $55,997,000 for the fiscal year ended March
31, 2004 compared to the prior fiscal year. The increase in 2004
revenue primarily resulted from an increase in Global revenue of
$6,856,000 (52.9%) to $19,829,000, combined with a $6,269,000
(21.0%) increase in air cargo revenue to $36,168,000 in fiscal
2004.
Walter Clark, Chairman and Chief Executive Officer of AirT,
commented, "The turnaround in the fiscal results validates AirT's
decision to focus on air freight and specialized equipment
manufacture. This redirection of corporate energy coupled with
substantial throughput in both our manufacturing operation and
aircraft maintenance facility has resulted in these outstanding
operating results. Our philosophy of viewing our customers as
strategic partners in business helps to foster a positive
progressive environment for all involved. AirT looks forward to
working alongside our customers in current fiscal year."
AirT is one of the largest, small-aircraft air cargo operators in
the United States. It currently operates a fleet of single and
twin engine turbo-prop aircraft nightly in the eastern half of the
United States and Canada, Puerto Rico and the Virgin Islands.
Statements in this press release, which contain more than
historical information may be considered forward-looking statements
(as such term is defined in the Private Securities Litigation
Reform Act of 1995) which are subject to risks and uncertainties.
Actual results may differ materially from those expressed in the
forward-looking statements because of important potential risks and
uncertainties, including but not limited to future economic
conditions, inflation rates, competition, changes in technology or
government regulation, and the impact of future terrorist
activities in the United States and abroad. A forward-looking
statement is neither a prediction nor a guarantee of future events
or circumstances, and those future events or circumstances may not
occur. We are under no obligation, and we expressly disclaim any
obligation, to update or alter any forward-looking statements,
whether as a result of new information, future events or otherwise.
FINANCIAL HIGHLIGHTS
(In thousands, except per share data)
Continuing Operations Revenue $ 55,997 $ 42,872
Net Earnings from Continuing Operations $ 2,164 $ 366
Net Loss from Discontinued Operations $ (426) $ (1,591)
Net Earnings (Loss) $ 1,738 $ (1,225)
Net (Loss) Earnings Per Share-Diluted:
Continuing Operations $ 0.80 $ 0.13
Discontinued Operations (0.16) (0.58)
Total Net Earnings (Loss) Per Share-Diluted $ 0.64 $ (0.45)
Average Common Shares Outstanding 2,728 2,726