February 13, 2004
Contact: John Gioffre
Chief Financial Officer
3524 Airport Road
Maiden, NC 28065
(828) 464-8741 Ext. 215
FOR IMMEDIATE RELEASE
AIR T, INC. REPORTS UNAUDITED THIRD QUARTER RESULTS
MAIDEN, NC - Air T, Inc. (AirT) (NASDAQ: AIRT) today reported
unaudited consolidated net earnings of $230,000 ($0.08 per share) for
fiscal 2004's third quarter ended December 31, 2003, compared to a
net earnings of $37,000 ($0.01 per share) for the third quarter of
fiscal 2003. Consolidated revenues for fiscal 2004's third quarter
were $12,980,000 compared to $11,235,000 for the similar 2003 fiscal
quarter. The current quarter's increased revenues and net earnings
primarily resulted from substantially increased air cargo revenue,
partially offset by decreased ground equipment sales and earnings by
the Company's Global Ground Support (Global) subsidiary. Nine month,
year-to-date, consolidated revenues increased $7,052,000, to
$37,659,000, while net earnings increased $1,425,000 to current year-
to-date net earnings of $937,000.
AirT's fiscal 2004's net earnings for the three and nine month
periods ended December 31, 2003 are, respectively, comprised of
$309,000 and $1,365,000 in net earnings from continuing operations,
offset by $79,000 and $428,000 in net losses from discontinued
operations. The Company decided to dispose of its aviation parts
brokerage and overhaul services through its wholly owned subsidiary
Mountain Aircraft Services, LLC ("MAS") during the fourth quarter of
fiscal 2003, and a sale was completed during the second quarter of
fiscal 2004. As detailed in Financial Highlights below, the
operations of MAS have been reclassified to reflect its results as a
discontinued operation in the Company's consolidated financial
statements.
In a company press release dated January 23, 2004, Walter Clark,
Chairman and Chief Executive Officer of AirT, reported Global's
receipt of a three-year extension of its existing four-year supply
agreement with the U.S. Air Force. In connection with the extension,
the Air Force received funding approval to place an $11.3 million
equipment order, to be completed by Global over the next three to
four quarters.
AirT, through its subsidiaries, provides overnight air-freight
service to the express delivery industry and manufactures and
services aviation and other specialized equipment. AirT is one of
the largest small aircraft air cargo operators in the United States
and currently operates a fleet of single and twin-engine turbo-prop
aircraft nightly in the eastern half of the United States and Canada,
South America, 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 the effects of economic, competitive and
market conditions in the aviation industry, the continuing impact of
terrorist activities and threats, market acceptance of new products
and services and changes in government regulations, weather or
technology. A forward-looking statement is not a guarantee of future
events or circumstances, and those future events or circumstances may
not occur as anticipated. 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
Restated to reflect the discontinued operations of MAS
(In thousands, except per share data)
Three Months Ended Nine Months Ended
12/31/03 12/31/02 12/31/03 12/31/02
Continuing Operations Revenues $ 12,980 $ 11,235 $ 37,659 $ 30,607
Net Earnings (Loss) from Continuing
Operations 309 102 1,365 (162)
Net Loss from Discontinued Operations (79) (65) (428) (325)
Net Earnings (Loss) $ 230 $ 37 $ 937 $ (487)
Net Earnings (Loss) Per Share - Diluted:
Continuing Operations $ 0.11 $ 0.04 $ 0.50 $ (0.06)
Discontinued Operations (0.03) (0.03) (0.16) (0.12)
Total Net Earnings (Loss) Per Share
- Diluted $ 0.08 $ 0.01 0.34 $ (0.18)
Average Common Shares Outstanding 2,748 2,726 2,731 2,726