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Air T (AIRT) Q1 Earnings Increase Y/Y, Revenues Decline
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Air T, Inc. (AIRT - Free Report) reported a loss per share of 12 cents in the first quarter of fiscal 2025, narrower than the year-ago quarter’s loss of 19 cents per share.
Revenues in Detail
Air T registered revenues of $66.4 million in the fiscal first quarter, down 7% year over year.
Lower revenues from Ground Equipment Sales (GGS) and Commercial Jet Engines and Parts segments dampened the topline.
Segment Details
Air T derives revenues from four segments — Overnight Air Cargo, GGS, Commercial Jet Engines and Parts and Corporate and Other.
For the quarter under review, Overnight Air Cargo revenues were $30.4 million, up 9.6% from the year-ago quarter. This primarily resulted from higher administrative fees due to the increased fleet of 105 aircraft in the reported quarter compared with 85 aircraft in the prior-year quarter. However, this was partially offset by lower pass-through revenues from FedEx due to initial provisioning for new aircraft in the prior year that did not recur in the first quarter of fiscal 2025.
GGS revenues during the fiscal first quarter were $7.4 million, down 37.6% year over year. The decrease was primarily due to the lower number of deicing trucks sold, which was offset by a slight increase in catering truck sales in the fiscal first quarter compared with the prior year's comparable quarter.
Revenues in the Commercial Jet Engines and Parts segment totaled $26.3 million, down 12% year over year. The decline was primarily the result of lower component part sales at Contrail in the fiscal first quarter compared with the prior-year comparable quarter.
The Corporate and Other segment generated revenues of $2.4 million, up 17.1% from the year-ago quarter. The increase was primarily attributable to more subscriptions sales at Shanwick.
Geographical Results
Air T derives revenues from two geographical regions — United States and Foreign.
Revenues from the United States were $54.9 million (down 11% year over year), while Foreign revenues were $11.5 million (up 18.3% year over year).
Overnight air cargo expenses increased 8.4% year over year to $25.7 million, while GGS expenses declined 36.8% year over year to $6.5 million.
Commercial jet engines and parts expenses declined 20.4% year over year to $18.5 million, while Corporate and other expenses declined 5.7% year over year to $0.8 million.
General and administrative expenses increased 23.2% year over year to $14.6 million.
Profitability
The Overnight Air Cargo segment's operating income in the first quarter of fiscal 2025 was $1.8 million, down 4.9% year over year. The GCS segment's operating loss for the reported quarter was $0.8 million compared with the prior year's comparable quarter's operating loss of $0.1 million.
The Commercial Jet Engines and Parts segment generated operating income of $1.1 million in the fiscal first quarter, down 25.9% year over year. The Corporate and Other segment's operating loss for the reported quarter was $2.74 million compared with the year-ago quarter’s operating loss of $2.67 million.
Consolidated operating loss for the first quarter of fiscal 2025 was $0.6 million against the year-ago quarter’s operating income of $0.7 million. In the fiscal first quarter, the net loss attributable to Air T’s stockholders was $0.3 million compared with the year-ago quarter’s $0.5 million.
Adjusted EBITDA during the reported quarter was $0.7 million, down 52.3% from the year-ago quarter.
Liquidity & Debt Management
Air T exited first-quarter fiscal 2025 with cash and cash equivalents of $7.8 million compared with $7.1 million at the fiscal 2024-end. Total debt at the end of first-quarter fiscal 2025 was $112 million compared with $112.9 million at the fiscal 2024-end.
Net cash provided by operating activities at the end of first-quarter fiscal 2025 was $0.1 million compared with $3.5 million a year ago.
Our Take
Air T exited the first quarter of fiscal 2025 with encouraging bottom-line results. The revenue uptick in its Overnight Air Cargo and Corporate and Other segments during the quarter was also impressive. Robust Foreign revenues were also promising.
However, dismal top-line results and lower revenues from the GGS and Commercial Jet Engines and Parts segments were discouraging. The decline in revenues from the United States was also disappointing.
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Air T (AIRT) Q1 Earnings Increase Y/Y, Revenues Decline
Air T, Inc. (AIRT - Free Report) reported a loss per share of 12 cents in the first quarter of fiscal 2025, narrower than the year-ago quarter’s loss of 19 cents per share.
Revenues in Detail
Air T registered revenues of $66.4 million in the fiscal first quarter, down 7% year over year.
Lower revenues from Ground Equipment Sales (GGS) and Commercial Jet Engines and Parts segments dampened the topline.
Segment Details
Air T derives revenues from four segments — Overnight Air Cargo, GGS, Commercial Jet Engines and Parts and Corporate and Other.
For the quarter under review, Overnight Air Cargo revenues were $30.4 million, up 9.6% from the year-ago quarter. This primarily resulted from higher administrative fees due to the increased fleet of 105 aircraft in the reported quarter compared with 85 aircraft in the prior-year quarter. However, this was partially offset by lower pass-through revenues from FedEx due to initial provisioning for new aircraft in the prior year that did not recur in the first quarter of fiscal 2025.
GGS revenues during the fiscal first quarter were $7.4 million, down 37.6% year over year. The decrease was primarily due to the lower number of deicing trucks sold, which was offset by a slight increase in catering truck sales in the fiscal first quarter compared with the prior year's comparable quarter.
Revenues in the Commercial Jet Engines and Parts segment totaled $26.3 million, down 12% year over year. The decline was primarily the result of lower component part sales at Contrail in the fiscal first quarter compared with the prior-year comparable quarter.
The Corporate and Other segment generated revenues of $2.4 million, up 17.1% from the year-ago quarter. The increase was primarily attributable to more subscriptions sales at Shanwick.
Geographical Results
Air T derives revenues from two geographical regions — United States and Foreign.
Revenues from the United States were $54.9 million (down 11% year over year), while Foreign revenues were $11.5 million (up 18.3% year over year).
Air T, Inc. Price, Consensus and EPS Surprise
Air T, Inc. price-consensus-eps-surprise-chart | Air T, Inc. Quote
Air T Operating Expenses Analysis
Overnight air cargo expenses increased 8.4% year over year to $25.7 million, while GGS expenses declined 36.8% year over year to $6.5 million.
Commercial jet engines and parts expenses declined 20.4% year over year to $18.5 million, while Corporate and other expenses declined 5.7% year over year to $0.8 million.
General and administrative expenses increased 23.2% year over year to $14.6 million.
Profitability
The Overnight Air Cargo segment's operating income in the first quarter of fiscal 2025 was $1.8 million, down 4.9% year over year. The GCS segment's operating loss for the reported quarter was $0.8 million compared with the prior year's comparable quarter's operating loss of $0.1 million.
The Commercial Jet Engines and Parts segment generated operating income of $1.1 million in the fiscal first quarter, down 25.9% year over year. The Corporate and Other segment's operating loss for the reported quarter was $2.74 million compared with the year-ago quarter’s operating loss of $2.67 million.
Consolidated operating loss for the first quarter of fiscal 2025 was $0.6 million against the year-ago quarter’s operating income of $0.7 million.
In the fiscal first quarter, the net loss attributable to Air T’s stockholders was $0.3 million compared with the year-ago quarter’s $0.5 million.
Adjusted EBITDA during the reported quarter was $0.7 million, down 52.3% from the year-ago quarter.
Liquidity & Debt Management
Air T exited first-quarter fiscal 2025 with cash and cash equivalents of $7.8 million compared with $7.1 million at the fiscal 2024-end. Total debt at the end of first-quarter fiscal 2025 was $112 million compared with $112.9 million at the fiscal 2024-end.
Net cash provided by operating activities at the end of first-quarter fiscal 2025 was $0.1 million compared with $3.5 million a year ago.
Our Take
Air T exited the first quarter of fiscal 2025 with encouraging bottom-line results. The revenue uptick in its Overnight Air Cargo and Corporate and Other segments during the quarter was also impressive. Robust Foreign revenues were also promising.
However, dismal top-line results and lower revenues from the GGS and Commercial Jet Engines and Parts segments were discouraging. The decline in revenues from the United States was also disappointing.