Air T, Inc. Reports Unaudited First Quarter Earnings

MAIDEN, N.C., Aug. 10, 2011 /PRNewswire/ — Air T, Inc. (Air T) (NASDAQ: AIRT) today reported consolidated net earnings of $168,000 ($0.07 per diluted share) for fiscal 2012’s first quarter ended June 30, 2011 compared to consolidated net earnings of $299,000 ($0.12 per diluted share) for the similar fiscal 2011 period.

Consolidated revenues increased $1,538,000 (10%) to $16,562,000 for the quarter ended June 30, 2011 compared to the same quarter in the prior fiscal year. This increase resulted principally from a $1,907,000 (21%) increase in our overnight air cargo segment revenues resulting from increased administrative fee revenue and maintenance labor revenue during the quarter. Our ground equipment sales revenue increased by $245,000 (6%) but the segment continues to see increased pressure on margins and operated at a loss for the quarter. At June 30, 2011, ground equipment sales backlog was $10.1 million, compared to $8.8 million at June 30, 2010 and $9.6 million at March 31, 2011. Our ground support services revenue decreased by $613,000 (28%) as a result of decreases in the scope of our contract with Delta in the past year.

Walter Clark, Chairman and Chief Executive Officer of Air T, commented, “We are less than satisfied with the overall results of our first quarter but we are encouraged by the results of our air cargo segment. That segment has had strong results of late and is adding aircraft after several years of contraction. Our ground equipment sales backlog remains high and should translate into an improved second quarter. Our ground support services segment, while still recovering from the Delta contract changes, is continuing to add new stations and work.”