DENVER, NC / ACCESSWIRE / February 14, 2022 / Air T, Inc. (NASDAQ:AIRT) is an industrious American company with a portfolio of businesses, each of which is independent yet interrelated. We seek dynamic individuals and teams to operate companies using processes that increase value over time. We believe we can apply corporate resources to help activate growth and overcome challenges.
Our core segments are overnight air cargo; aviation ground equipment manufacturing and sales; commercial jet engines and parts; and corporate and other.
Today the Company is announcing results for the fiscal third quarter ended December 31, 2021:
*Adjusted EBITDA is a non-GAAP financial measure; see below for further explanation and reconciliation to GAAP measure.
Company Chairman and CEO Nick Swenson commented:
"Air T base businesses are improving incrementally, leading to improvements in our financial picture, including balance sheet metrics. We look forward to seeing steady growth as Covid wanes and several of our business find even better footing.
Our allocator-operator model, through which we seek to create space for dynamic management teams, will likely lead to opportunities we cannot predict or plan to make happen. The inherent power of great managers within a "complex system without a complex" is perhaps best understood in the results that emerge. Looking in the rear view mirror several years from now, we want to have more stories to tell about unpredictable growth and value creation.
Mountain Air Cargo's steady transformation under the leadership of Mike Bandalan and Team is worth watching. Their performance for their largest Customer is leading to additional responsibilities and continued growth avenues. MAC expects to add ten new routes in the Caribbean between Summer of 2021 and December 2022. Importantly for the long-term, Mike is leading with a growth mindset built on a people-first cultural foundation. We are super-encouraged by developments at MAC.
We are looking forward to moving steadily forward during 2022."
Business Segment Results
Overnight Air Cargo
Aviation ground equipment manufacturing and sales ("GGS")
Commercial Jet Engines and Parts
Corporate and Other
*Adjusted EBITDA is a non-GAAP financial measure; see below for further explanation and reconciliation to GAAP measures.
Non-GAAP Financial Measures
The Company uses adjusted earnings before taxes, interest, and depreciation and amortization ("Adjusted EBITDA"), a non-GAAP financial measure as defined by the SEC, to evaluate the Company's financial performance. This performance measure is not defined by accounting principles generally accepted in the United States and should be considered in addition to, and not in lieu of, GAAP financial measures.
Adjusted EBITDA is defined as earnings before taxes, interest, and depreciation and amortization, adjusted for specified items. The Company calculates Adjusted EBITDA by removing the impact of specific items and adding back the amounts of interest expense and depreciation and amortization to earnings before income taxes. When calculating Adjusted EBITDA, the Company does not add back depreciation expense for aircraft engines that are on lease, as the Company believes this expense matches with the corresponding revenue earned on engine leases. Depreciation expense for leased engines totaled $70.4 thousand and $1.7 million for the three months ended December 31, 2021 and 2020, respectively.
Management believes that Adjusted EBITDA is a useful measure of the Company's performance because it provides investors additional information about the Company's operations allowing better evaluation of underlying business performance and better period-to-period comparability. Adjusted EBITDA is not intended to replace or be an alternative to operating income, the most directly comparable amounts reported under GAAP.
The table below provides a reconciliation of operating income to Adjusted EBITDA for the periods ended December 31, 2021 and 2020 (in thousands):
Three Months Ended | Nine Months Ended | |||||||||||||||
12/31/2021 | 12/31/2020 | 12/31/2021 | 12/31/2020 | |||||||||||||
Operating income/(loss) | $ | 25 | $ | 1,068 | $ | 724 | $ | (2,881 | ) | |||||||
Depreciation and amortization (excluding leased engines depreciation) | 372 | 259 | 956 | 917 | ||||||||||||
Asset impairment, restructuring or impairment charges | - | - | - | 664 | ||||||||||||
Loss on disposition of assets | - | 5 | 3 | 1 | ||||||||||||
Security issuance expenses | 150 | - | 215 | - | ||||||||||||
Adjusted EBITDA | 547 | 1,332 | 1,898 | (1,299 | ) |
The following table shows the Company's Adjusted EBITDA by segment for the periods ended December 31, 2021 and 2020 (in thousands):
Three Months Ended | Nine Months Ended | |||||||||||||||
12/31/2021 | 12/31/2020 | 12/31/2021 | 12/31/2020 | |||||||||||||
Overnight Air Cargo | $ | 488 | $ | 506 | $ | 2,106 | $ | 1,672 | ||||||||
Ground Equipment Sales | 1,544 | 4,267 | 3,074 | 7,521 | ||||||||||||
Commercial Jet Engines and Parts | 500 | (1,466 | ) | 2,524 | (3,857 | ) | ||||||||||
Corporate and Other | (1,985 | ) | (1,975 | ) | (5,806 | ) | (6,635 | ) | ||||||||
Adjusted EBITDA | 547 | 1,332 | 1,898 | (1,299 | ) |
ABOUT AIR T, INC.
Established in 1980, Air T Inc. is a portfolio of powerful businesses and financial assets, each of which is independent yet interrelated. Its core segments are overnight air cargo, aviation ground support equipment manufacturing, and commercial aircraft asset management and logistics. We seek to expand, strengthen and diversify Air T's after-tax cash flow per share. Our goal is to build Air T's core businesses, and when appropriate, to expand into adjacent and other industries. We seek to activate growth and overcome challenges while delivering meaningful value for all stakeholders. For more information, visit www.airt.net.
FORWARD-LOOKING STATEMENTS
Certain matters discussed in this press release may be considered forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). These forward-looking statements are subject to risks, uncertainties and assumptions about our operations and the investments we make, including, among other things, factors discussed under the heading "Risk Factors" in our Form 10-K, as well as the following:
Forward-looking statements can be identified by the use of words like "believes," "could," "possibly," "probably," "anticipates," "estimates," "projects," "expects," "may," "will," "should," "seek," "intend," "plan," "expect," or "consider" or the negative of these expressions or other variations, or by discussions of strategy that involves risks and uncertainties. All forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual transactions, results, performance or achievements to be materially different from any future transactions, results, performance or achievements expressed or implied by such forward-looking statements. We base these forward-looking statements on current expectations and projections about future events and the information currently available to us. Although we believe that the assumptions for these forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Consequently, no representation or warranty can be given that the estimates, opinions, or assumptions made in or referenced in this press release will prove to be accurate. We undertake no obligation to update our forward-looking statements. We caution you that the forward-looking statements in this press release are only estimates and predictions, or statements of current intent. Actual results or outcomes, or actions that we ultimately undertake, could differ materially from those anticipated in the forward-looking statements due to risks, uncertainties or actual events differing from the assumptions underlying these statements. These risks, uncertainties and assumptions include, but are not limited to, those discussed in this press release.
CONTACT
Air T, Inc.
Brian Ochocki, CFO
bochocki@airt.net
612-843-4302
SOURCE: Air T, Inc.