06/27/2024 | Press release | Distributed by Public on 06/27/2024 13:07
CHARLOTTE, NC, June 26, 2024- 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 year ended March 31, 2024:
*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:
"Our Fiscal Year 2024 was eventful and productive across many of Air T's businesses. We believe our dynamism took a step up. Considering it is difficult to go deep into the most significant items, we offer you a long list to generate the gestalt: Air Cargo continued its wonderful growth in number and type of services provided to our largest customer; GGS initiated a new generation of customer-centric service and product while grinding through an unpredicted slowdown in global deicer industry sales; Contrail continued its expansion and experienced significant margin rebound in the back half; Crestone built out its team and drove asset growth, leading to one quarter of positive cash flow; Stratus continued to deliver strategic capabilities and generated investment ideas and sales channel expansion; our digital aviation groups drove notable revenue growth and new product offerings; and our investees Lendway and Cadillac made important strategic moves. Significantly, last year set us up for what we believe will be a productive and eventful FY2025."
Business Segment Results
Overnight Air Cargo
Ground Equipment 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 $1.6 million and $0.3 million for the fiscal year ended March 31, 2023, and 2022, 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 March 31, 2023, and 2022 (in thousands):