Air T Inc. Appoints Nick Swenson as Chief Executive Officer; Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended December 31, 2013
February 10, 2014 at 08:05 pm IST
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Air T Inc. announced the appointment of Nick Swenson, current Chairman of the Board and Interim Chief Executive Officer, as its Chief Executive Officer.
The company reported unaudited consolidated earnings results for the third quarter and nine months ended December 31, 2013. The company reported consolidated net earnings of $455,000 or $0.19 per diluted share for the third quarter ended December 31, 2013 compared to consolidated net earnings of $633,000 or $0.26 per diluted share for the similar fiscal 2013 period. Consolidated revenue increased $3,131,000 or 12% to $29,835,000 compared to $26,703,000 in the same quarter in the prior fiscal year. Consolidated operating income decreased $191,000 or 19% for the quarter ended December 31, 2013 compared to the same quarter in the prior fiscal year. Ground support services segment reported a $967,000 or 29% increase in revenue this quarter, driven by continuing growth in locations and in services offered to new and existing customers; operating income decreased by $154,000 as a result of increasing administrative salaries and costs. Overnight air cargo revenues increased $2,059,000 or 17% as a result of an increase in maintenance costs passed through to customer at cost. The segment's operating income decreased by $210,000 as a result of a variety of factors including a reduction in revenue aircraft, increased maintenance labor costs and increased maintenance facility costs. Operating income for the quarter ended December 31, 2013 was also negatively impacted by the $566,000 severance payment paid to the company's former CEO during the quarter.
The company reported net earnings of $1,050,000 or $0.43 per diluted share for the nine months ended December 31, 2013 compared to $1,277,000 or $0.52 per diluted share for the similar fiscal 2013 period. Operating revenues were $75,305,000 against $72,354,000 last year.
Air T, Inc. is a holding company with a portfolio of operating businesses and financial assets. The Company has four segments: Overnight air cargo, Ground equipment sales, Commercial jet engines and parts, and Corporate and other. Overnight air cargo segment operates in the air express delivery services industry. Ground equipment sales segment manufactures and provides mobile deicers and other specialized equipment products to passenger and cargo airlines, airports, military and industrial customers. Commercial jet engines and parts segment manages and leases aviation assets, supplies surplus and aftermarket commercial jet engine components, provides commercial aircraft disassembly/part-out services, commercial aircraft parts sales, and procurement services and overhaul and repair services to airlines. Corporate and other segment acts as the capital allocator and resources for other consolidated businesses. Further, the segment is also comprised of insignificant businesses.
Air T Inc. Appoints Nick Swenson as Chief Executive Officer; Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended December 31, 2013