X |
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June 30, 2011
|
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from _____to _____
|
AIR T, INC. AND SUBSIDIARIES
|
|||||
QUARTERLY REPORT ON FORM 10-Q
|
|||||
TABLE OF CONTENTS
|
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Page
|
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PART I
|
|||||
Item 1.
|
Financial statements
|
||||
Condensed Consolidated Statements of Income
|
3 | ||||
Three Months Ended June 30, 2011 and 2010 (Unaudited)
|
|||||
Condensed Consolidated Balance Sheets
|
4 | ||||
June 30, 2011 (Unaudited) and March 31, 2011
|
|||||
Condensed Consolidated Statements of Cash Flows
|
5 | ||||
Three Months Ended June 30, 2011 and 2010 (Unaudited)
|
|||||
Condensed Consolidated Statements of Stockholders' Equity
|
6 | ||||
Three Months Ended June 30, 2011 and 2010 (Unaudited)
|
|||||
Notes to Condensed Consolidated Financial Statements (Unaudited)
|
7 | ||||
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
10 | |||
Item 3.
|
Quantitative and Qualitative Disclosures About Market risk
|
14 | |||
Item 4.
|
Controls and Procedures
|
14 | |||
PART II
|
|||||
Item 1.
|
Legal proceedings
|
15 | |||
Item 6.
|
Exhibits
|
15 | |||
Signatures
|
16 | ||||
Exhibit Index
|
17 | ||||
Certifications
|
18 | ||||
Three Months Ended June 30,
|
||||||||
2011
|
2010
|
|||||||
Operating Revenues:
|
||||||||
Overnight air cargo
|
$ | 10,826,899 | $ | 8,920,174 | ||||
Ground equipment sales
|
4,170,478 | 3,925,740 | ||||||
Ground support services
|
1,564,120 | 2,177,361 | ||||||
16,561,497 | 15,023,275 | |||||||
Operating Expenses:
|
||||||||
Flight-air cargo
|
4,584,346 | 3,969,345 | ||||||
Maintenance-air cargo
|
4,515,018 | 3,439,234 | ||||||
Ground equipment sales
|
3,505,850 | 3,198,787 | ||||||
Ground support services
|
1,116,068 | 1,505,906 | ||||||
General and administrative
|
2,535,307 | 2,402,926 | ||||||
Depreciation and amortization
|
53,916 | 96,715 | ||||||
16,310,505 | 14,612,913 | |||||||
Operating Income
|
250,992 | 410,362 | ||||||
Non-operating Income (Expense):
|
||||||||
Investment income
|
12,384 | 57,477 | ||||||
Interest expense
|
(227 | ) | (288 | ) | ||||
12,157 | 57,189 | |||||||
Income Before Income Taxes
|
263,149 | 467,551 | ||||||
Income Taxes
|
95,000 | 169,000 | ||||||
Net Income
|
$ | 168,149 | $ | 298,551 | ||||
Earnings Per Share:
|
||||||||
Basic
|
$ | 0.07 | $ | 0.12 | ||||
Diluted
|
$ | 0.07 | $ | 0.12 | ||||
Dividends Declared Per Share
|
$ | 0.25 | $ | 0.33 | ||||
Weighted Average Shares Outstanding:
|
||||||||
Basic
|
2,436,231 | 2,431,326 | ||||||
Diluted
|
2,454,033 | 2,495,546 | ||||||
See notes to condensed consolidated financial statements.
|
June 30, 2011
|
March 31, 2011
|
|||||||
ASSETS
|
(Unaudited)
|
|||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$ | 6,660,973 | $ | 6,515,067 | ||||
Short-term investments
|
- | 51,035 | ||||||
Accounts receivable, less allowance for
|
||||||||
doubtful accounts of $41,000 and $40,000
|
6,680,079 | 11,690,376 | ||||||
Notes and other receivables-current
|
16,905 | 78,423 | ||||||
Income tax receivable
|
447,243 | - | ||||||
Inventories
|
13,138,488 | 11,538,120 | ||||||
Deferred income taxes
|
406,000 | 406,000 | ||||||
Prepaid expenses and other
|
199,113 | 428,038 | ||||||
Total Current Assets
|
27,548,801 | 30,707,059 | ||||||
Property and Equipment, net
|
1,530,599 | 1,189,107 | ||||||
Deferred Income Taxes
|
365,000 | 365,000 | ||||||
Cash Surrender Value of Life Insurance Policies
|
1,608,969 | 1,591,968 | ||||||
Notes and Other Receivables-LongTerm
|
307,419 | 288,031 | ||||||
Other Assets
|
79,525 | 79,523 | ||||||
Total Assets
|
$ | 31,440,313 | $ | 34,220,688 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current Liabilities:
|
||||||||
Accounts payable
|
$ | 3,759,641 | $ | 6,100,012 | ||||
Accrued expenses
|
1,752,626 | 1,799,791 | ||||||
Income taxes payable
|
- | 72,000 | ||||||
Current portion of long-term obligations
|
5,035 | 8,271 | ||||||
Total Current Liabilities
|
5,517,302 | 7,980,074 | ||||||
Stockholders' Equity:
|
||||||||
Preferred stock, $1.00 par value, 50,000 shares authorized,
|
- | - | ||||||
Common stock, $.25 par value; 4,000,000 shares authorized,
|
||||||||
2,446,286 and 2,431,286 shares issued and outstanding
|
611,571 | 607,821 | ||||||
Additional paid-in capital
|
6,360,567 | 6,238,498 | ||||||
Retained earnings
|
18,950,873 | 19,394,295 | ||||||
Total Stockholders' Equity
|
25,923,011 | 26,240,614 | ||||||
Total Liabilities and Stockholders’ Equity
|
$ | 31,440,313 | $ | 34,220,688 | ||||
See notes to condensed consolidated financial statements.
|
Three Months Ended June 30,
|
||||||||
2011
|
2010
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net income
|
$ | 168,149 | $ | 298,551 | ||||
Adjustments to reconcile net income to net
|
||||||||
cash provided by (used in) operating activities:
|
||||||||
Change in accounts receivable and inventory reserves
|
15,333 | 19,861 | ||||||
Depreciation and amortization
|
53,916 | 96,715 | ||||||
Change in cash surrender value of life insurance
|
(17,001 | ) | (17,001 | ) | ||||
Deferred income taxes
|
- | (163,000 | ) | |||||
Warranty reserve
|
31,672 | 5,000 | ||||||
Compensation expense related to stock options
|
1,469 | - | ||||||
Change in operating assets and liabilities:
|
||||||||
Accounts receivable
|
5,009,964 | 114,311 | ||||||
Notes receivable and other non-trade receivables
|
42,130 | 100,603 | ||||||
Inventories
|
(1,615,368 | ) | (2,216,556 | ) | ||||
Prepaid expenses and other
|
228,922 | 239,915 | ||||||
Accounts payable
|
(2,340,371 | ) | 982,533 | |||||
Accrued expenses
|
(78,837 | ) | (395,778 | ) | ||||
Income taxes receivable/ payable
|
(519,243 | ) | (64,811 | ) | ||||
Total adjustments
|
812,586 | (1,298,208 | ) | |||||
Net cash provided by (used in) operating activities
|
980,735 | (999,657 | ) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Proceeds from sale of investments
|
51,035 | - | ||||||
Purchase of investments
|
- | (9,940 | ) | |||||
Capital expenditures
|
(395,407 | ) | (37,780 | ) | ||||
Net cash used in investing activities
|
(344,372 | ) | (47,720 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Payment of cash dividend
|
(611,571 | ) | (802,337 | ) | ||||
Payment on capital leases
|
(3,236 | ) | (3,024 | ) | ||||
Proceeds from exercise of stock options
|
124,350 | - | ||||||
Net cash used in financing activities
|
(490,457 | ) | (805,361 | ) | ||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
145,906 | (1,852,738 | ) | |||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
6,515,067 | 9,777,587 | ||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
$ | 6,660,973 | $ | 7,924,849 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
$ | 227 | $ | 288 | ||||
Income taxes
|
614,000 | 397,000 | ||||||
See notes to condensed consolidated financial statements.
|
Common Stock
|
Additional
|
Total
|
||||||||||||||||||
Paid-In
|
Retained
|
Stockholders'
|
||||||||||||||||||
Shares
|
Amount
|
Capital
|
Earnings
|
Equity
|
||||||||||||||||
Balance, March 31, 2010
|
2,431,326 | $ | 607,831 | $ | 6,234,079 | $ | 18,058,730 | $ | 24,900,640 | |||||||||||
Net income
|
- | - | - | 298,551 | 298,551 | |||||||||||||||
Cash dividend ($0.33 per share)
|
- | - | - | (802,337 | ) | (802,337 | ) | |||||||||||||
Balance, June 30, 2010
|
2,431,326 | $ | 607,831 | $ | 6,234,079 | $ | 17,554,944 | $ | 24,396,854 | |||||||||||
Common Stock
|
Additional
|
Total
|
||||||||||||||||||
Paid-In
|
Retained
|
Stockholders'
|
||||||||||||||||||
Shares
|
Amount
|
Capital
|
Earnings
|
Equity
|
||||||||||||||||
Balance, March 31, 2011
|
2,431,286 | $ | 607,821 | $ | 6,238,498 | $ | 19,394,295 | $ | 26,240,614 | |||||||||||
Net income
|
- | - | - | 168,149 | 168,149 | |||||||||||||||
Cash dividend ($0.25 per share)
|
- | - | - | (611,571 | ) | (611,571 | ) | |||||||||||||
Exercise of stock options
|
15,000 | 3,750 | 120,600 | - | 124,350 | |||||||||||||||
Compensation expense related to
|
||||||||||||||||||||
stock options
|
- | - | 1,469 | - | 1,469 | |||||||||||||||
Balance, June 30, 2011
|
2,446,286 | $ | 611,571 | $ | 6,360,567 | $ | 18,950,873 | $ | 25,923,011 | |||||||||||
See notes to condensed consolidated financial statements.
|
1.
|
Financial Statement Presentation
|
2.
|
Income Taxes
|
3.
|
Net Earnings Per Share
|
Three Months Ended June 30,
|
||||||||
2011
|
2010
|
|||||||
Net earnings
|
$ | 168,149 | $ | 298,551 | ||||
Earnings Per Share:
|
||||||||
Basic
|
$ | 0.07 | $ | 0.12 | ||||
Diluted
|
$ | 0.07 | $ | 0.12 | ||||
Weighted Average Shares Outstanding:
|
||||||||
Basic
|
2,436,231 | 2,431,326 | ||||||
Diluted
|
2,454,033 | 2,495,546 |
4.
|
Inventories
|
June 30, 2011
|
March 31, 2011
|
|||||||
Aircraft parts and supplies
|
$ | 135,222 | $ | 139,555 | ||||
Ground equipment manufacturing:
|
||||||||
Raw materials
|
7,113,872 | 7,918,699 | ||||||
Work in process
|
4,149,207 | 1,703,250 | ||||||
Finished goods
|
2,359,833 | 2,381,262 | ||||||
Total inventories
|
13,758,134 | 12,142,766 | ||||||
Reserves
|
(619,646 | ) | (604,646 | ) | ||||
Total, net of reserves
|
$ | 13,138,488 | $ | 11,538,120 |
5.
|
Stock Based Compensation
|
6.
|
Fair Value of Financial Instruments
|
Fair Value Measurements at
|
||||||||
June 30, 2011
|
March 31, 2011
|
|||||||
Short-term investments
|
$ | - | $ | 51,035 | ||||
7.
|
Financing Arrangements
|
|
|
8.
|
Segment Information
|
Three Months Ended June 30,
|
||||||||
2011
|
2010
|
|||||||
Operating Revenues:
|
||||||||
Overnight Air Cargo
|
$ | 10,826,899 | $ | 8,920,174 | ||||
Ground Equipment Sales:
|
||||||||
Domestic
|
2,280,460 | 1,309,348 | ||||||
International
|
1,890,018 | 2,616,392 | ||||||
Total Ground Equipment Sales
|
4,170,478 | 3,925,740 | ||||||
Ground Support Services
|
1,564,120 | 2,177,361 | ||||||
Total
|
$ | 16,561,497 | $ | 15,023,275 | ||||
Operating Income (Loss):
|
||||||||
Overnight Air Cargo
|
$ | 932,307 | $ | 727,983 | ||||
Ground Equipment Sales
|
(310,856 | ) | (162,937 | ) | ||||
Ground Support Services
|
38,665 | 299,299 | ||||||
Corporate
|
(409,124 | ) | (453,983 | ) | ||||
Total
|
$ | 250,992 | $ | 410,362 | ||||
Capital Expenditures:
|
||||||||
Overnight Air Cargo
|
$ | 372,836 | $ | - | ||||
Ground Equipment Sales
|
3,071 | - | ||||||
Ground Support Services
|
19,500 | 32,640 | ||||||
Corporate
|
- | 5,140 | ||||||
Total
|
$ | 395,407 | $ | 37,780 | ||||
Depreciation and Amortization:
|
||||||||
Overnight Air Cargo
|
$ | 14,283 | $ | 50,073 | ||||
Ground Equipment Sales
|
9,969 | 7,023 | ||||||
Ground Support Services
|
19,638 | 27,478 | ||||||
Corporate
|
10,026 | 12,141 | ||||||
Total
|
$ | 53,916 | $ | 96,715 |
9.
|
Commitments and Contingencies
|
10.
|
Subsequent Events
|
(In thousands)
|
|
|||||||||||||||
Three Months Ended June 30,
|
||||||||||||||||
2011
|
2010
|
|||||||||||||||
Overnight Air Cargo Segment:
|
||||||||||||||||
FedEx
|
$ | 10,827 | 65 | % | $ | 8,920 | 59 | % | ||||||||
Ground Equipment Sales Segment:
|
||||||||||||||||
Military
|
84 | 1 | % | 497 | 3 | % | ||||||||||
Commercial - Domestic
|
2,197 | 13 | % | 813 | 6 | % | ||||||||||
Commercial - International
|
1,890 | 11 | % | 2,616 | 17 | % | ||||||||||
4,171 | 25 | % | 3,926 | 26 | % | |||||||||||
Ground Support Services Segment
|
1,564 | 10 | % | 2,177 | 15 | % | ||||||||||
$ | 16,562 | 100 | % | $ | 15,023 | 100 | % |
Three Months Ended June 30,
|
||||||||
2011
|
2010
|
|||||||
Net Cash Provided by (Used in) Operating Activities
|
$ | 981,000 | $ | (1,000,000 | ) | |||
Net Cash Used in Investing Activities
|
(344,000 | ) | (48,000 | ) | ||||
Net Cash Used in Financing Activities
|
(491,000 | ) | (805,000 | ) | ||||
Net Increase (Decrease) in Cash and Cash Equivalents
|
$ | 146,000 | $ | (1,853,000 | ) |
|
(a)
|
Exhibits
|
||||
No.
|
Description
|
||||
3.1 |
Restated Certificate of Incorporation and Certificate of Amendment to Certificate of Incorporation dated September 25, 2008, incorporated by reference to Exhibit 3.1 of the Company’s Quarterly Report on Form 10-Q for the fiscal period ended September 30, 2008 (Commission file No. 0-11720)
|
||||
3.2 |
Amended and Restated Bylaws of Air T, Inc., incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K dated July 9, 2008 (Commission file No. 0-11720)
|
||||
4.1 |
Specimen Common Stock Certificate, incorporated by reference to Exhibit 4.1 of the Company’s Annual Report on Form 10‑K for the fiscal year ended March 31, 1994 (Commission file No. 0-11720)
|
||||
31.1 |
Section 302 Certification of Chief Executive Officer
|
||||
31.2 |
Section 302 Certification of Chief Financial Officer
|
||||
32.1 |
Section 1350 Certifications
|
||||
|
(a) |
Exhibits
|
|||
No.
|
Description
|
||||
3.1 |
Restated Certificate of Incorporation and Certificate of Amendment to Certificate of Incorporation dated September 25, 2008, incorporated by reference to Exhibit 3.1 of the Company’s Quarterly Report on Form 10-Q for the fiscal period ended September 30, 2008 (Commission file No. 0-11720)
|
||||
3.2 |
Amended and Restated Bylaws of Air T, Inc., incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K dated July 9, 2008 (Commission file No. 0-11720)
|
||||
4.1 |
Specimen Common Stock Certificate, incorporated by reference to Exhibit 4.1 of the Company’s Annual Report on Form 10‑K for the fiscal year ended March 31, 1994 (Commission file No. 0-11720)
|
||||
31.1 |
Section 302 Certification of Chief Executive Officer
|
||||
31.2 |
Section 302 Certification of Chief Financial Officer
|
||||
32.1 |
Section 1350 Certifications
|
||||
|
1.
|
I have reviewed this Form 10-Q of Air T, Inc.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal controls over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
1.
|
I have reviewed this Form 10-Q of Air T, Inc.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal controls over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
|
Condensed Consolidated Balance Sheets (Parentheticals) (USD $)
|
Jun. 30, 2011
|
Mar. 31, 2011
|
---|---|---|
Allowance for doubtful accounts (in Dollars) | $ 41,000 | $ 40,000 |
Preferred stock par value (in Dollars per share) | $ 1.00 | $ 1.00 |
Preferred stock, shares authorized | 50,000 | 50,000 |
Common stock, par value (in Dollars per share) | $ 0.25 | $ 0.25 |
Common stock, shares authorized | 4,000,000 | 4,000,000 |
Common stock, shares issued | 2,446,286 | 2,431,286 |
Common stock, shares outstanding | 2,446,286 | 2,431,286 |
Document And Entity Information
|
3 Months Ended | |
---|---|---|
Jun. 30, 2011
|
Aug. 05, 2011
|
|
Document and Entity Information [Abstract] | Â | Â |
Entity Registrant Name | AIR T INC | Â |
Document Type | 10-Q | Â |
Current Fiscal Year End Date | --03-31 | Â |
Entity Common Stock, Shares Outstanding | Â | 2,446,286 |
Amendment Flag | false | Â |
Entity Central Index Key | 0000353184 | Â |
Entity Current Reporting Status | Yes | Â |
Entity Voluntary Filers | No | Â |
Entity Filer Category | Smaller Reporting Company | Â |
Entity Well-known Seasoned Issuer | No | Â |
Document Period End Date | Jun. 30, 2011 | |
Document Fiscal Year Focus | 2012 | Â |
Document Fiscal Period Focus | Q1 | Â |
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Note 5 - Stock-Based Compensation
|
3 Months Ended | ||
---|---|---|---|
Jun. 30, 2011
|
|||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] |
The
Company maintains stock based compensation plans which
allow for the issuance of stock options to officers, other
key employees of the Company, and to members of the Board
of Directors. The Company accounts for stock
compensation using fair value recognition
provisions.
During
the three months ended June 30, 2011, options were
exercised for the issuance of 15,000 shares. No
options were granted during the three months ended June 30,
2011 and no options were granted or exercised during the
three months ended June 30, 2010. Stock based
compensation expense in the amount of $1,469 was recognized
for the three month period ended June 30, 2011 (none in
2010). At June 30, 2011, there was no
unrecognized compensation expense related to the stock
options.
|
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Note 10 - Subsequent Events
|
3 Months Ended | ||
---|---|---|---|
Jun. 30, 2011
|
|||
Subsequent Event, Description |
Management
has evaluated all events or transactions through the date
of this filing. During this period, the Company
did not have any material subsequent events that impacted
its consolidated financial statements.
|
Note 1 - Financial Statement Presentation
|
3 Months Ended | ||
---|---|---|---|
Jun. 30, 2011
|
|||
Significant Accounting Policies [Text Block] |
The
condensed consolidated financial statements of Air T, Inc.
(the “Company”) have been prepared, without
audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain
information and disclosures normally included in financial
statements prepared in accordance with accounting
principles generally accepted in the United States of
America have been condensed or omitted pursuant to such
rules and regulations, although the Company believes that
the following disclosures are adequate to make the
information presented not misleading. In the
opinion of management, all adjustments (consisting only of
normal recurring adjustments) considered necessary for a
fair presentation of the results for the periods presented
have been made.
It
is suggested that these financial statements be read in
conjunction with the consolidated financial statements and
notes thereto included in the Company's Annual Report on
Form 10-K for the year ended March 31, 2011. The
results of operations for the periods ended June 30 are not
necessarily indicative of the operating results for the
full year.
|
Note 7 - Financing Arrangements
|
3 Months Ended | ||
---|---|---|---|
Jun. 30, 2011
|
|||
Debtor-in-Possession Financing, Purpose of Arrangement |
The
Company has a $7,000,000 secured long-term revolving credit
line with an expiration date of August 31,
2012. The revolving credit line contains
customary events of default, a subjective acceleration
clause and a fixed charge coverage requirement, with which
the Company was in compliance at June 30,
2011. There is no requirement for the Company to
maintain a lock-box arrangement under this
agreement. The amount of credit available to the
Company under the agreement at any given time is determined
by an availability calculation, based on the eligible
borrowing base, as defined in the credit agreement, which
includes the Company’s outstanding receivables,
inventories and equipment, with certain
exclusions. At June 30, 2011, $7,000,000 was
available under the terms of the credit facility and no
amounts were outstanding. Amounts advanced under
the credit facility bear interest at the 30-day
“LIBOR” rate (.19% at June 30, 2011) plus 150
basis points.
The
Company assumes various financial obligations and
commitments in the normal course of its operations and
financing activities. Financial obligations are
considered to represent known future cash payments that the
Company is required to make under existing contractual
arrangements such as debt and lease agreements.
|
Note 8 - Segment Information
|
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
|
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Segment Reporting Disclosure [Text Block] |
The
Company operates in three business segments. The
overnight air cargo segment, comprised of its Mountain Air
Cargo, Inc. (“MAC”) and CSA Air, Inc.
(“CSA”) subsidiaries, operates in the air
express delivery services industry. The ground
equipment sales segment, comprised of its Global Ground
Support, LLC (“GGS”) subsidiary, manufactures
and provides mobile deicers and other specialized equipment
products to passenger and cargo airlines, airports, the
U.S. military and industrial customers. The
ground support services segment, comprised of its Global
Aviation Services, LLC (“GAS”) subsidiary,
provides ground support equipment maintenance and
facilities maintenance services to domestic airlines and
aviation service providers. Each business
segment has separate management teams and infrastructures
that offer different products and services. The
Company evaluates the performance of its operating segments
based on operating income.
Segment
data is summarized as follows:
|
Note 6 - Fair Value of Financial Instruments
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
|||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Text Block] |
The
Company measures and reports financial assets and
liabilities at fair value, on a recurring
basis. Fair value measurement is classified and
disclosed in one of the following three categories:
Level 1:
Unadjusted quoted prices in active markets that are
accessible at the measurement date for identical,
unrestricted assets or liabilities.
Level 2:
Quoted prices in markets that are not active or inputs
which are observable, either directly or indirectly, for
substantially the full term of the asset or
liability.
Level 3:
Prices or valuation techniques that require inputs that are
both significant to the fair value measurement and
unobservable (i.e., supported by little or no market
activity).
The
Company’s assets and liabilities measured at fair
value (all Level I categories) were as follows:
|
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (USD $)
|
Total
|
Common Stock [Member]
|
Additional Paid-in Capital [Member]
|
Retained Earnings [Member]
|
---|---|---|---|---|
Balance at Mar. 31, 2010 | $ 24,900,640 | $ 607,831 | $ 6,234,079 | $ 18,058,730 |
Balance (in Shares) at Mar. 31, 2010 | Â | 2,431,326 | Â | Â |
Net income | 298,551 | Â | Â | 298,551 |
Cash dividend | (802,337) | Â | Â | (802,337) |
Balance at Jun. 30, 2010 | 24,396,854 | 607,831 | 6,234,079 | 17,554,944 |
Balance (in Shares) at Jun. 30, 2010 | Â | 2,431,326 | Â | Â |
Balance at Mar. 31, 2011 | 26,240,614 | 607,821 | 6,238,498 | 19,394,295 |
Balance (in Shares) at Mar. 31, 2011 | Â | 2,431,286 | Â | Â |
Net income | 168,149 | Â | Â | 168,149 |
Cash dividend | (611,571) | Â | Â | (611,571) |
Exercise of stock options | 124,350 | 3,750 | 120,600 | Â |
Exercise of stock options (in Shares) | Â | 15,000 | Â | Â |
Compensation expense related to stock options | 1,469 | Â | 1,469 | Â |
Balance at Jun. 30, 2011 | $ 25,923,011 | $ 611,571 | $ 6,360,567 | $ 18,950,873 |
Balance (in Shares) at Jun. 30, 2011 | Â | 2,446,286 | Â | Â |
Note 2 - Income Taxes
|
3 Months Ended | ||
---|---|---|---|
Jun. 30, 2011
|
|||
Income Tax Disclosure [Text Block] |
The
tax effect of temporary differences, primarily asset
reserves, stock based compensation and accrued liabilities,
gave rise to the Company's deferred tax asset in the
accompanying June 30, 2011 and March 31, 2011 consolidated
balance sheets. Deferred income taxes are recognized for
the tax consequence of such temporary differences at the
enacted tax rate expected to be in effect when the
differences reverse.
The
income tax provisions for the respective three-month
periods ended June 30, 2011 and 2010 differ from the
federal statutory rate primarily as a result of state
income taxes offset by permanent tax differences, including
the federal production deduction.
|
Note 3 - Net Earnings Per Share
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
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Earnings Per Share [Text Block] |
Basic
earnings per share has been calculated by dividing net
earnings by the weighted average number of common shares
outstanding during each period. For purposes of
calculating diluted earnings per share, shares issuable
under employee stock options were considered potential
common shares and were included in the weighted average
common shares unless they were anti-dilutive.
The
computation of basic and diluted earnings per common share
is as follows:
At
June 30, 2011 and 2010, respectively, options to acquire
28,500 and 1,000 shares of common stock were not included
in computing diluted earnings per common share because
their effects were anti-dilutive.
|
Note 4 - Inventories
|
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
|
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Inventory, Policy [Policy Text Block] |
Inventories
consisted of the following:
|
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) (Retained Earnings [Member], USD $)
|
3 Months Ended | |
---|---|---|
Jun. 30, 2011
|
Jun. 30, 2010
|
|
Retained Earnings [Member]
|
 |  |
Cash dividend, per share | $ 0.25 | $ 0.33 |
Note 9 - Commitments and Contingencies
|
3 Months Ended | ||
---|---|---|---|
Jun. 30, 2011
|
|||
Commitments and Contingencies Disclosure [Text Block] |
The
Company is not currently involved in or aware of any
pending or threatened lawsuits involving personal injury or
property damages. Any such claims are generally
subject to defense under the Company's liability insurance
programs.
|