Air T, Inc. (NASDAQ: AIRT) said it has reported consolidated net loss of approximately USD736,000 (USD0.31 per diluted share) for the quarter ended June 30, 2015 compared to consolidated net income of approximately USD73,000 (USD0.03 per diluted share) for the first quarter of the prior fiscal year.
Consolidated revenues increased by approximately USD580,000 (3 percent) to USD22,359,000 for the quarter ended June 30, 2015 compared to the same quarter in the prior fiscal year. Operating income decreased USD1,148,000 to USD1,049,000 in the first quarter compared to the prior year quarter. Each of the company´s operating segments experienced decreases in operating income as compared to the prior year´s quarter ended June 30.
Revenues decreased at the company´s ground equipment sales segment comprised of its Global Ground Support subsidiary (GGS) by USD1,273,000 (24 percent) to USD4,039,000 compared to the first quarter of the prior fiscal year. GGS had an operating loss of approximately USD424,000 for the quarter, compared to an operating loss of USD180,000 in the prior year´s comparable quarter. Operating loss increased in the segment as a result of reduced segment revenues and increased employee benefit costs and service technician costs.
Revenues from the air cargo segment increased USD1,208,000 (10 percent) to USD12,889,000 compared to the first quarter of the prior fiscal year, while operating income decreased USD309,000 (57 percent) to USD236,000. Administrative fee revenues increased to reflect the greater administrative fee amount paid under the new dry-lease agreements which became effective on June 1, 2015. The quarter was also positively impacted by the addition of an additional ATR aircraft during the quarter.
Operating income decreased principally due to a USD129,000 expense, related to an FAA-mandated update of our operations manuals; unusually high health benefit costs; increased expenses reflecting the transition to the new dry-lease agreements; and reduced contract labor revenue driven by the decrease in calendar maintenance checks as compared to the prior comparable quarter.
Revenues from our ground support services segment increased by USD644,000 (13 percent) to USD5,430,000 compared to the first quarter of the prior fiscal year as a result of the addition of new operating locations, and growth in the services offered to new and existing customers.
Air T, through its subsidiaries, provides overnight air freight service to the express delivery industry, manufactures and sells aircraft deicers and other special purpose industrial equipment, and provides ground support equipment and facilities maintenance to airlines.