Air T, Inc. · NASDAQ:AIRT
Air T — Shareholder Meeting (August 2020)
24 slides from Air T's shareholder meeting presentation, Aug 11, 2020
Slide 1: A Portfolio of Powerful Companies: Shareholders Meeting Update
AUGUST 2020 A PORTFOLIO OF POWERFUL COMPANIES SHAREHOLDERS MEETING UPDATE NASDAQ: AIRT
Slide 2: Forward-Looking Statements
Statements made today that should be considered in conjunction with the cautionary statements contained in the company’s recent SEC filings. Forward-looking statements are subject to the various risks and uncertainties that could cause Air T’s actual results to differ materially from these statement
Slide 3: Who We Are: Executive Summary
WHO WE ARE ■ AIR T, INC. (NASDAQ: AIRT) is an industrious American company focused on generating after tax cash flow per share. ■ Founded in 1980, our businesses have a history of growth and cash flow generation. EXECUTIVE ■ Current management has been in place since 2013. The first and second large
Slide 4: Contents
1. About AIR T, INC. 2. FY20 Performance CONTENTS 3. Our Growth Factors 4. Appendix - Risk Factors 4
Slide 5: About Air T, Inc.
ABOUT AIR T, INC. ETSGATTA A PORTIFOLIO OF POWERFUL COMPANIES
Slide 6: Industrious American company established years ago and growing
We are an industrious American company established 40 years and growing. ■ Our businesses have a history of growth and cash flow generation. ■ We seek to identify and empower individuals and teams who will operate businesses well, increasing value over time. ■ We work to activate growth and overcome
Slide 7: Investor-Operator Partnership
“Investor-Operator Partnership” is designed to drive short and long-term value creation. “We want our businesses to be managed by dynamic individuals within high-performance teams. We are set up to make space for dynamos and support their enterprises. The holding company team seeks to focus resource
Slide 8: FY20 Results
FY20 Results AIR T, INC. FY20 Results FY20 FY19 % Revenue $236.8M $215.5M +9.9% Operating $7.3M $9.3M (21.9%) Income ■ FY20 saw revenue growth across all 3 major segments with the strongest growth seen in our Ground Equipment segment. ■ FY20 operating income was down $2.0M vs. FY19 driven by lower p
Slide 9: FY20 Key Figures and Core Segments
$237M $7.3M 3 10 400+ FY20 REVENUE FY20 OPERATING INCOME CORE SEGMENTS COMPANIES EMPLOYEES COMMERCIAL AIRCRAFT & ENGINES AVIATION GROUND SUPPORT OVERNIGHT AIR CARGO EQUIPMENT 9
Slide 10: Segment: Commercial Aircraft & Engines
SEGMENT 1 Commercial Aircraft & Engines ■ We buy aircraft and engines, then either lease, trade, or send them to part out. ■ We supply parts to maintenance, repair and overhaul facilities (MRO). ■ Companies in this segment include Contrail Aviation Support, JetYard, AirCo, and Worthington Aviation.
Slide 11: Segment: Overnight Air Cargo
SEGMENT 2 Overnight Air Cargo ■ We operate two of the seven FedEx feeder airlines. ■ Business units Mountain Air Cargo and CSA Air have a 39 year history with FedEx. Revenue, FY20 $75.3M Revenue, FY19 $73.0M Operating Income*, FY20 $0.7M Operating Income*, FY19 $1.9M Air T Companies Since 1982, 1983
Slide 12: Segment: Aviation Ground Support Equipment
SEGMENT 3 Aviation Ground Support Equipment ■ We manufacture deicing equipment, scissor lift trucks and other ground support equipment. ■ Sole-source deicer supplier to the US Air Force for 18 years. ■ Highly efficient light manufacturing facility. ■ The segment is comprised of Global Ground Support
Slide 13: COVID-19 Update
COVID-19 UPDATE ■ Each of our business segments have been impacted by COVID- 19 and have seen significant revenue declines in April and May of 2020 versus last year: ✓ Commercial Jet Engines and Parts down 67% ✓ Overnight Air Cargo down 14% ✓ Ground Equipment Sales down 26% NEWS ■ While we cannot pr
Slide 14: Financial Highlights: Revenue growth and diversification
FINANCIAL HIGHLIGHTS Over the last six years, revenue has increased 181% and is more diversified. $236M* REVENUE 44% +181% SEGMENTS Commercial Aircraft & Engines Overnight Air Cargo $84M 34% Ground Support Equipment 62% 22% 38% FY14 FY20 *Excludes revenue in FY20 earned outside of our core segments.
Slide 15: Other: Non-Operating Assets
OTHER Non-Operating Assets AIR T, INC.’s balance sheet includes $10.0 million of public and private securities, as of 3/31/20. AIR T, INC. Non-Operating Assets (In Millions) 3/31/20 Insignia Systems (ISIG) Stock – 3.5M Shares* $2.6 Oxbridge RE (OXBR) Stock – 0.5M Shares* $0.4 CCI Investment $3.4 Inv
Slide 16: Capitalization Table
CAPITALIZATION TABLE AIR T, INC. DIRECT & GUARANTEED Interest Rate Maturity Date 3/31/2020 Revolver Prime - 1% 8/31/2021 $ - Term Loans 1mo LIBOR + 2%, 4.50% 1/1/2028 11.6 Corporate Headquarters Real Estate 1mo LIBOR + 2% 1/1/2028 1.5 AIR T, INC.’s capital Supplemental Revolver Greater of 1mo LIBOR
Slide 17: Financial Highlights: AIRT share price
FINANCIAL HIGHLIGHTS Since 9/30/2013, the share price of AIRT has increased at 9.3% per annum*. *Reporting period 9/30/13 to 7/28/20, includes $4M Trust Preferred dividend to common shareholders 17
Slide 18: Financial Highlights: Revenue and operating income since 1994
100 150 200 250 50 - FINANCIALHIGHLIGHTS 1994 1995 1996 1997 1998 1999 Revenue ($inMillions) Since 1994,our companyhas hada historyof 2000 2001 2002 long 2003 2004 2005 2006 - 2007 term and sustained financial health. 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 10 (4) (2) - 2 4
Slide 19: Growth Strategies
GROWTH STRATEGIES ETSGATTA A PORTIFOLIO OF POWERFUL COMPANIES
Slide 20: Our four growth strategies
GROWTH STRATEGIES Our four growth strategies are... ■ Invest to build our current high-performing businesses. ■ Seek to acquire new cash-flow generating businesses. ■ Identify great marketable securities or alternative assets. ■ Create unique investment products and fund alongside third- party capit
Slide 21: Reinvest in high-performing businesses
GROWTH STRATEGY 1 We plan to reinvest in projects at our high-performing businesses by... ■ Purchasing commercial aircraft for trading, leasing and part-out. ■ Purchasing engine parts inventory. ■ Funding deicer builds for Global Ground Support. 21
Slide 22: Acquire new cash-flow generating businesses
GROWTH STRATEGY 2 We seek to acquire new cash-flow generating businesses by... ■ Identifying and acquiring high- performing businesses with edge in the marketplace, which either complement our current portfolio or diversify into industries beyond aviation. 22
Slide 23: Identify marketable securities or alternative assets
GROWTH STRATEGY 3 We plan to identify great marketable securities or alternative assets by... ■ Searching for another committed activist opportunity. ■ Investing in distressed and high yield securities. ■ Investing in small cap securities. ■ Further investing in our current securities portfolio. 23
Slide 24: Create unique investment products with outside capital partners
GROWTH STRATEGY 4 We plan to create unique investment products with outside capital partners by... ■ Offering thoughtful and sustainable products with attractive return profiles ■ Attracting and retaining sophisticated investment professionals and creating space for talented asset managers. 24