Slide 1: A Portfolio of Powerful Companies: Q4 FY21 Update
AUG 2021 A PORTFOLIO OF POWERFUL COMPANIES Q4 FY21 Update NASDAQ: AIRT
Slide 2: Safe Harbor
Statements in this document, which contain more than historical information, may be considered forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995), which are subject to risks and uncertainties. Actual results may differ materially from those e
Slide 3: Executive Summary: Who We Are
WHO WE ARE ■ AIR T, INC. (NASDAQ: AIRT) is an industrious American company focused on generating after tax cash flow per share. EXECUTIVE ■ Founded in 1980, our businesses have a history of growth and cash flow generation. ■ Current management has been in place since 2013. The two largest shareholde
Slide 4: Contents
1. About AIR T, INC. CONTENTS 2. FY21 Performance 3. Our Growth Factors 4. Appendix - Risk Factors 4
Slide 5: About Air T, Inc.
ABOUT AIR T, INC. ETGATNTE A POR|FOLIO OF POWERFUL COMPANIES
Slide 6: We are an industrious American company established 40+ years 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 overcom
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: FY21 Revenue, Adj. EBITDA, Core Segments, Companies, Employees
$175M ($1.3M) 3 10 400+ FY21 Revenue FY21 Adj. EBITDA* CORE SEGMENTS COMPANIES EMPLOYEES COMMERCIAL AIRCRAFT & ENGINES AVIATION GROUND SUPPORT OVERNIGHT AIR CARGO EQUIPMENT *See Adjusted EBITDA reconciliation on slide 26 8
Slide 9: Air T, Inc. FY21 Highlights
FY Results AIR T, INC. FY21 Highlights (For the Twelve-Month Period Ended 3/31/21) FY21 FY20 Change Revenue $175.1M $236.8M ($61.7M) Operating Income ($9.2M) $7.3M ($16.5M) Adjusted EBITDA* ($1.3M) $9.0M ($10.3M) ■ FY21 saw revenue declines across both our Air Cargo segment (down $9.0M) and Commerci
Slide 10: 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: 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 40 year history with FedEx. ■ Revenue decline primarily due to lower third-party maintenance offset by significantly improved operational metrics Revenue, FY21 $6
Slide 12: 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: News: Aircraft Capital Fund, Trust Preferred Warrants
Aircraft Capital Fund ■ On May 6th 2021, we launched our previously announced Aviation Asset Management fund. Through this fund we will launch with $108m of initial capitalization with upsize commitments of $300m. The new venture will focus on acquiring commercial aircraft and jet engines for leasin
Slide 14: News: COVID-19 Update
COVID-19 Update ■ Two of our core business segments saw significant impacts due to COVID-19. Our Commercial Jet Engines and Parts segment is directly tied to activity levels in the commercial aviation industry. A portion of our Air Cargo Segment revenue has historically been derived from aircraft ma
Slide 15: Over the last seven years, revenue has increased 107% and is more diversified
FINANCIAL HIGHLIGHTS Over the last seven years, revenue has increased 107% and is more diversified. $174M* REVENUE 27% +107% SEGMENTS Commercial Aircraft & Engines $84M Overnight Air Cargo 38% Ground Support Equipment 62% 35% 38% FY14 FY21 *Excludes revenue in FY21 earned outside of our core segment
Slide 16: Non-Operating Assets
OTHER Non-Operating Assets AIR T, Inc’s balance sheet includes $12.5 million of public and private securities, as of 3/31/21. AIR T, INC. Non-Operating Assets (In Millions) 3/31/21 Insignia Systems (ISIG) Stock – 0.5M Shares* $4.3 CCI Investment $3.8 Investments in BCCM Funds $0.9 TFS Partners LLC I
Slide 17: Capitalization Table
CAPITALIZATION TABLE AIR T, INC. DIRECT & GUARANTEED Interest Rate Maturity Date 3/31/2021 Revolver ($17m Capacity) Greater of 2.5% or Prime - 1% 8/31/2021 $ - Term Loans 1mo LIBOR + 2%, 4.50% 1/1/2028 10.1 AIR T, INC.’s capital Corporate Headquarters Real Estate 1mo LIBOR + 2% 1/1/2028 1.5 Trust Pr
Slide 18: Since 9/30/2013, the share price of AIRT has increased at 21.7% per annum
FINANCIAL HIGHLIGHTS Since 9/30/2013, the share price of AIRT has increased at 21.7% per annum*. *Reporting period 9/30/13 to 8/13/21, includes $4M Trust 18 Preferred dividend to common shareholders
Slide 19: Since 1994, a history of long-term and sustained financial health
FINANCIAL HIGHLIGHTS Since 1994, our company has had a history of long-term and sustained financial health. Revenue ($ in Millions) Operating Income ($ in Millions) 250 15 200 10 150 5 100 - 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 20: Growth Strategies
GROWTH STRATEGIES ETGATNTE A POR|FOLIO OF POWERFUL COMPANIES
Slide 21: Our four growth strategies are...
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 22: Reinvest in projects at our 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. 22
Slide 23: 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. 23
Slide 24: Identify great 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. 24
Slide 25: 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. 25
Slide 26: Adjusted EBITDA Reconciliation
FY Results Adjusted EBITDA Reconciliation FY21 FY20 Operating Income (GAAP) ($9.2M) 7.3M Depreciation (excluding leased engine $1.2M $1.3M depreciation) Asset Impairment, write-downs, $6.6M $0.0M restructuring Gain on sale of PP&E ($0.0M) ($0.0M) Security Issuance Expense $0.0M $0.4M Adjusted EBITDA
Slide 27: Appendix: Risk Factors
APPENDIX Risk Factors ETEGANTA A PORGHFOLIO OF POWERFUL COMPANIES
Slide 28: Summary Risk Factors
For more detail and explanation, please see the Company’s S-3 filed with the SEC. SUMMARY RISK FACTORS The purchase of securities of Air T, Inc., the “Company,” is highly speculative and involves a very high degree of risk. An investment in the Company is suitable only for persons who can afford the
Slide 29: Summary Risk Factors: Segment Operations
For more detail and explanation, please see the Company’s S-3 filed with the SEC. SUMMARY RISK FACTORS Risks Related to Our Segment Operations ● The operating results of our four segments may fluctuate, particularly our commercial jet engine and parts segment. ● Our Air Cargo Segment is dependent on
Slide 30: Summary Risk Factors: Segment Operations (continued)
For more detail and explanation, please see the Company’s S-3 filed with the SEC. SUMMARY RISK FACTORS Risks Related to Our Segment Operations (continued) ● Higher or volatile fuel prices could affect the profitability of the aviation industry and our lessees’ ability to meet their lease payment obl
Slide 31: Summary Risk Factors: Structure and Financing (continued)
For more detail and explanation, please see the Company’s S-3 filed with the SEC. SUMMARY RISK FACTORS Risks Related to Our Structure and Financing/Liquidity Risks (continued) ● The transition away from LIBOR may adversely affect our cost to obtain financing and may potentially negatively impact our