CHARLOTTE, NC—Air T Inc, a provider of air courier services, announced on Thursday a significant expansion of its fleet through its subsidiary CASP Leasing I, LLC, which entered into agreements to purchase two Airbus Model A321-111 aircraft on August 29, 2024. The transactions are valued at over $18 million and are a strategic move by the company to bolster its aircraft leasing and parts sales business.
CASP Leasing I, LLC, a 95% owned subsidiary of Contrail Aviation Support, LLC, is set to finalize the acquisitions in early September 2024. However, the company has indicated that while the projected closing date is imminent, it is subject to change, and there is no absolute certainty that the purchases or subsequent lease agreements will be completed as planned.
Upon completion of the purchases, lease agreements with Electra Airways OOD for the aircraft will take effect, marking a continuation of Contrail's business model which involves the purchasing of aircraft and engines for leasing or disassembly for parts sales.
This move is part of Air T Inc's broader strategy to strengthen its position in the aviation services industry by expanding its leasing portfolio. The company, headquartered in Charlotte, North Carolina, operates under the ticker NASDAQ:AIRT for its common stock and NASDAQ:AIRTP for its Alpha Income Preferred Securities.
The information in this report is based on a press release statement and forms filed with the SEC.
In other recent news, Air T Inc, an air courier services company, held its 2024 Annual Meeting of Stockholders, with 90% of the outstanding shares represented. The meeting led to several key decisions, including the successful election of all director nominees and the approval of executive officers' compensation. The appointment of Deloitte & Touche LLP as the company's independent registered public accounting firm for the fiscal year 2025 was also ratified by the shareholders.
In other recent developments, Brian Ochocki, the Chief Financial Officer of Air T Inc, is set to step down from his role around September 3, 2024. During his five-year tenure, Ochocki contributed significantly to the company's growth, enhancing finance and accounting operations and executing numerous financing and mergers and acquisitions transactions. The company is currently in the process of searching for Ochocki's successor.
Meanwhile, Tracy Kennedy, the current Chief Accounting Officer, will oversee the financial operations.
InvestingPro Insights
In light of Air T Inc's recent strategic moves to expand its fleet, current and potential investors may find the latest data from InvestingPro particularly insightful. With a market capitalization of $62.29 million, Air T Inc is navigating the competitive air courier landscape with ambition. Notably, the company's valuation implies a strong free cash flow yield, which suggests that the firm is generating a healthy amount of cash relative to its share price. Additionally, Air T Inc's liquid assets surpass its short-term obligations, indicating a solid financial footing that could support its expansion endeavors.
However, it's important to recognize that Air T Inc is not profitable over the last twelve months, as reflected by a negative P/E ratio of -9.57. The company also trades at a high Price / Book multiple of 15.11, which could signal that its stock is priced optimistically relative to its book value. These metrics underscore the importance of thorough due diligence for investors considering the stock. For more detailed analysis and additional InvestingPro Tips, interested parties can visit InvestingPro, where 6 more tips are available to help guide investment decisions.
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