Afanti Arbitrage
Arbitrage, deep value, contrarian, long-term horizon

Towards Improved Capital Allocation At Air T

Air T, Inc (NASDAQ:AIRT) has been profitable for 10 years in a row, yet trades at a discount to book value, a modest premium to NCAV, and a trailing EV to lower than average EBIT of ~6. Recent actions by an activist investor have increased the chance that the ample value on the balance sheet will be unlocked.

Business and Financial Situation

Air T operates as a contract air cargo carrier, and a provider of ground support equipment and services in the aviation industry. FY 2013 was Air T's 10th consecutive year of it profitable operation, and it earned $2.6 million in EBIT on $103 million in revenue. In the last seven years, Air T's operating margin has...

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