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Air T, Inc.

|Includes:Air T, Inc. (AIRT)

Air T, Inc. (AIRT) is a micro cap company providing air courier and air freight services on a contract basis to express delivery services throughout the United States and the Caribbean. For FYE 03/31/2009, the company reported net income of $4.4 million on $90.7 million sales. The recent closing price on this company was $11.14.

For a detailed analysis of AIR T, follow the link

Company Profile (From Reuters):

“Air T, Inc., incorporated in 1980, operates wholly owned subsidiaries in three industry segments: the overnight air cargo segment, the ground equipment sales segment and the ground support services segment. The overnight air cargo segment comprises Mountain Air Cargo, Inc. (NYSE:MAC) and CSA Air, Inc. (NYSE:CSA) subsidiaries, operates in the air express delivery services industry. The ground equipment sales segment comprises its Global Ground Support, LLC (GGS) subsidiary, manufactures and provides mobile deicers and other specialized equipment products to passenger and cargo airlines, airports, the military and industrial customers. The ground support services segment, comprises its Global Aviation Services, LLC (NYSE:GAS) subsidiary, provides ground support equipment maintenance and facilities maintenance services to domestic airlines and aviation service providers. During the fiscal year ended March 31, 2009 (fiscal 2009), the Company’s air cargo segment accounted for approximately 47% of the Company’s consolidated revenues, the ground equipment sales segment accounted for 44% of consolidated revenues and the ground support services segment accounted for 9% of consolidated revenues. The Company’s air cargo services are provided primarily to one customer, FedEx Corporation (FedEx)."

Revenues have increased steadily from $70.0 million to $90.7 million during the five year period under consideration. The twelve month period ending June 2009 shows a slight drop in sales. During the five year period, the gross profit percentage has remained remarkably stable, ranging from 16.9% to 21.0%. Even during the period ending June 2009, gross margins held at 20.1%. Operating expenses have been approximately 89.5% of revenues during the five year period. 

Value Conclusion

Based on my analysis of the common stock of AIR T, Inc. the fair market value of the common stock is $22.00.

Disclosure: Author is long AIRT

Stocks: AIRT