Air T Inc (AIRT) 2011 Q4 法說會逐字稿

Welcome to the Air T, Inc. conference call for its 2012 fiscal year. Walter Clark, the Company's Chairman and Chief Executive Officer, will be leading the call today. And he will be joined by the Company's Chief Financial Officer John Parry. There will be a question and answer session following the Company's presentation, and at that time we will provide instructions for those who wish to participate in that portion of the call.

歡迎參加 Air T, Inc. 2012 財政年度電話會議。公司董事長兼執行長沃爾特克拉克 (Walter Clark) 將主持今天的電話會議。公司財務長約翰·帕里 (John Parry) 也將加入他的行列。公司演示後將舉行問答環節，屆時我們將為那些希望參加該部分電話會議的人員提供說明。

During the course of this call you may hear statements that express a belief, expectation or intention as well as those that are not historical facts. These statements are forward-looking statements under the Private Litigation Securities Reform Act and involve a number of risks and uncertainties that may cause actual events and results to differ materially from such forward-looking statements.

在通話過程中，您可能會聽到表達信念、期望或意圖的陳述以及非歷史事實的陳述。這些陳述是《私人訴訟證券改革法》規定的前瞻性陳述，涉及許多風險和不確定性，可能導致實際事件和結果與此類前瞻性陳述有重大差異。

These risks and uncertainties are referenced in the Safe Harbor statement included in the Company's press release and are described in more detail, along with other risks and uncertainties, in the Company's filings with the SEC, including its Form 10-K for the fiscal year ended March 31, 2012.

公司新聞稿中的安全港聲明中提到了這些風險和不確定性，並在公司向SEC 提交的文件（包括截至財年的10-K 表格）中對這些風險和不確定性以及其他風險和不確定性進行了更詳細的描述。

The Company urges you to review these filings. The Company does not undertake to update any forward-looking statement made on this conference call to reflect any change in management's expectations or any change in assumptions or circumstances on which such statements are based.

本公司敦促您審查這些文件。本公司不承諾更新本次電話會議中所做的任何前瞻性聲明，以反映管理層預期的任何變更或此類聲明所依據的假設或情況的任何變更。

I will now turn the call over to Mr. Clark.

我現在將把電話轉給克拉克先生。

Thank you. Before we review the results of the 2012 fiscal year, I would like to draw your attention to our press release announcing our results of operations. The press release is available on our website at www.airt.net. In addition, earlier this morning we filed our annual report on Form 10-K, which includes our audited financial statements. You can access our Form 10-K on the SEC's website at www.sec.gov.

謝謝。在我們回顧 2012 財年業績之前，我想提請您注意我們宣布經營績效的新聞稿。新聞稿可在我們的網站 www.airt.net 上取得。此外，今天早些時候，我們提交了 10-K 表格年度報告，其中包括我們經過審計的財務報表。您可以在 SEC 網站 www.sec.gov 上存取我們的 10-K 表格。

Today we reported consolidated revenues of approximately $89.4 million and net income of approximately $1.4 million or $0.55 per diluted share. This compares to consolidated revenues of approximately $83.4 million, net earnings of approximately $2.1 million, and earnings per diluted share of $0.87 in fiscal 2011.

今天，我們公佈的綜合收入約為 8,940 萬美元，淨利潤約為 140 萬美元，即稀釋後每股收益 0.55 美元。相比之下，2011 財年的綜合收入約為 8,340 萬美元，淨利潤約為 210 萬美元，攤薄後每股收益為 0.87 美元。

Before addressing the results for the full fiscal year I would like to briefly review the results from the fourth quarter. For the quarter our revenues were down 16% from the revenues for the fourth quarter of fiscal 2011. Net income was negligible for the fourth quarter of fiscal 2012 compared to approximately $1.3 million in the prior-year quarter.

在討論整個財年的業績之前，我想先簡單回顧一下第四季的業績。本季我們的營收比 2011 財年第四季的營收下降了 16%。

The decline in revenues and net income was attributable to the results of our Ground Equipment Sales segment, which operates as our Global Ground Support subsidiary. Losses in that segment for the quarter offset profits in both our Air Cargo segment and our Ground Support Services segment.

收入和淨利潤的下降歸因於我們的地面設備銷售部門的業績，該部門作為我們的全球地面支援子公司運營。本季度該部門的虧損抵消了我們的航空貨運部門和地面支援服務部門的利潤。

As noted in our prior quarterly report, although we have taken actions to address the production inefficiencies in Global Ground Support it may take several more quarters before these actions result in improvements in the segment's operating cost and gross margins.

正如我們先前的季度報告中所指出的，儘管我們已採取行動解決全球地面支援的生產效率低下問題，但這些行動可能還需要幾個季度才能改善該部門的營運成本和毛利率。

Now to address our results for the full fiscal year. Our Overnight Air Cargo segment was again a strong performer in fiscal 2012 as revenues for the segment totaled $48.3 million, an increase of approximately $6 million or 14% over the prior year. The segment also saw its operating income increase by $506,000 or 16% in fiscal 2012.

現在來談談我們整個財年的業績。我們的隔夜航空貨運部門在 2012 財年再次表現強勁，該部門的收入總計 4,830 萬美元，比前一年增加了約 600 萬美元，即 14%。 2012 財年，該部門的營業收入也增加了 506,000 美元，即 16%。

The increase in revenues and operating income was primarily attributable to the addition of four ATR-72 aircraft to the Mountain Air Cargo fleet. Heavy maintenance work was performed on the aircraft in fiscal 2011 and completed in fiscal 2012, and all the aircraft were added onto MAC's operating certificate, generating both maintenance revenue as well as additional administrative fees revenue in fiscal 2012.

收入和營業收入的增加主要歸因於山地航空貨運機隊增加了四架 ATR-72 飛機。該飛機於2011財年進行了大修工作，並於2012財年完成，所有飛機均被添加到MAC的營運證書中，在2012財年既產生了維修收入，又產生了額外的管理費收入。

Fiscal 2012 revenues for our Ground Equipment Sales segment were down 2% from the prior year, while operating income decreased by almost $2.2 million, a 140% decline. The decrease in the segment's operating income is due to a decline in gross margin percentage, which has continued from the prior year. Gross margin continues to be negatively impacted by a highly competitive environment, including domestic, international and military contracts.

2012 財年，我們地面設備銷售部門的收入比前一年下降了 2%，而營業收入下降了近 220 萬美元，下降了 140%。該部門營業收入的下降是由於毛利率百分比比上年持續下降。毛利率持續受到激烈競爭環境（包括國內、國際和軍事合約）的負面影響。

In addition, the segment's production efficiency has been negatively impacted by the reduced Air Force work in recent years, which previously allowed for more flexibility in delivery and production schedule which contributed to greater efficiencies and an overall lower cost structure.

此外，近年來空軍工作量的減少對該部門的生產效率產生了負面影響，此前空軍工作量的減少使得交付和生產計劃更加靈活，有助於提高效率和降低整體成本結構。

Fiscal 2012 revenues from our Ground Support Services segment where $8.9 million, a 9% increase from the prior year. The segment also saw its operating income increase by $20,000 or 3% in fiscal 2012. These are both very positive steps forward for a business segment that suffered a significant business loss in September 2010 as a result of a significant reduction in the scope of work performed for Delta Airlines, its primary customer.

2012 財年地面支援服務部門的收入為 890 萬美元，比上年增長 9%。 2012 財年，該部門的營業收入也增加了 20,000 美元，即 3%。航空是其主要客戶。

The services that were reduced, which included the elimination of services at the segment's largest Delta location, accounted for almost half of the segment's historical revenues and a greater proportion of its operating income at the time. Since that time the segment has added new customers and locations to build its revenue base and increase its operating income.

減少的服務，包括取消該部門最大的達美航空基地的服務，幾乎佔該部門歷史收入的一半，佔當時營業收入的比例更大。自那時起，該部門增加了新客戶和地點，以建立其收入基礎並增加其營業收入。

We recently announced a dividend of $0.25 per share. The dividend is at the same rate as we declared a year ago.

我們最近宣布派發每股 0.25 美元的股息。股息率與我們一年前宣布的相同。

At this point I would like to ask John Parry to review our operating results in more detail for you, and after that we will take your questions. John.

現在我想請約翰·帕里為您更詳細地回顧我們的經營業績，然後我們將回答您的問題。約翰.

Thank you, Walter, and good morning. Consistent with trends we saw in fiscal 2011, fiscal 2012 revenues were higher than the prior year, but profits were reduced due to lower margins.

謝謝你，沃特，早安。與我們在 2011 財年看到的趨勢一致，2012 財年的收入高於前一年，但利潤因利潤率下降而減少。

First, I would like to discuss our revenues. Consolidated revenue increased $6 million or 7% to approximately $89.4 million for fiscal 2012 compared to the prior fiscal year. The increase in 2012 revenue resulted from a number of offsetting factors. Revenues in the Overnight Air Cargo segment increased by $6 million or 14% to $48.3 million, largely as a result of increases in administrative fee revenue and maintenance labor revenue relating to the four ATR-72 aircraft that were delivered by FedEx during fiscal 2011, as well as increases in flight and maintenance operating cost passed through to our Air Cargo customers at cost.

首先，我想討論一下我們的收入。與上一財年相比，2012 財年的綜合收入增加了 600 萬美元，即 7%，達到約 8,940 萬美元。 2012年收入的成長是由多種抵銷因素造成的。隔夜航空貨運部門的收入成長了600 萬美元，即14%，達到4,830 萬美元，這主要是由於與聯邦快遞在2011 財年交付的四架ATR-72 飛機相關的管理費收入和維護人工收入的增加，飛行和維護營運成本的增加按成本轉嫁給我們的航空貨運客戶。

Heavy maintenance on the four ATR-72 aircraft was completed in fiscal 2012. And three of the aircraft were placed into revenue service in fiscal 2012, in addition to the one aircraft that was placed into revenue service during the third quarter of fiscal 2011.

四架 ATR-72 飛機的大修工作於 2012 財年完成。 除了 2011 財年第三季投入營運的一架飛機外，其中三架飛機於 2012 財年投入營運。

Revenues in the Ground Equipment Sales segment decreased by $719,000 or 2% to $32.1 million. And while the overall decrease in that segment was minimal, there was a swing in the product and customer mix resulting from increase in deicer sales to the US Air Force during fiscal 2012, offset by decreased deicer sales in both the commercial, domestic and international markets.

地面設備銷售部門的收入下降 719,000 美元或 2%，至 3,210 萬美元。雖然該細分市場的整體降幅很小，但由於 2012 財年美國空軍除冰器銷量增加，導致產品和客戶結構發生了變化，但被商業、國內和國際市場除冰器銷量下降所抵消。

A significant factor in the comparative decrease in commercial domestic revenues was the $10.5 million sale of mobile deicers to the city of Charlotte in fiscal 2011.

國內商業收入相對下降的一個重要因素是 2011 財年向夏洛特市銷售了價值 1,050 萬美元的行動除冰器。

Revenues in the Ground Support Services segment increased by $730,000 or 9% to $8.9 million resulting from an increase in new customers as well as an increase in work and locations for existing customers.

由於新客戶的增加以及現有客戶的工作和地點的增加，地面支援服務部門的收入增加了 73 萬美元或 9%，達到 890 萬美元。

Operating expenses on a consolidated basis increased 9% for fiscal 2012 compared to fiscal 2011. The increase was due to a number of factors. Operating expenses in the Overnight Air Cargo segment were up $5.4 million or 15%, corresponding to the increase in revenues within that segment.

與 2011 財年相比，2012 財年的綜合營運費用增加了 9%。隔夜航空貨運部門的營運費用增加了 540 萬美元，即 15%，與該部門收入的成長相對應。

Ground Equipment Sales' operating costs increased $1.1 million or 4%. Ground Equipment Sales' gross margin continues to be negatively impacted by a highly competitive environment, including domestic, international and military contracts. In addition, the segment's production efficiency has been negatively impacted by relatively low levels of Air Force sales compared to prior years.

地面設備銷售部的營運成本增加了 110 萬美元，即 4%。地面設備銷售的毛利率持續受到激烈競爭環境（包括國內、國際和軍事合約）的負面影響。此外，與前幾年相比，空軍銷售水準相對較低，對該部門的生產效率產生了負面影響。

Although sales to the Air Force in fiscal 2012 were greater than in fiscal 2011, the level of Air Force sales were significantly less than in the preceding years. The higher sales volumes to the Air Force previously allowed for more flexibility in our delivery and production schedules, which contributed to greater efficiencies and a lower overall cost structure.

儘管 2012 財年對空軍的銷售量高於 2011 財年，但空軍銷售水準明顯低於前幾年。此前，對空軍的銷售增加使我們的交付和生產計劃更加靈活，從而提高了效率並降低了整體成本結構。

Operating expenses in the Ground Support Services segment increased by $56,000 or 1%, relating to the increased revenues produced in fiscal 2012. The Ground Support Services segment saw a greater increase in general and administrative expenses related to its revenue growth in fiscal 2012, which I will discuss in a moment.

地面支援服務部門的營運費用增加了56,000 美元，即1%，與2012 財年收入的增加有關。認為增加幅度更大。

Overall, general and administrative expense increased $746,000 or 7% to $11.3 million in fiscal 2012. We incurred increased general and administration costs in the Ground Support Services segment of $620,000, relating to staffing costs, rents and other operating costs and supply costs associated with new stations and increased business in fiscal 2012. In addition, we experienced increases in other costs, including facility rents, staffing, professional fees and supplies costs.

總體而言，2012 財年的一般和管理費用增加了746,000 美元，即7%，達到1,130 萬美元。營運成本以及與新產品相關的供應成本。

Partially offsetting these increases, profit-sharing expense decreased by $184,000, directly related to the decreased profit generated by the Company in fiscal 2012.

利潤分享費用減少了 184,000 美元，部分抵消了這些增長，這與公司 2012 財年利潤的減少直接相關。

Operating income for fiscal 2012 was $2.1 million, a 40% decrease from fiscal 2011. The reduction was principally the result of the reduced gross margin and profitability in the Ground Equipment Sales segment.

2012 財年的營業收入為 210 萬美元，比 2011 財年下降 40%。

Nonoperating income net for fiscal 2012 was $23,000, a $107,000 decrease from fiscal 2011. Nonoperating income is principally interest income and decreased as a result of decreased rates of return and decreased investment balances in fiscal 2012.

2012 財年的營業外收入淨額為 23,000 美元，比 2011 財年減少 107,000 美元。

Income tax expense of $746,000 in fiscal 2012 represented an effective tax rate of 35.6%, which included the benefit of current-year foreign tax credits and the research and development credit.

2012 財年所得稅費用為 746,000 美元，實際稅率為 35.6%，其中包括當年外國稅收抵免和研發抵免的收益。

Net earnings were $1.4 million or $0.55 per diluted share for fiscal 2012, a 37% decrease from earnings of $2.1 million or $0.87 per diluted share in fiscal 2011.

2012 財年的淨利潤為 140 萬美元，即稀釋後每股收益 0.55 美元，比 2011 財年的淨利潤 210 萬美元，即稀釋後每股收益 0.87 美元下降了 37%。

With that I would like to turn the call back over to Walter..

有了這個，我想把電話轉回給沃特..

Thanks, John. Fiscal 2012 has been a challenge to our Company, but even in these difficult times we remained a strong and profitable company. Senior Air T management continues to evaluate the operations at the Company's equipment manufacturing subsidiary. The top-down review, which was initiated in January 2012, has begun to have some positive impact on productivity. The expectation is that while there has been improvement in several key aspects of Global Ground's operations, the full effect of these review efforts will be realized over the longer term.

謝謝，約翰。 2012 財年對我們公司來說是一個挑戰，但即使在這些困難時期，我們仍然是一家強大且有利可圖的公司。 Air T 高階管理層持續評估公司設備製造子公司的營運狀況。 2012年1月啟動的自上而下的審查已經開始對生產力產生一些正面的影響。我們預計，雖然 Global Ground 營運的幾個關鍵方面有所改善，但這些審查工作的全部效果將在較長時期內實現。

Results in our Air Cargo segment improve with the full realization of additional revenue from operating additional aircraft for our customers.

隨著為客戶營運更多飛機獲得額外收入，我們的航空貨運部門業績有所改善。

The trajectory of our equipment maintenance subsidiary during this past fiscal year has been encouraging with the addition of new customers and locations. Looking ahead to fiscal year 2013 we intend to continue to further expand our customer relationships at our Ground Support Services segment.

隨著新客戶和地點的增加，我們的設備維護子公司在上一財年的發展軌跡令人鼓舞。展望 2013 財年，我們打算繼續進一步擴大地面支援服務部門的客戶關係。

At our Air Cargo operations we continue to enjoy a good relationship with our customers. As noted in our Form 10-K we are currently in negotiations to replace our existing contracts with our Air Cargo customers, and we look forward to concluding those discussions in the near future.

在我們的航空貨運業務中，我們繼續與客戶保持良好的關係。如同表格 10-K 所述，我們目前正在與航空貨運客戶就更換現有合約進行談判，我們期待在不久的將來完成這些討論。

For our Ground Equipment Sales segment backlog was $15.3 million at March 31, 2012, up from $9.6 million at the end of the prior fiscal year. For fiscal year 2013 our management team will continue to focus on improving operational efficiencies and maintain a strong partnership with our customer base.

截至 2012 年 3 月 31 日，我們的地面設備銷售部門積壓訂單為 1,530 萬美元，高於上一財年末的 960 萬美元。 2013 財年，我們的管理團隊將持續致力於提高營運效率並與客戶群保持牢固的合作關係。

I would like now to open the call to your questions. I believe our conference host will provide you with the instructions for participating in this portion of the call. We will try to keep the call to 30 minutes today.

我現在想開始回答你們的問題。我相信我們的會議主持人將為您提供參與這部分電話會議的說明。今天我們會盡量將通話時間控制在 30 分鐘。

(Operator Instructions). At this time we have no questions in the queue. And we do have one question. Mr. Barkett, your line is open.

（操作員說明）。此時我們隊列中沒有任何問題。我們確實有一個問題。巴克特先生，您的線路已接通。

Thanks for taking my question, I appreciate it. Well, I actually have three questions. So to begin I am trying to better understand CapEx for the quarter. It looks like there was an increase year-over-year of maybe $150,000 to $200,000 for the quarter. Is that a function of your Ground Support Services business and new locations for that business? Or if you can shed a little light on the increase in CapEx for the quarter that would be great.

感謝您提出我的問題，我很感激。嗯，我實際上有三個問題。因此，首先我試著更了解本季的資本支出。看起來該季度同比增長了 150,000 至 200,000 美元。這是您的地面支援服務業務和該業務新地點的功能嗎？或者，如果您能稍微透露一下本季資本支出的成長情況，那就太好了。

Yes, Seth, you are exactly right. It is CapEx for the new locations we have opened for the Ground Services segment. Not a lot of heavy-duty equipment, mostly vehicles and some service equipment, but primarily vehicles.

是的，賽斯，你說得完全正確。這是我們為地面服務部門開設的新地點的資本支出。重型設備不多，主要是車輛和一些服務設備，但主要是車輛。

Perfect. Okay. In regards to inventory it looks like inventory has continued to build for the Ground Equipment business. Do you expect that inventory to be sold off over the next quarter or two, or do you expect to continue to hold high levels of inventory for the Equipment business?

完美的。好的。在庫存方面，地面設備業務的庫存似乎仍在持續增加。您是否預計庫存將在未來一兩個季度內出售，或者您是否預計設備業務將繼續保持高水準的庫存？

We expect that to go down. It has peaked right now as we head into our busier season. We have got the contracts for the Air Force, and we geared up for some of that work with the flight line tow tractors. But, yes, we do expect to go down. We have got a fair amount of WIP as well, as disclosed in the financial statement. So we expect to deliver that in this quarter -- the near future. So, yes, we would expect the inventory levels to reduce.

我們預計這一數字將會下降。當我們進入繁忙季節時，它現在已經達到頂峰。我們已經獲得了空軍的合同，並為飛行線牽引車的一些工作做好了準備。但是，是的，我們確實預計會下降。正如財務報表中所揭露的，我們還有相當數量的在製品。因此，我們預計在本季（不久的將來）實現這一目標。所以，是的，我們預期庫存水準會減少。

Okay, great. Is most of that inventory military related or is there another commercial customer out there like city of Charlotte?

好的，太好了。大部分庫存是否與軍事相關，或者是否有其他商業客戶（例如夏洛特市）？

A lot of that increase could be attributed to working that flight line tow tractor contract.

大部分增長可歸因於該航線拖拉機合約的履行。

Okay.

好的。

There was a $5 million backlog with that at the end of -- earlier in the year, and we are working through that and intend to deliver a lot of that this quarter, this current quarter.

今年早些時候，有 500 萬美元的積壓訂單，我們正在解決這個問題，並打算在本季、本季交付其中的大部分。

Excellent. All right. My last question is in regards to the Ground Equipment business, specifically cost of goods sold. Obviously, that business has struggled over the past year. Can you just give a little bit more insight into the decline in profitability -- you know, of sales -- when you look at sales they were down by roughly $700,000, $800,000, but cost of goods sold seem to be up. Is that more a function of material costs or just a very fixed labor force at that facility?

出色的。好的。我的最後一個問題是關於地面設備業務，特別是銷售商品的成本。顯然，該業務在過去一年中處境艱難。您能否對盈利能力的下降（您知道，銷售的下降）有更多的了解？這更多的是材料成本的函數還是只是工廠非常固定的勞動力？

The main cause of that, or one of the causes of that is really a lack of efficiency back there in the production process.

造成這種情況的主要原因，或者說原因之一，實際上是生產過程中缺乏效率。

Okay.

好的。

We were very good when we had the large chunk of Air Force business at being able to manage our personnel and have that business that we can move around from quarter to quarter, because the deliveries for the Air Force were out in the future.

當我們擁有大量空軍業務時，我們能夠管理我們的人員，並且擁有可以逐季度轉移的業務，因為空軍的交付在未來完成，所以我們做得非常好。

We now no longer have the benefit of a large 35 to 45 unit order to work our production around. So we're having to really -- and at the end of last year we had that large Charlotte order which helped ameliorate some of these inefficiencies. It really became apparent to us this year that we had to really retool our business on how to deal with smaller orders from more customers and how to efficiently produce that type of order book.

現在，我們不再需要 35 至 45 台的大訂單來進行生產。所以我們必須真的——去年年底，我們收到了夏洛特的大訂單，這有助於改善一些低效率的情況。今年，我們確實意識到，我們必須真正重組我們的業務，以了解如何處理更多客戶的較小訂單以及如何有效地產生此類訂單簿。

And as I have said several times that we have been doing a review of the management out at Global, of our production processes, and we are starting to see some improvement in the efficiencies, and that is to manage our workforce better.

正如我多次說過的那樣，我們一直在對 Global 的管理和生產流程進行審查，我們開始看到效率有所提高，那就是更好地管理我們的員工隊伍。

Okay.

好的。

So it was really about production inefficiencies.

所以這其實是生產效率低的問題。

Okay, all right. Well, thank you so much guys. I appreciate it.

好吧，好吧。嗯，非常感謝你們。我很感激。

(Operator Instructions). At this time we have no further questions in the queue.

（操作員說明）。目前我們隊列中沒有其他問題了。

Well, we would like to thank everybody for joining us today, and we will talk to you later.

好的，我們要感謝大家今天加入我們，稍後我們將與您交談。

Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation.

女士們、先生們，今天的會議到此結束。感謝您的參與。