Company: AIRTP
Filing Date: 2025-02-12
Form Type: 10-Q
Source: 0000353184-25-000009
Chunk: 4

Company: AIR T INC
Filing Date: 2025-02-12
Form: 10-Q
Item: Item 2
Chunk 4
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 the same quarter in the prior fiscal year. The increase was mainly driven by higher revenue, as outlined in the segment revenue discussion above, though partially offset by lower margins on maintenance revenue resulting from increased operating costs.

The ground equipment sales segment's operating income for the quarter ended December 31, 2024 was $0.2 million compared to the prior year comparable quarter's operating loss of $0.5 million. This increase was primarily attributable to the higher sales and revenue  noted in the segment revenue discussion above.

The commercial jet engines and parts segment generated operating income of $2.6 million in the current year quarter compared to an operating loss of $0.6 million in the prior year quarter. This increase was primarily attributable to the higher sales noted in the segment revenue discussion above.

The corporate and other segment's operating loss for the three-month period ended December 31, 2024 was $2.9 million compared to the prior year comparable quarter's operating loss of $2.1 million. The higher operating loss was primarily driven by increased health insurance claims expenses.

Following is a table detailing non-operating income (expense) during the three months ended December 31, 2024 compared to the same quarter in the prior fiscal year (in thousands):

Three Months EndedDecember 31,Change20242023Interest expense$(2,561)$(1,528)$(1,033)Income from equity method investments661 1,038 (377)Other(812)142 (954)$(2,712)$(348)$(2,364)

The Company had net non-operating loss of $2.7 million during the quarter ended December 31, 2024, compared to net non-operating loss of $0.3 million in the prior year quarter. The increase in non-operating loss was driven by a $1.0 million increase in interest expense and a $0.7 million loss in foreign currency exchange fluctuations. Additionally, a $0.4 million reduction in net income allocated to the Company from equity method investments, as detailed in Note 8 of the Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this Report on Form 10-Q, also contributed to the increase in non-operating loss.

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During the three-month period ended December 31, 2024, the Company recorded $0.3 million in income tax expense at an ETR of (38.7)%. The Company has computed the provision for income taxes