Company: AIRTP
Filing Date: 2025-02-12
Form Type: 10-Q
Source: 0000353184-25-000009
Chunk: 62

Company: AIR T INC
Filing Date: 2025-02-12
Form: 10-Q
Item: Item 8
Chunk 62
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 $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 based on the estimated annual effective tax rate excluding loss jurisdictions with no tax benefit and the application of discrete items, if any, for interim reporting. The primary factors contributing to the difference between the federal statutory rate of 21.0% and the Company's effective tax rate for the three-month period ended December 31, 2024 were the valuation allowance related to the Company's U.S. consolidated group, DTI, LGSS, DSI, and BCCM Kenya, and the foreign rate differentials for Air T's operations located in the Netherlands and Puerto Rico.

During the three-month period ended December 31, 2023, the Company recorded income tax expense of $0.2 million at an ETR of (7.8)%. The Company has computed the provision for income taxes based on the estimated annual effective tax rate excluding loss jurisdictions with no tax benefit and the application of discrete items, if any, for interim reporting. The primary factors contributing to the difference between the federal statutory rate of 21.0% and the Company's effective tax rate for the three-month period ended December 31, 2023 were the change in valuation allowance related to the Company's U.S. consolidated group, DTI, LGSS, DSI, BCCM Kenya, and the foreign rate differentials for Air T's operations located in the Netherlands and Puerto Rico.

First Nine Months of Fiscal 2025 Compared to First Nine Months of Fiscal 2024

Following is a table detailing revenue by segment, net of intercompany during the nine months ended December 31, 2024 compared to the same period in the prior fiscal year (in thousands):

Nine Months EndedDecember 31,Change20242023Overnight Air Cargo$92,162 $84,944 $7,218 8.5 %Ground Equipment Sales33,655 32,474 1,181 3