Air T (AIRT) The 15th Annual East Coast IDEAS Conference summary

Business model and strategy

• Focuses on building and acquiring aviation businesses for long-term value creation through a decentralized holding company structure.

• Business unit leaders operate independently with full P&L responsibility, fostering accountability and growth.

• Emphasizes strategic investments, capital partnerships, and a flywheel approach to compounding capabilities.

• Maintains a portfolio of both consolidated and significant non-consolidated aviation and related businesses.

• Leadership team has long tenure, supporting coherence and stability.

Portfolio and recent developments

• Acquired multiple aviation businesses over 11 years, increasing enterprise value and network reach.

• Holds significant stakes in non-consolidated companies, including a 20% interest in Cadillac Castings and 38% in Lendway.

• Crestone Asset Management, an unconsolidated subsidiary, manages over $500 million in aircraft leases for third parties.

• Secured a growing partnership with a pension fund, increasing non-recourse capital commitment from $15 million to $100 million.

• Digital segment includes WorldACD (air cargo data) and Ambry Hill Technologies (ERP for MROs), both showing growth.

Financial structure and capital management

• Balance sheet split roughly evenly between recourse and non-recourse debt, with detailed breakdowns available.

• Trust preferred security (AIRTP) trades at a 12% yield, providing long-term capital.

• Contrail subsidiary specializes in engine teardown and parts sales, recently deleveraged after COVID-related challenges.

• Management and board own a significant portion of shares, aligning interests with shareholders.

• Ongoing focus on managing corporate overhead and generating per-share value through disciplined capital allocation.