FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Quarterly Report Under Section 13 or 15 (d)
of the Securities Exchange Act of 1934
For Quarter Ended September 30, 1997
Commission File Number 0-11720
AIR TRANSPORTATION HOLDING COMPANY, INC.
(Exact name of registrant as specified in its charter)
Delaware 52-1206400
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Post Office Box 488, Denver, North Carolina 28037
(Address of principal executive offices)
(704) 377-2109
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
2,650,653 Common Shares, par value of $.25 per share were outstanding as
of November 7, 1997.
This filing contains 16 pages.
The exhibit index is on page 15.
<PAGE>
AIR TRANSPORTATION HOLDING COMPANY, INC. AND SUBSIDIARIES
INDEX
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Statements of Earnings
for the three and six-month periods ended
September 30, 1997 and 1996 (Unaudited) 3
Consolidated Balance Sheets at
September 30, 1997 (Unaudited)
and March 31, 1997 4
Consolidated Statements of Cash
Flows for the six-month periods
ended September 30, 1997 and 1996 (Unaudited) 5
Notes to Consolidated Financial
Statements (Unaudited) 6-7
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations 8-10
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 11-13
Exhibit Index 14
Exhibits 15-16
<PAGE>
<TABLE>
AIR TRANSPORTATION HOLDING COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
<CAPTION>
Three Months Ended Six Months Ended
September 30, September 30,
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Operating Revenues:
Cargo $ 4,653,947 4,467,154 9,028,156 8,840,836
Maintenance 3,372,192 2,940,414 6,511,613 5,981,353
Aircraft services and other 1,173,325 871,791 1,818,775 1,515,860
Ground equipment 1,552,852 - 1,552,852 -
10,752,316 8,279,359 18,911,396 16,338,049
Operating Expenses:
Flight operations 3,363,464 3,172,405 6,378,520 6,061,255
Maintenance 4,054,929 3,697,929 7,484,505 7,138,918
Ground equipment 1,170,780 - 1,170,780 -
General and administrative 1,381,146 1,045,610 2,396,213 2,070,352
Depreciation and amortization 114,994 103,598 222,007 221,362
Facility start-up & merger exp 52,191 167,788 179,755 210,000
10,137,504 8,187,330 17,831,780 15,701,887
Operating Income 614,812 92,029 1,079,616 636,162
Non-operating (Income) Expense:
Investment income (77,946) (54,368) (157,453) (119,285)
Deferred retirement obligation - - 418,000 -
Gain on asset sale & other 6,249 (180,716) 8,332 (182,359)
(71,697) (235,084) 268,879 (301,644)
Earnings Before Income Taxes 686,509 327,113 810,737 937,806
Provision For Income Taxes 267,869 198,622 297,600 403,956
Net Earnings $ 418,640 128,491 513,137 533,850
Weighted Average Shares 2,781,773 2,798,311 2,786,356 2,808,811
Net Earnings Per Common Share $ 0.15 0.05 0.18 0.19
<FN>
See notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
AIR TRANSPORTATION HOLDING COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<CAPTION>
September 30, 1997 March 31,1997
<S> <C> <C>
ASSETS (Unaudited)
Current Assets:
Cash and equivalents $ 1,159,830 2,377,898
Short term investments 2,461,317 2,229,708
Accounts receivable, net 3,987,440 3,310,810
Inventory, parts and supplies 3,470,264 1,069,206
Prepaid expense and other 35,270 119,828
Deferred tax asset, net 424,980 344,980
Total Current Assets 11,539,101 9,452,430
Property and Equipment 3,990,486 3,398,636
Less accumulated depreciation (2,141,027) (1,943,020)
1,849,459 1,455,616
Intangible pension asset and other 555,153 210,365
Total Assets $ 13,943,713 11,118,411
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 1,707,614 809,245
Accrued liabilities 1,689,415 1,665,046
Income taxes 220,005 389,916
Customer deposits 1,154,985 -
Total Current Liabilities 4,772,019 2,864,207
Deferred Retirement Obligation 718,000 -
Stockholders' Equity:
Preferred stock, $1 par value, authorized
10,000,000 shares, none issued - -
Common stock, par value $.25; authorized
4,000,000 shares; 2,650,653 and
2,651,433 shares issued 661,991 662,858
Additional paid in capital 7,078,657 7,126,294
Retained earnings 713,046 465,052
8,453,694 8,254,204
Total Liabilities and Stockholders' Equity $ 13,943,713 11,118,411
<FN>
See notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
AIR TRANSPORTATION HOLDING COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<CAPTION>
Six Months Ended
September 30,
1997 1996
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 513,137 533,850
Adjustments to reconcile net earnings to
net cash provided by operations:
Depreciation and amortization 222,007 221,362
Change in deferred tax asset (80,000) 122,723
Change in retirement obligation 718,000 -
Gain on sale of assets - (182,359)
Charge in lieu of income taxes - 15,837
Asset and liability changes which
provided (used) cash:
Accounts receivable (673,437) 360,582
Parts and supplies (878,029) (191,398)
Prepaid expense and other (260,230) 75,574
Accounts payable 898,369 (653,076)
Accrued expenses 81,472 50,400
Income taxes payable (169,911) (112,156)
Total adjustments (141,759) (292,511)
Net cash provided by
operating activities 371,378 241,339
CASH FLOWS FROM INVESTING ACTIVITIES:
Business acquisition (715,981) -
Capital expenditures (328,209) (189,409)
Purchase of short term investments (948,055) (655,593)
Sale of short term investments 716,446 -
Proceeds from disposal of equipment - 415,000
Net cash used in investing activities (1,275,799) (430,002)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of cash dividend (265,143) (218 435)
Repurchase of common stock (67,254) (466,967)
Proceeds from exercise of stock options 18,750 5,000
Net cash used in financing activities (313,647) (680,402)
NET DECREASE IN CASH & EQUIVALENTS (1,218,068) (869,065)
CASH & EQUIVALENTS AT BEGINNING OF PERIOD 2,377,898 2,213,841
CASH & EQUIVALENTS AT END OF PERIOD $ 1,159,830 1,344,776
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for:
Interest $ 67 390
Income/Franchise taxes 559,118 384,424
<FN>
See notes to consolidated financial statements.
</TABLE>
<PAGE>
AIR TRANSPORTATION HOLDING COMPANY, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
A. Financial Statements
The Consolidated Balance Sheet as of September 30, 1997, the Consolidated
Statements of Earnings for the three and six-month periods ended September 30,
1997 and 1996 and the Consolidated Statements of Cash Flows for the six-month
periods ended September 30, 1997 and 1996 have been prepared by Air
Transportation Holding Company, Inc. (the Company) without audit. In the
opinion of management, all adjustments (consisting only of normal recurring
adjustments) necessary to present fairly the financial position, results of
operations and cash flows as of September 30, 1997, and for prior periods
presented, have been made.
It is suggested that these financial statements be read in conjunction
with the financial statements and notes thereto included in the Company's
Annual Report on Form 10-K for the year ended March 31, 1997. The results of
operations for the period ended September 30 are not necessarily indicative of
the operating results for the full year.
B. Acquisition
On August 29, 1997, the Company acquired the Simon Deicer Division of
Terex, Inc. for $715,000 cash. The acquisition, renamed Global Ground
Support, LLC (Global), manufactures, sells and services aircraft deice
equipment on a worldwide basis. The acquisition was accounted for using the
purchase method; accordingly, the assets and liabilities (which included
$1,522,000 inventory, $287,000 fixed assets and $3,000 accounts receivable,
net of $1,048,000 in customer deposits and $49,000 warranty obligation) of the
acquired entity have been recorded at their estimated fair value at the date
of acquisition. Global's results of operations have been included in the
Consolidated Statement of Income since the date of acquisition.
The following table presents unaudited pro forma results of operations as
if the acquisition had occurred on April 1, 1996. These pro forma results
have been prepared for comparative purposes only and do not purport to be
indicative of what would have occurred had the acquisition been made at the
beginning of fiscal 1997 or of results which may occur in the future.
Furthermore, no effect has been given in the pro forma information for
operating benefits that are expected to be realized through the combination of
the entities because precise estimates of such benefits cannot be quantified.
Six Months Ended
September 30,
(Unaudited) 1996 1997
Net sales $18,297,000 20,654,000
Net income 142,000 659,000
Net income per share .05 .24
<PAGE>
C. Income Taxes
The tax effect of temporary differences gave rise to the Company's
deferred tax asset in the accompanying September 30, 1997 and March 31, 1997
consolidated balance sheets.
The Company has recorded a valuation allowance in order to reduce its
deferred tax asset to an amount which is more likely than not to be realized.
Changes in the valuation allowance, related to future utilization of net
operating losses, reduced the provision for income taxes by $44,000 and
$42,000, respectively, during the six-months ended September 30, 1997 and
1996.
The income tax provisions for the three and six-months ended September
30, 1997 and 1996 differ from the federal statutory rate primarily as a result
of state income taxes and reductions in the valuation allowance.
The Company completed the utilization of all federal net operating loss
carryforwards available for tax return purposes during the quarter ended
September 30, 1996. These carryforwards, to the extent realized, resulted in
a reduction of goodwill, until goodwill was reduced to zero in the quarter
ended June 30, 1996.
D. Net Earnings Per Share
Primary earnings per share has been compiled by dividing net earnings by
weighted average number of common shares outstanding during each period.
There was no difference between primary and fully diluted earnings per share.
Shares issuable under employee stock options are considered common share
equivalents and were included in the weighted average common shares as of
September 30, 1997 and 1996.
In February 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards ("SFAS") No. 128 "Earnings Per
Share". SFAS No. 128 specified new standards for computing and disclosing
earnings per share effective for financial statements issued for periods
ending after December 15, 1997. The adoption of SFAS No. 128 for the six
month periods ended September 30, 1997 and 1996 would result in Basic Earnings
Per Share of $0.19 and $0.20, for the respective periods.
E. Reclassifications
Certain reclassifications have been made in the 1996 financial statements
to conform with the 1997 presentation.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
Overview
The Company's most significant component of revenue is generated through
its air cargo subsidiaries, Mountain Air Cargo, Inc. (MAC) and CSA Air, Inc.
(CSA), which are short-haul express air freight carriers flying nightly
contracts for a major express delivery company out of 81 cities, principally
located in 30 states in the eastern half of the United States and in Puerto
Rico, Canada and the Virgin Islands. In 1993, the Company organized Mountain
Aircraft Services, LLC (MAS) to engage in the sale of commercial aircraft
parts and provide aircraft engine overhaul management and component repair
services. In August 1997 the Company acquired the assets and order backlog
of Simon Deicer Company, a division of Terex Aviation Ground Equipment, Inc.
located in Olathe, Kansas. The acquisition, renamed Global Ground Support,
LLC (Global), manufactures, services and supports aircraft deicers on a
worldwide basis. Global will be operated as a subsidiary of MAS.
Under the terms of its dry-lease service contracts (which currently cover
approximately 98% of the revenue aircraft operated), the Company passes
through to its customer certain cost components of its operations without
markup. The cost of fuel, landing fees, outside maintenance, aircraft
certification and conversion, parts and certain other direct operating costs
are included in operating expenses and billed to the customer as cargo and
maintenance revenue.
Results of Operations
Consolidated revenue increased $2,573,000 (15.8%) to $18,911,000 and
$2,473,000 (29.9%) to $10,752,000, respectively, for the six and three-month
periods ended September 30, 1997 compared to their equivalent 1996 periods.
The six and three-month current period net increase in revenue primarily
resulted from a $1,553,000 increase in revenue associated with the September
2, 1997 start-up of Global, increases in maintenance service revenue and
increased engine overhaul and parts revenue.
Operating expenses increased $2,130,000 (13.6%) to $17,832,000 for the
six-month period ended September 30, 1997 and $1,950,000 (23.8%) to
$10,138,000 for the three-month period ended September 30, 1997 compared to
their equivalent 1996 periods. The change in operating expenses for the six-
month period consisted of the following: cost of flight operations increased
$317,000 (5.2%), primarily as a result of additional costs associated with
flight crews, fuel and airport fees; maintenance expense increased $346,000
(4.8%), primarily as a result of heavy maintenance checks due on aircraft,
cost of parts and increased maintenance staffing; ground equipment increased
$1,171,000 (100.0%), as a result of the August 1997 Global acquisition;
depreciation and amortization increased $1,000 (.3%) as a result of additional
depreciable assets purchased in the acquisition of Global, offset by
<PAGE>
Results of Operations (cont'd)
depreciation related to the sale of aircraft in fiscal 1997; general and
administrative expense increased $326,000 (15.7%) as a result of $111,000 in
G&A costs associated with the Company's operation of Global and increased
insurance and employee benefits, staffing, salary and wage rates. Facility
start-up expenses decreased $30,000 (14.4%) and, reflect for fiscal 1997, cost
associated with the Company's start-up and relocation of maintenance
operations to Kinston, N.C. compared to proposed merger and repair shop
component start-up cost for fiscal 1998.
The $571,000 increase in non-operating expense was principally due to a
$418,000 provision to fulfill contractual benefits related to the death of the
Company's Chairman and CEO and a $182,000 gain on sale of aircraft which took
place in fiscal 1997.
Pretax earnings decreased $127,000 for the six-month period ended
September 30, 1997 and increased $359,000 for the three-month period ended
September 30, 1997 compared to their respective 1996 periods. The changes
were respectively due to a $418,000 obligation booked in the first quarter
1998 while the second quarter included the profitable results of Global, which
added $246,000 pretax.
The provision for income taxes decreased $106,000 for the six-month
period ended September 30, 1997 and increased $69,000 for the three-month
period ended September 30, 1997 compared to their respective 1996 periods due
to changes in taxable income and effective tax rates.
Liquidity and Capital Resources
As of September 30, 1997 the Company's working capital amounted to
$6,767,000, an increase of $179,000 compared to March 31, 1997. The net
increase primarily resulted from profitable operations offset by cash required
for the Global acquisition.
The Company's secured bank financing line provides credit in the
aggregate of up to $4,000,000 through August 1998. Loans under the line of
credit bear interest at the lender's prime rate.
Substantially all of the Company's accounts receivable and inventory,
have been pledged as collateral under this financing arrangement. As of
September 30, 1997 the Company was in a net investment position against its
credit line. Management believes that funds anticipated from operations and
existing credit facilities will provide adequate cash flow to meet the
Company's financial needs for the foreseeable future.
The respective six-month periods ended September 30, 1997 and 1996
resulted in the following changes in cash flow: operating activities provided
$371,000 and $241,000, investing activities used $1,276,000 and $430,000 and
financing activities used $314,000 and $680,000. Net cash decreased
$1,218,000 and $869,000 for the respective six-month periods ended September
30, 1997 and 1996.
<PAGE>
Liquidity and Capital Resources (cont'd)
Cash provided by operating activities was $130,000 more for the six-
months ended September 30, 1997 compared to the similar 1996 period
principally due to a deferred retirement obligation offset, in part, by the
net assets acquired in the acquisition of Global. Cash used in investing
activities for the six-months ended September 30, 1997 was approximately
$846,000 more than the comparable period in 1996, principally due to
expenditures related to the acquisition of Global. Cash used in financing
activities was $367,000 less in the 1997 six-month period due to a reduction
in the repurchase of common stock.
During the six months ended September 30, 1997 the Company repurchased
15,780 shares of its common stock at a total cost of $67,000. Pursuant to its
previously announced stock repurchase program, $204,000 remains available for
repurchase of common stock.
Cost associated with the Company's start-up of an FAA approved 145
component repair facility which opened at Kinston, N. C. in June 1997,
professional fees related to terminated merger discussions and start-up cost
associated with Global amounted to $180,000 for the six-month period ended
September 30, 1997. There are currently no commitments for significant
capital expenditures. The Company paid a $.10 per share cash dividend in June
1997. The Company's Board of Directors on August 7, 1997 adopted the policy
to pay an annual cash dividend in the first quarter of each fiscal year, in an
amount to be determined by the board.
Impact of Inflation
The Company believes the impact of inflation and changing prices on its
revenues and earnings is not material since the major cost components of its
operations, consisting principally of fuel, aircraft, crew and certain
maintenance costs are passed through to its customer under current contract
terms.
<PAGE>
PART II -- OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
No. Description
3.1 Certificate of Incorporation, as amended, incorporated by reference to
Exhibit 3.1 of the Company's Annual Report on Form 10-K for the fiscal year
ended March 31, 1994
3.2 By-laws of the Company, incorporated by reference to Exhibit 3.2 of the
Company's Annual Report on Form 10-K for the fiscal year ended March 31, 1996.
4.1 Specimen Common Stock Certificate, incorporated by reference to
Exhibit 4.1 of the Company's Annual Report on Form 10-K for the fiscal
year ended March 31, 1994
10.1 Aircraft Dry Lease and Service Agreement dated February 2,
between Mountain Air Cargo, Inc. and Federal Express Corporation,
incorporated by reference to Exhibit 10.13 to Amendment No. 1 on Form 10- Q/A
to the Company's Quarterly Report on Form 10-Q for the quarterly period
ended December 31, 1993
10.2 Loan Agreement among NationsBank of North Carolina, N.A., the
Company and its subsidiaries, dated January 17, 1995, incorporated by
reference to Exhibit 10.7 to the Company's Quarterly Report on Form 10-Q
for the period ended December 31,1994
10.3 Aircraft Wet Lease Agreement dated April 1, 1994 between Mountain
Air Cargo, Inc. and Federal Express Corporation, incorporated by reference to
Exhibit 10.4 of Amendment No. 1 on Form 10-Q/Q to the Company's Quarterly
Report on Form 10-Q for the period ended September 30, 1994
10.4 Adoption Agreement regarding the Company's Master 401(k) Plan and
Trust, incorporated by reference to Exhibit 10.7 to the Company's Annual Report
on Form 10-K for the fiscal year ended March 31, 1993*
10.5 Form of options to purchase the following amounts of Common
Stock issued by the Company to the following executive officers
during the following fiscal years ended March 31:*
Number of Shares
Executive Officer 1993 1992 1991
J. Hugh Bingham 150,000 150,000 200,000
John J. Gioffre 100,000 100,000 125,000
William H. Simpson 200,000 200,000 300,000
incorporated by reference to Exhibit 10.8 of the Company's
Annual Report on Form 10-K for the fiscal year ended March 31, 1993.
<PAGE>
10.6 Premises and Facilities Lease dated November 16, 1995 between
Global TransPark Foundation, Inc. and Mountain Air Cargo, Inc., incorporated by
reference to Exhibit 10.5 to Amendment No. 1 on form 10-Q/A to the
Company's Quarterly Report on Form 10-Q for the period ended December 31,
1995.
10.7 Employment Agreement dated January 1, 1996 between the Company,
Mountain Air Cargo Inc. and Mountain Aircraft Services, LLC and
William H. Simpson, incorporated by reference to Exhibit 10.8 to the
Company's Annual Report Form 10-K for the fiscal year ended March 31,
1996.*
10.8 Employment Agreement dated January 1, 1996 between the Company,
Mountain Air Cargo Inc. and Mountain Aircraft Services, LLC and John J.
Gioffre, incorporated by reference to Exhibit 10.9 to the Company's Annual
Report Form 10-K for the fiscal year ended March 31, 1996.*
10.9 Employment Agreement dated January 1, 1996 between the Company,
Mountain Air Cargo Inc. and Mountain Aircraft Services, LLC and J. Hugh
Bingham, incorporated by reference to Exhibit 10.10 to the Company's Annual
Report Form 10-K for the fiscal year ended March 31, 1996.*
11.1 Computation of Primary and Fully Diluted Earnings per Common Share
21.1 List of subsidiaries of the Company.
27.1 Financial Data Schedule (For SEC use only)
* Management compensatory plan or arrangement required to be filed as an
exhibit to this report.
b. Reports on form 8-K
No Current Reports on Form 8-K were filed in the first quarter of fiscal
1997.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
AIR TRANSPORTATION HOLDING COMPANY, INC.
(Registrant)
Date: November 10, 1997 /s/ Walter Clark
Walter Clark, Chief Executive Officer
Date: November 10, 1997 /s/ John Gioffre
John J. Gioffre, Chief Financial Officer
<PAGE>
AIR TRANSPORTATION HOLDING COMPANY, INC.
EXHIBIT INDEX
Exhibit PAGE
11.1 Computation of Primary and Fully Diluted
Earnings Per Common Share........................... 15
21.1 List of Subsidiaries of
Air Transportation Holding Company, Inc. . . . . . . 16
<PAGE>
AIR TRANSPORTATION HOLDING COMPANY, INC. AND SUBSIDIARIES
Exhibit 21.1
List of Subsidiaries of Air Transportation Holding Company, Inc.
1) Mountain Air Cargo, Inc. a North Carolina Corporation
2) CSA Air, Inc. a North Carolina Corporation
3) Mountain Aircraft Services, LLC a North Carolina Limited Liability
Company
4) Global Ground Support, LLC a North Carolina Limited Liability
Company
<PAGE>
<PAGE>
<TABLE>
AIR TRANSPORTATION HOLDING COMPANY, INC. AND SUBSIDIARIES
Exhibit 11.1
Computation for Primary and Fully Diluted Earnings Per Common Share
<CAPTION>
Three Months Ended Six Months Ended
September 30 September 30,
1997 1996 1997 1996
<S> <C> <C> <C> <C>
NET EARNINGS $418,640 $128,491 $513,137 $533,850
WEIGHTED AVERAGE COMMON SHARES:
Primary:
Weighted average shares outstanding 2,645,653 2,614,433 2,648,543 2,624,933
Dilutive stock options 136,120 183,878 137,813 183,878
2,781,773 2,798,311 2,786,356 2,808,811
Fully Diluted:
Weighted average shares outstanding 2,645,653 2,614,433 2,648,543 2,624,933
Dilutive stock options 137,199 190,921 138,845 190,921
2,782,852 2,805,354 2,787,388 2,815,854
NET EARNINGS PER COMMON SHARE:
Primary $0.15 $0.05 $0.18 $0.19
Fully Diluted $0.15 $0.05 $0.18 $0.19
<FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
"This schedule contains summary financial information extracted from Air
Transportation Holding Company, Inc. SEC Form 10-Q for period ended September
30, 1997 (identify specific financial statements) and is qualified in its
entirety by reference to such financial statements."
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> SEP-30-1997
<CASH> 1159830
<SECURITIES> 2461317
<RECEIVABLES> 3987440
<ALLOWANCES> 0
<INVENTORY> 3470264
<CURRENT-ASSETS> 11539101
<PP&E> 3990486
<DEPRECIATION> 2141027
<TOTAL-ASSETS> 13943713
<CURRENT-LIABILITIES> 4772019
<BONDS> 0
0
0
<COMMON> 661991
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 13943713
<SALES> 18911396
<TOTAL-REVENUES> 18911396
<CGS> 0
<TOTAL-COSTS> 17831780
<OTHER-EXPENSES> 268879
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 810737
<INCOME-TAX> 297600
<INCOME-CONTINUING> 513137
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 513137
<EPS-PRIMARY> 0.18
<EPS-DILUTED> 0.18
</TABLE>
AIR TRANSPORTATION HOLDING COMPANY, INC. AND SUBSIDIARIES
Exhibit 21.1
List of Subsidiaries of Air Transportation Holding Company, Inc.
1) Mountain Air Cargo, Inc. a North Carolina Corporation
2) CSA Air, Inc. a North Carolina Corporation
3) Mountain Aircraft Services, LLC a North Carolina Limited Liability Company
4) Global Ground Support, LLC a North Carolina Limited Liability Company
