All right, good afternoon. The next Planet Microcap presentation is Air T with Nick Swenson.
Hello, everyone. Look forward to presenting Air T to you today. We're here, really looking for shareholders that want to go on the long-term journey with us, that can live in the Air T world. We understand it's somewhat complicated to understand Air T. We think the effort will be rewarded if you want to understand us. We intend to be open to discussion, and you can reach out in many ways to communicate with me and the rest of the management team. Please read our safe harbor. What does Air T do? We're a portfolio of aviation businesses. We start aviation businesses, and we acquire them. We care a lot about the products and services that we put on the market. That happens at our business level and really drives everything that we do. We think strategy is very important.
The first part of this presentation is going to go through some strategic ideas that really drive us day to day. One of them is really applying discernment and coordinating our action at the Holding Company to make investments that we believe will compound both our capital and our capabilities. We think, as we compound both, our capabilities will lead to ideas, and a better network, and stronger investments. We think organizational design itself is a strategy, and if it's coherent, it will make a difference long term. You know, in this presentation, I hope you get a sense for coherence and a sense, and there's more. Our portfolio is a decentralized portfolio. Each business unit leader has a full team and full P&L responsibility. They're independent of the Holding Company, and yet they're interrelated in some ways.
We really want to, at the Holding Company, find and develop resources, both capital and other, to activate growth, and overcome challenges, both at the Holding Company and assisting business units that they have challenges they can't meet themselves. We think it's very important for us to, we call it, make space for dynamos. That is, make space for great managers and management teams at each of the business units. I can go into examples, but it's very helpful. People really appreciate it when they're given the space and autonomy to run their business. We are an allocator-operator partnership. The allocation happens at the Holding Company, and the operators run their businesses, bring those products and services to market. This is the Holding Company team. Several of us have worked together for decades.
There's a lot of consistency, and a lot of folks have been promoted to the positions they're in right now. We have a really strong team, great people. I've been the CEO of Air T for 11 years. This is our first presentation to the public in the United States. This gives you a snapshot of what we've done over the last 11 years. We've acquired businesses. We've expanded our revenues. I would say it's also notable how much our enterprise value has grown relative to our market cap. Aviation is a very capital-intensive business. You have to own, we think, sound assets in order to manage them and make fees and grow. We've done a lot, and we're, I think, demonstrating some power of the scale that we're at right now. This is a nice summary of what we do. We are Flywheel. We identify good ideas.
We think it's really helpful to have an idea factory that generates good ideas that could be an added product at one of our business units. It could be a new idea to acquire a company. It could be a tag-on acquisition or a platform acquisition. Finding and turning over rocks is really important. We think matching capital with the ideas is critical. We do that at different scales, both our balance sheet capital and partner capital from outside of Air T. As I mentioned, it's really important to us to secure fantastic management teams. I can tell you stories about how our managers have transformed the business as they run. We want to really be in this to generate returns on capital that are attractive to everyone and then build a brand and industrious network to keep that going. This is our portfolio at this time.
You can see we break it up into consolidated and non-consolidated. The consolidated, I will show you the P&L for the consolidated group of companies, and then also some descriptions about the non-consolidated. We have the websites here. If you go on each website, you'll see you get a very good idea about what we do. Almost all of these companies are in aviation. Aviation has a lot of niche businesses. It's a very technical and regulatorily burdensome in some ways business area. It's also a very, we think, interesting area to operate in because of all the barriers to entry as well as the ability to deliver products that are highly valued. This is our P&L for our consolidated operating businesses.
You can see we've had the burden of corporate overhead, and it's not going away, as a Public Company, and as a company that has the Holding Company personnel that allows us to grow. We hope that we can leverage that Holding Company overhead and keep it at a stable level as we go forward. You know, I'd say we also have these non-operating assets that if you're digging into Air T, and I'm kind of presenting the puzzle pieces today, you know, here's a slide full of pieces of what we do. I hope that you'll engage with us, and we're working towards explaining ourselves better and better all the time. These non-consolidated operating businesses, especially CAM, is a very significant business, and it doesn't appear in the same way on the operating line of our consolidated financials.
I'll go into the details of these companies when we go forward, but you can, when you analyze Air T, I would just make sure you take a look at these things too. One of them on there is Cadillac Castings. We own 20% of it. You can see that the EBITDA, or Net Income generated there has been significant over the years. Cadillac is a ductile iron foundry founded by the Dodge brothers in Michigan. It's a significant player, but small player in the castings market in the United States. Has a lot of business with the auto industry. We think tariffs are going to be good for Cadillac Castings. Lenway is a company that is also public, ticker LDWY. Lenway is very focused in producing tulips, produces over 100 million stems per year. Air T owns about 28% of Lenway.
Lenway itself, I think, is a very interesting story. I'm not here to tell that story today, but it's a highly leveraged company with, we think, very low cost of production tulip capacity in the United States. Crestone Asset Management has a lot of momentum. This is a business that's spun out of one of our other businesses in 2021. They trade and lease and invest in aircraft, primarily narrowbody A320s or the Boeing and Airbus products. You can see our aircraft JVs, which represent assets that Crestone and other parts of Air T manage for outside investors. Those assets have grown significantly, and we continue to see good momentum in that business. If you think about the aviation business, the aircraft that are on wing have a life, and we specialize in kind of mid-life to end of life.
When an aircraft is 10-15 years old, it's very important to understand what you're buying when you buy an aircraft. We have the capacity to buy that aircraft and manage that aircraft on behalf of third parties, and we get fees similar to what an asset manager would get, what a hedge fund would get. Here's a short description from ChatGPT of the companies that have invested, you know, that $550 million with us. You can see they're significant, sophisticated investors who are looking for a servicer and originator and manager of their aircraft portfolio. Fundamentally, because of the technical nature of owning an aircraft and the difficulties of understanding all the aspects of that, you can get a premium to other types of assets and to a well-developed asset class. Also, we have a joint venture.
This is sort of a special purpose vehicle for one pension fund that we started about a year ago. They have given us $30 million to invest in aircraft assets and tear down assets. This is entirely separate from the CAM entity and the other things I have shown you. We have been growing. You can see it started out as a $15 million relationship last year. Now it is a $30 million relationship. We find this to be a promising growth area for us as well. This is the summary of the various companies that we have that can manage those mid-life to end-of-life assets. Contrail is a company that buys jet engines from people when those engines are no longer operable, cares about the engines, and sells the parts. Airco does the same thing for airframes. Worthington does regional jets and turboprops.
Jet Yard is a storage facility in the desert of Arizona. LGSS, Landing Gear Shop operation, manages landing gear. We think this set of businesses is unique as a grouping. Each of them is an independent P&L run by an independent set of people. As a group, we really bring to the table the ability to manage a lot of different kinds of aircraft for people. We think that at some point in time, we might want to offer this kind of management of aircraft and assets to the public generally. We have thought about the possibility of issuing a security they would own alongside our institutional investors, the same sorts of LP interests, and then pay a dividend. We are developing that product, but it is still undeveloped.
This is a good example of the unconsolidated entities and how much cash flow they've sent us in recent years in the form of dividends. These are another contributor to our cash flow. We threw this up here to show you corporate overhead, large and growing, but hopefully growing less quickly now, especially in context of the overall company. We have been investing in what we call here other subsidiaries, which includes a couple of companies that have been cash flow negative. Those we can turn off at any time. We also have been experiencing revenue growth and good product momentum in those companies. A negative number that over time, although it hasn't happened in the last five years, but over time we expect that to turn into a positive generator. Our balance sheet, we will admit, is not a simple balance sheet.
We have non-recourse debt. We have recourse debt. As I mentioned, owning aircraft assets is a capital-intensive business. As you can see here, we also have subsets of debt that are part of and only looking towards, for example, Contrail. You can see Contrail there has, as of December 31, $14 million of, I'm sorry, $14 million of non-guaranteed debt. We believe that we have a very intelligent way of dealing with our balance sheet. As an equity holder, I think it's important to understand this, and we're happy to talk to you more about it over time. Here's a simpler breakdown of it. It shows you the recourse debt on the left, recourse that is to Air T and the Holding Company, and the non-recourse debt on the right. The recourse debt is made up of bank debt and our trust preferred.
Our trust preferred is security that trades in the NASDAQ AIRTP. The current yield is about 12%, and it's a 30-year bond effectively. It is a trust preferred, so we can't turn off the interest over a couple-year period. We have used this to raise capital when it was at a more attractive yield for us, but it's a very interesting part of our balance sheet. You can see that represents the light blue section on the left-hand side there. Air T Digital is comprised of two different businesses, World ACD and Amber Hill Technologies. Both those businesses sell software and data and related services. What we represent here is the ARR. You can see a very nice trend in ARR growth. We have no reason to believe that we won't be continuing that, and we're pretty excited about that opportunity as it grows.
That's a great example of both of these businesses completely operating on their own within, of course, the requirements of being part of our Public Company and going after really interesting markets on their own. That's it for the presentation. Can I answer any questions for you?
Sure, sure. The question is, provide an example of a company that's done well by being part of Air T. I would point to Contrail. Contrail was a company we bought about 10 years ago, and they've been able to really grow their business generally by getting better capital sources and better origination sources, I would say, by being under the Air T umbrella.
I think they're pleased with the people who started the business over 20 years ago still run it, and they're part of Air T, and I think they're happy, and they've grown significantly since we bought them. Exactly, right. Crestone is the ongoing leasing business for operating aircraft. Contrail was very focused on tearing down engines, and when we started to think about doing a full-on leasing company, we spun them out and called it Crestone. Assets have grown very rapidly. It's quite impressive, actually.
Can you help me understand it's 90% owned by you guys, yet you don't consolidate?
That's right. We started this business in the depths of COVID, and the seed investor, a private equity firm, wanted to own 10% of the equity and commit to invest in LP interest at the same time.
We agreed to do that, and some of the terms of that deal that they struck with us created a situation where the entity CAM is not consolidated with Air T, although Air T does own 90% of CAM. I would say it's always under review, and the nature of that relationship with our private equity partner is changing because the original fund that we raised has finished its investment period. There are some parts of that arrangement that are either open to partial negotiation or discussion because of the current status of that fund. We recognize that it is difficult to understand that important business because of the unconsolidated nature of it. We have been working on more disclosure, and you've seen probably over the last couple of years better disclosure on that topic.
I don't know whether we're going to be turning it to a consolidated entity in the future. Thanks. One of the things I'd point out with Air T is that we've been a Public Company for over 40 years. Mountaineer Cargo and CSA Air, you'll see on that list, are very long-standing original businesses of Air T. They fly aircraft for FedEx. FedEx has had a 30-day contract with us for over 40 years. We have grown the aircraft that we've managed with them from around 75 or 6 years ago to around 105 today. They have trusted us with the launch of the Cessna 408, the new Skycourier, and they have had us expand into new markets. It's a very nice business.
I think that's also a fantastic example of the leadership team of teams of Max CSA running their business, knowing what their customer really cares about, staying close to their customer, growing their business, and having the strength that comes with being part of a Public Company, as well as having the autonomy to run their own business. It's been a great example of an alligator operator model. We've, in recent times, also done acquisitions that fit right into the Max CSA business. For example, Worldwide Aircraft Services is a business, the third from the bottom in the top section. We acquired that in 2023 from the founder of that business, and it fits in because they maintain the types of aircraft that Mountaineer Cargo and CSA Air operate.
It was also a business that could use a little capital, and we've added some capital and management, and it's done a nice job. Not a big business, and we're very much willing to buy small niche businesses, like I mentioned. If we do those over time, we think that's a growth engine for Air T as well. Now, we think that being a Public Company has a lot of advantages. We think it's a process of sort of writing a journal every 90 days, explaining yourselves to people. I think that's very healthy. We think people appreciate being part of a Public Company as well if they get to understand it and understand the people. We like to be part of a very high trust culture and environment. I think it's intangible. It's important, and we're looking for shareholders that want to go on the journey with us.
As I mentioned, we very much would be happy to talk to anyone who's interested in learning about Air T. Building a relationship with long-term shareholders is important to us. I'd also say that our management team, in summary here, we have an investment management background, and we also have very, very strong corporate capacity now with our accounting team and our general counsel, our business development folks, our project management folks. We're a robust corporate entity that can take on a lot of challenges. We also have skin in the game. We own a lot of stock as a management team. Thank you. Yep.
I think that at this point in time, most people are probably aware that up until recently, up until the last 90 days, the aviation market was very tight, and there's been a limit on the assets that you can buy at scale, packages of assets. I would say that things in the past 12 months have been more available than they were two years ago. During COVID, there was a kind of a freezing of the markets a little bit for aircraft, and that kind of had loosened up a little bit. I think if this current vol squall is kind of gentle vol and we get back to something normal, we will look back on it as a good thing, and it created some trading opportunities in that business. We've performed well for our investors. They like us. They're putting their money with us in additional quantities.
It's a matter of finding the assets at the right price. That's a very good question. I think you have to look at it through a couple of different lenses. I think you have to look at the individual unconsolidated assets. I think some of the parts might be very helpful. Then look through the other lens of if you can into the operating businesses and the consolidated operating businesses, how are they growing relative to corporate overhead? Are we absorbing corporate overhead more? Are we growing our adjusted EBITDA? Our segment reporting is three segments. You can see what's going on there. I do some of the parts combine with adjusted EBITDA growth and try not to miss the "and there's more" aspect of Air T. We've shrunk the shares outstanding. I've issued zero shares since I've been involved in the last 11 years.
I think we've shrunk the shares somewhere between 20% and 25% over the past five or ten years. Yeah, it's not easy to understand us, but I think it's rewarding if you do. Thank you.