Company: MRCY
Filing Date: 2025-02-04
Form Type: 10-Q
Source: 0001049521-25-000009
Chunk: 75

Company: MERCURY SYSTEMS INC
Filing Date: 2025-02-04
Form: 10-Q
Item: Item 1
Chunk 75
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 important indicator of the operating performance of our business. We use adjusted EBITDA in internal forecasts and models when establishing internal operating budgets, supplementing the financial results and forecasts reported to our board of directors, determining the portion of bonus compensation for executive officers and other key employees based on operating performance, evaluating short-term and long-term operating trends in our operations and allocating resources to various initiatives and operational requirements. We believe that adjusted EBITDA permits a comparative assessment of our operating performance, relative to our performance based on our GAAP results, while isolating the effects of charges that may vary from period to period without any correlation to underlying operating performance. We believe that these non-GAAP financial adjustments are useful to investors because they allow investors to evaluate the effectiveness of the methodology and information used by management in our financial and operational decision-making. We believe that trends in our adjusted EBITDA are valuable indicators of our operating performance.

Adjusted EBITDA is a non-GAAP financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. This non-GAAP financial measure may not be computed in the same manner as similarly titled measures used by other companies. We expect to continue to incur expenses similar to the adjusted EBITDA financial adjustments described above, and investors should not infer from our presentation of this non-GAAP financial measure that these costs are unusual, infrequent or non-recurring.

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The following table reconciles our net loss, the most directly comparable GAAP financial measure, to our adjusted EBITDA:

 Second Quarters EndedSix Months Ended(In thousands)December 27, 2024December 29, 2023December 27, 2024December 29, 2023Net loss$(17,579)$(45,581)$(35,104)$(82,289)Other non-operating adjustments, net2,549 (1,042)814 (311)Interest expense, net8,024 8,645 16,386 16,405 Income tax benefit(6,725)(18,141)(12,319)(31,168)Depreciation9,768 9,923 19,753 20,068 Amortization of intangible assets11,154 12,270 22,389 24,817 Restructuring and other charges40 2 2,300 9,548 Impairment of long-lived assets— — — — Acquisition