Company: AIRTP
Filing Date: 2025-02-12
Form Type: 10-Q
Source: 0000353184-25-000009
Chunk: 15

Company: AIR T INC
Filing Date: 2025-02-12
Form: 10-Q
Item: Item 2
Chunk 15
---
 Company calculates Adjusted EBITDA by removing the impact of specific items and adding back the amounts of interest expense and depreciation and amortization to earnings before income taxes. When calculating Adjusted EBITDA, the Company does not add back depreciation expense for assets that are on lease, as the Company believes this expense matches with the corresponding revenue earned on leased assets. There was $0.8 million of depreciation expense for leased assets during both the three and nine months ended December 31, 2024, respectively while there was no depreciation expense for leased assets during the three or nine months ended December 31, 2023.

Management believes that Adjusted EBITDA is a useful measure of the Company's performance because it provides investors additional information about the Company's operations allowing better evaluation of underlying business performance and better period-to-period comparability. We may periodically review and update our non-GAAP financial measures based on our determination of their relevance to our business which could result in the addition or elimination of select non-GAAP financial measures in the future. Adjusted EBITDA is not intended to replace or be an alternative to operating income (loss), the most directly comparable amounts reported under GAAP.

The tables below provide a reconciliation of operating income (loss) to Adjusted EBITDA for the three and nine months ended December 31, 2024 and 2023 (in thousands):

Three months endedNine months ended12/31/202412/31/202312/31/202412/31/2023Operating income (loss)$1,816 $(1,608)$5,137 $(189)Depreciation and amortization (excluding leased assets depreciation)552 699 2,262 2,088 Asset impairment, restructuring or impairment charges274 321 776 326 Gain on sale of property and equipment— 1 (8)(7)TruPs issuance expenses19 185 147 277 Share-based compensation31 79 48 236 Severance expenses— 212 217 214 Adjusted EBITDA$2,692 $(111)$8,579 $2,945 

The table below provides Adjusted EBITDA by segment for the three and nine months ended December 31, 2024 and 2023 (in thousands):

Three months endedNine months ended12/31/202412/31/202312/31/202412/31/2023Overnight Air Cargo$1,981 $1