Company: AYR
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001628280-25-044676
Chunk: 86

Company: Aircastle LTD
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 8
Chunk 86
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 Adjusted EBITDA as EBITDA (as defined above) further adjusted to give effect to adjustments required in calculating covenant ratios and compliance as that term is defined in the indenture governing our senior unsecured notes.  Adjusted EBITDA is a material component of these covenants.

The table below shows the reconciliation of net income to EBITDA and Adjusted EBITDA for the three and six months ended August 31, 2025 and 2024:

 Three Months EndedAugust 31,Six Months Ended August 31, 2025202420252024 Net income$57,233 $28,659 $106,520 $44,740 Depreciation96,762 87,675 192,578 177,033 Amortization of lease premiums, discounts and incentives1,513 6,068 (1,253)12,717 Interest, net70,529 62,424 139,370 127,237 Income tax provision5,228 9,028 17,949 12,600 EBITDA$231,265 $193,854 $455,164 $374,327 Adjustments:Impairment of flight equipment31,153 5,761 36,219 10,972 (Gain) loss on extinguishment of debt— (285)2,973 (285)Adjusted EBITDA$262,418 $199,330 $494,356 $385,014 

Limitations of EBITDA and Adjusted EBITDA

An investor or potential investor may find EBITDA and Adjusted EBITDA important measures in evaluating our performance, results of operations and financial position.  We use these non-U.S. GAAP measures to supplement our U.S. GAAP results in order to provide a more complete understanding of the factors and trends affecting our business.

EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be viewed in isolation or as substitutes for U.S. GAAP measures of income (loss).  Material limitations in making the adjustments to our income (loss) to calculate EBITDA and Adjusted EBITDA, and using these non-U.S. GAAP measures as compared to U.S. GAAP net income (loss), income (loss) from continuing operations and cash flows provided by or used in operations, include:

•depreci