Air T, Inc. Reports First Quarter Fiscal 2023 Results - Seite 3

• This segment includes expenses attributable to core Corporate functions, investment research, and specialized resources that are available to business units.
• The corporate and other segment Adjusted EBITDA for the quarter ended June 30, 2022, represented a loss of $3.1 million in the quarter, compared to an Adjusted EBITDA loss of $1.8 million in the same quarter a year ago, due to higher employee benefit costs.

*Adjusted EBITDA is a non-GAAP financial measure; see below for further explanation and reconciliation to GAAP measures.

Non-GAAP Financial Measures

The Company uses adjusted earnings before taxes, interest, and depreciation and amortization ("Adjusted EBITDA"), a non-GAAP financial measure as defined by the SEC, to evaluate the Company's financial performance. This performance measure is not defined by accounting principles generally accepted in the United States and should be considered in addition to, and not in lieu of, GAAP financial measures.

Adjusted EBITDA is defined as earnings before taxes, interest, and depreciation and amortization, adjusted for specified items. The 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 aircraft engines that are on lease, as the Company believes this expense matches with the corresponding revenue earned on engine leases. Depreciation expense for leased engines totaled $0.3 million and $0.1 million for the three months ended June 30, 2022, and 2021, respectively.

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. Adjusted EBITDA is not intended to replace or be an alternative to operating income, the most directly comparable amounts reported under GAAP.

The table below provides a reconciliation of operating income to Adjusted EBITDA for the periods ended June 30, 2022, and 2021 (in thousands):

		Three Months Ended
		6/30/2022				6/30/2021
Operating income/(loss)		$	834			$	(4	)
Depreciation and amortization (excluding leased engines depreciation)			605				279
(Gain)/Loss on disposition of assets			(2	)			3
Security issuance expenses			15				5
Adjusted EBITDA		$	1,452			$	283