Aircastle Fleet Evolution and Financial Update Q3 2023
Reconciliation of GAAP to Non-GAAP Measures
($ in millions)
Three Months Ended Nov 30,
Nine Months Ended Nov 30,
2023
Net income
Depreciation
$ 25,645
2022
$ 50,104
2023
$ 53,933
2022
$ 49,093
86,647
82,872
261,764
246,296
Amortization of lease premiums, discounts & incentives
2,641
3,763
16,972
14,669
Interest, net
57,037
50,757
170,963
151,638
Income tax provision
6,025
23,071
15,286
22,332
EBITDA
177,995
210,567
518,918
484,028
Adjustments:
Impairment of flight equipment
Loss on extinguishment of debt
Adjusted EBITDA
34,959
29,880
37,156
67,979
463
$212,954
$240,447
$556,074
$552,470
AIRCASTLE
A MARUBENI & MIZUHO LEASING COMPANY
We define EBITDA as income (loss) from continuing operations before income taxes, interest expense, and depreciation and amortization. We use EBITDA to assess our consolidated financial and operating performance,
and we believe this non-U.S. GAAP measure is helpful in identifying trends in our performance.
This measure provides an assessment of controllable expenses and affords management the ability to make decisions which are expected to facilitate meeting current financial goals, as well as achieving optimal
financial performance. It provides an indicator for management to determine if adjustments to current spending decisions are needed.
EBITDA provides us with a measure of operating performance because it assists us in comparing our operating performance on a consistent basis as it removes the impact of our capital structure (primarily interest
charges on our outstanding debt) and asset base (primarily depreciation and amortization) from our operating results. Accordingly, this metric measures our financial performance based on operational factors that
management can impact in the short-term, namely the cost structure, or expenses, of the organization. EBITDA is one of the metrics used by senior management and the Board of Directors to review the consolidated
financial performance of our business.
We define 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.
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