NOTE 11  BUSINESS SEGMENTS We identify our reportable segments based on our management structure and the financial data utilized by our chief operating decision maker to assess segment performance and allocate resources among our operating units. We have two reportable segments: Fleet Vehicles and Services and Specialty Vehicles. Effective the second quarter of 2020, the Company renamed its Specialty Chassis and Vehicles segment to Specialty Vehicles. We evaluate the performance of our reportable segments based on Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) and it is calculated by excluding items that we believe to be infrequent or not indicative of our continuing operating performance. We define Adjusted EBITDA as income from continuing operations before interest, income taxes, depreciation and amortization, as adjusted to eliminate the impact of restructuring charges, acquisition related expenses and adjustments, non-cash stock-based compensation expenses, and other gains and losses not reflective of our ongoing operations. Adjusted EBITDA for all prior periods presented has been recast to conform to the current presentation. The accounting policies of the segments are the same as those described, or referred to, in "Note 1  Nature of Operations and Basis of Presentation". Assets and related depreciation expense in the column labeled Eliminations and Other pertain to capital assets maintained at the corporate level. Eliminations for inter-segment sales are shown in the column labeled Eliminations and Other. Segment loss from operations in the Eliminations and Other column contains corporate related expenses not allocable to the operating segments. Interest expense and Income tax expense (benefit) are not included in the information utilized by the chief operating decision makers to assess segment performance and allocate resources, and accordingly, are excluded from the segment results presented below. Three Months Ended June 30 , 20 20 Segment FVS SV Eliminations and Other Consolidated Fleet vehicle sales $ 90,762 $ - $ - $ 90,762 Motor home chassis sales - 14,048 - 14,048 Other specialty vehicle sales - 10,929 - 10,929 Aftermarket parts and accessories sales 6,476 1,755 - 8,231 Total sales $ 97,238 $ 26,732 $ - $ 123,970 Depreciation and amortization expense $ 1,692 $ 857 $ 2,794 $ 5,343 Adjusted EBITDA 13,652 1,219 (5,521 ) 9,350 Segment assets 151,892 140,654 59,247 351,793 Capital expenditures 2,934 559 40 3,533 THE SHYFT GROUP, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollar amounts in thousands, except per share data) Three Months Ended June 30 , 20 19 Segment FVS SV Eliminations and Other Consolidated Fleet vehicle sales $ 111,230 $ 3,152 $ (3,152 ) $ 111,230 Motor home chassis sales - 28,653 - 28,653 Other specialty vehicle sales - 7,315 - 7,315 Aftermarket parts and accessories sales 29,872 2,603 - 32,475 Total sales $ 141,102 $ 41,723 $ (3,152 ) $ 179,673 Depreciation and amortization expense $ 556 $ 394 $ 330 $ 1,280 Adjusted EBITDA 7,920 5,083 (3,245 ) 9,758 Segment assets 149,793 34,306 73,455 257,554 Capital expenditures 552 74 439 1,065 Six Months Ended June 30 , 20 20 Segment FVS SV Eliminations and Other Consolidated Fleet vehicle sales $ 214,735 $ - $ - $ 214,735 Motor home chassis sales - 36,650 - 36,650 Other specialty vehicle sales - 27,715 - 27,715 Aftermarket parts and accessories sales 18,191 3,627 - 21,818 Total sales $ 232,926 $ 67,992 $ - $ 300,918 Depreciation and amortization expense $ 2,492 $ 2,047 $ 3,321 $ 7,860 Adjusted EBITDA 35,388 4,940 (12,602 ) 27,726 Segment assets 151,892 140,654 59,247 351,793 Capital expenditures 3,824 1,689 370 5,883 Six Months Ended June 30 , 20 19 Segment FVS SV Eliminations and Other Consolidated Fleet vehicle sales $ 207,549 $ 5,280 $ (5,280 ) $ 207,549 Motor home chassis sales - 68,939 - 68,939 Other specialty vehicle sales - 14,173 - 14,173 Aftermarket parts and accessories sales 56,202 5,016 - 61,218 Total sales $ 263,751 $ 93,408 $ (5,280 ) $ 351,879 Depreciation and amortization expense $ 1,154 $ 747 $ 691 $ 2,592 Adjusted EBITDA 14,895 10,031 (6,792 ) 18,134 Segment assets 149,793 34,306 73,455 257,554 Capital expenditures 698 306 1,169 2,173 THE SHYFT GROUP, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollar amounts in thousands, except per share data) The table below presents the reconciliation of our income from continuing operations to Adjusted EBITDA. Adjusted EBITDA is not a measurement of our financial performance under GAAP and should not be considered as an alternative to net income. Adjusted EBITDA may have limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. In addition, although we have excluded certain charges in calculating Adjusted EBITDA, we may in the future incur expenses similar to these adjustments, despite our assessment that such expenses are infrequent and/or not indicative of our regular, ongoing operating performance. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or infrequent items. Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Income (loss) from continuing operations $ (1,134 ) $ 4,544 $ 10,608 $ 9,379 Net (income) loss attributable to non-controlling interest (70 ) 215 (137 ) 75 Add (subtract): Interest expense 460 313 1,191 687 Income tax expense (benefit) (546 ) 1,536 (169 ) 2,612 Depreciation and amortization expense 5,343 1,280 7,860 2,592 Restructuring and other related charges 562 - 1,554 27 Acquisition related expenses and adjustments 179 420 272 465 Non-cash stock based compensation expense 2,126 1,450 4,117 2,297 Loss from write-off of construction in process 2,430 - 2,430 - Adjusted EBITDA $ 9,350 $ 9,758 $ 27,726 $ 18,134