Exchange Income Corporation is defending itself against short-sellers.

In his first broadcast interview since being hit by a short-seller’s report, Chief Executive Officer Mike Pyle wanted to assure investors that the company hasn’t borrowed money to sustain the dividend, but rather earned it.

“We invest today and you get the returns tomorrow. If we weren’t getting the returns, the shorts would be exactly right that we’re paying money and borrowing our dividend,” he said. “But if you look at our leverage in 2014 and compare it to what it was at the end of our last fiscal year 2016, it’s identical.”

The Winnipeg-based airline operator became the target of outspoken short-seller Marc Cohodes earlier this month.

Cohodes claimed Exchange Income’s dividend is unsustainable because capital expenditures exceed free cash flow.

However, Pyle argued money spent on growth plans is returned in the form of increased revenue as the company expands.

“The proof is in the pudding. Our earnings continue to grow. Our EBITDA has essentially tripled in the last three years from investments we’ve made in the business,” Pyle said.

The stock price remains nearly 10 per cent below what it was the day Cohodes released his report.

The short-seller’s attack also prompted Exchange Income to fast-track the release of its second-quarter earnings report, in a bid to assuage concerns about the health of the company’s balance sheet.

“When reports like this come out, they typically come out in a blackout period when the company is limited on what they can say and, ultimately, stocks trade on performance,” he said.

Pyle said while he has met with short sellers in the past, he has yet to engage with Cohodes.

“I really don’t think some of the things that Mr. Cohodes chooses to put out and chooses to say are appropriate,” he said. “We’re going to run our business. My job is to run [Exchange Income].”

“People are free to take whatever position they want. My job is to run this business and deliver the results our shareholders deserve.”