Business Context and Reporting Period
Company: Information Services Group, Inc. (ISG)
Filing Type: Form 8-K (Current Report)
Date of Report: November 8, 2012
Reporting Period: Third Quarter 2012 ended September 30, 2012
ISG released its earnings results for the third quarter of 2012. The company provides information services and reports financial information in accordance with U.S. GAAP, while also disclosing non-GAAP measures to enhance the evaluation of ongoing operating results.
Key Financial Metrics
Revenue, Profit, Cash Flow, Margins, Debt, and Liquidity: The provided filing text does not contain specific numerical values for revenue, net income, cash flow, margins, debt, or liquidity. These figures are contained within the press release furnished as Exhibit 99.1, which is referenced but not included in the text provided.
Non-GAAP Measures Discussed: The company utilizes the following non-GAAP metrics, though specific values are not listed in this text:
- Adjusted EBITDA: Defined as net income plus income taxes, net interest income/(expense), depreciation, foreign currency transaction gains/losses, amortization of intangible assets, non-cash stock compensation, and impairment charges.
- Adjusted Net Income: Defined as net income plus amortization of intangible assets, non-cash stock compensation, and non-cash impairment charges (tax adjusted).
- Constant Currency Basis: Selected financial data presented using foreign currency exchange rates as of July 31, 2011.
Material Changes
The filing text does not provide specific data regarding material changes in financial performance compared to the prior comparable period. It notes that certain prior period amounts have been reclassified to conform to current period presentation and definitions of non-GAAP measurements.
Guidance, Outlook, and Management Commentary
Management Commentary: ISG management believes that non-GAAP measures provide useful information by excluding non-cash and special charges that may obscure the understanding of current financial performance and future prospects. These measures are intended to improve comparability between periods and provide transparency on key performance measures.
Outlook and Events: ISG scheduled a teleconference call to discuss financial results on Friday, November 9, 2012, at 9:00 a.m. (EDT). Access was available via the company website.
Risks and Contingencies: The text does not explicitly list new risks or contingencies, other than the standard disclosure that non-GAAP measures should not be considered in isolation or as a substitute for GAAP results.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release dated November 8, 2012) for specific GAAP and non-GAAP financial figures (Revenue, Net Income, EBITDA).
- Verify the reconciliation of non-GAAP measures to the most closely applicable GAAP measures as required by the filing.
- Confirm the impact of foreign currency translation on reported results by reviewing the constant currency data.
- Check the teleconference call transcript or recording for detailed management commentary on the third-quarter performance.