Business Context and Reporting Period
Company: Information Services Group, Inc. (ISG)
Filing Type: Form 8-K (Current Report)
Report Date: August 8, 2011
Reporting Period: Second Quarter 2011 (ended June 30, 2011)
This filing serves as a notification that ISG has released its earnings results for the second quarter of 2011. The company provided a press release as Exhibit 99.1 and scheduled a teleconference to discuss the results on the date of filing.
Key Financial Metrics
The provided text is a cover document for the earnings release and does not contain specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity.
Non-GAAP Measures Discussed: The filing outlines the company's methodology for reporting non-GAAP financial measures, which are intended to provide a clearer view of core operations by excluding non-cash items and special charges. These include:
- 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 is presented using foreign currency exchange rates as of July 31, 2010, to exclude the impact of currency translation.
Material Changes
The filing text does not provide specific data regarding material changes in financial performance compared to prior periods. 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: Management states that non-GAAP measures are used to evaluate business strategies and performance, offering greater transparency and comparability between periods. These measures exclude expenses and financial implications of foreign currency translations that management believes are not indicative of core operations.
Outlook and Guidance: The text does not contain specific forward-looking guidance or outlook figures. It references a teleconference call held on August 8, 2011, where financial results were discussed.
Risks and Contingencies: No specific risks or contingencies are detailed in this cover document. The filing emphasizes that non-GAAP measures should not be considered in isolation or as a substitute for GAAP results.
Investor Verification Checklist
- Review the full text of the Press Release (Exhibit 99.1) for specific revenue, net income, and EPS figures for Q2 2011.
- Verify the reconciliation tables between GAAP and non-GAAP measures (Adjusted EBITDA and Adjusted Net Income) to understand the magnitude of excluded items.
- Check the impact of foreign currency fluctuations by comparing reported results against the constant currency basis mentioned.
- Confirm if any goodwill or intangible asset impairment charges were recorded in the quarter.
- Review the teleconference call transcript for management's commentary on future growth drivers and potential risks.