Business Context and Reporting Period
Company: Information Services Group, Inc. (ISG)
Filing Type: Form 8-K (Current Report)
Date of Report: August 6, 2013
Reporting Period: Second Quarter 2013 ended June 30, 2013
Business Overview: ISG provides information services and reports financial results in accordance with U.S. GAAP, supplemented by non-GAAP measures to enhance comparability and transparency regarding core operations.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. The document serves as a notification of the earnings release and defines the methodology for non-GAAP reporting rather than presenting the data itself.
- GAAP Reporting: All financial information is prepared in accordance with U.S. GAAP.
- Non-GAAP Measures Defined:
- Adjusted EBITDA: Net income plus income taxes, net interest income/(expense), depreciation, foreign currency transaction gains/losses, gain on extinguishment of debt, amortization of intangible assets, non-cash stock compensation, and impairment charges.
- Adjusted Net Income: Net income plus amortization of intangible assets, non-cash stock compensation, gain on extinguishment of debt, and non-cash impairment charges (tax adjusted).
- Constant Currency Basis: Uses foreign currency exchange rates based on an average of daily spot rates from January 1, 2012, to August 31, 2012.
Material Changes and Comparisons
The filing text does not provide specific data on material changes versus 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 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 used internally to evaluate business strategies and management performance.
Outlook and Events:
- ISG scheduled a teleconference call to discuss financial results on Wednesday, August 7, 2013, at 9:00 a.m. (EDT).
- The call was accessible via the company website (www.isg-one.com).
Risks and Contingencies: The filing does not explicitly list new risks or contingencies beyond the standard disclaimer that non-GAAP measures should not be considered in isolation or as a substitute for GAAP results.
Investor Verification Checklist
- Verify the specific numerical values for Q2 2013 revenue, net income, and cash flow in the attached Press Release (Exhibit 99.1), as they are not included in this 8-K text.
- Review the reconciliation tables in the full earnings release to understand the adjustments made to derive Adjusted EBITDA and Adjusted Net Income.
- Confirm the impact of foreign currency translation on reported results by comparing GAAP figures to the constant currency basis figures.
- Check for any reclassifications of prior period amounts that may affect year-over-year comparisons.