Business Context and Reporting Period
Company: Information Services Group, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: November 8, 2017
Reporting Period: Third Quarter 2017 ended September 30, 2017
This filing announces the release of the Company's earnings for the third quarter of 2017. The Company provided a copy of the earnings press release as Exhibit 99.1 and scheduled a teleconference for November 9, 2017, to discuss the results.
Key Financial Metrics
The provided text serves as 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 Company utilizes the following non-GAAP measures to evaluate performance, which exclude non-cash items and special charges:
- Adjusted EBITDA: Defined as net income before noncontrolling interest, interest, taxes, depreciation, amortization, foreign currency transaction gains/losses, non-cash stock compensation, impairment charges, tax indemnity receivables, interest on contingent consideration, acquisition-related costs, severance/integration expenses, gain on extinguishment of debt, and bargain purchase gains.
- Adjusted Net Income: Defined as net income plus amortization of intangible assets, non-cash stock compensation, foreign currency transaction gains/losses, non-cash impairment charges, interest on contingent consideration, acquisition-related costs, severance/integration expenses, gain on extinguishment of debt, and bargain purchase gains (tax-adjusted).
- Constant Currency Basis: Selected financial data is presented on a constant currency basis to exclude the financial implications of foreign currency translations.
Material Changes
The filing text does not provide specific data regarding material changes in financial results 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: Management believes that disclosing non-GAAP financial measures enhances the evaluation of ongoing operating results 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 Guidance: The text does not contain specific forward-looking guidance or numerical outlooks for future periods.
Risks and Contingencies: No specific risks or contingencies are detailed in this filing text, other than the standard disclaimer 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, 2017) for specific revenue, net income, and earnings per share figures, as they are not included in the 8-K text.
- 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 teleconference call transcript or recording from November 9, 2017, for management's qualitative commentary on the quarter's performance.
- Confirm the impact of foreign currency translation on reported results by reviewing the constant currency data provided in the full earnings release.