Business Context and Reporting Period
Company: Information Services Group, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: August 8, 2016
Reporting Period: Second Quarter 2016 (ended June 30, 2016)
This filing serves to announce the release of the Company's earnings for the second quarter of 2016. The full earnings release is provided as Exhibit 99.1. A teleconference to discuss results was scheduled for August 8, 2016.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. It references the existence of an earnings release containing this data but does not reproduce the figures within the 8-K body text.
The Company reports financial information in accordance with U.S. GAAP and also discloses the following non-GAAP measures to enhance evaluation of ongoing operations:
- Adjusted EBITDA: Defined as net income before net income attributable to noncontrolling interest, interest, taxes, depreciation, amortization, foreign currency transaction gains/losses, non-cash stock compensation, impairment charges, tax indemnity receivable, interest on contingent consideration, gain on extinguishment of debt, and bargain purchase gain.
- 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, gain on extinguishment of debt, and bargain purchase gain (tax-adjusted).
- Constant Currency Basis: Selected financial data presented to exclude the financial implications of foreign currency translations.
Material Changes
The filing text does not provide specific data regarding 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: 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 to evaluate business strategies and management performance.
Outlook and Guidance: The filing text does not contain specific forward-looking guidance or outlook figures. It directs investors to the press release (Exhibit 99.1) and the teleconference for detailed discussion.
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) for specific revenue, net income, and cash flow figures for Q2 2016.
- Verify the reconciliation tables between GAAP and non-GAAP measures (Adjusted EBITDA and Adjusted Net Income) in the full earnings release.
- Confirm the impact of foreign currency translation on reported results by reviewing the constant currency data.
- Check for any reclassifications of prior period amounts that may affect year-over-year comparisons.
- Listen to the teleconference recording (if available) for management's qualitative commentary on the results.