Business Context and Reporting Period
Company: Information Services Group Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: November 8, 2018
Reporting Period: Third Quarter 2018 (ended September 30, 2018)
This filing serves to announce the release of the Company's earnings for the third quarter of 2018. The full earnings release is provided as Exhibit 99.1. A teleconference to discuss results was scheduled for November 9, 2018.
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 Company utilizes the following non-GAAP measures to evaluate performance:
- Adjusted EBITDA: Defined as net income before noncontrolling interest, plus interest, taxes, depreciation, amortization, foreign currency transaction gains/losses, non-cash stock compensation, change in contingent consideration, acquisition-related costs, tax indemnity receivable, and severance/integration expenses.
- Adjusted Net Income: Defined as net income plus amortization of intangible assets, non-cash stock compensation, foreign currency transaction gains/losses, change in contingent consideration, acquisition-related costs, and severance/integration expenses (tax-adjusted).
- Constant Currency Basis: Selected financial data is presented on a constant currency basis to exclude the impact of foreign currency translations.
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 believes non-GAAP measures provide useful information by excluding non-cash and special charges that may obscure the understanding of core operations. These measures are used to evaluate business strategies and management performance.
Outlook/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 cover document. The filing states 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, 2018) for specific revenue, net income, and cash flow figures.
- Verify the reconciliation of non-GAAP measures (Adjusted EBITDA and Adjusted Net Income) to the most closely applicable GAAP measures in the full earnings release.
- Confirm the impact of foreign currency translation on reported results by comparing GAAP and constant currency figures.
- Check for details on acquisition-related costs, severance, and integration expenses excluded from non-GAAP calculations.