Business Context and Reporting Period
Company: Information Services Group, Inc. (ISG)
Filing Type: Form 8-K (Current Report)
Report Date: November 3, 2011
Reporting Period: Third Quarter 2011 ended September 30, 2011
ISG released its earnings results for the third quarter of 2011. The company operates under U.S. GAAP but also provides non-GAAP measures to enhance the evaluation of ongoing operating results.
Key Financial Metrics
The provided filing text serves as a cover document referencing an earnings release (Exhibit 99.1) but does not contain specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. The text defines the following non-GAAP measures used by the company:
- Adjusted EBITDA: 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: Net income plus amortization of intangible assets, non-cash stock compensation, and non-cash impairment charges (tax-adjusted).
- Constant Currency Basis: Selected financial data presented using foreign currency exchange rates as of July 31, 2010.
Material Changes
The filing text does not provide specific data regarding material changes in financial performance 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 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/Guidance: No specific forward-looking guidance or numerical outlook is provided in this text.
Investor Communication: Management scheduled a teleconference call for Friday, November 4, 2011, at 9:00 a.m. (EDT) to discuss financial results. Access is available via the company website.
Important Facts for Investor Verification
- Verify the specific numerical results for Q3 2011 in the attached Press Release (Exhibit 99.1), as this 8-K text contains no financial figures.
- Review the reconciliation of non-GAAP measures (Adjusted EBITDA and Adjusted Net Income) to GAAP measures in the full earnings release.
- Confirm the impact of foreign currency translation on results by comparing GAAP results to the constant currency basis data.
- Check for any reclassifications of prior period amounts that may affect year-over-year comparisons.