Business Context and Reporting Period
Company: Information Services Group, Inc. (ISG)
Filing Type: Form 8-K (Current Report)
Report Date: May 9, 2011
Reporting Period: First Quarter 2011 (ended March 31, 2011)
ISG released its earnings results for the first quarter of 2011 on May 9, 2011. The company operates under U.S. GAAP but also discloses 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 states that non-GAAP measures exclude non-cash and special charges that may obscure the understanding of current financial performance. These measures are intended to improve comparability between periods and provide transparency on key performance measures used by management.
Outlook and Events: Management scheduled a teleconference call for Monday, May 9, 2011, at 5:30 p.m. (EDT) to discuss financial results. The press release containing detailed results is furnished as Exhibit 99.1.
Risks and Contingencies: The text does not explicitly list specific risks or contingencies, though it notes the exclusion of foreign currency translation implications from non-GAAP measures.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release dated May 9, 2011) for specific revenue, net income, and EBITDA figures, as they are not included in this 8-K summary text.
- Verify the reconciliation tables between GAAP and non-GAAP measures to understand the magnitude of excluded items (e.g., amortization, stock compensation).
- Confirm the impact of foreign currency fluctuations by comparing reported results with the constant currency basis data.
- Check the teleconference call transcript for management's specific commentary on the reclassification of prior period amounts.