Business Context and Reporting Period
Company: Information Services Group, Inc. (ISG)
Filing Type: Form 8-K (Current Report)
Date of Report: August 2, 2010
Reporting Period: Second Quarter 2010 (ended June 30, 2010)
ISG released its earnings results for the second quarter of 2010. 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 report 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, amortization of intangible assets from acquisitions, non-cash stock compensation, and non-cash 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 November 30, 2009.
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 intended to improve comparability between periods and offer transparency on key performance measures.
Outlook and Events: Management scheduled a teleconference call for Tuesday, August 3, 2010, at 2:00 p.m. (EDT) to discuss financial results. The press release containing detailed results is furnished as Exhibit 99.1 and is not deemed filed for purposes of the Exchange Act.
Risks and Contingencies: The text does not explicitly list new risks or contingencies in this summary section, though it notes the exclusion of foreign currency translation implications from non-GAAP measures.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release dated August 2, 2010) for specific revenue, net income, and EBITDA figures, as they are not included in the 8-K text body.
- Verify the reconciliation of non-GAAP measures to GAAP measures in the full earnings release.
- Confirm the impact of foreign currency translation on reported results by comparing GAAP and constant currency data.
- Check for any reclassifications of prior period amounts that may affect year-over-year comparisons.