Interest in non-GAAP disclosure is on the rise among sophisticated investors and analysts. While everyone looks at non-GAAP in their own specific way, there are certain aspects of non-GAAP disclosures that most people could agree on. First and foremost, there is nothing inherently … Continue reading
Category Archives: Non-GAAP
Use of Non-GAAP Metrics in IPO Prospectuses: SEC Comment Letters
From the first draft to the final version, an S-1 prospectus of a company goes through many revisions. Financial and operational numbers, wording, composition, length – all can change significantly. What might drive these changes? In some cases, the release of new information requires … Continue reading
Non-GAAP Measures and One-Time Adjustments
This October, PwC released a study on the use of non-GAAP metrics (NGMs) in IPO prospectus filings. According to the study, almost 60% of over 400 companies used at least one NGM. Out of those, at least 65% used EBITDA and/or Adjusted … Continue reading
GT Advanced Technologies: Non-GAAP Signals
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The number of (conspiracy) theories surrounding the recent bankruptcy of GT Advanced Technologies (GTAT) may soon exceed the number of words found in their last annual report. People eagerly speculate: was it mismanagement? an attack from Apple? a combination of the … Continue reading
Non-GAAP Measurements and Executive Compensation: Domino Effect
Last week, Michael Rapoport had an interesting article in the WSJ (based on Audit Analytics data) concerning the use of non-GAAP metrics to determine executive compensation. He wrote, “U.S. companies increasingly are using unconventional earnings measures in determining bonuses, making it easier for … Continue reading
Non-GAAP Measures – Useful Tool Or Red Flag?
Few IPO’s received as much publicity as Groupon’s. Unfortunately for Groupon, their pre-IPO publicity was due not to optimistic forecasts, but to questionable accounting practices. The SEC reviews all pre-IPO filings, and in this case the review did not go … Continue reading