An engagement to compile pro forma
financial information may be undertaken as a separate engagement or in conjunction with a compilation of financial statements.
Explain why investors should care about the pro forma
--For investors to properly evaluate pro forma
measures, they have to understand its purpose, so it's important that management provide investors with a rationale for the use of these measures (i.
Researchers only recently began exploring market perceptions of pro forma
numbers compared with GAAP earnings figures.
However, if another company does not exclude a similar item when providing pro forma
earnings, an unsophisticated investor might be misled.
The requisite transparency is directly linked to another facet of presenting pro forma
information: reconciliation to GAAP-based earnings.
Management recognizes that the use of Adjusted Pro Forma
measures has limitations, including the fact that management must exercise judgment in determining which types of charges should be excluded from the Adjusted Pro Forma
Many company managers have asserted, and the SEC has agreed, that pro forma
reports can provide useful management interpretation of financial results, similar to management's discussion and analysis (MD&A).
EBITDA of approximately $133 million to $143 million.
EBITDA and Pro Forma
Adjusted EBITDA(as defined)
On October 25, 2006, LeCroy announced guidance for fiscal 2007 on an organic basis of revenues ranging from $170 to $180 million and pro forma
non-GAAP operating income of $24 to $27 million.
Fitch estimates pro forma
total debt will decline to $1.
CE Software reports a pro forma
net loss of $106,000, or $7.