ENP Newswire -
Release date- 14022014 -
Operating Results - Third Quarter, Fiscal 2014
For its third quarter ended
Operating Results - Nine Months Ended
For the nine months ended
'The board and management are focused on long term growth. Profitability is down for the nine months due to strategic investments. The record-breaking Operating Revenue we achieved for the third quarter is evidence of our strong momentum,' said
'Increasing demand for our services confirms the appeal of our unique capability to blend live consumer engagement with our proprietary digital functionality and analytics that effectively promote and amplify product awareness and advocacy for our clients,' said
Fair Value Adjustment to Compound Embedded Derivatives
The Company's income statements for the periods include accounting adjustments shown below the operating income line. These are non-cash fair value adjustments to a compound embedded derivative generated from the Company's December 2009financing. For the three and nine months ended
The amount of these adjustments is driven by a number of factors, most importantly, by the value of the Company's stock. As its stock price fluctuates, the Company is required to record adjustments, with increases in stock price reducing net income, and declines in stock price increasing net income. Consequently, the Company believes it is most appropriate to focus on its operating income as the basis for assessing operating performance.
Operating Revenue and Modified EBITDA
The Company believes Operating Revenue and Modified EBITDA are key performance indicators. The Company defines Operating Revenue as sales less reimbursable program costs and expenses and outside production and other program expenses. Operating Revenue is the net amount derived from sales to customers that management believes is available to fund compensation, general and administrative expenses and capital expenditures.
The Company defines Modified EBITDA as income before interest, income taxes, depreciation and amortization plus other non-cash expenses. The Company uses Modified EBITDA as a supplemental measure to evaluate operational performance. Operating Revenue and Modified EBITDA are Non-GAAP financial measures disclosed by management to provide additional information to investors in order to provide them with alternative methods for assessing the Company's financial condition and operating results.
These measures are not in accordance with, or a substitute for, GAAP and may be different from or inconsistent with Non-GAAP financial measures used by other companies. Reconciliations of Operating Revenue to sales and Modified EBITDA to operating income are provided at the end of this press release.
This press release includes statements which constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release are not promises or guarantees and are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. These statements are based on management's current expectations and assumptions and are naturally subject to uncertainty and changes in circumstances.
We caution you not to place undue reliance upon any such forward-looking statements. Actual results may vary materially from those expressed or implied by the statements herein. Factors that could cause actual results to differ materially from the Company's expectations are set forth in the Company's Annual Report on Form 10-K for the fiscal year ended
Chief Financial Officer
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