Enhancing Investor Transparency: Details on Non-GAAP Financial Measures in Company Reports
ICARO Media Group
**Company Discloses Details on Non-GAAP Financial Measures and Transparency for Investors**
A comprehensive breakdown of our company's operating segments, segment revenues, and expenses can be found in our Form 10-K filed on January 26, 2024, Form 8-K furnished on April 2, 2024, and Form 10-Q filed on October 31, 2024. Alongside standard US GAAP financial results, this report also introduces various non-GAAP financial measures, intended to give investors additional insights into business performance, comparison ease across time periods, and greater transparency regarding management's key operational metrics.
Non-GAAP measures adjust for specific items, their related income tax impacts, and effects on net income (loss) attributable to non-controlling interests. These adjustments use a fixed projected tax rate of 13% and consider our tax structures, positions across jurisdictions, and significant legislative changes. This approach assists management in planning and evaluating performance, thus enabling better operational comparisons.
Key non-GAAP adjustments include the amortization of acquisition-related intangible assets, share-based compensation, and restructuring and other charges. The amortization reflects intangible assets acquired through business combinations and spans multiple years, while share-based compensation pertains to employee equity plans. Both these adjustments are excluded from non-GAAP measures to yield a more refined analysis of our core performance and trends.
Restructuring charges, particularly those under the 2024 Restructuring Plan, and costs from asset impairments and legal fees are also excluded from non-GAAP measures. This exclusion ensures the focus remains on core operations rather than periodic, non-recurring expenses. Such adjustments present a clear and undistorted view of ongoing business performance and trends.
Non-operating gains and losses from equity investments, divestitures, and deferred tax asset valuation allowances are similarly excluded. These adjustments help standardize evaluation criteria across periods. Adjusted free cash flow, considering operating cash flows adjusted for capital expenditures and payments on finance leases, provides insights into liquidity and cash flow trends.
For detailed reconciliations of these non-GAAP financial measures against their US GAAP counterparts, refer to the "Explanation of Non-GAAP Measures" in our document. This reconciliation enables investors to thoroughly evaluate our financial results and the methodology behind the non-GAAP measures.