pro forma EPS, pro forma EPS, pro forma EPS, pro forma EPS, pro forma EPS, pro forma EPS.....just even break even without pro forma EPS!!! Hell - if TSAI had said earnings were $.03 per share that would still make this stock worth $4 bucks.
pro forma EPS, pro forma EPS, pro forma EPS.....doesn't mean
Ok, that made my head hurt.
Obviously things have progressed a bit beyond, "Make money, stock goes up."
What do you make of the impact of these recent changes? www.tsainc.com/ir/q3_10q01.pdf
Some of them are decidedly positive. Some look suspiciously like the same meat-headed mistakes Fish made buying companies instead of lotto tickets.
I would be interested in your take, (provided enough words surround the stock-speak).
-$7.4million writeoff, totally divesting HHPC. Original deal was last year, May,2000.
-$12.4 charge to earnings for other investment losses.
-$50million purchase of MessagingDirect in Jan 2001. One-quarter in software value, three-quarters valued in goodwill.
-$1.9million cost of withdrawn Insession IPO in 2001.
-$1.6million interest this year on $15million credit (extrapolated from 9mo reporting).
-$18.3 announced Recognized-upfront-MLF (drop from $22 in stagnant year 2000).
Corporate Banking ePayments
Electronic Business Infrastructure
Health Payment Systems
(Ok, and Corporate Banking, kinda)
-And finally, change of Sales force from MLF to PUf. Still setting quarterly quotas and having bargain sales every 3rd month, sounds like. Funny how dysfunctional that piece is throughout the industry.
Bun fights are fine. If Jello is not available and no mashed potatoes to be found.
It would appear that someone provided certain posters with a new phrase: "Pro Forma EPS". Although they do not understand it, they believe, as others before them in history have believed about a number of other phrases, that if they say it enough times in a negative enough fashion it will truly become bad, and everyone will hate it. And everyone needs to hate it, because they do not understand it.
There is nothing wrong with reporting pro forma earnings. In many cases, including specifically TSAI's, they reflect more accurately the cash or near-cash basis operating earnings of the business than traditional net income measurements. When the non-pooling acquisition transactions, which gave rise to the goodwill and resultant amortization charges which are the primary difference between pro forma earnings and net income, were consummated, the stock issued to acquire the firms was issued and therefore is included in the denominator of the EPS calculations. Inclusion of a non-cash charge to earnings in the P&L is, effectively, double-dipping. Even if you can't get there theoretically, the simple fact is that the charge to Net Income for Goodwill Amortization has no direct cash or cash flow impact.
Get over it. Since the AICPA and SEC have banned the use of pooling accounting for stock acquisitions, dual presentation of income and an emphasis on the pro forma numbers in the discussion and analysis is becoming the "normal" reporting format for acquisitive technology companies.
Bashers, please put down thy swords. I am not a pimp for TSA. I have no position in the Company or the stock; simply an interested local observer familiar with the company.
Are you related to the ex-CFO Duman by any chance?
Your proforma explanation is verbatim his.
Why has your Big Red neighbor Mr. Buffett spoken and written so often about the fraud/misinformation surrounding the proforma calculations?
What's your position on how the cost of employee stock options should be revealed on the P&L or cash flow sheets?
How many dollars are left for TSAI to write off for acquisition related goodwill and amortization?
Why not just report the real number and let investors figure out the positive cash flow story? That's how most normal companies have done it for decades.