4. Interpreting Non-GAAP Reports

COURSE
Wall Street Prep
3 hrs

4. Interpreting Non-GAAP Reports

COURSE
Wall Street Prep
3 hrs
$67per person
OR
Included in GO1 PremiumStarting from $12 per user for teamsLearn moreTry it free
$67per person
OR
Included in GO1 PremiumStarting from $12 per user for teamsLearn moreTry it free

Course Overview 

GAAP-based financial statements included in company annual, interim and quarterly reports are increasingly becoming less relevant than "unofficial" non-GAAP/IFRS metrics. In this course, we use real-life examples to walk through the challenges and lesser-understood nuances of accurately normalizing both historical results and forecasts. We discuss the mechanics and concepts required for correctly adjusting operating models and valuation models, as well as common pitfalls associated with tax adjustments, share count adjustments and forecasting non-GAAP items in integrated financial statement models.

Instructor - Matan Feldman 

Matan Feldman is Wall Street Prep’s Founder and Managing Partner. His responsibilities include business development, development of courses, and overseeing training programs. Matan has overseen training programs for clients including Morgan Stanley, Credit Suisse, Raymond James, Stifel Nicolaus, FBR Capital Markets, Sagent Advisors, Giuliani Capital Advisors, JP Morgan, Cerberus, Wharton Business School, London Business School, Kellogg, Booth, Stern (NYU), and Cornell. Prior to founding Wall Street Prep, Matan served in several capacities on Wall Street — first as an Analyst in Chase Manhattan Bank's Mergers & Acquisitions Group in New York, and subsequently as an Associate within JP Morgan's Equity Research Group, covering Food & Drug Retail Equities.

Learning
CHAPTER 1: INTRODUCTION TO NON-GAAP ITEMS
4.1.1 Non-GAAP Items Overviewvideo • 1 min
4.1.2 Why Non-GAAP?video • 3 mins
4.1.3 What Non-GAAP Disclosures Look Likevideo • 4 mins
4.1.4 Why Firms are motivated to show non-GAAPvideo • 1 min
4.1.5 Prevalence of non-GAAP disclosuresvideo • 5 mins
4.1.6 Regulatory oversight of non-GAAPvideo • 2 mins
4.1.7 Two broad types of non-GAAP itemsvideo • 1 min
CHAPTER 2: NONRECURRING ITEMS
4.2.1 Nonrecurring items under GAAPvideo • 4 mins
4.2.2 Unusual or infrequent items under GAAPvideo • 4 mins
4.2.3 Non-GAAP nonrecurring itemsvideo • 4 mins
4.2.4 Normalizing GAAP financialsvideo • 7 mins
4.2.5 Normalizing GAAP financials, IIvideo • 4 mins
4.2.6 Non-GAAP impact on valuationvideo • 3 mins
4.2.7 Too many non-recurring items?video • 3 mins
4.2.8 Nonrecurring items disclosures in practicevideo • 3 mins
4.2.9 Income statement classificationvideo • 3 mins
CHAPTER 3: NONCASH ITEMS — STOCK BASED COMPENSATION
4.3.1 Introduction to non-cash itemsvideo • 2 mins
4.3.2 Argument for & against adding back SBCvideo • 8 mins
4.3.3 Stock based compensation (SBC) reviewvideo
4.3.4 Normalizing for SBC, exercise Ivideo • 5 mins
4.3.5 SBC disclosures in practicevideo • 4 mins
4.3.6 Normalizing for SBC, exercise IIvideo • 8 mins
4.3.7 Amortization of capitalized SBCvideo • 3 mins
CHAPTER 4: NONCASH ITEMS — INTANGIBLE ASSET AMORTIZATION
4.4.1 Noncash items overviewvideo • 5 mins
4.4.2 Acquired intangibles exercisevideo • 4 mins
CHAPTER 5: HISTORICAL EBITDA
4.5.1 Introduction to EBITDAvideo • 5 mins
4.5.2 EBITDA and Adjusted EBITDA exercisesvideo • 6 mins
4.5.3 Determining Athena's historical EBITDAvideo • 7 mins
CHAPTER 6: FORECASTING EBITDA
4.6.1 Forecasting EBITDAvideo • 2 mins
5.6.2 ATHN bottom up EBITDA, exercise Ivideo • 7 mins
4.6.3 The problem with the bottom up approachvideo • 3 mins
4.6.4 ATHN bottom up EBITDA exercise IIvideo • 5 mins
4.6.5 ATHN EBITDA solution walk throughvideo • 15 mins
4.6.6 Top down EBITDA forecastingvideo • 8 mins
CHAPTER 7: OTHER NON-GAAP TOPICS
4.7.1 Non-IFRS disclosures in practicevideo • 10 mins
4.7.2 Non-GAAP issues in a 3-statement modelvideo • 7 mins
4.7.3 Non-GAAP diluted share countvideo • 12 mins
4.7.4 Non-GAAP Items Conclusionvideo • 12 mins
Supplementary Materials
Step by Step Course Manualdocument
ATHN Q2 2018 PRdocument
ATHN Q4 2017 PRdocument
BRCD Non GAAP Share Point Reconciliationdocument
BRCD Q3 2017 PRdocument
Maxar Q3 2018 Earnings Deckdocument
Non-GAAP Exercisesdocument
WDC Q1 2017 Non-GAAP Reconciliationdocument
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