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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: ZenWarrior who wrote (69893)	4/13/2001 11:59:06 AM
From: ZenWarrior	Respond to of 122087

...and it most certainly does not mean before expenses. LOL.

To: ZenWarrior who wrote (69893)	4/13/2001 12:26:27 PM
From: Anthony@Pacific	Read Replies (2) \| Respond to of 122087

Pro Forma = Before other stuff is taken intyo acct...You will shenanigans like A compnay book revenues from interest income , yet exclude all debt service payments,,,,,,its kind of like ....Earnings before , one time charges, taxes, salaries, costs of certain items, stock compensation, rent, etc..... The real name of these " proforma eranings " in many cases should really called Gross revenues..Its trickery at it's best.

To: ZenWarrior who wrote (69893)	4/13/2001 3:37:19 PM
From: (No name provided)	Read Replies (2) \| Respond to of 122087

Actually pro forma is without a lot of expenses figured in. Things like costs related to options, amortorization, goodwill, interest... Pro forma numbers are a scam and should be eliminated. These costs actually exist and therefore should be required in calculations.

To: ZenWarrior who wrote (69893)	4/13/2001 5:01:31 PM
From: peter michaelson	Read Replies (1) \| Respond to of 122087

Zen: I appreciate your good cheer, but that is not a correct definition of pro forma. Pro forma statements used to be those which incorporate adjustments to GAAP accounting such that comparisons between periods are consistent - apples to apples. Literally hundreds of circumstances might make different periods not comparable - discontinued or acquired businesses being a prime example. Pro forma's were never legally or specifically defined though, and that flexibility has led to severe misuse where on-going costs of conducting businesses are eliminated for calculations used in public relations announcements. These abuses include omitting employee costs which are paid with stock, omitting marketing payments (to AOl, for example) which are paid in stock, and many other creative abuses. These omissions are what cause people to satirically say that pro forma means revenue before expenses. Peter Late Edit: I see you self-corrected, but I'll leave the post up because I spent over 2 minutes working on it.