Questions For The Valeant Conference Call
Valeant is planning to bring a conference call to "discuss preliminary 4th quarter 2015 fiscal results as well as update 2016 fiscal guidance".
It is "preliminary" because numbers bring non been audited yet. I await an audit controversy to endure coming. I bring never had a major occupation amongst Valeant's GAAP numbers (which are terrible). My objection to their numbers is largely to the non-GAAP profits that they promulgate widely as well as which are widely quoted past times analysts.
I suspect ultimately their auditor may non bring major problems amongst the GAAP numbers (other than certifying that Valeant is a going concern). The GAAP numbers don't odor wrong.
In that vein I have alone primary question.
But from the exterior it looks similar occupation organisation divisions tin brand their non-GAAP numbers past times producing reasonable plenty GAAP numbers as well as and therefore marker whatever inconvenient expenses every bit "non-recurring". If a budget for non-recurring expenses is published this volition assistance vouch for the integrity of non-GAAP numbers.
There is a follow on question: given the GAAP numbers are "messy" only about covenants volition endure broken.
Thanks inwards advance
John
It is "preliminary" because numbers bring non been audited yet. I await an audit controversy to endure coming. I bring never had a major occupation amongst Valeant's GAAP numbers (which are terrible). My objection to their numbers is largely to the non-GAAP profits that they promulgate widely as well as which are widely quoted past times analysts.
I suspect ultimately their auditor may non bring major problems amongst the GAAP numbers (other than certifying that Valeant is a going concern). The GAAP numbers don't odor wrong.
In that vein I have alone primary question.
Can yous suspension downwardly your guidance for non-GAAP "cash EPS" into your estimated GAAP profits as well as your budgeted non-recurring or non-cash expenses (such every bit restructuring expenses or amortisation) that I should ignore for the purposes of your GAAP EPS?I inquire this because Valeant non-GAAP numbers ("cash EPS") comport alone minimal resemblance to the numbers inwards the accounts. Some of the departure betwixt GAAP EPS as well as "cash EPS" is clearly justified. Some less obviously.
But from the exterior it looks similar occupation organisation divisions tin brand their non-GAAP numbers past times producing reasonable plenty GAAP numbers as well as and therefore marker whatever inconvenient expenses every bit "non-recurring". If a budget for non-recurring expenses is published this volition assistance vouch for the integrity of non-GAAP numbers.
There is a follow on question: given the GAAP numbers are "messy" only about covenants volition endure broken.
Can nosotros bring a listing of broken debt covenants as well as a listing of the consequences of those breaches? To my agreement the primary consequences are restrictions on farther borrowings as well as cash-traps for the create goodness of debt holders if businesses are sold. However the documents are extensive - as well as at that topographic point may endure issues I am unaware of.
Thanks inwards advance
John
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