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February 19, 2008

The very latest in earnings-report gibberish

You're heard of earnings. You've heard of non-GAAP (generally accepted accounting principles) earnings. You've heard of free cash flow. You've heard of EBITDA (earnings before interest, taxation, depreciation and amortization.) But have you heard of EBITDASO? The shareholders of United Therapeutics have. From today's report:

“We are pleased to report that United Therapeutics' revenues for the year ended December 31, 2007, totaled $210.9 million,” said Martine Rothblatt, Ph.D., United Therapeutics’ Chairman and Chief Executive Officer. “This is the sixth straight year our revenues have grown by more than 30%. Our EBITDASO (earnings before interest, taxes, depreciation, amortization and stock option expense) for the year were $85.5 million, or $4.03 per basic share.”

I promise to write a poem about EBITDASO if you, the readers, don't beat me to it.

Posted by Jay Hancock at 10:40 AM | | Comments (0)
        

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About Jay Hancock
Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Tuesdays and Sundays.
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