Earnings AssessmentWe would consider the results good, though 'adjustments' caused some confusion. 'Adjusted' earnings more than doubled, and this is what analysts focus on. While revenue rose, so did operating expenses. The key adjustments, which are non-cash for the most part, were ~$11M more in depreciation, $1.5M in adjustments on carrying value of securities (mark to market, but no cash impact until they are sold), $6.5M in finance expenses, and $4.7M in acquisition related costs and one time restructuring costs. Together, these accout for a nearly $24M swing in reported profit, though as noted very little cash flow impact. In fact, if we look at operating cash flow, it was nearly $22M higher for the year, almost completely offsetting the income 'adjustments'.
So said 5iResearch and it would appear that based on the recent upgrades, the other investment firms figured this out as well. GLTA