Post by
RetailRube on Oct 22, 2018 4:37pm
Issue: Does Adjusted Ebitda = Trickster?
I investigated managment's use of Adjusted EBITDA. I am always open to the idea that I am getting fooled by a company's reporting to shareholders.
I found their definition of Adjusted EBITDA on page 32 of the MD&A for the June 30 2018 results. It shows a table for the last 8 quarters of earnings, showing each add-back item's amount by quarter. They take net earnings as reported, then add back: income tax expense, depreciation, amortization, finance costs, restructuring costs, equity-settled share-based compensation (0.1m to 0.2m per quarter) and gain on asset disposal.
This doesn't sound like management is trying to mislead anyone. I think the "Trickster" myth is busted.