CaseMark Managing Earnings Releases
When To Use
- Preparing quarterly or annual earnings press releases for public dissemination
- Building GAAP-to-non-GAAP reconciliation tables for metrics such as Adjusted EBITDA, Free Cash Flow, or non-GAAP EPS
- Drafting or reviewing forward-looking guidance language and safe harbor statements
- Coordinating the cross-functional review cycle among finance, legal, IR, and the audit committee before release
- Updating earnings release templates after changes to SEC Regulation G or Item 2.02 of Form 8-K requirements [VERIFY]
Inputs To Gather
- Trial balance / GL close data: Final or near-final GAAP financials for the reporting period (income statement, balance sheet, cash flow statement)
- Non-GAAP adjustment schedule: Itemized list of adjustments (e.g., restructuring charges, stock-based compensation, acquisition costs, impairment) with amounts and supporting documentation
- Prior-period comparatives: Year-over-year and sequential quarter figures for all metrics presented
- Forward guidance inputs: Revenue range, EPS range, CapEx outlook, and key assumptions (FX rates, tax rate, share count) approved by the CFO
- Management commentary points: Key business highlights, segment performance drivers, strategic initiatives, and any unusual items requiring narrative explanation
- Prior earnings release: Most recent release to maintain format consistency and identify any metric additions or removals
- Legal / IR redlines: Outstanding comments from legal counsel on safe harbor language and from IR on investor messaging priorities
Workflow
Lock GAAP financials — Confirm the accounting close is substantially complete. Obtain sign-off from the Controller that trial balance figures are final. Flag any open post-close adjustments with estimated amounts and mark as [VERIFY] if still pending.
Build the non-GAAP reconciliation tables
- Start from GAAP net income (or the closest GAAP measure) and walk to each non-GAAP metric line by line.
- Each adjustment must include: description, GAAP line item affected, pre-tax amount, tax effect, and after-tax amount.
- Confirm tax treatment of each adjustment (statutory rate vs. discrete) [VERIFY with Tax].
- Cross-check per-share non-GAAP EPS against diluted share count used in the GAAP EPS calculation.
- Ensure Regulation G compliance: every non-GAAP measure is reconciled to the most directly comparable GAAP measure with equal or greater prominence [VERIFY against current SEC guidance].
Draft the press release body
- Headline: Include company name, period, and one or two key metrics (e.g., revenue growth %, GAAP EPS).
- Opening paragraph: Summarize top-line performance vs. prior year and vs. guidance.
- Segment / business line discussion: Present revenue and operating income by segment with variance commentary.
- Balance sheet and cash flow highlights: Net debt position, operating cash flow, free cash flow, share repurchases, dividends.
- Forward guidance section: State ranges clearly, list key assumptions, include the safe harbor disclaimer referencing the Private Securities Litigation Reform Act of 1995 [VERIFY jurisdiction-specific requirements].
- Tables: Income statement, balance sheet, cash flow statement, non-GAAP reconciliation, segment data — all with current quarter, prior quarter, and prior-year quarter columns.
Run the cross-functional review cycle
- Route draft to: CFO → Controller → Tax → Legal → IR → Audit Committee Chair (if required by charter) [VERIFY company-specific approval chain].
- Track comments in a single redline or comment log with reviewer name and resolution status.
- Resolve conflicting edits between legal (risk-minimizing language) and IR (investor-clarity language) with CFO as tiebreaker.
Finalize and stage for release
- Perform a final numerical tie-out: every figure in the narrative matches the corresponding table cell.
- Confirm wire service formatting requirements (e.g., Business Wire or GlobeNewswire character limits, table rendering) [VERIFY with IR/comms team].
- Prepare the Form 8-K filing with the earnings release as Exhibit 99.1 and the Regulation FD furnishing language.
- Stage embargo timing aligned with market hours (typically after market close or before market open) [VERIFY exchange-specific quiet period rules].
Output
The completed deliverable package includes:
- Earnings press release — Formatted for wire distribution with all required sections: headline, financial summary, segment discussion, guidance, safe harbor, and financial tables
- Non-GAAP reconciliation schedule — Standalone exhibit-quality tables reconciling each non-GAAP measure to its GAAP counterpart
- Review and approval log — Record of reviewer sign-offs, open items resolved, and any caveats carried forward
- Form 8-K draft — Cover filing ready for EDGAR submission with the press release attached as Exhibit 99.1
Quality Checks
- Every non-GAAP metric traces back to a GAAP starting point with a complete, line-by-line reconciliation — no "net adjustments" lumping
- Forward guidance ranges are internally consistent (e.g., revenue midpoint × implied margin ≈ EPS midpoint × share count)
- All figures foot and cross-foot across tables; current-period figures tie to the GL, and prior-period figures match previously filed documents
- Safe harbor language is present and references applicable statutes [VERIFY current statutory citations]
- No individually material adjustment is described only in general terms — each is named, quantified, and explained
- Metric definitions (e.g., "Adjusted EBITDA") are consistent with definitions used in prior filings and investor presentations
- Press release does not contain information that would trigger Regulation FD concerns if released ahead of the earnings call