of Non-GAAP Financial Measures" reconcile GAAP to adjusted amounts
for the three and nine months ended December 31, 2007 and 2006.
Adjusted results exclude the share-based compensation expense
recognized by the Company in accordance with SFAS No. 123R. Adjusted
results include the employer taxes paid in connection with the
exercise of employee stock options of $70,000 and $283,000 for the
three and nine months ended December 31, 2007, respectively, and
$58,000 and $206,000 for the three and nine months ended December 31,
Reconciliation of Non-GAAP Financial Measures
The Company believes its calculations of adjusted results to exclude share-based compensation expense provide additional information about the Company's operating performance. The Company's management uses the adjusted presentations to evaluate operating results on a basis that is comparable to that used for periods prior to implementation of SFAS No. 123R and provides such information publicly to assist in comparisons to prior periods. For historical results, a reconciliation between results as adjusted and in conformity with GAAP is shown in the attached schedule. Because adjusted financial results are not measurements determined in accordance with GAAP and are thus susceptible to varying calculations, they may not be comparable as presented to other similarly titled measures of other companies.
Adjusted financial results are not measures of financial performance
under GAAP and should not be viewed as a pro-forma presentation reflecting
the elimination of the underlying share-based compensation programs, as
those programs are an important element of the Company's compensation
structure and generally accepted accounting principles indicate that all
forms of share- based payments should be valued and inc
|SOURCE The Advisory Board Company|
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