BUSINESSWEEK ONLINE : OCTOBER 16, 2000 ISSUE
BUSINESSWEEK INVESTOR Games Companies Play WHAT YOU SEE IS NOT WHAT YOU GET In their earnings releases, companies spin the results by highlighting ''pro forma'' earnings that exclude many normal expenses. EARNINGS DON'T MATTER If earnings are negative, many companies use a number that makes them look better: EBITDA, or earnings before interest, taxes, depreciation, and amortization. THE OPTIONS GAME Companies aren't required to report the impact of stock-options grants on their earnings. You can cull the data from annual reports, which won't be published for another six months. BOOSTING EARNINGS WITH INVESTMENT GAINS Companies make venture-capital investments, and these can pay off big. They cash in these investments as needed to make their earnings look better. DATA: BUSINESS WEEK _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _					RELATED ITEMS What the Earnings Reports Don't Tell You TABLE: Games Companies Play TABLE: Keeping Up with, and Getting Behind, Corporate Earnings INTERACT E-Mail to Business Week Online

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