To supplement PhotoMedex’s consolidated financial statements presented in accordance with GAAP, PhotoMedex provides certain non-GAAP measures of financial performance. These non-GAAP measures include non-GAAP adjusted income and non-GAAP adjusted income per share.
PhotoMedex’s reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, nor superior to, GAAP results. These non-GAAP measures are provided to enhance investors' overall understanding of PhotoMedex’s current financial performance and to provide further information for comparative purposes.
Specifically, the Company believes the non-GAAP measures provide useful information to both management and investors by isolating certain expenses, gains and losses that may not be indicative of the Company’s core operating results and business outlook. In addition, PhotoMedex believes non-GAAP measures enhance the comparability of results against prior periods. Reconciliation to the most directly comparable GAAP measure of all non-GAAP measures included in this press release is as follows:
|Three Months Ended Sept. 30,||Nine months ended Sept. 30,|
|(ooo's) except per share amounts||2012||2011 *||2012||2011 *|
|Net Income as reported||$||7,525||$||4,249||$||16,595||$||2,289|
|Depreciation and amortization expense||1,402||90||4,176||274|
|Interest expense, net||(6||)||-||401||-|
|Income tax expense (benefit)||2,500||1,974||3,605||(1,393||)|
|Stock-based compensation expense||1,531||1,600||4,819||16,436|
|Settled Litigation expense||-||680||5,595||798|
|Merger Related Expenses||-||-||-||12,364|
|Other one- time expenses||-||-||654||-|
|Non-GAAP adjusted income||$||12,952||$||8,593||$||35,845||$||30,768|
|Common Shares outstanding at September 30, 2012||21,477||21,477||21,477||21,477|
|Non-GAAP adjusted income per share||$||0.60||$||0.40||$||1.67||$||1.43|