Excerpt from Prospectus (below)
Operating Profit
+Depreciation and amortization
+Exceptional impairment charges
+Exceptional administrative expenses
+Share of profit/(loss) of associates and jointly controlled entities
=EBITDAbefore Exceptionals
All,
Having trouble setting up the income statement in a financial model. The above was data taken from a company's final prospectus. I understand the adjustments the company was getting, but I'm not sure how I'm supposed to back into this on the financial model's income statement.
I want to show Sales - COGS (excluding Depreciation) = Gross Profit - SG&A (excluding Amortization) = EBITDA (before exceptionals). To do this, do I add all the exceptionals back to Gross Profit?
Another problem is the selected financials don't separate Depreciation & Amortization into their own separate line items. I'm not sure if this is the problem that is throwing me off.
Understand this is very basic but would appreciate any assistance.
Thanks
Have you checked the notes for D&A lines?
Alternatively, do they show D&A in the opening lines of their cash flow statement where they strip out non-cash items?
Thanks SSits. In the Cash Flow Statement they break out Depreciation & Impairment and Amortization. Not sure where to add-back the impairment charges they list out though.
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