pro forma

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Related to pro forma: Pro Forma Balance Sheet

Pro forma

A financial projection based on assumptions. Also, refers to a statement of income and balance sheets that exclude non-recurring items.

Pro Forma Financial Statement

A financial statement that a company prepares to consider the effects of a potential activity. For example, if a company is considering acquiring another, it may prepare a pro forma financial statement to estimate what effect the acquisition would have on its own financial circumstances. A pro forma financial statement can be part of the risk analysis of a situation. See also: Due diligence.

pro forma

prescribing a set form or procedure. For instance, a pro forma invoice may be sent to a customer in advance of a transaction to facilitate paperwork, or a pro forma projected SOURCES AND USES OF FUNDS STATEMENT may be constructed to show the bank manager the anticipated future financial situation as a basis for negotiating a short-term LOAN.

pro forma

See pro forma statement.

References in periodicals archive ?
Sender (2002) notes that, just six weeks before it sought bankruptcy protection, Enron's pro forma earnings figure excluded $1.
Accounting researchers Lawrence Brown and Kumar Sivakumar have found evidence suggesting that pro forma results can provide higher-quality earnings measures (i.
Extracting that information in a pro forma disclosure can reduce the likelihood that an investor will consider that onetime event in predicting future earnings.
For each such Adjusted Pro Forma financial measure, the adjustment provides management with information about the Company's underlying operating performance that enables a more meaningful comparison of its financial results in different reporting periods.
Considerable variance exists in the relative prominence given to pro forma versus GAAP earnings among companies that state both in their press releases.
Management uses Adjusted Pro Forma EBITDA as a measure as it excludes depreciation, amortization, equity-based compensation, transaction costs, transition and integration costs, insurance settlements and discontinued product lines; items management does not consider to be "core costs" when making business decisions.
Priceline expects pro forma EBITDA of $360 million to $380 million and to earn approximately $5.
Rock-Tenn announced that based on the pro forma combination of the 12 months ended December 31, 2007 results for Rock-Tenn and the unaudited 52 weeks ended December 29, 2007 results for Southern Container and preliminary purchase price allocation, pro forma combined net income and pro forma diluted income per share of combined Rock-Tenn was $95.
Pro forma September 29, 2006 total adjusted leverage (adjusted for rents and A/R securitizations) is expected to be approximately 7.
The expected Stable Outlook is also supported by the company's adequate liquidity position pro forma the proposed transaction, which includes $103 million of pro forma cash, $600 million revolving credit facility (of which $150 million is expected to be drawn at closing for seasonal working capital purposes), and a $250 million accounts receivable securitization program.