Reconciliation from net income (loss) to FFO & AFFO
AFFO for the three months ended June 30, 2019 and 2018 was ($336,960) or ($0.12) and ($378,507) or ($0.14) per share respectively.
The following table reconciles IFRS cash used in operating activities to AFFO:
Reconciliation from cash used in operating activity to AFFO
AFFO was used by the two former executives to present ARCP's income before consideration of non-cash depreciation and amortization expense and to the exclusion of certain one-time charges and expenses.
"We allege that these senior executives conjured up numbers to purposely conceal ARCP's true performance, misleadingly suggesting that the company had met AFFO estimates for the first and second quarters of the year," said Sanjay Wadhwa, senior associate director of the SEC's New York Regional Office, in a statement.
Attorney's office in New York, prior to the filing of ARCP's Form 10-Q for the second quarter of 2014, Block, McAlister and others "came to understand that the method used by ARCP to calculate AFFO in the first quarter of 2014 and in certain previous quarters was erroneously inflated."
Thus, instead of $0.26 per share, "which was publicly reported by ARCP to its shareholders and the investing public, and which placed ARCP on track to meet its full-year AFFO per-share guidance, the correct AFFO for the first quarter of 2014 was $0.23 per share," authorities explained.