Pro-Forma Earnings Sample Clauses
The Pro-Forma Earnings clause defines how a company's earnings are calculated by adjusting standard financial results to exclude certain items, such as one-time expenses or non-recurring gains. In practice, this clause specifies which costs or revenues should be omitted from the calculation, often to present a clearer picture of ongoing business performance; for example, it may exclude restructuring charges or acquisition-related costs. Its core function is to provide a more normalized and comparable measure of profitability, helping stakeholders assess the company's underlying financial health without the distortion of unusual or infrequent events.
Pro-Forma Earnings. Pro-Forma Earnings shall be calculated from Company’s operating income before interest income, interest expense and other income and expense as determined by the application of generally accepted accounting principals and is based upon a twelve month period. Schedule 2(c) contains the calculation of Pro-Forma Earnings as agreed by PFC and Members and forms the basis for determining the Purchase Price. Further, Schedule 2(c) contains a monthly schedule of distributions that Company will make to PFC from the Pro-Forma Earnings generated by Company for the first twelve months following the Closing Date.