Quarterly earnings news releases issued by Canadian public companies on the S&P/TSX Composite during the Q1 earnings period contained more company data, enhanced financials and inclusion of management discussion & analysis when compared to the same period one year ago, according to research conducted by Canada NewsWire’s Earnings Division.

Typical earnings figures include net income, earnings per share, gross revenue, total assets and matching results from the previous year. The CNW Q1 2002 Earnings Analysis found sure signs that the bar has been raised. An overwhelming majority of companies provide an income statement (91%), balance sheet (85.5%) and notes to the financial statements (62%) in their earnings releases. Twenty-three per cent of Canadian public companies examined by the study included additional items such as MD&A. Almost three-quarters (72%) of companies provided a disclaimer regarding forward-looking statements.

Additional key benchmark findings of the Q1 2002 Earnings Analysis include:

  • 78% of quarterly releases included a Cash Flow Statement;
  • 99% provided historical comparisons;
  • 98% provided a written summary of the period being reported;
  • 98% provided a website or contact name/number for further information;
  • 4.7% provided only an Income Statement, along with a written summary;
  • 3.7% provided a financial chart (not financial statements) with a written summary;
  • 5.7% provided a written financial summary alone (No financial statements, tables or charts);
  • 21.5% reported in U.S. dollars;
  • 6% reported in U.S. dollars and in accordance with U.S. Generally Accepted Accounting Principles (GAAP);
  • 1.3% provided sets of statements for both Canadian GAAP and U.S. GAAP; and
  • 3.4% provided proforma statements in addition to GAAP “as reported” statements.

    “The TSX is encouraged by these positive results,” said Clare Gaudet, senior vice president, Toronto Stock Exchange. “The TSX believes that meaningful disclosure is essential for investor confidence. We continually work with our listed issuers, both on an individual basis and through education programs, to ensure that they are able to provide.