The first lesson is that the SEC IS paying close attention to where, when and how you utilize non-GAAP measures, and they should be used to augment your disclosures - not as a replacement for GAAP reporting.
The Skadden brief can be found via the following URL;
Catalyst has always been a proponent of transparent disclosure and communication and helping investors to look through some of the "noise" in financial reporting to get at recurring, sustainable trends trends.
The use of non-GAAP financial measures helps provide this very service and continues to be a valid tool to help investors analyze income statement measures and cash flows. The SEC edict, however, is a smart reminder that there are some fairly clear guidelines on what is and is not appropriate. This were of course developed in response to a relatively small set of public companies that were pushing the envelope a bit too far - and ultimately used such measures to paint pictures that were not sufficiently reflective of the actual financials.
The Catalyst Team