amortization

The company, whose main business revolves around connecting prospective homebuyers with real estate agents, reported $125 million in adjusted earnings before interest, taxes, depreciation and amortization, beating the average analyst estimate of $104 million.

Pilot alleges that, after taking control of the company, Berkshire adopted “pushdown accounting,” which forced Pilot to take on higher depreciation and amortization costs and resulted in lower net income.

Earnings, adjusted for stock option expense and amortization costs, came to 16 cents per share.

The Haslams said Berkshire’s decision to shift to something called “pushdown accounting” this year forced Pilot to take on higher depreciation and amortization costs and that resulted in lower net income.

Varsity Brands generates more than $400 million in 12-month earnings before interest, taxes, depreciation and amortization, the sources added, asking not to be identified because the matter is confidential.