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  "documentTitle": "Deckers Outdoor Corporation (DECK)",
  "authorId": "07_Marcato",
  "authorName": "Richard T. McGuire III",
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  "presentationDate": "2017-11-01 00:00:00",
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  "notes": "Uses a direct quote comparison to expose management inconsistency.",
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      "kind": "callout",
      "text": "CFO contradicts Board's commitments on the same day of earnings",
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      "kind": "metric",
      "text": "debt to EBITDA ratio: 1x",
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      "text": "Answer from Thomas George (CFO): No, it's not an ongoing target. I think the comment about that was, historically, we've had a conservative balance sheet. Now that we're executing well on our long-term plan and we got -- see further improvement in profitability going forward and further working capital improvements, we feel that it's an appropriate point in time to consider and evaluate the concept of some long-term debt, and we'll start slow, i.e., we think the company can easily support 1x EBITDA. So that's more of an evaluation of some initial thoughts around raising some long-term debt. That doesn't necessarily mean we'll always maintain that 1x EBITDA.\"",
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      "kind": "paragraph",
      "text": "Deckers' Board of Directors: \"The Board believes that the business can conservatively support a debt to EBITDA ratio of 1x, while also providing significant flexibility to support Deckers' growth initiatives and seasonal working capital needs.\"",
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      "kind": "paragraph",
      "text": "Research Analyst: \"Just in terms of the comment about the debt, so is that an ongoing target, like, as you generate cash and EBITDA goes up, then you'll continue to buy back stock to maintain that 1x leverage?\"",
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      "text": "The Board believes that the business can conservatively support a debt to EBITDA ratio of 1x, while also providing significant flexibility to support Deckers' growth initiatives and seasonal working capital needs. — 10/26/17 press release; No, it's not an ongoing target... That doesn't necessarily mean we'll always maintain that 1x EBITDA. — Thomas George (CFO), 10/26/17 earnings call",
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      "text": "Source: Company filings",
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      "kind": "title",
      "text": "RECENTLY ANNOUNCED CAPITAL STRUCTURE PLAN IS INCOHERENT",
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