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  "documentTitle": "Stroer SE & Co. KGaA (SAX)",
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  "authorName": "Carson C. Block",
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  "presentationDate": "2016-04-21 00:00:00",
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  "notes": "Includes two tables: one detailing intangible asset movements and one calculating Days Payable Outstanding (DPO) to justify OCF adjustments.",
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      "text": "Our adjustment is to counterbalance a blowout in 2015 payables, which causes us to believe Ströer could have been stretching its payables.",
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      "text": "Operating Cash Flow: €45.4 million",
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      "text": "which concerns us because the gross increase in 2014 was only €10.8 million. Because little disclosure is provided on Rights and Royalties in 2015, we adjust EBITDA downward in a range from 25% to 75% of the delta between 2014 and 2015 gross increase in intangibles. This adjustment reduces our 2015 EBITDA calculation by €8.9 million to €26.6 million.",
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      "text": "To be clear, our adjustments would benefit from greater disclosure about these line items. Our belief that it is prudent to make these downward adjustments is influenced by our perception that Ströer seems to seek opportunities to engineer its financials – i.e., we believe the entire body of facts should result in Ströer being given the burden of the doubt.",
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      "text": "Adjusting payables to 95 days decreases OCF by €45.4 million. Our adjustment would benefit from greater disclosure about the increase in payables.",
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      "text": "Outside of the EBITDA adjustments, we adjust 2015 Operating Cash Flow downward by €45.4 million. Our adjustment is to counterbalance a blowout in 2015 payables, which causes us to believe Ströer could have been stretching its payables. The three-year average during 2012 to 2014 of payables divided by days sales is 95 days.",
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      "text": "10 Inputs from Ströer 2013 – 2014 Annual Reports. 11 Levered Free Cash Flow of €156.2 – source S&P Capital IQ.",
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      "text": "Table showing Proforma Sales, Payables, COGS, and DaysPayable from 2012 to 2015.",
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      "text": "Intangible assets movement table showing opening/closing balances and changes for Rights and Royalties, Goodwill, Prepayments, and Development costs.",
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      "text": "IV. We Adjust 2015 FCF Downward by €51.7 million (-33.1%), and Discuss Our Concerns About Balance Sheet and Cash Flow Statement Accounts",
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      "text": "III. We Adjust Operating Cash Flow Downward",
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