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  "documentTitle": "U.S. Concrete Inc (USCR)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2018-05-17 00:00:00",
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  "notes": "Uses a before-and-after comparison of corporate disclosure text to highlight a change in accounting methodology.",
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      "text": "Revenue is the only metric difficult to manipulate, and would reflect USCR's negative true organic volume growth rates.",
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      "text": "A few years ago USCR switched its goodwill impairment measurement test from a weighted test of DCF, EBITDA, and revenue to just testing DCF and EBITDA, not revenue. Revenue is the only metric difficult to manipulate, and would reflect USCR's negative true organic volume growth rates. By excluding revenues as an impairment indicator, we believe that USCR is acknowledging that there is an organic growth problem with acquisitions, and is even possibly forestalling a goodwill impairment down the road. CECO Environmental, the last company Spruce Point identified that changed is goodwill impairment testing methodology, ultimately took a crippling impairment and cut its dividend (1)",
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      "kind": "quote",
      "text": "We estimate fair value using an equally weighted combination of discounted cash flows and multiples of revenue and EBITDA. — 2014 Annual Report",
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      "text": "1) Spruce Point CECO Report and subsequent goodwill impairment",
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      "text": "Historical Goodwill Impairment Testing Included A Multiple of Revenue",
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      "text": "Current Goodwill Impairment Testing Removes Revenue Multiple",
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      "text": "The Diminishing Importance of Revenue; Evidence USCR May Be Delaying Impairment",
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