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  "documentTitle": "U.S. Concrete Inc (USCR)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "presentationDate": "2018-05-17 00:00:00",
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  "notes": "The slide uses a comparison table to highlight the discrepancy between USCR's depreciation schedule and its peers, followed by a historical table of USCR's own disclosures.",
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      "text": "We estimate by depreciating trucks too slowly, USCR is understating depreciation by approximately $12.5 million, thereby benefiting EPS by $0.51 cents (1)",
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      "text": "useful life of assets: $0.51",
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      "text": "USCR appears to be using highly aggressive assumptions for the useful lives of its mixer and volumetric truck assets at 6 - 12 years. Based on comparative company disclosures, we believe the appropriate assumption is closer to 6 years. We estimate by depreciating trucks too slowly, USCR is understating depreciation by approximately $12.5 million, thereby benefiting EPS by $0.51 cents (1)",
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      "text": "1) In 2017, 25% of gross PP&E are vehicle assets. USCR reported $47.1m of depreciation and depletion expense. Therefore, we estimate $12.5m of depreciation expense associated with vehicles. A 50% reduction in estimated useful life would double depreciation expense. Assumes effective tax rate of 32% and 16.6m diluted shares outstanding. 2) Uses CEMEX less aggressive old assumption",
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      "text": "Comparison of useful lives for depreciation purposes across industry peers vs US Concrete.",
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      "text": "Asset Life Disclosure in the Operations Section of USCR's Annual Report",
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      "text": "Questionable Depreciation Assumptions",
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