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  "documentTitle": "Dollarama Inc. (DOL)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2018-10-31 00:00:00",
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  "notes": "Uses two tables to demonstrate financial inconsistencies; includes a callout box questioning management's transparency.",
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      "kind": "callout",
      "text": "Unlike discount retailer peers, Dollarama did not include software-related spending in capex until recently, and records it separately, in “Additions to intangible assets.” Do they do this to artificially deflate their headline capex figure, thereby inflating reported free cash flow?",
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      "text": "Some of this is directed towards leasehold improvements, etc., but with management’s focus on expansion over existing store improvements, we question where management is directing this capex",
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      "text": "Do they do this to artificially deflate their headline capex figure, thereby inflating reported free cash flow?",
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      "text": "Undiscussed Capex: $200.4",
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      "text": "Management has explicitly identified and discussed various capital expenditures in Company filings over the last five years, but this still leaves a large gap versus what was actually spent. Additionally, there is a large gap between the amount spent on software development and the amortization expense associated with this activity, suggesting that earnings may be inflated.",
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      "text": "Note also that a LinkedIn search for software developers at Dollarama turned up effectively nothing – at best one person with a tangentially relevant title (source). So where is the software development capex going?",
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      "text": "1) DOL explicitly started calling out software as a component of capex in Q3’16 with the addition of footnote to guidance",
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