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  "documentTitle": "XPO Logistics, Inc. (XPO)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2018-12-13 00:00:00",
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  "notes": "The slide uses direct quotes from regulatory filings to build a case for financial manipulation or business deterioration.",
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      "text": "This strongly suggests it has been covering up strain in its business, consistent with our analysis and observations on the prior slide.",
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      "text": "New Disclosure: Accounts Receivable",
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      "text": "Q3 2018: Management Discussion and Analysis (MD&A)",
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      "text": "SG&A for the third quarter of 2018 was $447.2 million, or 10.3% of revenue, compared to $399.6 million, or 10.3% of revenue, in the third quarter of 2017. SG&A as a percentage of revenue was flat in the third quarter primarily due to higher bad debt expense, lower professional fees and essentially flat employee compensation costs. SG&A for the first nine months of 2018 was $1,351.7 million, or 10.5% of revenue, compared to $1,213.4 million, or 10.8% of revenue, in the first nine months of 2017. The decrease in SG&A as a percentage of revenue in the nine-month period primarily reflects lower professional services and consulting costs and revenue growth of 15.2% for the first nine months of 2018.",
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      "text": "Accounts receivable are recorded at the contractual amount. The Company records its allowance for doubtful accounts based upon its assessment of various factors. The Company considers historical collection experience, the age of the accounts receivable balances, credit quality of the Company's customers, any specific customer collection issues that have been identified, current economic conditions, and other factors that may affect the customers' ability to pay. The Company writes off accounts receivable balances once the receivables are no longer deemed collectible from the customer. The Company sells certain accounts receivable to unrelated financial institutions. The Cost of participating in these programs was immaterial to the Company's results of operations for the nine months ended September 30, 2018 and 2017.",
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      "text": "Lo and behold, XPO just now included a disclosure in its 3rd quarter 2018 10-Q about how it accounts for accounts receivables and allowance for bad debt, and added bad debt expense in its MD&A. This strongly suggests it has been covering up strain in its business, consistent with our analysis and observations on the prior slide.",
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      "text": "Source: 10-Q, pp. 5 and 25",
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      "text": "New Q3'18 Disclosure Corroborates Suspicions of A/R Problems....",
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