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  "documentTitle": "XPO Logistics, Inc. (XPO)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2018-12-13 00:00:00",
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  "notes": "Includes detailed footnotes explaining adjustments for convertible preferred stock and operating leases.",
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      "text": "XPO is more expensive than it appears given its highly “adjusted” Non-GAAP results, and analysts’ inability to correctly account for the 10.2m shares that are freely convertible from the Series A Convertible Preferred stock.",
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      "kind": "disclaimer",
      "text": "1) Includes 10.2m incremental shares converted for the $41m book value perpetual Series A Convertible Preferred stock\n2) Per new accounting rules FASB ASU 2016-02, Leases (Topic 842), XPO is likely to record $1.9bn of operating leases on its balance sheet\n3) Based on 13.75% of XPO's Europe's market value and reduced by $41m for the assumed Series A Convertible Preferred Stock conversion\n4) Per XPO's 10-K, includes $53.3 of cash collateral for the Euro Trade Securitization Facility as of 12/31/17. XPO does not provide quarterly disclosure of collateral",
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      "text": "Total Enterprise Value: $15,111.6",
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      "text": "XPO is more expensive than it appears given its highly “adjusted” Non-GAAP results, and analysts’ inability to correctly account for the 10.2m shares that are freely convertible from the Series A Convertible Preferred stock (market value = $615m). Our report will detail XPO’s aggressive tactics to bolster reported Adjusted EBITDA and EPS, and will argue that XPO trades at a premium to the sum-of-the-parts of its acquisitions despite no evidence it has created tangible financial value from its levered (junk) acquisition spree.",
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      "kind": "source-note",
      "text": "Source: XPO financials, Bloomberg consensus estimates, and Spruce Point adjustments",
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