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  "documentTitle": "Amdocs Limited (DOX)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-01-23 00:00:00",
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  "pageNumber": 79,
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  "notes": "The slide uses a hypothetical estimate calculation to quantify the impact of undisclosed factoring on DSO metrics.",
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      "kind": "callout",
      "text": "New Disclosure Lacking $ Details (FY 2018 20-F): From time to time, the Company uses non-recourse factoring arrangements, to sell accounts receivable to third-party financial institutions.",
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      "kind": "callout",
      "text": "We suspect that management factored an average of $5-10M in receivables on a quarterly basis. However, we call on management to disclose the exact extent of its factoring in future filings.",
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      "text": "For factoring of AT&T receivables to have been responsible for the difference between the 5-day decline in AT&T DSOs and the 7-day increase in firm-wide DSOs - a difference of 12 DSOs - we estimate that Amdocs would have had to factor $36M of AT&T receivables.",
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      "text": "Factored Receivables Estimate: $36M",
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      "text": "For factoring of AT&T receivables to have been responsible for the difference between the 5-day decline in AT&T DSOs and the 7-day increase in firm-wide DSOs - a difference of 12 DSOs - we estimate that Amdocs would have had to factor $36M of AT&T receivables. This represents 7% of Amdocs' operating cash flow.",
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      "text": "Finally, and importantly, we note that the Company disclosed receivables factoring in FY 2018 for the first time. We are concerned not only by the fact that management engaged in yet another unhealthy form of cash generation to support its increasingly strained cash position, but that it did so through a non-transparent financing channel.",
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      "text": "From time to time, the Company uses non-recourse factoring arrangements, to sell accounts receivable to third-party financial institutions. The sale of the receivables in these arrangements are accounted for as a true sale. — Amdocs FY 2018 20-F",
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      "text": "Receivable Factoring Further Evidence Of Financial Strain",
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