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  "docSlug": "11e962264b36",
  "documentTitle": "Carvana Co. (CVNA)",
  "authorId": "54_Spruce_Point_Capital",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-03-01 00:00:00",
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  "pageNumber": 6,
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  "notes": "Uses a 'before-after' style contrast between financial distress and executive greed.",
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      "text": "At The Current Burn Rate of $1.1m/Day, Carvana Had Just 70 Days of Operating Cash On Hand At Yr End",
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      "text": "At The Current Burn Rate of $1.1m/Day, Carvana Had Just 70 Days of Operating Cash On Hand At Yr End",
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      "kind": "list",
      "text": "With Increased Cash Burn, Disappointing Guidance, And A Suspension of Q1 Guidance, How Is Management Behaving?",
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      "text": "cash burn: $1.1m/Day",
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      "text": "In Spruce Point's opinion, Carvana will require more equity capital to continue operations, and has limited flexibility to incur more debt given its deep junk CCC rating. Yet, despite the accelerating cash burn, management received a 100% increase in cash compensation at the approval of an “independent” Board, further compounding the pain to investors.",
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      "text": "The Board also approved annual base salary increases for the Company's executive officers as part of its annual performance review, including Ernie Garcia III, the Company's Chief Executive Officer, whose annual base salary was increased from $400,000 to $885,000, Mark Jenkins, the Company's Chief Financial Officer, whose annual base salary was increased from $375,000 to $735,000, and Benjamin Huston, the Company's Chief Operating Officer, whose annual base salary was increased from $375,000 to $735,000. The salary increase were approved retroactively to January 1, 2019, consistent with the Company's practices for annual merit increases. — Carvana Co. (implied from context)",
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      "text": "Financing Needs Becoming More Obvious While Management Puts Self-Interest Ahead Of Investors",
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