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  "documentTitle": "PetIQ, Inc. (PETQ)",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-04-30 00:00:00",
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  "notes": "Uses a combination of analyst commentary and direct quotes from company filings to expose a potential inconsistency in reported performance.",
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      "kind": "callout",
      "text": "PETQ Earnings Call – Q4 FY18",
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      "text": "PETQ: FY18 10-K",
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      "text": "Is management really suggesting that these other tracked retailers represent no more than 4% of sales in total? Why is sales growth through tracked channels allegedly so different from sales growth through untracked channels anyways, and why is PetIQ able to so powerfully outpace the negative growth of one of its major categories?",
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      "text": "Nielsen data suggests that sales growth in the flea and tick category has been consistently negative through the past several quarters. This stands in stark contrast to PetIQ product sales, which, per management, saw organic growth of 45% in FY18.",
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      "kind": "paragraph",
      "text": "Customers: Approximately 99% and 98% of 2018 and 2017 net sales, respectively, were generated from customers located in the United States and Canada... Our largest retail customers are Walmart and Sam's Club, which represented 18% and 30% and 16%, respectively, of our net sales in 2017.",
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      "kind": "quote",
      "text": "For the fourth quarter, our flea and tick business performed well and outpaced category growth... 72% of our sales that were in unmeasured sales channels dramatically outpaced the measured flea and tick sales channels.",
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      "text": "\"For the fourth quarter, our flea and tick business performed well and outpaced category growth. According to Nielsen measured channel data through December 31, the flea and tick category was down 10.7%. PetIQ's results outpaced this result in the Nielsen measured channels over the same period. Our brands performed better than the overall market, non-measured channels were up meaningfully and our prescription drug flea and tick was up significantly and in-line with the macro trends in the broader veterinarian market. Keep in mind, for PetIQ only 28% of our Q4 sales were in Nielsen measured sales channels. The 72% of our sales that were in unmeasured sales channels dramatically outpaced the measured flea and tick sales channels, particularly in the e-commerce and RX sales channels.\" — McCord Christensen – CEO, PetIQ",
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      "kind": "title",
      "text": "PetIQ Product Sales Growth Completely Out-Of-Line With Tracked Category Growth",
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