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  "documentTitle": "PetIQ, Inc. (PETQ)",
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  "notes": "Includes a specific callout questioning the accounting treatment of rent as SG&A rather than COGS.",
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      "kind": "callout",
      "text": "Why is clinic rent allocated into SG&A in their wellness center unit economics illustration when their 10-K suggests that they (and peers) account for it as COGS? To keep reported (gross) contribution margin in Year 1 positive?",
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      "text": "How could VetIQ wellness centers, which conduct only smaller-ticket, lower-margin procedures, possibly be so much more profitable than VCA's more comprehensive animal hospitals?",
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      "text": "Operating Margin: 30%",
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      "text": "Management is communicating to investors that, while wellness centers will be loss-making in their infancy as they grow their respective customer bases, these practices will earn an impressive 30% contribution margin at maturity.",
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      "text": "1. Source: WOOF FY16 10-K 2. Projected results for full 1,000 wellness center base at maturity",
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      "text": "Comparative Economics: VCA Animal Hospital Segment vs. VetIQ Wellness Center at Maturity",
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