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  "docSlug": "2692179b6d0b",
  "documentTitle": "PetIQ, Inc. (PETQ)",
  "authorId": "54_Spruce_Point_Capital",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-04-30 00:00:00",
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  "pageNumber": 63,
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  "notes": "The slide uses a 'fraud-exposure' or 'expose_contradiction' logic by using management's own assumptions to prove a negative outcome.",
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      "kind": "callout",
      "text": "Even under management's wellness center ramp-up assumptions – which we consider overly-ambitious – PetIQ's new wellness centers would fail to generate positive cash flow until FY22, and would not generate a positive return on total investment until the following year.",
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      "text": "New Center Operating Cash Flow Estimate: -$15.0",
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      "text": "Even if we assume that PetIQ's new wellness centers hit their operating targets as defined by management in its financial modeling presentation, the Company's wellness center rollout would fail to generate positive cash flow until FY22 when startup costs ($70K per store) and new store capex ($130K) are taken into account. This holds even when we assume that new centers reach maturity at 13 months – the low end of management's 13-18 month estimate.",
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      "text": "Note: Wellness center openings and unit economics modeled on a quarterly basis. Per-center sales adjusted for anticipated ramp-up period. Centers reach maturity at 13 months.",
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      "kind": "table",
      "text": "Wellness Center Rollout: Management Assumptions",
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      "kind": "title",
      "text": "Long Road To Positive Cash Flow From New Wellness Centers",
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