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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": "The slide uses a comparison table to expose a contradiction in management's narrative regarding operating leverage.",
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      "text": "Even assuming that service segment SG&A as a % of sales remains flat through the coming years likely underestimates the costs which PetIQ is likely to incur through the wellness center build (new store opening costs in particular).",
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      "text": "Services Operating Margin: -12.0%",
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      "text": "Management stresses on earnings calls that there is significant leverage in the business, and that sales will grow materially faster than G&A even if product mix weighs on product segment gross margin. If there is in fact an opportunity for the Company to capitalize on leverage, it is more likely on the more mature products side of the business – yet sell-side analysts model SG&A falling as a percentage of sales across the business as a whole, and may not be modeling operating leverage at the segment level. Even assuming that service segment SG&A as a % of sales remains flat through the coming years likely underestimates the costs which PetIQ is likely to incur through the wellness center build (new store opening costs in particular).",
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      "kind": "title",
      "text": "Modeling In Company-Wide Operating Leverage Ignores New Store Build SG&A",
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