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  "documentTitle": "PetIQ, Inc. (PETQ)",
  "authorId": "54_Spruce_Point_Capital",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-04-30 00:00:00",
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  "notes": "Includes red-bordered callouts highlighting negative performance metrics in the table.",
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      "kind": "callout",
      "text": "Spruce Point estimates that the new wellness center buildout could burn over $200M of cash over the next five years, and more thereafter.",
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      "text": "New Center Operating Cash Flow Estimate: -$200M",
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      "text": "Shortly after PetIQ's acquisition of VIP in Jan 2018, management announced plans to roll out 1,000 fixed-location pet wellness centers in Walmart stores and other big-box retailers through FY23. Company estimates regarding wellness center maturation imply that management sees the wellness centers generating ~$500M in revenue and $110 in operating profit by FY23. However, we believe that management assumptions regarding wellness center unit economics at maturity are extremely aggressive. Spruce Point estimates that, if management maintains its roll-out schedule, the wellness centers will generate just $225M in revenue by FY23, and will not turn cash flow positive for several years thereafter.",
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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: Spruce Point Estimates",
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      "kind": "title",
      "text": "Wellness Center Rollout A Long-Term Drag Under More Reasonable Assumptions",
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