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  "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": 88,
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  "notes": "The slide uses two tables and two bar charts to demonstrate the divergence between reported adjusted metrics and GAAP/cash flow metrics.",
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      "text": "The fact that Adj. EBITDA growth does not translate into cash flow confirms to us that management's proprietary definition is not a meaningful measure of Company performance.",
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      "kind": "chart",
      "text": "Adj. EBITDA Not Reflective Of True Cash Flow",
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      "kind": "chart",
      "text": "Growing Gap Between EBITDA and Adj. EBITDA",
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      "text": "Adjusted EBITDA: $41.5",
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      "kind": "paragraph",
      "text": "It’s a hallmark of companies covered by Spruce Point to show a widening gap between GAAP Earnings and Adjusted Earnings. We see precisely the same phenomenon occurring at PetIQ: Company adjustments to EBITDA are growing ever-larger, accounting for just under half of Adj. EBITDA in FY18. Note that these adjustments will likely grow even more significant through the coming years as wellness center buildout ramps up, and as management adds back associated one-time store opening costs. The fact that Adj. EBITDA growth does not translate into cash flow confirms to us that management’s proprietary definition is not a meaningful measure of Company performance.",
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      "text": "Source: PetIQ financial statements",
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      "text": "Note: FY18 operating cash flow would have been $1.5m worse if the tax payment were reclassified",
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      "kind": "table",
      "text": "EBITDA Adjustments table showing FY16-FY18 values for EBITDA, Adjustments, and Adj. EBITDA.",
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      "text": "Earnings Adjustments table showing FY16-FY18 values for Net Income, Adjustments, and Adj. Net Income.",
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      "text": "Widening Gap Between GAAP And Non-GAAP EBITDA",
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