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  "documentTitle": "Church & Dwight Co., Inc. (CHD)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-09-05 00:00:00",
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  "notes": "The slide uses a red box to highlight the specific clause in the credit agreement and the corresponding column in the financial table.",
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      "kind": "callout",
      "text": "In our opinion, management has misrepresented an accurate picture of Adj. EBITDA to investors.",
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      "text": "Credit Agreement text snippet",
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      "text": "Adjusted EBITDA: $11.5 million",
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      "kind": "paragraph",
      "text": "In our opinion, management has misrepresented an accurate picture of Adj. EBITDA to investors. On the prior slide, we illustrated how management buried two unusual non-cash items that increased EBITDA by $11.5 million. Per CHD's credit agreement, consolidated EBITDA must be adjusted lower by \"non-cash items increasing Consolidated Net Income\" and \"any extraordinary, unusual, or non-recurring cash income or gains\". However, management shows investors a calculation of Adj. EBITDA that does not deduct these adjustments.",
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      "kind": "quote",
      "text": "“non-cash items increasing Consolidated Net Income” and “any extraordinary, unusual, or non-recurring cash income or gains” — Credit Agreement",
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      "kind": "source-note",
      "text": "Source: CHD From Barclays Conf Sept 3, 2019",
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      "text": "Source: Credit Agreement, 8-K: March 29, 2018",
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      "kind": "table",
      "text": "Church & Dwight Co., Inc Total Debt to Bank EBITDA Reconciliation",
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      "kind": "title",
      "text": "Misleading EBITDA Per Its Credit Agreement",
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      "evidence": "The document extensively details the problems with CHD, including rising debt, low-quality EBITDA, worrisome strategy shifts, and concerning CEO history.",
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