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  "documentTitle": "Church & Dwight Co., Inc. (CHD)",
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  "authorName": "Ben Axler",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-09-05 00:00:00",
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  "notes": "Uses a dialogue-style layout to contrast analyst questions with CFO responses and activist commentary.",
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      "kind": "callout",
      "text": "Even the CFO quips that the accounting is “funny”, but Spruce Point cannot reconcile what is going on.",
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      "text": "Even the CFO quips that the accounting is \"funny\", but Spruce Point cannot reconcile what is going on.",
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      "text": "CHD has said FLAWLESS has 30% EBITDA margins. When asked specifically about the difference between EBIT and EBITDA on the deal conf call, the CFO didn’t give a straight answer and deflected by saying “Very asset-light, maybe some molds but very immaterial”",
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      "kind": "paragraph",
      "text": "A bizarre circumstance indeed. With what CHD described as a “long-term service agreement” why is there a stub period treated differently",
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      "kind": "quote",
      "text": "And also a modeling question, if I can, just ask on the mechanics for the revenue recognition for FLAWLESS, because the old operator is still operating it. So I don't want to think -- it's not going to go, obviously, in organic growth.",
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      "text": "It is. We said that business was $180 million trailing. If you times that by 15% you get low 200s. Divide that by 12 months times it by eight months... But remember, the funny accounting is that, we could only recognize the operating profit and net sales for the first four months.",
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      "text": "But remember, the funny accounting is that, we could only recognize the operating profit and net sales for the first four months. And so it's really less than -- it's around half of that. So we can go through it in more detail if you like offline. But it's -- that's why it's less than maybe what you think. — CFO Rick Dierker",
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      "kind": "source-note",
      "text": "Source: CHD Q1 2019 Conference Call",
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      "text": "Nothing Funny About It....",
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