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  "docId": "019dd923-622c-750b-8b98-dbf69e8285f9",
  "docSlug": "c97bc876ffb7",
  "documentTitle": "LHC Group, Inc. (LHCG)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-01-15 00:00:00",
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  "pageNumber": 13,
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  "slideType": "expose_contradiction",
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  "notes": "Uses red arrows and highlighted text to draw attention to the discrepancy between management's 'faster/stronger' claims and the implied revenue growth deceleration in the projections.",
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  "components": [
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      "kind": "callout",
      "text": "However, after analyzing Company disclosures, Spruce Point finds that the momentum seemingly demonstrated by Almost Family either may not have been what it appeared or might have since dissolved.",
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      "kind": "metric",
      "text": "Net Revenue Growth: 29.9%",
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      "kind": "paragraph",
      "text": "On Nov 16, 2017, LHCG and competing home health provider Almost Family (AFAM) announced plans to conduct a $1.8B merger of equals, which was subsequently completed on Apr 1, 2018.",
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      "kind": "quote",
      "text": "And both companies have been on pretty amazing trajectories... if you just think about Kanye West, bigger, faster, stronger, right... we're going to grow better and faster.",
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      "kind": "quote",
      "text": "As I think about growth... how should we be thinking about the growth profile of the combined company 6 months, 12 months and longer than that out?",
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      "componentId": "4e295cc5-5220-459e-b512-dffd0366c983",
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      "kind": "quote",
      "text": "I don't see this having, certainly, a negative effect. I mean, perhaps even accelerating the growth profile... So I don't see anything that would curtail that.",
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    {
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      "kind": "quote",
      "text": "\"As I think about growth, so Keith, obviously, you guys have done a really good job driving very healthy organic growth and William and Steve have done the same thing and bolstering that with M&A and JV. So how does this change, given that you're going to go through an integration? I know you have an unlevered balance sheet and you alluded to that in your prepared remarks. But how should we be thinking about the growth profile of the combined company 6 months, 12 months and longer than that out?\" — Brian Tanquilut – Jefferies. \"Well, I'll go first and ask Steve to chime in with me here. Let's -- so I don't see this having, certainly, a negative effect. I mean, perhaps even accelerating the growth profile. Our balance sheet is clean. The volume of inbound calls and interest that we're getting from hospital and health system partners, in particular, is -- continues to increase. So I don't see anything that would curtail that. And we're really excited about the new growth opportunities. And Steve I'm going to let you all take that.\" — Keith Myers – Chairman & CEO, LHC Group. \"This -- we've talked for a long time in our investor conferences in discussions around trajectory and continuing that trajectory. And both companies have been on pretty amazing trajectories. And so this is continuing the trajectory. So if you just think about Kanye West, bigger, faster, stronger, right, so we're delevering the balance sheet. This is going to be a straightforward integration.... So I think we're going to grow better and faster. I'd rather us do this together, because I think we can grow better, faster, lower risk, higher return profile doing this together than we could possibly do it separately.\" — C. Steven Guenthner – President, Principal Financial Officer, Treasurer & Secretary, Almost Family.",
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      "kind": "table",
      "text": "Almost Family financial projections table showing Net Revenue, Gross Profit, EBITDA, and Net Income from 2017E to 2022E.",
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      "kind": "table",
      "text": "Expected Almost Family Net Revenue Growth, LHCG Projections (Implied) table showing percentages from 29.9% down to 5.2%.",
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      "kind": "title",
      "text": "Pitch To Investors: Two Industry Leading Companies Merging Into One",
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      "evidence": "Contrasts management's verbal claims of 'accelerating growth' with the implied revenue growth deceleration in the provided financial table.",
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      "evidence": "The expose contradiction slides detail various issues with LHCG's financials and management practices.",
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      "name": "Cost Of Inaction",
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      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
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      "description": "Quantify what happens if the audience does nothing"
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