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  "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",
  "orientation": "landscape",
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  "pageNumber": 29,
  "pageCount": 41,
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  "density": "overcrowded",
  "nDataPoints": 45,
  "notes": "Uses a combination of financial tables and callout boxes to build a narrative of accounting manipulation.",
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  "slideHref": "/slides/019dd923-622c-750b-8b98-dbf69e8285f9/29",
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      "bbox": {
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      "kind": "callout",
      "text": "The highest quarterly total of merger costs associated with the AFAM acquisition occurred in 3Q19 in the amount of $11.7M. Why are the merger and integration costs at maximum levels a full eight quarters since the AFAM merger expenses began?",
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      "kind": "callout",
      "text": "By writing down AFAM's tangible asset value and consistently booking inordinate acquisition-related expenses, LHCG management has wiped out nearly 15% of the paper value of the merger.",
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      "kind": "metric",
      "text": "Total Additional Economic Costs: $104.0M",
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      "kind": "paragraph",
      "text": "Between LHCG's write-down of $56.2M of net tangible assets and its recognition of “one-time” acquisition-related costs totaling $66.7M (pre-tax) to date, the Almost Family merger has, by our estimates, cost LHCG investors $104M of “hidden costs.”",
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      "kind": "source-note",
      "text": "Source: LHCG Filings and Transcripts, Spruce Point Estimates",
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      "kind": "table",
      "text": "Preliminary and Final Fair Value of Total Consideration Transferred",
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      "kind": "table",
      "text": "Merger Costs",
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      "kind": "table",
      "text": "Adjusted \"Value\" Transferred",
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      "subkind": "valuation",
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      "kind": "title",
      "text": "Purchase Accounting Adjustments Suggest That AFAM Deal Was More Expensive Than It Seemed",
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      "name": "Cost Of Inaction",
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      "evidence": "The deck implies that investors will suffer financial losses if they do not heed Spruce Point's warning.",
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      "objective": "The cost of inaction for investors who fail to recognize LHCG's true financial performance.",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.7,
      "description": "Quantify what happens if the audience does nothing"
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      "evidence": "The expose contradiction slides test this hypothesis and present evidence.",
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      "objective": "Testing the hypothesis that LHCG's financial practices are aggressive and misleading.",
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