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  "documentTitle": "LHC Group, Inc. (LHCG)",
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  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-01-15 00:00:00",
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  "notes": "Uses a causal chain/process flow to demonstrate how the accounting adjustment leads to a missed target if corrected.",
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      "kind": "callout",
      "text": "Management affirms $110M full-year FCF guidance",
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      "text": "LHCG hits its FY18 FCF target only with the application of significant ad hoc PRE-TAX EBITDA adjustments which were not properly tax effected",
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      "text": "Applying a proper tax treatment to these pre-tax adjustments would have caused LHCG to miss full-year FCF guidance by nearly 15%",
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      "text": "Free Cash Flow: $110M",
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      "kind": "paragraph",
      "text": "Spruce Point observes LHCG management falling into a worrisome pattern of hitting guidance only with the help of novel and questionable adjustments...",
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      "text": "\"I think in your presentation, you guys had stated $110 million of free cash flow. Is that still kind of the target?\" — Kevin Ellich – Craig-Hallum Capital Group; \"Yes, that's right.\" — Joshua Proffitt – CFO & Treasurer, LHCG",
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      "kind": "source-note",
      "text": "Source: LHCG Filings and Transcripts, Spruce Point Research",
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      "text": "Adj. FCF with Tax-Effected EBITDA Adjustments table showing $96.2M result",
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      "text": "Cash Flow table showing $60.2M FCF + $49.9M adjustments = $110.2M Adjusted FCF",
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      "text": "LHCG Hitting FCF Targets Only With The Help Of Questionable Ad Hoc Adjustments",
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