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  "documentTitle": "Prestige Consumer Healthcare Inc. (PBH)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2020-06-30 00:00:00",
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      "kind": "callout",
      "text": "Red Flag: Under Sacco's leadership, PBH has made three unusual and stealth changes to the discussion of revenue from major brands: \"net revenue\", \"revenue\", \"total revenue\". We observe a similar stealth change in revenue disclosure made at Boulder Brands ahead of its stock collapsing",
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      "text": "Red Flag: Potentially aggressive changes to depreciation assumptions have benefited earnings over the past 3 years",
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      "kind": "callout",
      "text": "Given management's inability to achieve its #1 most important goal, organic growth, we believe it is appropriate for the CEO & CFO to resign",
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      "text": "Receivables growth has significantly outpaced revenue growth on both an absolute and organic basis with the divergence accelerating since Christine Sacco became CFO",
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      "text": "We estimate organic EBITDA has declined each of the past 6 years",
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      "text": "Substantial delta between GAAP and non-GAAP financials from aggressive adjustments; non-GAAP EBITDA ignores the costs associated with acquisitions and divestitures even thought they are core to the Company's strategy",
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      "text": "PBH's poor working capital management is a clear outlier compared with its peers",
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      "text": "Since CEO Lombardi (June 2015) and CFO Sacco (September 2016) were appointed, PBH missed its organic revenue growth targets for 4 out of 5 years between 2015 – 2019, and was on pace to fall short in 2020 before the Q4 benefit due to the COVID-19 pandemic",
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      "text": "Organic revenue growth has compounded at 1% over the past 6 years and has continued to miss targets",
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      "text": "Working capital under pressure as cash conversion cycle has exploded from 67 to 110 days since 2015",
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      "text": "Multiple signs of ballooning inventory levels as products are not selling-though to customers as obsolete inventory grows and inventory purchase obligations as a percentage of sales rises",
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      "text": "Increases in promotional provisioning and consistent rise in advertising & promotional spend of its top brands shows efforts to fend off increasing competitive pressure",
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      "text": "organic revenue growth: 40% - 60%",
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      "text": "Multiple Signs Of Financial Strain As Organic Revenue Is Flat, EBITDA Declines And Cash Flow Dynamics Worsen",
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      "text": "Continuously Misses Organic Growth Targets; We Believe The CEO & CFO Should Resign",
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      "kind": "title",
      "text": "Spruce Point Is Short Prestige Brands And Estimates 40% - 60% Downside ($14.80 - $22.50/sh)",
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