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  "docId": "019dd923-622c-750b-8b99-09b0063ec30e",
  "docSlug": "f01a5a9839a9",
  "documentTitle": "Leidos Holdings, Inc. (LDOS)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2021-02-16 00:00:00",
  "orientation": "landscape",
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  "pageNumber": 37,
  "pageCount": 77,
  "prevPage": 36,
  "nextPage": 38,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 24,
  "notes": "Uses red arrows to visually emphasize the divergence/reversal trend in both charts.",
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  "slideHref": "/slides/019dd923-622c-750b-8b99-09b0063ec30e/37",
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      "kind": "callout",
      "text": "This suggests that management may have pulled forward cash flow, and there are signs pointing to a large reversal coming.",
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      "kind": "chart",
      "text": "Adjusted EBITDA Outpacing Cash from Ops (CFO)",
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        "x": 0.52,
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      "kind": "chart",
      "text": "CFO vs. Adjusted EBITDA Per Share",
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      "kind": "metric",
      "text": "CFO vs. Adjusted EBITDA",
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      "kind": "paragraph",
      "text": "Spruce Point has consistently warned to be careful when cash flow starts to diverge from “Adjusted” metrics such as EPS and EBITDA. In the case of Leidos, on the left chart we observe its double digit “organic” revenue growth and rising Adj. EBITDA. Yet, cash flow from operations (CFO) is now projected to decline. In the bottom right hand chart, we see that for a period of CFO per share outpacing EPS is now starting to reverse. This suggests that management may have pulled forward cash flow, and there are signs pointing to a large reversal coming.",
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      "kind": "source-note",
      "text": "Source: Leidos financials and market consensus estimates",
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      "kind": "title",
      "text": "A Classic Warning Sign...",
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      "matchId": "0341e11e-a1b8-4016-a852-7efe23eb3a07",
      "evidence": "Identifying divergence between cash flow and adjusted earnings as a warning sign of manipulation.",
      "confidence": 0.95
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      "evidence": "The document agitates the problems, highlighting accounting irregularities, flawed business practices, and potential corruption.",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": "Development",
      "parentBeatSlug": "development"
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  "loops": [
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      "name": "Iceberg",
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      "evidence": "The document reveals divergence between adjusted metrics and cash flow, suggesting pulled-forward earnings and impending reversal.",
      "position": 1,
      "objective": "To expose Leidos' cash flow struggles",
      "structure": "The Symptom (Visible) -> The System (Hidden) -> The Root Cause",
      "confidence": 0.7,
      "description": "Reveal that the visible problem is merely a symptom of a deeper root cause"
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