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  "documentTitle": "Heska Corporation (HSKA)",
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  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2021-10-25 00:00:00",
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  "notes": "Uses a 'quote-rebuttal' structure to highlight management inconsistency.",
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      "kind": "callout",
      "text": "We have identified a number of errors, inconsistencies, and evidence of deterioration in Heska's subscription disclosures. Before we review them, we thought it best to let Heska's Wilson give us his perspective on how to interpret these metrics. None of these metrics, alone, answers the questions Wilson poses.",
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      "text": "We have identified a number of errors, inconsistencies, and evidence of deterioration in Heska's subscription disclosures.",
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      "kind": "paragraph",
      "text": "CEO Wilson Comments on Q4 2020 Earnings Call",
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      "kind": "quote",
      "text": "Ben Hanyor, Alliance Global: 'What's going to give us the best evidence that you guys are kind of executing to plan?' Kevin Wilson, Heska CEO: 'No, it's a great question... Active subscriptions leads me to look to retention... Months under subscription leads me to say are we achieving our main goal... And then minimum CSV for me is more about just a check to make sure that we're not giving a dollar away for $0.90...'",
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      "kind": "quote",
      "text": "No, it's a great question. So here's kind of how I roughly look at it. Active subscriptions leads me to look to retention and market share... And so months under subscription gives me a little snapshot there to say are we meeting that mission of having long-term proximity being closest to the veterinarian. And so that's how I look at that metric and that's a key success metric. — Kevin Wilson, Heska CEO",
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      "kind": "source-note",
      "text": "Source: Bloomberg Transcripts",
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      "kind": "table",
      "text": "Subscriptions: Says nothing directly about retention, and Heska doesn't disclose churn. YoY Growth Declining Until 2020, Churn Likely Higher. Months Under Subscription: Says nothing about average term, testing volumes per vet, or being close to the vet. Disclosure Conflicts re: Terms, Average Terms Have Been Variable. Minimum CSV: Says nothing about pricing or actual usage levels unless normalized. Declines in both CSV / month and CSV / subscription / month",
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      "kind": "title",
      "text": "We Believe Wilson's Explanation of Heska's Subscription Business Is Incoherent",
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