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  "documentTitle": "Heska Corporation (HSKA)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2021-10-25 00:00:00",
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      "kind": "callout",
      "text": "Scil generated 31% gross margins in 2018 and 2019, indicative of the Company's distribution business model. Of note, the Company was barely profitable on an operating basis despite scil management receiving Wilson's praise for their operational excellence.",
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      "text": "Disclosure in the German entity's 2019 financial report provides a very clear picture of the Company's business: \"Research and Development. As a company specializing in sales and marketing, scil does not conduct its own research or development.\" [a risk factor] \"Delays in introducing new products to replace those from suppliers who have switched their sales model to direct sales.\"",
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      "text": "Gross Margin: 31%",
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      "text": "Research and Development. As a company specializing in sales and marketing, scil does not conduct its own research or development. — German entity's 2019 financial report",
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      "text": "Source: scil financials",
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      "text": "scil animal care Summary Financials (Euro in Millions) 2018 2019 Revenue 70.4 72.5 Cost of Sales 48.3 50.0 Gross Profit 22.2 22.6 Sales and Marketing 20.6 22.1 Operating Income 1.5 0.5 Gross Margin 31% 31% Operating Margin 2% 1%",
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      "text": "As A Pure Play Distributor, scil Generates Materially Lower Gross Margins Than Heska North America",
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      "arcName": "Overcoming the Monster",
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