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  "docId": "019dd923-622c-750b-8b99-4037ee85af93",
  "docSlug": "4c8f29888304",
  "documentTitle": "Skechers U.S.A., Inc. (SKX)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2022-07-19 00:00:00",
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  "pageNumber": 27,
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  "nDataPoints": 182,
  "notes": "Includes a specific adjustment for NCI and equity award tax payments to derive 'Spruce Point Adjusted CFO'.",
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  "components": [
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      "kind": "callout",
      "text": "The deterioration of Skechers' cash flow margins since 2018, coupled with a history of mismatch between its CFO and net income (before non-controlling interest) and thus highly suspect earnings quality, suggests that something is fundamentally wrong with the Company's financial model.",
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      "kind": "metric",
      "text": "Spruce Pt. Adjusted Free Cash Flow: -$281",
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      "kind": "paragraph",
      "text": "After deducting payments to noncontrolling interests (which don't flow through CFO) and tax payments related to employee compensation programs, Skechers cash flow profile is not attractive.",
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      "kind": "source-note",
      "text": "Source: Skechers 10-K filings for fiscal years 2011 through 2021",
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      "text": "Skechers' Deficient and Deteriorating Cash Flows table",
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      "kind": "title",
      "text": "We Believe The Market Miscalculates Skechers' True Cash Flow And It Is Under Extreme Pressure",
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      "name": "Cost Of Inaction",
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      "evidence": "The document presents valuation tables and comparison tables to support the argument",
      "position": 2,
      "objective": "Highlighting the consequences of Skechers' deteriorating profitability",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
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