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  "documentTitle": "WSP Global Inc. (WSP)",
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  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-04-03 00:00:00",
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      "kind": "callout",
      "text": "Full amount through income statement added back",
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      "kind": "callout",
      "text": "Large increase in financing expense that doesn't impact operating or free cash flow. No footnote detail.",
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      "text": "Operating Cash Flow: $196 million",
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      "kind": "paragraph",
      "text": "GAAP requires interest expense to be an operating cash flow whereas under IFRS the guidance is less clear and it may be classified as either an operating or financing expense.(1) WSP allocates net financing expense as a financing cash flow with no footnote detail. Neither of WSP's closest Canadian peers reporting under IFRS such as SNC-Lavalin or Stantec report in this fashion. To be conservative and evaluate WSP's cash flow on an apples-to-apples basis, we believe investors should reclassify the $196 million of financing interest expense as an operating expense. We estimate that WSP's operating cash flow conversion and margin declined in 2023.",
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      "kind": "quote",
      "text": "PWC Viewpoint US IFRS vs. US GAAP; 15.8 Statement of cash flows — PWC",
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      "text": "Source, WSP Annual Report; 1) PWC Viewpoint US IFRS vs. US GAAP; 15.8 Statement of cash flows",
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      "text": "Cash flow statement excerpt showing operating and financing activities for 2023 and 2022.",
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      "kind": "table",
      "text": "Spruce Point Adjusted Cash Flow table comparing 2022 and 2023 metrics.",
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      "kind": "title",
      "text": "We Believe WSP Inflates Operating Cash Flow By Allocating Interest Expenses As Financing Cash Flows",
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