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  "documentTitle": "PowerSchool Holdings, Inc. (PWSC)",
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      "text": "We also question why management would get the benefit of such significant acquisition-related add-backs when they’ve admitted acquisitions are part of their business model. We believe they should be considered recurring expenses.",
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      "text": "SEC Correspondence, April 6, 2021: “With respect to the Restructuring line item in particular, the Company believes its exclusion... is appropriate... (ii) the expenses reflected in the Restructuring line item have not been incurred at scale in the past and are not reasonably expected to be incurred at scale in the next two years and thereafter...\"",
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      "text": "Restructuring adjustments: $12.3 million",
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      "kind": "paragraph",
      "text": "2023 10-K: “Acquisitions are core to our strategy, and we intend to continue pursuing targeted acquisitions that further complement our portfolio of technology offerings or provide us access to new markets.”",
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      "text": "In a note to the SEC from April 2021, PowerSchool attempted to justify the adjustments made in the Restructuring line, saying these costs “have not been incurred at scale in the past and are not reasonably expected to be incurred at scale in the next two years”. Despite this, restructuring adjustments made to EBITDA more than doubled in 2022, ballooning to $12.3 million. Restructuring adjustments in 2023 remained above the amount booked in 2021.",
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      "text": "With respect to the Restructuring line item in particular, the Company believes its exclusion from the Company's calculation of Adjusted Gross Profit and Adjusted EBITDA is appropriate and not misleading because (i) it adjusts for expense items that are unusual, non-recurring, and in some cases non-cash operating expenses, (ii) the expenses reflected in the Restructuring line item have not been incurred at scale in the past and are not reasonably expected to be incurred at scale in the next two years and thereafter and (iii) the expenses reflected in the Restructuring line item are separate and distinct from the normal recurring cash expenses the Company expects to incur as a public company. — SEC Correspondence, April 6, 2021",
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      "text": "Source: PowerSchool FY23 10-K, SEC correspondence",
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      "text": "Reconciliation of Net Loss to Adjusted EBITDA table showing Restructuring line items for 2021-2023.",
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