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  "documentTitle": "PowerSchool Holdings, Inc. (PWSC)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2024-04-17 00:00:00",
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  "notes": "Includes a screenshot of a company slide showing a deleveraging chart, contrasted with a custom Spruce Point adjustment table.",
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      "text": "Adjusting for the very real impacts of the capitalized software costs and the TRA liability, PowerSchool’s adjusted Net Leverage Ratio increases from 3.2x to an astonishing 5.8x.",
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      "text": "Net Leverage Ratio: 5.8x",
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      "text": "Not only do we believe PowerSchool's reported net leverage ratio is based on an inflated measure of EBITDA, but it also conveniently ignores the $418 million liability PowerSchool has via the tax receivable agreement (TRA) it holds with its PE sponsors.",
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      "text": "Source: Spruce Point Research, PowerSchool Investor Presentation (September 2023), FY23 10-K",
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      "kind": "source-note",
      "text": "1) Reflects the $95M draw on revolver... 2) Reflects the $39.1M of cash... 3) Reflects managements FY24 guidance...",
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      "text": "We Estimate PowerSchool's Leverage To Be Almost Double The Headline Reported Figure",
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