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  "documentTitle": "Zebra Technologies Corp. (ZBRA)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2024-08-08 00:00:00",
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  "notes": "Uses a table to show the pro-forma adjustment of interest expense and the resulting impact on the EBITDA/Interest coverage ratio.",
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      "text": "Zebra's EBITDA to Interest Expense credit metrics would look worse if factoring fees were considered interest expense.",
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      "text": "EBITDA / Interest Expense: 5.7x",
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      "text": "Zebra recently started to disclose A/R factoring fees while previously saying they were not significant. Factoring fees have been rising with some of the increase likely attributable to rising interest rates and potentially related to changes in the credit discount factor stipulated in the agreement. More interesting, we see that Zebra records factoring fees within “Other expense, net” when there is a strong case to be made that it should record these fees as part of “Interest expense (income), net”. Spruce Point has identified multiple examples of public companies that record factoring costs as interest expense.(1) Zebra’s EBITDA to Interest Expense credit metrics would look worse if factoring fees were considered interest expense.",
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      "text": "Source: Zebra 10-K filings 1) Examples include TER 10-K, RBBN 10-K. MATW 10-K",
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      "text": "Analysis of Zebra's Factoring Fees And Pro Forma Credit Metric table",
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      "text": "We See Zebra's Credit Metrics Worsening When Factoring Fees Are Considered Interest Costs",
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