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  "documentTitle": "GTT Communications, Inc. (GTT)",
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  "authorName": "Wolfpack Research",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-06-06 00:00:00",
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  "notes": "The slide uses a table to highlight missed performance targets and quotes from executives to contrast with actual financial outcomes.",
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      "text": "If GTT's rep productivity is truly “industry leading” why wouldn't they disclose it?",
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      "kind": "disclaimer",
      "text": "(1) For purposes of the plan, we evaluate our results on a constant currency basis... (2) The Company was below the threshold for the target net installations component.",
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      "text": "net installations: -$26.3 million",
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      "kind": "paragraph",
      "text": "GTT's General Counsel and Executive Vice President Chris McKee made the following statement about rep productivity post-Interoute during the Q&A session at Cowen & Company's Technology, Media and Telecom Conference...",
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      "text": "In 2018, GTT set, and missed, a negative target of -$1.4 million for net installations. Unlike the 2017 proxy, GTT elected not to disclose its actual net installations performance for 2018, which totaled -$26.3 million according to our calculations.",
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      "text": "We think that “fall off a cliff” is the perfect way to describe GTT’s sales rep productivity in the quarters that followed – our calculations show that GTT posted net installations of -$9.5 million, -$16.5 million and -$4.0 million in Q2, Q3 and Q4 2018, respectively.",
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      "text": "If GTT’s rep productivity is truly “industry leading” why wouldn’t they disclose it? GTT’s rep productivity may truly be industry leading “in some respects,” but apparently not in the right direction, at net installations of -$26.3 million in 2018.",
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      "kind": "paragraph",
      "text": "“Rep productivity” and “churn” are the two components that make up organic growth for GTT. Creating further financial opacity, GTT does not disclose its rep productivity number to investors – despite CEO Rick Calder’s statement...",
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      "kind": "quote",
      "text": "Yeah. One of the frustrating-but-sort-of-good news, good news, bad news aspect for us is our rep productivity... as we've scaled up the sales force, that's one of the things that you worry about will just fall off a cliff.",
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      "text": "We see a lot of opportunity to continue to grow the scope and scale of the organization and maintain productivity rates which we think are industry leading in some respects.",
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      "kind": "quote",
      "text": "“Yeah. One of the frustrating-but-sort-of-good news, good news, bad news aspect for us is our rep productivity, the amount of the amount of new MRR that reps have sold has actually been quite good. So, as we've scaled up the sales force, that's one of the things that you worry about will just fall off a cliff.” — Chris McKee, General Counsel and EVP; “We see a lot of opportunity to continue to grow the scope and scale of the organization and maintain productivity rates which we think are industry leading in some respects.” — Rick Calder, CEO",
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      "kind": "table",
      "text": "Annual Cash Goals table showing Adjusted EBITDA, Revenue, and Net Installations against targets and actual performance.",
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