Callouts & quotes from 1,316+ activist slides

"Fiscal 2017 performance targets consisted of adjusted EBITDAP, Corporate operating cash flow, Aerojet Rocketdyne bookings, and certain other individual goals and had a 12-month performance period."

"This in many ways defeated the purpose of the financing arrangement by withdrawing the immediate cash flow benefit that it would have otherwise recognized from the sale/leaseback. — PLUG 2015 10-K"

"RTC Plan calls for Crown Castle to achieve a capex revenue ROI in excess of 40% on annual fiber discretionary capex of $600M (versus $1.4B), which turns fiber into a cash flow generative business"

"Since Allied recognized $65 million in non-cash earnings last year that it paid out in dividends, Allied had to finance that payment by shrinking the portfolio, borrowing money or selling equity."

"Globant’s lack of cash flow generation from its core operations, decelerating organic growth, and potentially misleading claims by management are all reflected in our choice of its multiple range"

"Two material weaknesses, costs exceeding expectations, worsening working capital, and aggressive cash flow interpretation but insiders (notably the CEO/CFO) got paid very nice short-term bonuses."

"USCR's former CFO outlined expectations for continued EBITDA to Free Cash Flow expectations of 60% in late Oct 2016. Ever since making that forecast, USCR has fallen increasingly short of target."

"HHC’s three integrated business segments allow it to self-fund the equity required for development from (i) MPC land sales, (ii) cash flow from its operating assets, and (iii) equity in the land"

"In short, these transactions bear hallmarks of money laundering, where CPI PG appears in the final, critical stage—possibly cashing out launderers and their clients with clean, bondholder funds."

"Our suspicion is that like Zhonghuan, BEKE grossly overpaid for a questionable business in order to hide fake cash, a balance sheet problem created by BEKE’s gross overstatement of its revenues."

"Most analysts value Pioneer through shorthand methods like a multiple of EBITDAX. We think the proper valuation is a long-term discounted cash flow of the resource opportunity. So we built one."

"intends to refine compensation and incentive programs for senior management to more directly emphasize same-restaurant-sales growth and free cash flow. — Darden Restaurants, Inc. (Dec 19, 2013)"

"At the risk of this report seeming to be a love letter to Jay Brown, we quote him regarding the incompatibility of the REIT structure with the risks of emerging and frontier market cash flows."

"Not only would a partial or full monetization of real estate unlock substantial value, it would also accelerate SIX’s debt paydown, provide cash for buybacks and quicken dividend reinstatement"

"Avery is expensive relative to its specialty chemical and materials peers, even before our adjustments to its enterprise value for added debts, and normalization of EBITDA and Free Cash Flow."

"The stock price reflects concern about ballooning capital costs, chronic lack of free cash flow, a high oil price breakeven, and recent difficulty executing against guidance and expectations."

"While the Company reported stellar results and a record EBITDA margin of 15.2%, the store manager says the sales were great but the store burned through cash and the bottom line wasn’t great."

"By comparing the public filings of IQ and Wuhan DDMC (Xin’ai’s parent company) we conclude that the deferred revenue recorded by IQ is fraudulent and no non-cash contribution actually exists."

"Through FY2026, Salesforce will have an additional $20 - $25 billion of cash to deploy on either value-accretive M&A or further capital return, beyond the $10 billion share repurchase program"

"Assuming 2009E recurring Cash NOI of $316mm, if NOI drops only 5% to 10% and O’s cap rate increases to 9.5% to 10.5%, Realty Income’s stock price could decline ~43% to ~60% from recent prices"

"We believe our asymmetric hedging strategy is a superior alternative to a large cash position or a continuous hedging program, both of which can be a significant drag on long-term performance"

"We believe New TROX could easily lever up to 1.0x – 1.5x on a mid-cycle EBITDA basis and subsequently dividend the cash proceeds to shareholders while still maintaining strong credit metrics"

"We believe our selective hedging strategy is a superior alternative to a large cash position or a continuous hedging program, both of which can be a significant drag on long-term performance"

"GGO will have a strong balance sheet. 100% of GGO's debt is property level and non-recourse. $250mm of balance sheet cash ensures GGO has ample liquidity to fund value creation opportunities"

"By reclassifying WSP's net financing expense as an operational cash flow as opposed to a financing cash flow, we find that the Company's operating cash flow margin lags the industry average."

"We believe our selective hedging strategy is a superior alternative to a large cash position or a continuous hedging program, both of which can be a significant drag on long-term performance"

"For FTAI to realize AP EBITDA through cash flows from operating activities (CFO) it must invest 101% of the book value of Inventory after the inventory is transferred from Leasing Equipment."

"Based on peers, we conclude that there are potentially material opportunities to improve ADT's cost structure as a standalone public company, enhancing both EBITDA margins and free cash flow"

"In our experience, one of the most common signs a company is forging its cash balances is borrowing more money than it seemingly needs to, and at rates higher than what it earns on its cash."

"We have serious concerns that Amcor is restating interest income amounts. This suggests cash control issues, and casts the reliability of Amcor’s reported cash on its balance sheet in doubt."

"Based on SMCI's disclosures, we estimate its Q1 interest expense should have been $2.3 million vs. the $4.0 million cash interest expenses reported at the bottom of its cash flow statement."

"AOL should maintain an investment grade rating with leverage of $4.8 billion, representing 2.5x 2005E OIBDA and 2.8x 2005E OIBDAR, based on both its expected cash flows and perceived risks."

"MSCI appears to be making greater use of capitalized development costs that are added to the balance sheet, amortized to the income statement and conveniently ignored as non-cash add-backs."

"More concerning though, Matanya’s cash flow statement, which shows all movements from its inception on December 17, 2017 through December 31, 2018, shows zero lending or borrowing activity."

"In frauds there is a limit and eventually the bubble must burst - one cannot outrun the fundamental accounting equation between the income statement, balance sheet, and cash flow statement."

"After Vitek Seemingly Creamed ~€36.7 Million in Cash Gains by Round-Tripping Land Plots, CPI PG Took Highly Questionable Fair Value Gains on Them, Padding Reported Asset Values and Profits"

"These companies' stock prices have dramatically outperformed their competition because traditional multiple-of-earnings or cash-flow based valuations do not properly reflect Platform Value"

"Proceeds were used to refinance debt including a bridge loan related to our UK acquisition and drawings under our revolving credit facility; some of the proceeds will also be held in cash."

"Extending the guarantee period presumably continued to keep losses on these associates from being realized on Fairfax's income statement and / or avoids Fairfax having to lay out the cash."

"The most likely use for the “diverted” CapEx was that of an accounting gimmick wherein Management needed to balance inflated sales (and therefore not existent cash) with inflated expenses."

"Capital return (cash dividend + buyback) of 40 to 50% of net income is the minimum level that should be targeted immediately for each of Mobis, HMC and Kia to be comparable to global peers"

"While Enfusion's recent 2024 revenue and Adj. EBITDA guidance came within market expectations, its new Free Cash Flow (FCF) conversion guidance implies a shortfall of FCF vs. expectations."

"When combined with the improved free cash flow generation of Dollar Tree and improved capital allocation policies, we believe Dollar Tree could ultimately be worth $150 per share or more."

"We believe the combination of underspending on capital expenditures and R&D has benefited PBH’s historic cash flow but will result in increasing financial struggles as acquisitions stall."

"For the six months ended June 30, 2020, cash flow from operating activities was $82.0 million, an increase of 125.9% compared to the same period in the prior year — GFL Environmental Inc."

"We see no reason why and believe it will ultimately revert to its long-term average as investors cope with more disappointment with SCMI's inability to generate recurring free cash flow."

"TWX on a consolidated basis trades at a discount to the free cash flow multiples of other diversified media companies despite the fact that TWC contributes limited free cash flow to TWX."

"The lack of deferred revenue and cash transfer reinforces our view that TAL was merely parking GZ 1-1 at Changing Edu with no intention of actually relinquishing control of the business."

"There are two critical points to make about Olam’s negative goodwill. First, negative goodwill is not “real” income in that there is no positive cash flow associated with it when booked."

"In a real business earning revenue the old-fashioned way - sell a product or service to a customer who forks over cash - the rev rec policy doesn't typically run the length of the Iliad."

"Capital leases have the main effect of inflating EBITDA and Free Cash Flow, two key measures investors used to value USCR. More importantly, management's bonus is tied heavily to EBITDA."

"As of June 30, 2021, the Company had a deferred revenue balance of $11.9 million with Kalo, consisting of the non-cash consideration received. — Soaring Eagle Acquisition Corp prospectus"

"In contrast, after a decade both Nvidia and Tesla had already reached $2 billion in revenue (more than 2x TEM's revenue) and both were able to have at least one cash flow positive year."

"CONSOL's falling costs and recently implemented zero-based budgeting should bring cash costs toward $33 per ton next year, allowing it to remain quite profitable during the dislocation."

"Spruce Point observes that MSCI is capitalizing a greater amount of software development costs, which are conveniently added back to Adjusted EBITDA and passed-off as non-cash expenses."

"Synlogic indicates they “used $13.6MM of the pre-paid research and development expenses” in 2020, which we are almost certain was booked by Ginkgo as non-cash non-related-party revenue."

"Think for a moment of the cash portion of Apple's market capitalization as non-productive inventory that's accumulating at an increasing rate. Now consider the cost of that 'inventory'."

"Napo (or whatever BUR would call it at the time) was shown as a “Concluded Investment” in the 2013 annual report, despite there being no cash available to back up — Muddy Waters Capital"

"It appears that CPI PG’s debt for equity swap enabled Vitek to pocket approximately ~€118 million in cash. Meanwhile CPI PG apparently assumed over €220 million of Vitek’s liabilities."

"if Genomatica had to pay cash for Ginkgo’s R&D services, they would not do so – all but giving away the heart of the scam, that related-party “customers” are engaging in kabuki theater"