Callouts & quotes from 804+ activist slides

"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."

"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."

"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"

"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."

"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."

"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"

"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."

"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."

"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."

"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."

"Again, we are left to wonder whether Vitek’s investment objectives in Dubai did not involve the servicing of very special customers including those with hot flows of questionable money."

"Warning: While oat milk is trying to gain share amongst established plant-based milks such as soy and almond, we believe capital is already flowing into the next hot plant trend: peas."

"From the above table, Bohu has made three prepayments to TRE's subsidiaries totaling RMB 105 million. This flow of funds contradicts the disclosed nature of the parties' relationship."

"We believe that if the business is properly managed over this period, you should easily be able to achieve approximately $4.00 per share of Adjusted Free Cash Flow by the end of 2020."

"In another departure from conventional wisdom, Singleton eschewed reported earnings, the key metric on Wall Street at the time, running his company instead to optimize free cash flow."

"Spruce Point's warns that for the first time ever before announcing the acquisition of Evoqua, Xylem citied as its first factor for increased cash flow "higher customer prepayments.""

"To arrive at our NPV per future program, we assume the midpoint of $7.5M ($5M to $10M) of negative cash outflow prior to a program starting and up until completion of its second year"

"Based on Free Cash Flow projections offered in the deal proxy, $1.66 billion was expected for 2019. However, based on our analysis, we estimate actual Free Cash Flow of $489 million."

"Riot's business model is dysfunctional, characterized by seemingly endless capital spending, lack of operating leverage, unpredictable revenue, poor returns, and negative cash flow."

"Recurring, cash-flow generating catering services now opened up for market competition, while SCT is expanding on Food Distribution which require capital for investment in logistics"

"Altogether, these components sum to $385.8 million of lost MPLN revenue in 2022, which translates to an organic Adjusted EBITDA and Levered Free Cash Flow decline of $294.2 million."

"CFO At Jefferies Conference (Aug 2018): "I guess maybe one last comment on shorts. You can't fudge cash and cash flow was very, very strong. And that will my counter point to that.""

"In H1 FY 2019, Dollarama’s cash flow contracted on a year-over-year basis for the first time since it went public – this despite management’s efforts to bolster earnings and EBITDA."

"When combined with the negligible net income produced with realistic margin expectations for SMART Brazil (and SGH as a whole), the Company goes cash flow negative as soon as 2Q20."

"When cash flow is tight and liquidity for paying down CPIPG’s expensive bridge loan is in your own words a “priority above all else”, why did management increase lending to Vitek?"

"In either case, TI can generate $9.00+ of free cash flow per share in 2026 and will have demonstrated a path for continued strong growth in free cash flow in the many years ahead."

"Convenient that management regularly hits 100% or more of its annual target cash inventive bonus every single year consistently while it inconsistently defines its free cash flow!"

"Convenient that management regularly hits 100% or more of its annual target cash inventive bonus every single year consistently while it inconsistently defines its free cash flow!"

"It is rare – even among the frauds, promotes, and detritus that we short – to see losses and cash flow characteristics as dreadful as Ginkgo’s, much less driving a $23B valuation."

"While not calling this an error, it certainly caught our attention that the Company made this change which had the effect of reducing operating cash flow by $3.5 million in 2022."

"It’s no surprise to Spruce Point that XPO recently walked back its free cash flow guidance for 2019E to $650m ( vs. Consensus est. of $884m and implying virtually no YoY growth)."

"Mettler has excessive amounts of add-backs to free cash flow. In our view, cumulative FCF has been inflated by $347m with 80% of it coming after CEO Filliol took control in 2008."

"Spruce Point believes that Amcor's free cash flow presentation is becoming more aggressive, and that by our estimate, actual free cash flow declined more than 50% YoY in 2H 2019."

"Spruce Point believes that Amcor's free cash flow presentation is becoming more aggressive, and that by our estimate, actual free cash flow declined more than 50% YoY in 2H 2019."

""We're not running the company for the OR, we're running the company for EPS growth, operating income, free cash flow" — Jean-Jacques Ruest, CEO, Q2 2021 earnings conference call"

"If Mettler’s is exaggerating and inflating profits, it should be no surprise that it would try to use highly aggressive and non-standard ways to portray inflated free cash flow."

"Collectively, the group showed a net cash outflow of RMB 12.0 million. Yet, YY would have recorded RMB 17.1 million in revenues from gifts given to Ruitiantian, as shown below."

"Pershing believes that McDonald's, pro forma for the McOpCo 20% IPO, would have a 2006E Free Cash Flow yield of 4.3 % - 4.7% at stock price in the range of $46 - $50 per share."

"Technology is nothing special; just an expensive mash-up of cheap, lab tools like flow cytometers and fluidics; dismissed it as a glorified cytometer, which sell for $50-$500K."

"When a Company publishes a separate presentation to explain what exactly is going on with cash flow from operations, it is likely in response to investor concerns or confusion."

"On April 1, 2024, Autodesk announced the Audit Committee of the Board was conducting an investigation into the Company’s free cash flow and non-GAAP operating margin practices."

"More Consistent Free Cash Flow Growth. Transition to annual billings for product subscriptions reduces FY24 FCF, but accelerates FY25 & FY26 FCF — Autodesk Investor Day Excerpt"

"Using an appropriate mix of debt and equity as well as growing cash flow from their franchise operations, they have paid out 210% of their cumulative Free Cash Flow since IPO."

"We estimate that, with proceeds from asset sales deflating reported capex, Amdocs' free cash flow has been overstated by between $5M and $30M on an annual basis since FY 2016."

"The key takeaway from this period of TI's history is that long-term strategic investments and the commitment to free cash flow per share are not mutually exclusive priorities."

"We strongly encourage the Board to de-emphasize revenue targets and instead compensate management primarily based on EBITDA and free cash flow per share targets going forward."

"Spruce Point believes the ultimate evidence that Stryker is struggling is by observing that its 12 month trailing Operating and Free Cash Flow has not been growing for a year."

"Despite spending an aggregate of $33bn from 2009 to 2012 – which was over 100% of operating cash flow – on capex, net acquisitions and restructuring, EPS has grown at just 5%."

"It is unclear what this $96m and $62m cash flow discrepancy in 2013 and 2014 could be; however, in our LBO analysis we have conservatively included these ‘mystery’ cash costs."

"The fact that Adj. EBITDA growth does not translate into cash flow confirms to us that management's proprietary definition is not a meaningful measure of Company performance."

"As a result of the Company's improved capital allocation, pre-tax unlevered free cash flow has increased from a five-year low of $2.0 billion in 2002 to $3.5 billion in 2004."

"I would prefer the $1 of Cost Synergy because it flows entirely to EBITDA. By contrast, the $1 of Revenue Synergy will likely incur COGS, so less than $1 will flow to EBITDA."