Callouts & quotes from 1,316+ activist slides

"Spruce Point believes it is customary for large and global U.S. public financial reporting peers to disclose how much cash and equivalents are held outside of the U.S. in foreign subsidiaries or permanently invested abroad."

"For all-cash transactions, you can compare the sum of Incremental Interest Expense, Foregone Interest on Cash, Amortization of Financing Fee, and Incremental D&A against the sum of the target's Pre-Tax Income and Synergies."

"We believe that Tempus is extremely dependent on keeping the perceived value of its equity high because it is among the most aggressive issuers of stock-based compensation at 77% of revenue and 283% of operating cash flow."

"Spruce Point has serious concerns about the accuracy of Xylem’s financial statements for 2023 and 2022 after identifying two sets of published financials. As a result, we cannot trust the accuracy of Xylem’s reported cash."

"Spruce Point has serious concerns about the accuracy of Xylem's financial statements for 2023 and 2022 after identifying two sets of published financials. As a result, we cannot trust the accuracy of Xylem's reported cash."

"The current stock price is so dislocated that the Company should immediately start using a portion of its cash flow to repurchase shares (e.g., 50% with the other 50% for debt paydown) until it reaches its leverage target."

"Not only is Oklo's cash level insufficient to fund its long-term capital requirements, as typical for a pre-revenue SPAC in a capital-intensive industry, we believe Oklo lacks sufficient cash to complete its first project."

"With cash levels well below what BUR had previously characterized as a “strong” cash position, poor cash realizations, and escalating funding obligations, it is no coincidence that BUR aims to raise even more debt in 2020."

"Stryker 10-Q Note 7 said, "The aggregate purchase price of our acquisitions, net of cash acquired was $31 and $23 in the three months 2021 and 2020" which does not match cash flow statement 3m figure of $27m — Stryker 10-Q"

"We are advocating for a comprehensive, multi-year capital return program comprised of an accelerated share repurchase (ASR) this year and a minimum percentage of future cash flow dedicated to share repurchases thereafter."

"While capital lease adds have been increasing, capital lease repayments modelled by research analysts reports we’ve seen, have repayments falling. As a result, we believe Adjusted Free Cash Flow will disappoint investors."

"BHP should seek to avoid making badly-timed acquisitions paid for in cash and instead return the substantial upcoming excess cashflow to shareholders by way of post DLC unification 14% discounted off-market share buybacks"

"We are advocating for a comprehensive, multi-year capital return program comprised of an accelerated share repurchase (ASR) this year and a minimum percentage of future cash flow dedicated to share repurchases thereafter."

"We think this is grossly misleading considering that not only does Nature's Miracle not have enough cash to buy $100 million in vehicles from FFAI; it does not even have the cash to preorder 1,000 vehicles at $100 apiece."

"Despite ~50% increase in revenue, ~800bps of margin expansion and improved free cash flow over the last two years, NFLX’s share price is down more than 40% from recent highs and has nearly returned to pre-pandemic levels"

"Spruce Point’s warns that Evoqua’s final 10-K Annual Report made multiple alarming revisions to its “Growth Opportunities” around margin expansion, cash flow improvements, and capabilities servicing complex contaminants."

"As a result, we conclude that the vast majority of the RMB 1.326 billion that was supposedly transferred offshore either constituted a violation of Chinese capital controls or the cash was never there in the first place."

"Elevated DSOs signal cash flow collection issues. The problem is also suggested by an accounts payable specialist posting on the company review website Glassdoor. Kratos is now expanding discussion about DSO in its 10-K."

"We have significant concerns that Axon raised $234m in June 2018, when its balance sheet had $96m of cash, no debt, and it was projecting accelerated revenue growth of 18-20% with healthy earnings projected at over $30m."

"Amcor changed its presentation of cash post-closing of the transaction. We observe Amcor has been increasing usage of cash overdrafts (up from $4m, $78m to $103m in the past 3yrs), a sign of financial strain in our view."

"Based on a forensic review of Amcor and Bemis' statements on capex, we believe it is materially underspending either to boost near-term cash flow, or in support of our view, that its business is in rapid organic decline."

"While we believe there are substantial cost savings opportunities at GRP, the Company could produce a dramatic increase in free cash flow simply by increasing the utilization even in the absence of EBITDA/MT improvement"

"HASI appears to have booked non-cash interest income from SunStrong PIKs totaling $26.4 million over 2019-2021 per SunStrong’s cash flow statement, which is approximately 9.5% of HASI’s interest income during this time."

"The reduction in cash provided was primarily driven by higher tax payments, the investment in a distribution agreement of select technology and the payment of transaction costs associated with the acquisition of Evoqua."

"Finally, and most importantly, this all has a detrimental effect on SGH's balance sheet. As you can see in the chart below, the cash burn eats into the Company's balance sheet and causes a big problem by fiscal Q4 2020."

"A close evaluation of the transaction shows that neither the CEO/founder of LiNiCo or Aqua Metals are putting any real cash into the deal. In fact, the Founder is receiving $500,000, but for no explicitly clear reason."

"XPO has abandoned its attempt at expanding organic revenue disclosure post Q1’18. Through YTD Q3’18, organic quarterly revenue growth has averaged 10.8%, yet equates to just 3.2% YTD organic operating cash flow growth."

"PowerSchool is among the most highly levered companies in its industry; a standout where many peer companies are net cash. Only TWOU, a company that has recently been linked to financial challenges, has worse leverage."

"Even as management has spent nearly $1B on acquisitions since FY15, revenue, Adj. EBITDA, operating cash flow, and free cash flow have remained largely flat, while free cash flow per share is down over the same period."

"The cash pooling of £1,073,000 in 2022 and £1,550,000 in 2021 has been restated from intercompany to cash at bank, as cash is swept by the NSC daily, however the decisions on controlling the funds is with the business."

"Paringa said that its coal project had “a clear path to predictable, strong cash flows”. They also promoted a “Secured US$205 Million Sales Contract”. Sales never materialized and the share price ultimately collapsed."

"We observe that a number of cash flow line items which ought to correspond directly to changes in balance sheet line items at times demonstrate inexplicable discrepancies. These discrepancies are at times significant."

"If the Company had sold midstream before recent market volatility, it could be sitting on net cash proceeds of ~$30 billion (70% current market capitalization) that could be used for debt paydown and stock repurchases"

"If the Company had sold midstream before recent market volatility, it could be sitting on net cash proceeds of ~$30 billion (70% current market capitalization) that could be used for debt paydown and stock repurchases"

"MGPI has a weak financial profile that cannot fund its own growth. Its cumulative free cash flow since 2012 is just $1.5 million! As a result, MGPI is becoming more dependent on short-term revolving credit borrowings."

"Additionally, the Committee introduced a new metric of free cash flow replacing average days working capital. Free cash flow was instituted in 2019 as a measurement of fundamental performance. — Leidos Proxy Statement"

"MTD’s valuation expansion in the current cycle is absurd in the context that investors are paying a higher multiple every year for a company that has directed +80% of its total cash flow just to purchasing its stock."

"We believe Amcor is obscuring significant financial strain (organic revenue decline 3.0% - 4.0%, cash overdrafts and cash flow contraction) that will place its dividend and BBB investment grade credit rating at risk."

"The Company claims revisions did not have an impact on the operating results. Yet, there are clear revisions to net income, depreciation and amortization expense, with the net result being optically higher cash flow."

"Dennelind apparently recognized the lack of commercial rationale for this acquisition in the first place, but we wonder if this hasty divestiture is related to the company's difficulties repatriating cash from Nepal."

""We expect that most of our cash generated from operations will continue to be used to fund capital expenditures and the working capital required for our growth over the next few years." — GMCR 10-Q for Q3 2011, p.39"

"Companies often collect cash 30-365 days before they recognize the revenue because they usually offer Monthly or Annual billing methods. As such, customers pay for a full-month or a full-year in advance. — Footnote 2"

"As we discuss infra, the mention of a “mandatory takeover offer price” appears to be a false excuse. The adjustment seems to have merely been a way to extract an additional €52.1 million cash from outside investors."

"Management has become addicted to dilution as a way of bridging the gap created by its lack of core cash flows from operations, increasing shares outstanding by 70% since December 2022, and the pace is accelerating."

"The former also said that fear of missing an opportunity to cash out was what drove CEO Andrew Paradise to rush to go public via SPAC, despite its platform being “too manual” and “not sustainable.” — Former employee"

"Revenue attributed to "noncash consideration", a result of value-in-kind / contra deals (i.e. barter transactions), raises significant concerns regarding Genius’ revenue recognition and reported / forecasted growth"

"Going into the current economic correction, BR has limited cash flow available for debt reduction given its growing commitment to paying its dividend - now costing nearly $340 million per year ($2.90/share a year)."

"By moving the asset from inventory, to other noncurrent (long-term) accounts, Stryker could potentially be enabling operating cash flow overstatement or avoiding impairment of assets where customers have defaulted."

"Cumulatively, the amount of taxes under-reported on the income statement relative to cash taxes paid is ~$142m. Therefore, we argue that Net Income has also been cumulatively overstated by the corresponding amount."

"Cash flow significantly benefited in recent years from tax refunds that exceeded early projections. Now that these “one-time” benefits are behind AMR, cash flow will be more reliant on core coal mining operations."

"Excess cash of up to KRW 6.0 trillion (18% of HMC market cap) should be reduced from HMC's balance sheet Excess cash of up to KRW 6.0 trillion (26% of Mobis market cap) should be reduced from Mobis's balance sheet"

"Given its high insider ownership, if Dillard's maintains its free cash flow and share repurchase levels, then at the current stock price we estimate it would buy back nearly its entire float in the next five years"

"We believe that Remitly is dependent on keeping the perceived value of its equity high because it is among the most aggressive issuers of stock-based compensation at 12% of revenue and 78% of operating cash flow."

"Pramac’s Italian financial statements suggest channel stuffing or accelerated booking of revenue well ahead of cash collection. We observe its receivables to sales ratio is over 40%, or nearly 3x Generac’s ratio."

"We fear that management is simply looking to move into a sexy and easily-hyped business line to continue to promote the Company, and we have little confidence that MVI will amount to anything but a waste of cash."

"Consistent, cash-generating trading business combined with higher growth project development business. Both require low working capital while having significant synergies with other SCT segments and Samsung Group"

"Kao could bring its Cash Conversion Cycle and Non-Cash Working Capital (relative to sales) down dramatically and free up over JPY 150bn by 2027 versus 2024 levels that could be better spent on growth initiatives."

"Technology companies have operated differently – particularly some of the largest, most successful companies. They have accumulated enormous amounts of cash that sit idle on their balance sheets for years on end."

"The Income Statement tracks profitability while the Cash Flow Statement tracks cash movements. The Cash Flow Statement bridges Net Income, which is the punchline number from Income Statement, to actual cash flow."

"But therein lies to the key to the fraud – while Lasertec claims to have the highest profitability, its cash conversion is the lowest – a striking anomaly at the center of the largest corporate frauds in history."