Callouts & quotes from 804+ activist slides

"Their general responses indicated that these farms are typical Chinese barn designs, were "built cheap" with "poor airflow" and "not built to last." — Two China dairy experts"

"More Consistent Free Cash Flow Growth. Transition to annual billings for product subscriptions reduces FY24 FCF, but accelerates FY25 & FY26 FCF — Autodesk Investor Day 2021"

"At $21 per share, Veritas is buying the Company for 7.6x 2024 unlevered free cash flow, a multiple that is too low for a business with the positive characteristics of HMHC."

"The disconnect between Dr. Kleinfeld’s rhetoric and the reality of business performance has only furthered the erosion of his credibility flowing from that poor performance"

"Like most aggressive tech companies with poor business models that Spruce Point evaluates, we find that Dropbox tries to spin a rosy "Non-GAAP" Free Cash Flow presentation."

"Saputo claims that EBITDA is a measure of cash flow in performing its DCF. However, our analysis shows that EBITDA is a poor proxy for cash flow and converts at around 70%."

"Spruce Point believes CHD effectively controls Armand Products and is using the entity to inflate key financial metrics (gross margin, free cash flow, and working capital)."

"Scientists are highly resistant to adopting BLI and more trusting of cheaper flow cytometers; has little incremental benefit and "doesn't make sense" versus existing tools."

"As shown below, a picture taken of Trulieve's “Dutch Hawaiian” cultivar by a Florida medical patient shows that contaminated flower has been sold as-is to Florida patients."

"Management has spent $1.6B on M&A since the financial crisis to grow operating cash flow from $519M to $557M in ten years, for an operating cash flow CAGR of less than 1%."

"By making this change, it will reduce its accounts receivable outstanding, artificially enhance its operating cash flow, and make its cash conversion cycle appear better."

"We estimate that this defection and competition will decrease 2022E revenue by 35% and levered free cash flow by 80%, while net leverage should balloon to more than 8.0x."

"We believe that TROX post-Exxaro deal ("New TROX") will be the strongest player in its industry with 100% vertical integration and unparalleled free cash flow generation"

"The Company's entire new plan – pausing M&A, focusing on organic growth opportunities and using cash flows to reduce leverage – is essentially ripped from Engine's plan."

"Notice carefully, that Oatly does not report any cash associated with asset sales that should flow through the "Investing Activities" section of the cash flow statement."

"We observe that Monster's philanthropic arm filed no tax form in 2020 in a year the parent Company reported almost 10% revenue growth and more than 20% cash flow growth."

"Given TIP REIT’s de minimis maintenance capital requirements, TIP REIT’s free cash flow should be compared to a real estate investment trust’s AFFO, not the “FFO” metric"

"Spruce Point believes that Amcor's free cash flow, and commitment to repurchasing shares, leave it little room to protect its dividend under current market expectations."

"Spruce Point believes that Amcor's free cash flow, and commitment to repurchasing shares, leave it little room to protect its dividend under current market expectations."

"At Sony's current share price the stock is trading at a 7% (12% normalized for semiconductor growth spending) unlevered free cash flow yield, based on this FCF guidance"

"The Ghanaian investment appears to be overvalued particularly when compared to their discounted cash flow model valuation and the unjustified increased purchase price."

"If achieved, the $14 billion 2025E mid-cycle EBITDA target translates to $9 billion of free cash flow, which at a 10% free cash flow yield implies a >$205 share price."

"If achieved, the $14 billion 2025E mid-cycle EBITDA target translates to $9 billion of free cash flow, which at a 10% free cash flow yield implies a >$205 share price."

"The SEC seemed particularly confused as to how CTO could report increasing “cash flow”, while also having their GAAP metric for cash flow going in the wrong direction."

"Operating cash flow also excludes payments made to a customer to obtain a new contract or extend or modify an existing contract. — Dycom 2019 and 2023 Proxy Statements"

"RUN is constantly building PV Systems. There is a matching cost to revenue, or a matching cost to systems, problem. RUN does not match the costs to their system flow."

"However, we view that any flowback would be almost entirely offset by inflows from ASX index replicating funds, superannuation funds and other Australian institutions"

"If the program “If Time Flows Back” were priced at just 2x that paid by the TV stations, DDMC’s gross margin from its TV programs in 2018 would have dropped by 34.7%:"

"A JV structure will provide Macy's with significant financial and operational flexibility, future optionality, and substantial ongoing free cash flow for Macy's OpCo."

"By reclassifying this as an operating expense and cash flow reduction, consistent with industry peers, we estimate WSP's adj. free cash flow conversion is 36% - 41%."

"The poor valuation reflects investor concerns that management and the Board will waste OUTR's substantial (but declining) free cash flows on risky growth initiatives"

"We believe one of the clearest signs of aggressive accounting at Limbach is the disconnect between its steadily rising adjusted earnings and stagnant free cash flow."

"We believe one of the clearest signs of aggressive accounting at Limbach is the disconnect between its steadily rising adjusted earnings and stagnant free cash flow."

"While Spruce Point does not agree with Sunnova's selected peers, none of the peers use Adjusted EBITDA or adjusted operating cash flow as a metric for compensation."

"While Spruce Point does not agree with Sunnova's selected peers, none of the peers use Adjusted EBITDA or adjusted operating cash flow as a metric for compensation."

"We agree with management: “the operational measurement of success will be [Pfizer’s] ability to have a constant flow of breakthrough innovation” — Pfizer Management"

"Autodesk announced an accounting investigation “regarding the Company’s free cash flow and non-GAAP operating margin practices” leading to a delay in its 10K filing"

"Autodesk announced an accounting investigation “regarding the Company’s free cash flow and non-GAAP operating margin practices” leading to a delay in its 10K filing"

"The growth and stability of the Company’s cash flows handily exceeds the companies below in our view, and yet CCI currently trades with among the lowest PEG ratios"

"Something appears incredibly wrong with AMR's cash interest expense, reported annually as a "supplemental disclosure" at the bottom of the Statement of Cash Flows."

"After adjusting the top three coal companies cash flows for tax refunds and DTA expense, we see that AMR's operating cash flow margin is significantly below peers."

"Twist’s only disruption was wrecking the entire industry’s economics and devastating its cash flow in the process, like a suicide bomber blowing off its own limbs."

"Potential for $130mm of cash flow generation (or ~12% of the current equity market value) through working capital improvements at Superstores over the next 2 years"

"Even after having spent over $1B on acquisitions and related costs since FY14, LHCG has shown no material growth in free cash flow per share since the end of FY15."

"Even after having spent over $1B on acquisitions and related costs since FY14, LHCG has shown no material growth in free cash flow per share since the end of FY15."

"We believe Casino flowed this entire amount through EBITDA, thereby making its core France business appear to have a smaller profit decline than actually occurred."

"Spruce Point believes Leidos has not been particularly transparent about what is driving its cash flow, notably its 2020 target increase in Q2 from $1.0 to $1.2bn."

"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"

"While Ferguson has expanded EBITDA margins over the last 5 years, Trian believes there is an opportunity to better leverage growth and improve margin flow through"

"We believe Stryker has been delaying Capex to temporarily boost cash flow, especially as it has to pay down debt related to the Wright Medical Group acquisition."

"Because of its higher ROIC, improved free cash flow profile, and more efficient capital structure, Target Corp’s EPS growth will exceed that of Target Standalone"

"Because of its higher ROIC, improved free cash flow profile, and more efficient capital structure, Target Corp’s EPS growth will exceed that of Target Standalone"

"Whereas on the surface, WSP's 2023 operating cash flow growth was 21%, but adjusted for the interest expense misclassification, it was less spectacular at 7.4%."

"Given the evidence we’ve presented that USCR’s GAAP financials cannot be taken at face value, we believe the best way to value the Company is on Free Cash Flow."

"Our diagnosis is simple: Investors are concerned that TI appears to have deviated from its longstanding commitment to drive growth of free cash flow per share."

"In the absence of explanation, we therefore adjust free cash flow downward by this delta. We also think this is a very concerning sign about Ströer’s accounts."

"I think it's some of it's just timing issues. But I think on average, you're going to see that's how we flow out year-over-year. — CFO Hoffman, Q4'24 Conf Call"

"The answer isn't surprising: Current development economics don't cover the company's cost of capital, so the discounted cash flow spits out a negative number."

"This finding is significant because it implies an even greater delta between the real CapEx expenditure on PP&E, and that derived from the cash flow analysis."

"We ask, why take a less than $250,000 8% interest rate loan from directors when you supposedly have at least 27x in both operating cash flow and cash at hand?"