Callouts & quotes from 216+ activist slides

"BR paid €2.14 (~$2.58 billion) for Itiviti, placing a 10x multiple on its €210 million of sales and increasing debt by $2.1 billion while pushing its leverage ratio from approximately 1.5x to 3.6x."

"FND may potentially be making liberal interpretation of lease commencement dates. The practical implication is that it could delay recognition of the leases and understate FND's true leverage."

"In August 2024, the Board approved two acquisitions for a total consideration of $69 million, taking net leverage to where it was prior to the dilutive equity offering from earlier this year"

"The Company has significantly less financial leverage than its peers allowing it to acquire smaller building products companies that are currently operating at trough levels of profitability"

"We believe this poorly designed compensation package encourages the CEO to take excessive risks such as making acquisitions using significant leverage in the hope of reaching these targets."

"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."

"Verint’s balance sheet, meanwhile – saddled by $650M of net debt at 3x leverage, by our estimates – will likely restrict it from making similarly-sizable investments in cloud capabilities."

"Based on accepted analytical credit adjustments made by Maxar's rating agency Moody's and reasonable year end projections, Maxar will effectively exceed its leverage covenant by year end."

"Coal stocks look cheap, but there’s a reason: the industry is notoriously cyclical with high operating leverage, and not a long-term climate or environmentally friendly source of energy."

"New Prison Realty did not fail because it was a REIT, it failed because: It had too much leverage; It had an overly aggressive development plan; Its tenant, OpCo, was also over-leveraged"

"Leverage partner network (without the SG&A expense) to target SMB's that want a Single Point of Contact (SPOC) for setting up their office environment and PC companies looking to bundle"

"Spruce Point believes FND’s actual debt obligations are $618 million more than is being calculated by analysts and market data providers and its leverage is closer 3.1x and not 2.2x."

"Spruce Point believes FND's actual debt obligations are $618 million more than is being calculated by analysts and market data providers and its leverage is closer 3.1x and not 2.2x."

"All the BPOs servicing Facebook, and I'm not sure but probably at least a dozen, are doing low margins just to have the name, to learn, and leverage that name in their sales efforts."

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

"Improvements to Six Flags parks should be clearly visible next year as capex is spent on high ROI projects and new technology is leveraged to directly enhance the guest experience"

"Recent favorable market trends (ACA) and corporate events (Dealer Services spinoff plus leverage) have driven satisfactory overall results for ADP, but these tailwinds are fading"

"Adjusting for the very real impacts of the capitalized software costs and the TRA liability, PowerSchool’s adjusted Net Leverage Ratio increases from 3.2x to an astonishing 5.8x."

"PSH’s long-term debt management strategy is focused on managing leverage over time by increasing NAV through strong performance and laddering its maturities through new issuances"

"Our view is clear: Stryker does not appear committed to advancing its technology infrastructure to deliver the organizational efficiencies and earnings leverage for investors."

"After adjusting Olam's EBITDA to remove non-cash accounting gains, it is showing that Olam is currently leveraged at 9.3x gross debt to LTM EBITDA, and 1.6x interest coverage."

"MGPI's valuation is rich and its financial condition is fragile with no cash and significant leverage on earnings and EBITDA expectations that are likely to sorely disappoint"

"TWC could potentially maintain its investment grade rating with a target leverage ratio of up to 4.75x debt/OIBDA; at 4.75x - 6.0x TWC would be likely rated Ba1/BB+ or lower"

"TSMC will keep a minimal share for Lasertec...we believe [Intel] purchased Lasertec because they want to have some leverage power with KLA because KLA’s price is even higher"

"At a $36 price, Borders would trade at 7.5x '08E EBITDAR, only a slight premium to 6.8x, the average of total leverage levels used in several recent retail LBO transactions"

"We believe CTC will be unable to maintain its current level of capital return given its current leverage and need to delever in order to maintain its current credit rating"

"TWX appears to have a more conservative financial policy and leverage targets than many of its competitors in the media sector (both diversified media and cable credits)."

"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."

"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."

"PSH’s long-term debt management strategy is to manage leverage over time by increasing NAV through strong performance and laddering its maturities through new issuances"

"PSH's long-term debt management strategy is to manage leverage over time by increasing NAV through strong performance and laddering its maturities through new issuances"

"The net effect of these two impacts brings PowerSchool's adjusted leverage to 5.8x – a standout in the ed-tech industry where many companies have a net cash position."

"TIP REIT is better able to access capital for future land acquisitions than Target today, given TIP REIT's immense security, stability, and unleveraged balance sheet"

"Management says that EPS can increase margins by 400 bps in 3-to-5 years. Given the volume leverage in this business, this is an extraordinarily undemanding target"

"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"

"Zebra's leverage is rising as it has made expensive bets on acquisitions which we will demonstrate are of low quality and are failing to meet lofty expectations."

"Less than 2 weeks apart, Management showed two different methodologies to showcase the best version of "operating leverage" and "margin improvement" to investors"

"TWC, as a standalone, public company should seek to increase leverage on its balance sheet and should adopt a policy of no dividends for the intermediate term."

"Uber is a high-quality business which is positioned for rapid earnings growth over the medium-term based on strong revenue growth and robust operating leverage"

"Uber is a high-quality business which is positioned for rapid earnings growth over the medium-term based on strong revenue growth and robust operating leverage"

"The Company's actual net leverage ratio ended up significantly higher than what had been communicated to shareholders at the time of the Rockwood transaction."

"Based on cumulative income inflation estimates, we adjust Moody's key leverage ratio, Tangible Common Equity to Tangible Managed Assets, from 36.7% to 29.4%."

"Exhibit 3.38 provides a summary of the credit of Publishing with leverage of 6.0x total debt/OIBDA (which assumes a non-investment grade rating of Ba1/BB+)."

"The chart above shows that SGH has begun exhibiting negative operating leverage – its operating expenses remain stable even as revenue declines rapidly."

"Conservatively assuming Valeant never makes another acquisition, has modest organic growth and reduces leverage significantly, the stock is inexpensive"

"We believe BR will be in violation of its Leverage Ratio covenant at 3.5x but has avoided tripping it through an aggressive cost capitalization policy."

"Conservatively assuming Valeant never makes another acquisition, has modest organic growth and reduces leverage significantly, the stock is inexpensive"

"Management expects this $300mm cost reduction program and continued operating leverage to increase operating margins from 25% in 2014 to ~34% by 2017"

"GoDaddy expects to generate 7% revenue growth and 28% Adj. EBITDA margins in Q4'23E as growth headwinds abate and operating leverage improves margins"

"GoDaddy expects to generate 7% revenue growth and 28% Adj. EBITDA margins in Q4'23E as growth headwinds abate and operating leverage improves margins"

"Management expects this $300mm cost reduction program and continued operating leverage to increase operating margins from 25% in 2014 to ~34% by 2017"

"The Transaction Would Enable HHH to Leverage Pershing Square’s Deal Sourcing and Execution Capabilities in the Private and Controlled Company Markets"

"Spruce Point sees these deals as a sign that Amazon and Walmart used their leverage as major customers to secure advantageous terms from a producer"

"We believe deconsolidating both NetCo and Sparkle could allow TIM to maximise the value of its assets as well as bring leverage in line with peers"

"As you see in the chart below, since IPO, Lamb Weston's sales have roughly doubled, yet the Company has generated little to no operating leverage."

"The low operating leverage makes the EBIT ramp to 13% by the end of the decade plausible. But, the proposed ramp to 30% by the end of 2030 is not."

"After this transaction, Pro Forma McDonald's would be leveraged approximately 3.5x Total Debt/EBITDA or at a 25% Debt to Enterprise Value ratio."

"With GNYHA responsible for 10% of total Premier revenue, Spruce Point believes that GNYHA has significant negotiating leverage against Premier."

"As it is conceivably in Advent's best interest to walk from the deal, we believe that Advent should use this as leverage renegotiate the price."

"The HKMA’s 2008/2009 intervention, in response to over HKD $600bn of money flows, greatly increased the size and leverage of its balance sheet"