Callouts & quotes from 575+ activist slides

"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."

"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."

"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."

"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?"

"BN’s valuation of ~15x earnings is a significant discount to intrinsic value and comparable U.S. peers, despite similar cash flow profile (e.g., KKR and APO)"

"BKD must act now with 1) major initiatives complete, 2) IRS REIT moratorium lifted and 3) average HC REIT forward cash flow multiple trading at 7.4x premium"

"Attributable free cash flow per share deducts the minority interest free cash flow pertaining to the 20% stake of McOpCo’s no longer owned by McDonald’s."

"Trian believes that Lazard's strong free cash flow and limited need for capital investment should allow the company to decrease its share count each year"

"Globant has yet to illustrate that its operations can generate any meaningful free cash flow, but Globant is generating cash by trading stocks and bonds"

"Was Deloitte aware that TAL's overly simplistic preparation of cash flows does not conform with U.S. GAAP requirements for foreign currency translation?"

"Although Prestige Brands may appear cheap vs its peers on a P/E and EBITDA multiple basis, PBH trades at a premium to its operating cash flow and sales."

"Sunnova is essentially a financial engineered platform that benefits debt holders and tax equity investors who receive all of any generated cash flows."

"Sunnova is essentially a financial engineered platform that benefits debt holders and tax equity investors who receive all of any generated cash flows."

"Ownership of Aerojet’s stock by long-term fundamental owners has been on the decline, while passive index buyers chasing ETF flows appear to be adding."

"Spruce Point finds alarming evidence that WTRG's operating cash flow margin is in continued decline - having been 48.2% in 2017 to just 23.9% in 2022."

"WTRG's Ability To Cover Its Divdend Has Been Declining As It Scales NOT Improving. Free Cash Flow Available For Dividends Started Worsening In FY 2018"

"As low-cost workflow options grow increasingly diverse and easier-to-use, we expect more and more Align doctors to explore alternatives to Invisalign."

"Despite the attractive cash flow characteristics of OUTR’s core Redbox and Coinstar operations, shareholders have NOTHING to show for their investment"

"By removing the cash outflows from acquiring licensed copyrights from OCF and recording it under cash flows from investing, IQ’s OCF appears positive."

"A company has positive earnings and positive cash flow just went bankrupt. What can cause this to happen? We'll leave this one as food for thought :)"

"At that moment, we came to understand the only purpose that the so-called fab serves: as a storage facility for overflowing finished goods inventory."

"Once the Company has committed to returning the majority of its free cash flow in dividends every year, the stock’s valuation should correct quickly"

"Investigators heard from competitors that Broad Ocean has failed to sell those 400 motors and this has become a huge drag on the company's cash flow"

"Ancora estimates the combined company will have improved EBITDA margins and free cash flow generation which should lead to a re-rating in valuation."

"GFI successfully recruited several top WFG producers, including Greg Kapp, the 23rd top cash flowing WFG leader in 2021, now GFI's Agency Chairman."

"Based on the warrant vesting formula, we can determine that total payments by Amazon to Kornit in 2018 were 105% of total 2018 operating cash flow."

"Spruce Point finds that Bunge’s reporting of cash flow, capital expenditures, and adjustments to be aggressive and / or irregular for its industry."

"We do not believe that this is a healthy, sustainable source of cash flow for a company experiencing stagnant revenue growth and financial strain."

"Teck doesn't have any debt coming due until 2030. Management says that once QB2 comes online, the free cash flow will be returned to shareholders."

"Generac's goals are heavily tied to EBITDA over actual cash flow. In fact, even the 25% “Individual Performance Goals” references back to EBITDA."

"Penalty #2: Hess given lower multiple than peers due in part to higher capital intensity and cash flow gap (partially caused by Bakken build-out)"

"A policy of consistent 14% discounted off-market share buybacks would be the most efficient mechanism to release excess cash flow to shareholders"