Callouts & quotes from 984+ activist slides

"The most likely use for the “diverted” CapEx was that of an accounting gimmick wherein Management needed to balance inflated sales (and therefore not existent cash) with inflated expenses."

"Capital return (cash dividend + buyback) of 40 to 50% of net income is the minimum level that should be targeted immediately for each of Mobis, HMC and Kia to be comparable to global peers"

"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."

"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."

"The lack of deferred revenue and cash transfer reinforces our view that TAL was merely parking GZ 1-1 at Changing Edu with no intention of actually relinquishing control of the business."

"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."

"In a real business earning revenue the old-fashioned way - sell a product or service to a customer who forks over cash - the rev rec policy doesn't typically run the length of the Iliad."

"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."

"CONSOL's falling costs and recently implemented zero-based budgeting should bring cash costs toward $33 per ton next year, allowing it to remain quite profitable during the dislocation."

"Spruce Point observes that MSCI is capitalizing a greater amount of software development costs, which are conveniently added back to Adjusted EBITDA and passed-off as non-cash expenses."

"Synlogic indicates they “used $13.6MM of the pre-paid research and development expenses” in 2020, which we are almost certain was booked by Ginkgo as non-cash non-related-party revenue."

"Think for a moment of the cash portion of Apple's market capitalization as non-productive inventory that's accumulating at an increasing rate. Now consider the cost of that 'inventory'."

"It appears that CPI PG’s debt for equity swap enabled Vitek to pocket approximately ~€118 million in cash. Meanwhile CPI PG apparently assumed over €220 million of Vitek’s liabilities."

"if Genomatica had to pay cash for Ginkgo’s R&D services, they would not do so – all but giving away the heart of the scam, that related-party “customers” are engaging in kabuki theater"

"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."

"As of Q2'09, CXW's interest coverage ratio was 5.4x. Its next debt maturity is not until 2012. Its cash interest expense is less than 6%, and more than 80% of its debt is fixed rate"

"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 aggregate, we believe the exclusion of these uses of cash from the Company's FCF calculation has allowed Limbach to overstate FCF by over $37 million in the last 12 months alone."

"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."

"Investors should be wary when public companies pivot toward highlighting Adjusted EPS as a metric for evaluating its value creation, while modifying language about cash generation."

"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."

"Long-term contracts and strong asset base at FirstGroup US can support higher debt levels at lower cost, providing a cash distribution to FirstGroup immediately prior to spin-off"

"As a result of the small onshore cash balance at year-end 2018, we know that that almost all of the RMB 1.298 billion total cash balance was offshore: namely, RMB 1.160 billion."

"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."

"Based on interviews with its related-party “customers,” we believe that at least half of Ginkgo’s reported revenue is phantom – that is, non-cash and pure accounting hocus-pocus"

"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."

"Adjusting for the combined effects of all of these dynamics, it becomes clear that GY is trading at 8.2x the recurring cash earnings power of its aerospace and defense business"

"Therefore, we conclude that IQ simply made up this non-cash contribution to add RMB 757.75 million of fraudulent deferred revenue which management uses to inflate its revenues."

"our work has corroborated the existence of deferred tax assets (in addition to the inherited carry forward) which should enable ADT to preserve a low cash tax rate for 6+ years"

"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."

"We believe PBH's executive compensation plan does not align management's interests with the Company's top priorities of 1) long-term 2-3% organic growth and 2) cash generation."

"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."

"DuPont transferred >$6bn of shareholder wealth to private equity owners by not running Coatings efficiently and selling the business for cash rather than doing a tax-free spin"

"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."

"DuPont transferred >$6bn of shareholder wealth to private equity owners by not running Coatings efficiently and selling the business for cash rather than doing a tax-free spin"

"DuPont transferred >$6bn of shareholder wealth to private equity owners by not running Coatings efficiently and selling the business for cash rather than doing a tax-free spin"