CapIQ - TEV/EBITDA Incorrect for Contractors (i.e. MasTec, EMCOR )

For TEV/EBITDA, operating leases are capitalized and treated as debt.  Lease expense is added back to EBITDA.  All good so far.  However, short term lease expense is not required to be capitalize per GAAPCapIQ adds this back to EBITDA, but there is no corresponding debt so the TEV/EBITDA calc is too low.  See detail below regarding EME 10K as an example.  I have contacted CapIQ on this (message below), but they don't seem to want to adjust methodology.

EME:

As of 12/31/21, the Company had $150,500M in "short term lease expense".  Per footnotes, these represent "Short-term lease expense includes both leases and rentals with initial terms of one year or less and predominantly represents equipment used on construction projects."

However, CapIQ methodology adds backs total lease expense to EBITDA ($231,359M).  The $150MM short-term lease expense should not be added to EBITDA given there is not a corresponding balance sheet liability.

Page 37 of 10K:

"Operating and Finance Leases – In the normal course of business, we lease real estate, vehicles, and equipment under various arrangements which are classified as either operating or finance leases. Future payments for such leases, excluding leases with initial terms of one year or less, were $317.8 million at December 31, 2021, with $69.0 million payable within the next 12 months."

CapIQ correctly treats the $317.8MM as debt.  However, given the short-term leases are not capitalized, it is inconsistent to add-back $150MM in short term lease expense to EBITDA.  The result of this is the TEV/EBITDA calculation is abnormally low.  I ask that the methodology be revisited.  There should only be add-backs where for every lease expense, there is a corresponding liability treated as debt.

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