Well...
Earnings higher than dividends is a red flag but not necessarily a black flag depending on the nature of depreciation versus real asset values and other factors. But a clear red flag. 
I agree with those who would calculate free cash flow as operating cash flow (I use before changes in receivables / payables which tend to be lumpy) minus maintenance cap ex. I would not deduct growth cap ex, so there I agree with the company. But why would depreciation be higher than maintenance cap ex (if that is the case)? Basically, why is free cash flow coming out higher than GAAP earnings?

See my full article on understanding cash flow.

http://www.investorsfriend.com/cashflow-definitions/