{
  "docId": "019dd923-622b-71dc-a6dc-022165a95b3b",
  "docSlug": "b11f53a9759d",
  "documentTitle": "ADT Corporation (ADT)",
  "authorId": "11_Corvex",
  "authorName": "Keith Meister",
  "documentKindSlug": "conference-presentation",
  "documentKindLabel": "Conference presentation",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2012-10-24 00:00:00",
  "orientation": "portrait",
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  "pageNumber": 20,
  "pageCount": 50,
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  "density": "overcrowded",
  "nDataPoints": 100,
  "notes": "The slide uses a red dashed box to highlight the specific SG&A metrics being compared across companies.",
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  "components": [
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      "bbox": null,
      "kind": "callout",
      "text": "Based on peers, we conclude that there are potentially material opportunities to improve ADT's cost structure as a standalone public company, enhancing both EBITDA margins and free cash flow",
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      "kind": "list",
      "text": "After normalizing for estimated SAC expensed in SG&A, we estimate ADT's pre-SAC SG&A represents over 25% of revenues. Based on peers, we conclude that there are potentially material opportunities to improve ADT's cost structure as a standalone public company, enhancing both EBITDA margins and free cash flow",
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    {
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      "kind": "metric",
      "text": "Adjusted SG&A as % of Revenue: 25%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
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      "kind": "source-note",
      "text": "Note: Protection One is only ~30% residential, and small business customers typically have higher churn and higher costs.",
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      "kind": "table",
      "text": "Financial comparison table of ADT, Monitronics, Broadview, and Protection One across 2007-2011 metrics including EBITDA, SG&A, and Advertising.",
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      "kind": "title",
      "text": "Cost Structure Opportunity",
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      "to": 25,
      "from": 5,
      "name": "Cost Of Inaction",
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      "evidence": "Slides 5 and 25 discuss the inefficiencies of the current capital structure and the benefits of optimization.",
      "position": 0,
      "objective": "Highlight the cost of maintaining the current capital structure and the benefits of change.",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
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      "description": "Quantify what happens if the audience does nothing"
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