{
  "docId": "019dd923-622c-750b-8b95-5cfe04a0a1da",
  "docSlug": "82bd5012717e",
  "documentTitle": "Parkland Corporation (PKI)",
  "authorId": "27_Engine_Capital",
  "authorName": "Arnaud Ajdler",
  "documentKindSlug": "shareholder-letter",
  "documentKindLabel": "Shareholder letter",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2024-04-17 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 3,
  "pageCount": 6,
  "prevPage": 2,
  "nextPage": 4,
  "slideType": "peer_benchmark",
  "function": "compare_peers",
  "density": "dense",
  "nDataPoints": 6,
  "notes": "The slide argues that Parkland's SG&A growth outpaces its GP growth, unlike its peers, suggesting a $275M cost opportunity.",
  "elementsJson": [
    "paragraph",
    "headline_text",
    "bar_chart_grouped",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b95-5cfe04a0a1da/3",
  "deckHref": "/decks/019dd923-622c-750b-8b95-5cfe04a0a1da",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b95-5cfe04a0a1da.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b95-5cfe04a0a1da#slide-3",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "The Board and management have failed to optimize Parkland's profitability by allowing its expenses to grow faster than its gross profit from 2019 to 2023, which is the opposite of what peer companies did.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-14d8-75c0-8c91-cad55c95366b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.27,
        "w": 0.77,
        "x": 0.12,
        "y": 0.44
      },
      "kind": "chart",
      "text": "Comparison of GP Growth vs SG&A Growth for Murphy USA, Alimentation Couche-Tard, and Parkland",
      "attrs": null,
      "subkind": "bar-grouped",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ceec380e-90a3-48b4-8d76-04890e326c3a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "GP/SG&A growth ratio: 0.9x",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-14d8-75c0-8c91-cef2c2df621c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.78,
        "x": 0.11,
        "y": 0.74
      },
      "kind": "paragraph",
      "text": "If Parkland had grown its SG&A in line with its peers, Parkland's SG&A would be approximately $275 million lower than it currently is.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "126b41b0-3021-46ac-a816-a1f616a5ffd7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.07,
        "w": 0.78,
        "x": 0.11,
        "y": 0.35
      },
      "kind": "paragraph",
      "text": "The Board and management have failed to optimize Parkland's profitability by allowing its expenses to grow faster than its gross profit from 2019 to 2023...",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a9727919-adfe-4740-9493-53ccd57fca8a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.78,
        "x": 0.11,
        "y": 0.89
      },
      "kind": "source-note",
      "text": "5 Ratio measures 2019 to 2022 Gross Profit (“GP”) growth divided by 2019 to 2022 SG&A growth. 6 $275 million figure calculated by assuming Parkland would have achieved a GP growth / SG&A growth ratio of 1.4x, the midpoint of MUSA and ATD’s ratios.",
      "attrs": {
        "numbered": true
      },
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9e1aa106-859f-4b6c-9bca-602002e5eac8",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.48,
        "x": 0.26,
        "y": 0.23
      },
      "kind": "title",
      "text": "Parkland Has Not Delivered Value as a Standalone Company",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b5a2c808-caed-4103-9f85-c268ae526182",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "comparison_frame",
      "slug": null,
      "matchId": "41b78de6-68d6-446a-a937-c5039f5c6323",
      "evidence": "Comparing Parkland's operational metrics against industry peers to highlight underperformance.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 3,
      "from": 3,
      "beatId": "fd817d98-c7d7-45aa-8059-319c75133690",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Problem (Identify pain)",
      "beatSlug": "problem-agitate-solution-problem-identify-pain",
      "evidence": "Parkland Has Not Delivered Value as a Standalone Company",
      "position": 0,
      "confidence": 0.8,
      "parentBeatName": "Complication",
      "parentBeatSlug": "complication"
    }
  ],
  "loops": [
    {
      "to": 5,
      "from": 3,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "a8e53caf-91d3-4102-982d-09ef3a449a1a",
      "evidence": "The document implies that not taking action will result in continued underperformance",
      "position": 0,
      "objective": "What is the cost of not taking action?",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.6,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}