{ "docId": "019dd923-622c-750b-8b95-62b961c62837", "docSlug": "e0672912c695", "documentTitle": "Parkland Corporation (PKI)", "authorId": "27_Engine_Capital", "authorName": "Arnaud Ajdler", "documentKindSlug": "shareholder-letter", "documentKindLabel": "Shareholder letter", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2024-05-07 00:00:00", "orientation": "portrait", "aspectRatio": 0.77272725, "pageNumber": 2, "pageCount": 2, "prevPage": 1, "nextPage": null, "slideType": "closing_ask", "function": "state_demand", "density": "overcrowded", "nDataPoints": 2, "notes": "This is the second page of a shareholder letter from Engine Capital to Parkland.", "elementsJson": [ "paragraph" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b95-62b961c62837/2", "deckHref": "/decks/019dd923-622c-750b-8b95-62b961c62837", "deckJsonHref": "/decks/019dd923-622c-750b-8b95-62b961c62837.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b95-62b961c62837#slide-2", "components": [ { "bbox": null, "kind": "callout", "text": "Frankly, we would be disappointed if every single independent director didn't buy at least 5,000 shares.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-5370-75b3-9c6a-62e5b8c46577", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.15, "x": 0.11, "y": 0.55 }, "kind": "paragraph", "text": "Arnaud Ajdler\nManaging Partner", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1d122a41-53d5-476d-879c-ca0dead8b0fc", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.08, "x": 0.11, "y": 0.5 }, "kind": "paragraph", "text": "Sincerely,", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4bc022b6-d4e7-402e-9974-304e643fbb32", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.11, "w": 0.78, "x": 0.11, "y": 0.16 }, "kind": "paragraph", "text": "We assume that Parkland directors have the means to make a meaningful investment in the Company and further align themselves with shareholders. Frankly, we would be disappointed if every single independent director didn't buy at least 5,000 shares. Buying shares would send a positive message to investors and further align board members with shareholders. We believe it would also be a very profitable investment for you. This letter is also timely since the trading window has just opened as evidenced by Ms. Duke's recent purchase.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "539a2cef-8f34-437a-9441-e6d127d39726", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.78, "x": 0.11, "y": 0.09 }, "kind": "paragraph", "text": "capital to buying shares is vastly superior to when one is just being issued shares by the Company. Institutional shareholders also differentiate between shares granted to the directors and shares purchased by a director with his or her own capital.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "987c2029-de2e-4cb5-a22c-c7fed3633ed9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.78, "x": 0.11, "y": 0.45 }, "kind": "paragraph", "text": "We would welcome the opportunity to meet with members of the Board to discuss the matters set forth in this letter or discuss other ways to create value at Parkland.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "af894cdf-c17e-44ce-addd-45b265afc299", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.78, "x": 0.11, "y": 0.29 }, "kind": "paragraph", "text": "Parkland's shares have come down following the release of its Q1 results. Engine took this opportunity to purchase another 250,000 shares last Friday, May 3, 2024. We are putting our money where our mouth is. It is time for the Board to do the same. Two of the Company's largest shareholders have called for the Company to explore strategic alternatives. The Board has so far opposed starting a process to maximize value despite the stock languishing for years, presumably because it believes more value can be created through the operating plan. In our opinion, it's inconsistent for board members to oppose a sale process on that basis, but at the same time be unwilling to purchase a meaningful amount of stock personally.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fce958f7-4096-4c28-a5d4-2db65ab2c620", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.1, "x": 0.45, "y": 0.55 }, "kind": "paragraph", "text": "Brad Favreau\nPartner", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ff655eb0-c806-466b-8652-e48c4bd79382", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "commitment-consistency", "slug": null, "matchId": "6f14b654-08ba-4965-8331-8588fdce8f19", "evidence": "The letter argues that board members should purchase shares to align with their stated belief in the company's operating plan.", "confidence": 0.8 } ], "arcBeats": [ { "to": 2, "from": 2, "beatId": "55bbe40c-604c-4b8e-8f71-e0f54aad4cf5", "arcName": "AIDA", "arcSlug": "aida", "beatName": "Interest", "beatSlug": "aida-interest", "evidence": "The second slide 'Letter to Parkland Corporation Board' maintains interest by clearly stating the purpose.", "position": 1, "confidence": 0.8, "parentBeatName": "Complication", "parentBeatSlug": "complication" } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }