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  "docSlug": "68bd393edc75",
  "documentTitle": "Kratos Defense & Security Solutions (KTOS)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2018-03-16 00:00:00",
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  "pageNumber": 10,
  "pageCount": 49,
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  "slideType": "valuation_table",
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  "density": "dense",
  "nDataPoints": 45,
  "notes": "The slide uses a mix of capital structure data and valuation multiples to argue that the company is overvalued.",
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      "text": "Kratos is trading at peak valuation on the inflated belief that “this time is different” and that its aspirations in the heavily promoted unmanned systems (aka: Drones) will drive nearly $800m of revenues and near record 10% EBITDA margins. (1) We believe investors should brace for disappointment, a cold hard fact of management’s repeated ability to over-promise and under-deliver.",
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      "kind": "callout",
      "text": "Kratos is trading at peak valuation on the inflated belief that “this time is different” and that its aspirations in the heavily promoted unmanned systems (aka: Drones) will drive nearly $800m of revenues and near record 10% EBITDA margins.",
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      "text": "Enterprise Value: $1,188.2",
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      "text": "Source: Company filings. Pro forma for $300m bond issue. Figures adjusted for sale of PSS segment and reflect incremental cash proceeds of $70m. 1) Pre-sale of PSS segment. 2) Kratos does not depreciate its $127m of “corporate activities” segment asset. We model 2.5% annual depreciation expense",
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      "text": "KTOS's Capital Structure and Valuation",
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