{
  "docId": "019dd923-622c-750b-8b98-694e98f1b555",
  "docSlug": "e144e98ebdb8",
  "documentTitle": "U.S. Concrete Inc (USCR)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2018-05-17 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 48,
  "pageCount": 48,
  "prevPage": 47,
  "nextPage": null,
  "slideType": "valuation_table",
  "function": "show_valuation_bridge",
  "density": "dense",
  "nDataPoints": 32,
  "notes": "Includes detailed footnotes explaining the overcapitalization adjustment methodology.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "valuation_table",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-694e98f1b555/48",
  "deckHref": "/decks/019dd923-622c-750b-8b98-694e98f1b555",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-694e98f1b555.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-694e98f1b555#slide-48",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Given the evidence we’ve presented that USCR’s GAAP financials cannot be taken at face value, we believe the best way to value the Company is on Free Cash Flow.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-5371-75ed-83d8-4d74142305e4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Price Target: $6-$25",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-5371-75ed-83d8-516c21b54b6f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.9,
        "x": 0.05,
        "y": 0.15
      },
      "kind": "paragraph",
      "text": "Given the evidence we’ve presented that USCR’s GAAP financials cannot be taken at face value, we believe the best way to value the Company is on Free Cash Flow. We also attempt to adjust USCR’s book value for an estimated $60 to $85m of overcapitalization in vehicle costs implied from our detailed peer review.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "06e83e6c-293e-450d-a0e1-2a54bf43e12e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.9,
        "x": 0.05,
        "y": 0.85
      },
      "kind": "source-note",
      "text": "(1) Downside based on $61.20/sh (2) USCR's normalized effective tax rate per the company is 26% (3) We use two different peer analysis: a) We use Summit Materials gross vehicle PP&E of $47k multiplied by USCR's 2,770 vehicles= $131m estimated vehicle PP&E. Compare with current vehicle PP&E of $216m implies ~$85m of overcapitalization b) Peers use an average of 2% of gross PP&E for capitalized leases which implies $17m of normalized leases for USCR. Compare with USCR's gross capital leases of $77m as of 12/31/17 which suggests approximately $60m of overcapitalization",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "dfefcf4d-47ed-4fdc-9207-ef94ba35ea4f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.55,
        "w": 0.9,
        "x": 0.05,
        "y": 0.28
      },
      "kind": "table",
      "text": "Valuation table showing FCF and P/B multiples, adjustments, and resulting price targets.",
      "attrs": null,
      "subkind": "valuation",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e4d8a3d2-9734-4f72-87f2-eb1490fb4586",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.65,
        "x": 0.3,
        "y": 0.05
      },
      "kind": "title",
      "text": "Spruce Point Estimates 60% – 90% Downside",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "5ce3323a-1e48-4cdd-9d86-cbb91d30dc98",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 48,
      "from": 41,
      "beatId": "06881d26-3572-4726-8277-b309800ce984",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Victory",
      "beatSlug": null,
      "evidence": "The document concludes with a clear valuation and price target",
      "position": 4,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [
    {
      "to": 48,
      "from": 41,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "562a7431-98ed-4d59-81b0-30be0e7693ea",
      "evidence": "The document concludes with a clear valuation and price target, emphasizing the potential downside risk",
      "position": 1,
      "objective": "Highlight the cost of inaction for investors",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.7,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}