{
  "docId": "019dd923-622c-750b-8b98-7af979993e60",
  "docSlug": "42a707289390",
  "documentTitle": "Maxar Technologies (MAXR)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2018-08-07 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 45,
  "pageCount": 68,
  "prevPage": 44,
  "nextPage": 46,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 14,
  "notes": "Uses a 'before-after' style logic to contrast management's stated goals with the actual cash flow math.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "quote_block",
    "kpi_table"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-7af979993e60/45",
  "deckHref": "/decks/019dd923-622c-750b-8b98-7af979993e60",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-7af979993e60.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-7af979993e60#slide-45",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Maxar should immediately cut or eliminate the dividend and direct capital towards debt reduction.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-fb96-7553-b1d9-e9c02b3a2059",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Cash Available For Optional Debt Repayment: ($93.0 - $43.0)",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd952-fb96-7553-b1d9-f0f77fe7d7b7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.9,
        "x": 0.05,
        "y": 0.17
      },
      "kind": "paragraph",
      "text": "Maxar is claiming it will delever and drive higher cash flow, but the numbers tell a different story. In addition to its large interest expense and capex burden, Maxar is committed to a $68m/yr dividend and must pay down $25m/yr of its Term Loan B. This means that it has absolutely no excess cash flow to optionally pay down debt. Maxar should immediately cut or eliminate the dividend and direct capital towards debt reduction.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1ebe8d48-6124-4096-b893-fc18ee7a3b86",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.9,
        "x": 0.05,
        "y": 0.28
      },
      "kind": "quote",
      "text": "CEO Lance Q1'18 Conference Call: \"We continue—we continue to drive both of the levers that create de-leveraging. One is higher EBITDA, on the denominator, and the other is driving higher free cash flow. We talked at Investor Day and reiterated today, activities that are underway, including looking at various assets on our balance sheet that can be monetized and turned into cash, whether that's the securitization of additional orbitals or other opportunities. So we're working all of those. And our goal, as Anil said, is very clear: to achieve 3.8 times leverage by the end of 2018\"",
      "attrs": null,
      "subkind": "pull-quote",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b558450e-1575-46fb-8bb0-6259e2a033ac",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "We continue—we continue to drive both of the levers that create de-leveraging. One is higher EBITDA, on the denominator, and the other is driving higher free cash flow. We talked at Investor Day and reiterated today, activities that are underway, including looking at various assets on our balance sheet that can be monetized and turned into cash, whether that’s the securitization of additional orbitals or other opportunities. So we’re working all of those. And our goal, as Anil said, is very clear: to achieve 3.8 times leverage by the end of 2018 — CEO Lance Q1’18 Conference Call",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd952-fb96-7553-b1d9-ec6c0d1b1397",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.45,
        "w": 0.9,
        "x": 0.05,
        "y": 0.45
      },
      "kind": "table",
      "text": "Cash flow build-up table showing 2018E guidance, interest, capex, dividend, and mandatory repayments leading to negative optional debt repayment capacity.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "eb3f923f-97de-44e4-9a45-2f19480c4d70",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.45,
        "x": 0.32,
        "y": 0.05
      },
      "kind": "title",
      "text": "But Wait Cash Flow Gets Worse",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "08977dae-901d-4668-b1c5-201403cec2c7",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "ceo-quote-contradiction",
      "slug": null,
      "matchId": "0e3cce3f-c0e0-4e4a-b80a-f7939678b86e",
      "evidence": "Contrasts CEO quote about deleveraging with a table showing negative cash flow for debt repayment.",
      "confidence": 1
    }
  ],
  "arcBeats": [
    {
      "to": 68,
      "from": 8,
      "beatId": "fbcb65b0-835b-4203-8f3f-dfc5ef336a81",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Contradictions and Criticisms",
      "beatSlug": null,
      "evidence": "The document presents various criticisms and contradictions of Maxar Technologies' financials, business model, and management practices.",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    },
    {
      "to": 67,
      "from": 22,
      "beatId": "fde132c5-500c-4907-a1f6-aebc826d100f",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Preemptive Rebuttals",
      "beatSlug": null,
      "evidence": "The document anticipates and rebuts potential counterarguments to its claims.",
      "position": 3,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [
    {
      "to": 45,
      "from": 40,
      "name": "Mece Breakdown",
      "slug": "40-mece-breakdown",
      "bestFor": "Problem structuring, ensuring completeness, strategic analysis",
      "matchId": "01ce5357-e842-4a59-ae7c-acd413c9f095",
      "evidence": "The document presents a detailed breakdown of Maxar Technologies' financials and business model.",
      "position": 3,
      "objective": "Break down Maxar Technologies' financials and business model",
      "structure": "The Whole -> Category A (distinct) -> Category B (distinct) -> Category C (distinct) -> Complete Coverage",
      "confidence": 0.7,
      "description": "Divide a complex topic into mutually exclusive, collectively exhaustive categories"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}