{ "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": 60, "pageCount": 68, "prevPage": 59, "nextPage": 61, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 20, "notes": "The slide uses a Q&A excerpt to frame the company's strategic review as a sign of failure, leading to the impairment thesis.", "elementsJson": [ "headline_text", "callout_box", "quote_block", "data_table", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b98-7af979993e60/60", "deckHref": "/decks/019dd923-622c-750b-8b98-7af979993e60", "deckJsonHref": "/decks/019dd923-622c-750b-8b98-7af979993e60.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-7af979993e60#slide-60", "components": [ { "bbox": null, "kind": "callout", "text": "Maxar’s balance sheet is inflated with goodwill and overcapitalized intangible assets. We expect it will write down the value of these inflated assets by at least $2.4 billion to fair value after its evaluation of strategic alternatives results in no means to maximize value.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-64d2-7657-bbeb-39b3c029a1fa", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "Goodwill Impairment: $2.4 billion", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd953-64d2-7657-bbeb-42008cc3d196", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.45, "x": 0.05, "y": 0.3 }, "kind": "paragraph", "text": "Q&A From The Q2'2018 Conference Call Suggests A Bleak Outlook:", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "39153e5a-472c-4726-abe9-3af35bac57a4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.9, "x": 0.05, "y": 0.18 }, "kind": "paragraph", "text": "Maxar's balance sheet is inflated with goodwill and overcapitalized intangible assets. We expect it will write down the value of these inflated assets by at least $2.4 billion to fair value after its evaluation of strategic alternatives results in no means to maximize value.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "53f0a59e-d80b-4565-abbe-793962f2907a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.35 }, "kind": "quote", "text": ": Okay. And on the GEO side, you talked about a strategic alternative process. How should we think about the timing for that, Howard? : It's actively in process now. It has been for a while. ... We do not believe at this point we will see much in the way of a market recovery for GEO.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "444358b2-e825-4fad-a4f7-fc1e256a09da", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": ": Okay. And on the GEO side, you talked about a strategic alternative process. How should we think about the timing for that, Howard? : It's actively in process now. It has been for a while. I won't predict again and we haven't made any determination what the final outcome will be but it's fair to say we're looking at a range of options, all of it trying to accomplish one thing: position Maxar for growth and value creation going forward. We do not believe at this point we will see much in the way of a market recovery for GEO. So at a minimum, we are downsizing, continuing to cut staff to align with the workload, cutting our footprint, making available — Q2'2018 Conference Call", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-64d2-7657-bbeb-3f01936e30ff", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.8, "x": 0.05, "y": 0.95 }, "kind": "source-note", "text": "1) $1.1 billion of intangible asset value related to M&A accounting (converted at C$0.80) and $200m estimated MDA overcapitalization", "attrs": { "numbered": true }, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a70c42a2-3aa9-47bf-be7f-9dd755841348", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.9, "x": 0.05, "y": 0.55 }, "kind": "table", "text": "Estimated Goodwill Impairment table showing Pre-Acquisition, Current, Adjustments, and Pro Forma values for Goodwill, Intangibles, and Total Assets.", "attrs": null, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "93a77807-d598-483f-9ef8-01d8a1a8c054", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.38, "x": 0.315, "y": 0.05 }, "kind": "title", "text": "Asset Impairment Likely", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "93e508b5-a84c-42aa-8ba6-08cb2419caa1", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Thesis archetype", "slug": "thesis-archetype", "agent": null, "layer": "slide", "matchId": "024715f6-c8af-45a6-9a6c-0d4297f4217b", "evidence": "The slide appears to be part of a thesis presentation, specifically an activist or investment case.", "confidence": 0.7 } ], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "2f7b1647-ca34-49f1-af15-546788cfa9dc", "evidence": "The slide explicitly argues that the balance sheet is 'inflated' and 'overcapitalized', implying accounting manipulation or failure to recognize impairment.", "confidence": 0.9 } ], "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": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }