{
  "docId": "019dd923-622c-750b-8b98-8243e1c3d26d",
  "docSlug": "be8f2b4fd241",
  "documentTitle": "Weis Markets, Inc. (WMK)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2018-09-05 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 32,
  "pageCount": 46,
  "prevPage": 31,
  "nextPage": 33,
  "slideType": "valuation_table",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 24,
  "notes": "The slide uses a 'before-after' logic to expose accounting manipulation.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "data_table"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-8243e1c3d26d/32",
  "deckHref": "/decks/019dd923-622c-750b-8b98-8243e1c3d26d",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-8243e1c3d26d.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-8243e1c3d26d#slide-32",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Spruce Point believes part of what has driven Weis' share price is the belief that its operating cash flow grew 550% YoY in Q1'18. However, by pro forma adjusting results for its aggressive accounting change to accelerate accounts receivables as cash, and a one-time incentive payment (cash flow drag) from Q1'17, we estimate the growth rate was 74%.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-2b61-7647-86fe-a86e3fbf9a7d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "YoY cash flow growth: 74%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-2b61-7647-86fe-ae4b364bed58",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.91,
        "x": 0.05,
        "y": 0.17
      },
      "kind": "paragraph",
      "text": "Spruce Point believes part of what has driven Weis' share price is the belief that its operating cash flow grew 550% YoY in Q1'18. However, by pro forma adjusting results for its aggressive accounting change to accelerate accounts receivables as cash, and a one-time incentive payment (cash flow drag) from Q1'17, we estimate the growth rate was 74%. Furthermore, we believe the Q1'17 cash flow was artificially depressed by three acquisitions made in Q3/Q4 2016. We expect the cash flow comparisons going forward will be increasingly difficult to show growth.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c211c334-966b-410d-aaa7-6c6c08efe060",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.55,
        "w": 0.91,
        "x": 0.05,
        "y": 0.35
      },
      "kind": "table",
      "text": "Pro Forma Q1'18 Cash Flow Analysis Ex: Accounting Change",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f4a98dcb-0b22-4b69-9b1b-477937753437",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.65,
        "x": 0.31,
        "y": 0.03
      },
      "kind": "title",
      "text": "Q1'18 Pro Forma Cash Flow Analysis: Not As Impressive As Advertised",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ca0b48f0-7ce4-4775-bf19-22da0d22a0af",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "596cdd43-4dc4-46af-85dd-3b0226ef6b90",
      "evidence": "The slide explicitly identifies 'aggressive accounting change' to inflate cash flow metrics.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 34,
      "from": 13,
      "beatId": "a815b673-890e-4977-ae3e-25e00d8b8878",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Expose contradiction",
      "beatSlug": null,
      "evidence": "The deck exposes various contradictions and issues with Weis Markets' reporting and operations.",
      "position": 3,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    },
    {
      "to": 33,
      "from": 24,
      "beatId": "595561db-3641-49eb-ac77-081acbd6d408",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Preempt rebuttal",
      "beatSlug": null,
      "evidence": "The deck preempts potential rebuttals by addressing potential counterarguments and presenting additional evidence.",
      "position": 4,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}