{
  "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": 37,
  "pageCount": 46,
  "prevPage": 36,
  "nextPage": 38,
  "slideType": "peer_benchmark",
  "function": "compare_peers",
  "density": "dense",
  "nDataPoints": 36,
  "notes": "The slide critiques the company's non-standard MROIC calculation (20x rent multiple) and uses it to demonstrate poor relative performance.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "bullet_list",
    "comparison_table",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-8243e1c3d26d/37",
  "deckHref": "/decks/019dd923-622c-750b-8b98-8243e1c3d26d",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-8243e1c3d26d.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-8243e1c3d26d#slide-37",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Weis horrible performance was matched only by Supervalu, which faced a proxy battle by frustrated investors",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-2b61-7647-86ff-8eb154f45246",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.9,
        "x": 0.05,
        "y": 0.27
      },
      "kind": "list",
      "text": "Weis horribly missed its target MROIC in 2017 by 2%\n- The threshold, target and maximum hurdles for MROIC in fiscal 2017 were equal to a result of 9.29%, 9.48% and 9.96%, respectively. Yet, recall the compensation committee gave executives a base salary pay raise saying performance was great\n- Weis terrible performance was matched only by Supervalu, which faced a proxy battle by frustrated investors (2)",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "44548328-bfea-4771-9a0a-805cb1fe90c4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "MROIC: 7.2%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-2b61-7647-86ff-92b1c8b9b53c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.9,
        "x": 0.05,
        "y": 0.13
      },
      "kind": "paragraph",
      "text": "Weis' executives have a cash incentive plan linked to \"Modified Return on Invested Capital (MROIC)\". It uses a non-standard definition that applies a 20x multiple to rental expense to calculate invested capital. (1) Nevertheless, if we take Weis MROIC definition at face value, and compare it with national and regional supermarket peers, we find it has among the worst MROIC in the industry.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "669c5a5b-3fd9-4f04-a749-1e3f6f09113d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.9,
        "x": 0.05,
        "y": 0.92
      },
      "kind": "source-note",
      "text": "Source: Company financials for last fiscal year and Bloomberg EBITDA calculation. 1) Kroger's proxy statement (p. 29) references 8x rent expense multiple and it is a commonly accepted practice by credit rating agencies such as Moody's to cap the multiple at 10x. 2) Blackwell's Launch Proxy Fight At Supervalu, Wall St Journal, March 2018",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4ae2dc90-6a07-4155-ad6a-6f39a87a2a77",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.45,
        "w": 0.9,
        "x": 0.05,
        "y": 0.45
      },
      "kind": "table",
      "text": "Comparison table of EBITDA, Assets, Rent, and MROIC across 6 supermarket companies.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a177994b-c5a8-456b-a3a1-69127a463213",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.65,
        "x": 0.28,
        "y": 0.03
      },
      "kind": "title",
      "text": "Worst \"Modified\" Return On Capital In The Supermarket Industry",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d25672fc-2e37-4121-8f0c-a591cd25bf78",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "comparison_frame",
      "slug": null,
      "matchId": "9693aabc-3ea4-4ff6-8388-fbf817551430",
      "evidence": "Direct comparison of financial metrics across a peer group to highlight underperformance.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}