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  "docId": "019dd923-622c-750b-8b98-98685acdea95",
  "docSlug": "11e962264b36",
  "documentTitle": "Carvana Co. (CVNA)",
  "authorId": "54_Spruce_Point_Capital",
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  "documentKindSlug": "activist-deck",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-03-01 00:00:00",
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  "pageNumber": 80,
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  "slideType": "expose_contradiction",
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  "density": "overcrowded",
  "nDataPoints": 8,
  "notes": "The slide uses a table to demonstrate that the remaining principal balances are insufficient to sustain the GPU (Gross Profit per Unit) growth seen in previous quarters.",
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  "slideHref": "/slides/019dd923-622c-750b-8b98-98685acdea95/80",
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  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-98685acdea95#slide-80",
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      "kind": "callout",
      "text": "Supported $2.3M gain (1.6%)",
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      "text": "Supported $4M gain (1.6%)",
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      "kind": "callout",
      "text": "While Carvana will presumably try to conduct similar refinancings on future loans originated, management now has a far smaller reserve from which to create profits from the monetization of receivables, and with which to make up any shortfalls in GPU.",
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      "kind": "disclaimer",
      "text": "Should Carvana continue to grow, this could become a more consistent driver of GPU. However, we question its legitimacy and, hence, it sustainability as a source of income.",
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    {
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      "kind": "metric",
      "text": "finance receivables monetization: $1.5M",
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      "kind": "paragraph",
      "text": "Carvana completed a similar transaction on December 28, 2018: this time receiving a $2.3M fee for refinancing $134M of loans – good for another ~1.6% riskless return. Carvana has now facilitated the refinancing of $387.4M of loans out of aggregate principal balances of $478.8M sold as of Q3 FY18. This leaves remaining principal balances yet to be refinanced of just $91.3M, which would support just $1.5M more in refinancing fees – good for an incremental $55 of GPU ON 27,500 retail units sold, or about 2.5% of Carvana’s pre-monetization GPU in Q3, versus 7% in Q3 FY18. While Carvana will presumably try to conduct similar refinancings on future loans originated, management now has a far smaller reserve from which to create profits from the monetization of receivables, and with which to make up any shortfalls in GPU.",
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      "kind": "table",
      "text": "As Of Q3 FY18 | ($, M) | Aggregate Principal Balances Sold | $479 | Principal Balances Refinanced, Q3 FY18 | $253 | Principal Balances Refinanced, Q4 FY18 | $134 | Remaining Principal Balances | $92 | Prospective Fees @ 1.6% Return | $1.5",
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      "kind": "title",
      "text": "How Much More \"Monetization Of Finance Receivables\" Can Carvana Support?",
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