{
  "docId": "019dd923-622c-750b-8b98-9d969fe4e5f7",
  "docSlug": "cd566ab57f86",
  "documentTitle": "Aerojet Rocketdyne Holdings, Inc. (AJRD)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-04-09 00:00:00",
  "orientation": "landscape",
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  "pageNumber": 37,
  "pageCount": 57,
  "prevPage": 36,
  "nextPage": 38,
  "slideType": "valuation_table",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 100,
  "notes": "The slide uses a red box to highlight the discrepancy in FY 2018 figures between reported and adjusted metrics.",
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  "slideHref": "/slides/019dd923-622c-750b-8b98-9d969fe4e5f7/37",
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  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "We believe its EBITDAP margins are inflated by 610bps, and YoY growth is just 3.3%, not 16.1% depicted by management.",
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    {
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      "kind": "metric",
      "text": "EBITDAP margin: 610bps",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
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      "componentId": "019dd953-3f3d-76db-b32e-2aa53a998d4c",
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    {
      "bbox": {
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      "kind": "paragraph",
      "text": "We gain little comfort from AJRD's previous material weaknesses in accounting, and its rosy portrayal of Adj. EBITDAP margin expansion and growth. We find numerous discretionary factors and levers management has used to enhance reported results. Importantly, AJRD has not restated results to account for the ASC 606 revenue adoption, making FY 2017/2018 YoY comparisons difficult. We believe its EBITDAP margins are inflated by 610bps, and YoY growth is just 3.3%, not 16.1% depicted by management. By making our adjustments, it becomes clearer that EBITAP growth (3.3%) approximates Operating Cash growth (2.3%) (see prior slide)",
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      "kind": "source-note",
      "text": "Source: Aerojet financials and Spruce Point Adjustments 1) Note: AJRD did not restate historical revenues post ASC 606 Adoption",
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      "kind": "table",
      "text": "Financial table comparing AJRD reported vs Spruce Point adjusted EBITDAP across FY 2016, 2017, and 2018 quarters.",
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      "kind": "title",
      "text": "Spruce Point Adj. EBITDAP vs. AJRD's",
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  "arcBeats": [
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      "from": 13,
      "beatId": "873c53fb-104b-433f-8de2-ed94336be1f4",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Struggle",
      "beatSlug": "overcoming-monster-the-struggle",
      "evidence": "The deck details the struggles and challenges faced by AJRD, including management departures, competitive pressures, and financial issues",
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