{
  "docId": "019dd923-622c-750b-8b98-a3d302cd2d9a",
  "docSlug": "2692179b6d0b",
  "documentTitle": "PetIQ, Inc. (PETQ)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": null,
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-04-30 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 10,
  "pageCount": 96,
  "prevPage": 9,
  "nextPage": 11,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 4,
  "notes": "The slide uses a 'villain critique' approach by linking the CEO's past professional history to current company financial practices.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "screenshot",
    "callout_box"
  ],
  "metadataConfidence": 0.95,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-a3d302cd2d9a/10",
  "deckHref": "/decks/019dd923-622c-750b-8b98-a3d302cd2d9a",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-a3d302cd2d9a.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-a3d302cd2d9a#slide-10",
  "components": [
    {
      "bbox": {
        "h": 0.15,
        "w": 0.3,
        "x": 0.65,
        "y": 0.75
      },
      "kind": "callout",
      "text": "PetIQ CEO Christensen involved in businesses which allegedly used strong-arm tactics against vendors to manipulate rebates and inflate his own company's apparent financial performance",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c95d9275-8850-44d0-9e70-c0ad62949817",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.3,
        "x": 0.65,
        "y": 0.9
      },
      "kind": "callout",
      "text": "The value of VIP's vendor rebates in FY17 was ~$6M greater than the combined PetIQ-VIP company's total operating income!",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d7f159b6-d072-4612-9e4b-df86e508181e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "vendor rebates",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-64d2-7657-bbe1-13eaeb30748f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.9,
        "x": 0.05,
        "y": 0.16
      },
      "kind": "paragraph",
      "text": "As we note, in FY17, over 100% of pro forma earnings for the combined PetIQ-VIP company were attributable to vendor rebates. Interestingly, as part of his involvement in entities related to the Petters Ponzi scheme through the early-to-mid 2000s, current PetIQ CEO Cord Christensen was affiliated with subsidiaries of Fleming Corporation, which was later shown to be engaging in fraudulent activity related to vendor rebates at the time. We also note that, in 2015, mirroring the allegations in the Fleming court proceedings, PetIQ (then known as “True Science”) was accused of engaging in fraudulent and strong-arm practices to flatter Company financials at the expense of (closely-associated) vendors. Given Christensen’s and the Company’s own dubious history related to rebates and their treatment of vendor relationships, we are concerned about the fact that PetIQ appears to depend heavily on vendor rebates for earnings today.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "aa6cacc8-4394-429e-b149-5bab9a57d8be",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.45,
        "w": 0.9,
        "x": 0.05,
        "y": 0.35
      },
      "kind": "table",
      "text": "Excerpts from Fleming Corp. Fraud and PetIQ v. John Farrens legal documents.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "7a725a92-0c56-4b64-bd2d-625555e9819d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.4,
        "x": 0.305,
        "y": 0.05
      },
      "kind": "title",
      "text": "There's Something About Those Rebates...",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "699a9873-0782-477a-b62c-aa4f9014827c",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [
    {
      "name": "Evidence Matrix",
      "slug": "evidence-matrix",
      "agent": "Designer",
      "layer": "slide",
      "matchId": "d8152c0e-72e1-4390-b3ee-bb0725b625c0",
      "evidence": "The slide presents excerpts from legal documents to support the argument.",
      "confidence": 0.6
    }
  ],
  "frameworks": [
    {
      "name": "antagonist-introduction",
      "slug": null,
      "matchId": "92213269-86c7-4eb9-8626-a8a0b1cc998d",
      "evidence": "Linking CEO Cord Christensen to past fraudulent activities at Fleming Corp.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 95,
      "from": 6,
      "beatId": "96b19703-73d7-4b02-a51b-72443d554cee",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Expose Contradiction",
      "beatSlug": null,
      "evidence": "Detailed critique of PetIQ's business practices, financials, and valuation",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}