{ "docId": "019dd923-622c-750b-8b98-ad29603ddb10", "docSlug": "954987ce0454", "documentTitle": "Mettler-Toledo International, Inc. (MTD)", "authorId": "54_Spruce_Point_Capital", "authorName": "Ben Axler", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2019-07-24 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 116, "pageCount": 136, "prevPage": 115, "nextPage": 117, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "The slide uses a direct quote from a CFO to cast doubt on management's narrative.", "elementsJson": [ "headline_text", "callout_box", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b98-ad29603ddb10/116", "deckHref": "/decks/019dd923-622c-750b-8b98-ad29603ddb10", "deckJsonHref": "/decks/019dd923-622c-750b-8b98-ad29603ddb10.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-ad29603ddb10#slide-116", "components": [ { "bbox": null, "kind": "callout", "text": "With the old CFO Donnelly out in Q4’18, the Chairman liquidating a sizeable holding starting in Feb 2019, the CFO is now referencing difficult comps on a “multi-year stack” basis – terminology we are not familiar with, but which certainly sounds concerning.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-1ac6-76d9-8632-53a70cd4285f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.09, "w": 0.96, "x": 0.03, "y": 0.19 }, "kind": "paragraph", "text": "With the old CFO Donnelly out in Q4'18, the Chairman liquidating a sizeable holding starting in Feb 2019, the CFO is now referencing difficult comps on a “multi-year stack” basis – terminology we are not familiar with, but which certainly sounds concerning.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5fedcf4f-4135-4946-b9d6-bc5c4bd8f906", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.42, "w": 0.85, "x": 0.12, "y": 0.41 }, "kind": "quote", "text": "Yeah. So I mean you know before I get into that part, I mean, our customer demand has been good so far this year, we're off to a good start. Very pleased with the first quarter and also pleased with you know our increased guidance to the full year growth number. As we kind of look towards the second half of the year, we expect market conditions to generally remain favorable. But I think there's maybe two points to mention. One is comparisons. You know we get into some much more difficult comparisons especially in a multi-year stack basis, I mean if you start to think about multi-year stacks Q2, Q3 they get a little bit more difficult and then even just a one year stack you know the fourth quarter of last year we grew organically by 8%, that's going to be a more difficult comparison for us. So it's -- it has a lot more to do with the comparisons in our mind is in terms of maybe how you're looking at the sequencing of growth. I think Q1 also benefited a bit from the timing of Easter and maybe an easier comparison to last year which particularly affected maybe our European results and then maybe the second comment is that in terms of this year we have a little bit of a headwind in terms of our food retailing business that we called out on our call. If you exclude the estimated impact of food retailing this year, our organic growth would be about 6%.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ed6e2d3b-e1e7-4a02-a00f-5e982c8d59dd", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“Yeah. So I mean you know before I get into that part, I mean, our customer demand has been good so far this year, we're off to a good start. Very pleased with the first quarter and also pleased with you know our increased guidance to the full year growth number. As we kind of look towards the second half of the year, we expect market conditions to generally remain favorable. But I think there's maybe two points to mention. One is comparisons. You know we get into some much more difficult comparisons especially in a multi-year stack basis, I mean if you start to think about multi-year stacks Q2, Q3 they get a little bit more difficult and then even just a one year stack you know the fourth quarter of last year we grew organically by 8%, that's going to be a more difficult comparison for us. So it's -- it has a lot more to do with the comparisons in our mind is in terms of maybe how you're looking at the sequencing of growth. I think Q1 also benefited a bit from the timing of Easter and maybe an easier comparison to last year which particularly affected maybe our European results and then maybe the second comment is that in terms of this year we have a little bit of a headwind in terms of our food retailing business that we called out on our call. If you exclude the estimated impact of food retailing this year, our organic growth would be about 6%.” — CFO Vadala, UBS Conference, May 21, 2019", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-1ac6-76d9-8632-579dc1e6a490", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.2, "x": 0.12, "y": 0.84 }, "kind": "source-note", "text": "UBS Conference, May 21, 2019", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c1b4c190-b429-4962-b94e-0d5e6b8b668a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.65, "x": 0.32, "y": 0.03 }, "kind": "title", "text": "Right Before Comps Get Much More Difficult....", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "04ea8c25-5f3f-4e78-b909-c125e7339047", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "expose_contradiction", "slug": null, "matchId": "88f78055-3818-44b8-8d37-ac7d4eb89c18", "evidence": "The slide contrasts management's positive guidance with the CFO's specific, concerning language about 'multi-year stack' comparisons.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }