{ "docId": "019dd923-622c-750b-8b98-c3e7825e1948", "docSlug": "8b6a62f49fba", "documentTitle": "Church & Dwight Co., Inc. (CHD)", "authorId": "54_Spruce_Point_Capital", "authorName": "Ben Axler", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2019-09-05 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 51, "pageCount": 92, "prevPage": 50, "nextPage": 52, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 8, "notes": "Uses a callout box to contrast CEO quote with financial data; uses red brackets to highlight specific areas of concern in the table and text.", "elementsJson": [ "headline_text", "paragraph", "quote_block", "data_table", "callout_box" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b98-c3e7825e1948/51", "deckHref": "/decks/019dd923-622c-750b-8b98-c3e7825e1948", "deckJsonHref": "/decks/019dd923-622c-750b-8b98-c3e7825e1948.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-c3e7825e1948#slide-51", "components": [ { "bbox": { "h": 0.06, "w": 0.2, "x": 0.745, "y": 0.82 }, "kind": "callout", "text": "Show us: Where Are The Synergies?", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "23f1b84b-0084-475d-a933-415a0548604d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.25, "x": 0.66, "y": 0.62 }, "kind": "callout", "text": "How is this not already impaired?", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "299e8afb-a742-42d4-9834-97e64c1adc9c", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "Why hasn't CHD also impaired or written-down the $61m of goodwill and intangibles associated with the failed deal?", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-1ac2-71b6-bf55-dd95d734b7ea", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.9, "x": 0.05, "y": 0.18 }, "kind": "paragraph", "text": "We previously illustrated that by Q1 2019, Passport contributed sales of $2.3m x 4 = $9.2m annual run rate. This is significantly below the $21m of sales reported in 2017. CHD booked a gain of $7m to reverse the earnout in Q2 2019. The CEO said he was “happy” with the deal. Why hasn’t CHD also impaired or written-down the $61m of goodwill and intangibles associated with the failed deal?", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9767b492-bcb8-491e-9a47-c7f95680a3ed", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.82, "x": 0.14, "y": 0.32 }, "kind": "quote", "text": "Second, we had favorability of approximately $7 million or $0.02 in relation to reducing the earn out for our Passport acquisition within our SPD business. We are still happy with our entry into the food-safety business and the diversification that it offers our SPD division", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b3a9aad4-6fcf-46d0-a1d6-28d0ab4d49a8", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "Second, we had favorability of approximately $7 million or $0.02 in relation to reducing the earn out for our Passport acquisition within our SPD business. We are still happy with our entry into the food-safety business and the diversification that it offers our SPD division — CEO Q2 2019 Conference Call", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-1ac2-71b6-bf55-e1f81172a942", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.15, "x": 0.2, "y": 0.95 }, "kind": "source-note", "text": "Source: CHD Q1 2018 10-Q", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ed81dbb4-b412-4d79-aa20-65a61d38048c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.2, "w": 0.45, "x": 0.275, "y": 0.475 }, "kind": "table", "text": "Passport Acquisition Date Preliminary Fair Value table showing assets and liabilities", "attrs": null, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f7edc86d-61d7-42d6-bac6-b0b590e76411", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.65, "x": 0.32, "y": 0.03 }, "kind": "title", "text": "Evidence Confirms That The Passport Deal Failed Miserably A Year Later", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3703950a-e3e4-4bcc-bbdd-ce7efd44f633", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "f7a63748-e641-4214-92e6-1b96e252bc1b", "evidence": "Contrasts CEO's 'happy' statement with financial impairment data", "confidence": 1 } ], "arcBeats": [], "loops": [ { "to": 92, "from": 1, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "d8d41695-ad33-43d2-9478-d227476d9e68", "evidence": "The overall thesis implies that failing to act on Spruce Point's analysis could lead to significant financial losses for investors holding onto CHD stock.", "position": 2, "objective": "The cost of not selling CHD", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.6, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }