{
  "docId": "019dd923-622c-750b-8b98-c6f1577ed5e1",
  "docSlug": "97e66c73c118",
  "documentTitle": "Hill-Rom Holdings, Inc. (HRC)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-10-29 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 30,
  "pageCount": 80,
  "prevPage": 29,
  "nextPage": 31,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 0,
  "notes": "Uses a hypothetical table to demonstrate the accounting manipulation of 'core revenue' growth.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "data_table",
    "callout_box"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-c6f1577ed5e1/30",
  "deckHref": "/decks/019dd923-622c-750b-8b98-c6f1577ed5e1",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-c6f1577ed5e1.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-c6f1577ed5e1#slide-30",
  "components": [
    {
      "bbox": {
        "h": 0.18,
        "w": 0.17,
        "x": 0.02,
        "y": 0.52
      },
      "kind": "callout",
      "text": "Despite not divesting of the business until Q4, management takes credit for higher sales growth by excluding the low-growth / no-growth business for the full year",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a2cc123a-e0d6-4ff1-8139-41097ef46c58",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.25,
        "x": 0.42,
        "y": 0.85
      },
      "kind": "legend",
      "text": "Q1-Q3: Business unit remains part of Hill-Rom. Segment revenue included in Total Revenue, but excluded from Core Revenue.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "7b46b477-1166-4b76-b48d-84cb3aa862c0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.2,
        "x": 0.75,
        "y": 0.85
      },
      "kind": "legend",
      "text": "Q4: Business unit sold. No longer reflected in Total Revenue.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f68fdfc0-d087-4984-a7e0-fe021a5c45be",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Core Revenue Growth",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-203c-716b-be76-5fbab8086bcb",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.9,
        "x": 0.05,
        "y": 0.92
      },
      "kind": "paragraph",
      "text": "If management is to treat the Company as an M&A platform – as it has and continues to do – it should not be granted the liberty of being able to remove no-growth and negative-growth acquisitions from its revenue growth calculation before finding a way to monetize them.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "dbf04095-b743-4ad4-bc42-e0bf37f2c7f9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.9,
        "x": 0.05,
        "y": 0.17
      },
      "kind": "paragraph",
      "text": "Management points analysts and investors to its proprietary “core growth” metric as Hill-Rom’s key measure of top-line growth. Crucially, this metric is constructed to exclude business lines of which management plans to divest...",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ef52d4ee-c988-42c2-94c1-60a340e5627d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.45,
        "w": 0.75,
        "x": 0.18,
        "y": 0.38
      },
      "kind": "table",
      "text": "Hypothetical Core Revenue Growth Calculation With Business Line Divested In Q4 Of Current Year",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "384a652a-6eab-4b4e-b629-c02de531e0b9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.68,
        "x": 0.28,
        "y": 0.03
      },
      "kind": "title",
      "text": "Purging Underperforming Businesses From Reported Sales Growth",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "8293323f-c398-4dd3-81c8-8b9b1cec8c8d",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "a524e4dc-a7ec-4c97-8434-10da86e3f6c1",
      "evidence": "The slide explicitly frames management's accounting choices as a deceptive practice to inflate growth metrics.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 30,
      "from": 11,
      "beatId": "752f6091-c36e-43bc-b0d4-a9876a03de40",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Agitate (Make it worse)",
      "beatSlug": "problem-agitate-solution-agitate-make-it-worse",
      "evidence": "The document agitates the problems by highlighting multiple contradictions and concerns with Hill-Rom's financial practices and growth prospects.",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": "Development",
      "parentBeatSlug": "development"
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}