{ "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": 39, "pageCount": 80, "prevPage": 38, "nextPage": 40, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 0, "notes": "The slide highlights that Stryker achieved growth without new products, contradicting the narrative that new product launches are the primary driver of sales.", "elementsJson": [ "headline_text", "paragraph", "callout_box", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b98-c6f1577ed5e1/39", "deckHref": "/decks/019dd923-622c-750b-8b98-c6f1577ed5e1", "deckJsonHref": "/decks/019dd923-622c-750b-8b98-c6f1577ed5e1.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-c6f1577ed5e1#slide-39", "components": [ { "bbox": { "h": 0.04, "w": 0.4, "x": 0.3, "y": 0.75 }, "kind": "callout", "text": "Stryker: Q4 FY18 Earnings Call", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "215fd6d7-1cfe-42ac-83fe-dd4829b06c27", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.45, "x": 0.05, "y": 0.36 }, "kind": "callout", "text": "Stryker: Q2 FY19 Earnings Call", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b56c6da0-7c0c-41de-94f5-9815a91ffca3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.4, "x": 0.55, "y": 0.36 }, "kind": "callout", "text": "Stryker: Q4 FY18 Earnings Call", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fe3eba76-f498-4e7d-b852-f2bec3ded004", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "Industry-wide trends suggest that growth in Hill-Rom's hospital bed sales may not be attributable to demand for its high-tech beds.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-203c-716b-be77-9a744a6f215a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.18, "w": 0.9, "x": 0.05, "y": 0.16 }, "kind": "paragraph", "text": "Industry-wide trends suggest that growth in Hill-Rom's hospital bed sales may not be attributable to demand for its high-tech beds. Stryker, Hill-Rom's largest competitor in the hospital bed space, has, like Hill-Rom, reported strong growth in its capital goods segment of late (and in hospital beds in particular). Management points out that this growth has come in spite of the Company not having released new products in the vertical, suggesting that it may be a product of a strong cycle or other industry-wide factors. Even then, management did not convey strong confidence in the sustainability of cyclical strength to the extent that this growth was largely attributable to industry forces. Importantly, Stryker also reportedly intends to release a new hospital bed in the coming quarters, which, to the extent that new products drive growth, could eat into Centrella sales.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d85aa756-0036-4ac5-812e-2dc95cb019e1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.45, "x": 0.05, "y": 0.56 }, "kind": "quote", "text": "\"I would tell you, across the board, whether it's 2019 or looking ahead to 2020, we have a number of product launches similar to prior years that are slated. And that includes Medical as well as other divisions. So I think that really is what underscores our conviction in being able to grow sales at the high end of med tech. Don't want to get into specifics around the launches for obvious reasons, but I would tell you we have a really good cadence and pipelines across all 3 of the primary businesses.\" - Katherine Owen - VP of Strategy & IR, Stryker", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6fa6afde-2fda-4eb7-990f-8aa47e3103ac", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.4, "x": 0.3, "y": 0.79 }, "kind": "quote", "text": "\"Our capital order book is very good. Look at something like beds and stretchers with double-digit growth and really without any significant new products. There's a couple of minor products, but nothing major. That's really our great execution and I would say fairly healthy markets.\" - Kevin Lobo - CEO, Stryker", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a9bae0a7-08c8-48c7-af68-ddd5998e445c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.4, "x": 0.55, "y": 0.4 }, "kind": "quote", "text": "\"...you obviously mentioned in your beds and stretchers business nice performance in the quarter and you made the comment that was really without any new product introductions. So I guess the question is, what do you have coming there in 2019? And do you think that might be at the beginning point of a replacement cycle? As I understand, the last replacement cycle certainly MedSurg was in the 2004, 2005 timeframe.\" - Larry Keusch - Raymond James", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b3497833-d6a4-4a21-9478-4c3755c197a4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.4, "x": 0.55, "y": 0.56 }, "kind": "quote", "text": "\"Look, the replacement cycle is continuous, so there isn't sort of one massive replacement cycle. You have hospitals buying other hospitals that are wanting to standardize on their equipment.\" - Kevin Lobo - CEO, Stryker", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b4968c95-066e-4387-bce1-ba2600f92756", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.45, "x": 0.05, "y": 0.4 }, "kind": "quote", "text": "\"Congrats on a really nice print here. Kevin, maybe a big-picture question on pipeline. Given the strength we're seeing, what would you highlight for us when we look at the next year? I know the camera launch and some of the products you spoke about. Is there anything on Sage? I think I heard you guys talked about Sage. There was some talk about a new bed. Just help us out put these new product cycles in the context of a really strong CapEx environment.\" - Vijay Kumar - Evercore ISI", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f87f37b6-9c4b-4229-a72b-6228c0ce4289", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"Congrats on a really nice print here. Kevin, maybe a big-picture question on pipeline. Given the strength we're seeing, what would you highlight for us when we look at the next year? I know the camera launch and some of the products you spoke about. Is there anything on Sage? I think I heard you guys talked about Sage. There was some talk about a new bed. Just help us out put these new product cycles in the context of a really strong CapEx environment.\" — Vijay Kumar, Evercore ISI; \"...you obviously mentioned in your beds and stretchers business nice performance in the quarter and you made the comment that that was really without any new product introductions. So I guess the question is, what do you have coming there in 2019? And do you think that we might be at the beginning point of a replacement cycle? As I understand, I think the last replacement cycle certainly MedSurg was in the 2004, 2005 timeframe.\" — Larry Keusch, Raymond James; \"I would tell you, across the board, whether it's 2019 or looking ahead to 2020, we have a number of product launches similar to prior years that are slated. And that includes Medical as well as other divisions. So I think that really is what underscores our conviction in being able to grow sales at the high end of med tech. Don't want to get into specifics around the launches for obvious reasons, but I would tell you we have a really good cadence and pipelines across all 3 of the primary businesses.\" — Katherine Owen, VP of Strategy & IR, Stryker; \"Look, the replacement cycle is continuous, so there isn't sort of one massive replacement cycle. You have hospitals buying other hospitals that are wanting to standardize on their equipment.\" — Kevin Lobo, CEO, Stryker; \"Our capital order book is very good. Look at something like beds and stretchers with double-digit growth and really without any significant new products. There's a couple of minor products, but nothing major. That's really our great execution and I would say fairly healthy markets.\" — Kevin Lobo, CEO, Stryker", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-203c-716b-be77-9d293d3715ca", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.68, "x": 0.28, "y": 0.03 }, "kind": "title", "text": "Competitor Commentary: Recent Hospital Bed Sales Growth Agnostic To New Product Launches", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5f93a547-5f2b-4a60-b9bf-87413b132832", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "d27d305d-82ea-4edc-bea4-f1d693d8403b", "evidence": "The slide uses competitor commentary to expose a contradiction in the company's narrative regarding growth drivers.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }