{
  "docId": "019dd923-622c-750b-8b98-d4565c313b68",
  "docSlug": "207d3ac66ddd",
  "documentTitle": "Canadian Tire Corporation (CTC.A)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-12-05 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 65,
  "pageCount": 108,
  "prevPage": 64,
  "nextPage": 66,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 2,
  "notes": "Uses a 'quote-and-rebut' structure to highlight a contradiction between sell-side optimism and activist skepticism.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "callout_box",
    "screenshot"
  ],
  "metadataConfidence": 0.95,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-d4565c313b68/65",
  "deckHref": "/decks/019dd923-622c-750b-8b98-d4565c313b68",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-d4565c313b68.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-d4565c313b68#slide-65",
  "components": [
    {
      "bbox": {
        "h": 0.15,
        "w": 0.4,
        "x": 0.55,
        "y": 0.4
      },
      "kind": "callout",
      "text": "Return of capital is an important part of the CTC story",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "fbf824bf-7054-4f42-8307-14d928fd9be3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "We believe CTC will be unable to maintain its current level of capital return given its current leverage and need to delever in order to maintain its current credit rating",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-ee3b-7248-a1a2-d619d157b5dd",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.6,
        "w": 0.52,
        "x": 0.02,
        "y": 0.33
      },
      "kind": "image",
      "text": "RBC Capital Markets Equity Research Note (October 31, 2019)",
      "attrs": null,
      "subkind": "screenshot",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "475985d1-bb77-4da7-abee-aed729f3c583",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.4,
        "x": 0.55,
        "y": 0.68
      },
      "kind": "paragraph",
      "text": "We believe CTC will be unable to maintain its current level of capital return given its current leverage and need to delever in order to maintain its current credit rating",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "8e0d6af8-b871-4a18-8494-1b522b3f7b05",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.96,
        "x": 0.02,
        "y": 0.18
      },
      "kind": "paragraph",
      "text": "We believe Canadian Tire will have to choose between: 1) Maintaining its current leverage which will result in a credit downgrade, 2) Returning capital to shareholders or 3) Selling assets (diminishing earnings power) in order to delever its balance sheet. If CTC decides to maintain its current level of capital returns and its goal of reducing leverage, CTC will be forced to sell assets, diluting EPS and shareholders value.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "dcc02455-4304-4426-b1d5-b485a54891f1",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "\"Return of capital is an important part of the CTC story\" — RBC Capital Markets Equity Research Note (October 31, 2019)",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd952-ee3b-7248-a1a2-db0b05e545ef",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.35,
        "x": 0.305,
        "y": 0.04
      },
      "kind": "title",
      "text": "Canadian Tire's Dilemma",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "169c3f67-149b-4648-8a22-d1bffdadd5ab",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "ceo-quote-contradiction",
      "slug": null,
      "matchId": "b0921f9b-c78a-428d-99ff-6cea62c3fd67",
      "evidence": "Contrasts external analyst quote with internal activist thesis to expose a contradiction.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [],
  "loops": [
    {
      "to": 73,
      "from": 64,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "571d2017-29bc-4989-a48f-ab0612dfd6a4",
      "evidence": "The document highlights the risks of Canadian Tire's business model and the potential consequences of inaction.",
      "position": 0,
      "objective": "Highlight the risks of Canadian Tire's overleveraged and debt-fueled business model",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.7,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}