{ "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": 88, "pageCount": 108, "prevPage": 87, "nextPage": 89, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "Uses direct quotes from earnings calls to establish a pattern of management behavior.", "elementsJson": [ "headline_text", "paragraph", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b98-d4565c313b68/88", "deckHref": "/decks/019dd923-622c-750b-8b98-d4565c313b68", "deckJsonHref": "/decks/019dd923-622c-750b-8b98-d4565c313b68.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-d4565c313b68#slide-88", "components": [ { "bbox": null, "kind": "callout", "text": "Investors should take note of management's willingness to use these accounting changes to influence EPS.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-ee3c-76df-9643-5594d49368d2", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.9, "x": 0.05, "y": 0.18 }, "kind": "paragraph", "text": "Canadian Tire's CEO has stressed the importance that \"hitting numbers\" is a clear goal of management. Pairing his comments with CTC's accounting changes since 2016, it seems there is reasonable motivation by management to alter historic accounting methods and assumptions in favor of increased earnings. Investors should take note of management's willingness to use these accounting changes to influence EPS.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a92826e0-8176-468b-b977-82f0170c6dae", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.7, "x": 0.22, "y": 0.56 }, "kind": "quote", "text": "\"Yes. I mean we put our aspirations out a few years ago, I guess it was, for performance and bottom line and ROIC performance. It's extremely important we hit those numbers, but it was more important in our Operational Efficiency Program overall that we drove what's necessary for our customer experience. That, bar none, had to be the number one priority both from a digital point of view and from our ability to collect data and analyze it and use it in the proper way... So now's the time. We've got things up and running. We feel quite confident, and so now is the time to push it, but we have to hit those numbers. It's what we published and it's how we expect ourselves to perform.\"", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "14ad0650-ab50-4045-8ec7-fb4f03497103", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.7, "x": 0.22, "y": 0.42 }, "kind": "quote", "text": "\"We always look at the numbers in the following way. That if we put great numbers up, we're in control, and if you don't have good numbers, then the outside world ends up being in control. If we want to stay on our agenda, we have to continue to hit our numbers.\"", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4371f6b6-440f-4899-b0ce-44fea30055f6", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"We always look at the numbers in the following way. That if we put great numbers up, we're in control, and if you don't have good numbers, then the outside world ends up being in control. If we want to stay on our agenda, we have to continue to hit our numbers.\" — Stephen Wetmore, Q2 2016 Call; \"Yes. I mean we put our aspirations out a few years ago, I guess it was, for performance and bottom line and ROIC performance. It's extremely important we hit those numbers, but it was more important in our Operational Efficiency Program overall that we drove what's necessary for our customer experience... So now's the time. We've got things up and running. We feel quite confident, and so now is the time to push it, but we have to hit those numbers. It's what we published and it's how we expect ourselves to perform.\" — Stephen Wetmore, Q2 2019 Call", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-ee3c-76df-9643-5a27e4581f8b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.65, "x": 0.305, "y": 0.045 }, "kind": "title", "text": "Pressure From The Top To \"Hit Numbers\"", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2469edb2-a35b-468e-8854-9020296de573", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.85, "x": 0.075, "y": 0.365 }, "kind": "title", "text": "Canadian Tire CEO Stephen Wetmore's Earnings Call Comments Regarding \"Hitting Numbers\"", "attrs": null, "subkind": "subtitle", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0aa7f3da-7b25-4880-80ae-d52e0d59c513", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "45e46bce-4b90-4bcd-9ed0-c7ac3693f7ee", "evidence": "Uses CEO quotes to imply management pressure leads to accounting manipulation.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }