{
  "docId": "019dd923-622c-750b-8b98-dbf69e8285f9",
  "docSlug": "c97bc876ffb7",
  "documentTitle": "LHC Group, Inc. (LHCG)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-01-15 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 37,
  "pageCount": 41,
  "prevPage": 36,
  "nextPage": 38,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 9,
  "notes": "Red boxes highlight specific individuals who are neither named employees nor directors post-merger.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "comparison_table",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-dbf69e8285f9/37",
  "deckHref": "/decks/019dd923-622c-750b-8b98-dbf69e8285f9",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-dbf69e8285f9.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-dbf69e8285f9#slide-37",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Spruce Point is concerned that “effective” insider selling might have accelerated even more rapidly following the completion of the deal, as individuals with intimate knowledge of AFAM might have sold their shares without other investors’ knowledge.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-2b66-7100-895d-820cef6ab9a6",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.9,
        "x": 0.05,
        "y": 0.16
      },
      "kind": "paragraph",
      "text": "Holders of AFAM shares received 0.915 LHCG shares for each of their AFAM shares following the LHCG merger, leaving a number of AFAM insiders with large holdings of post-merger LHCG shares. However, not all of these AFAM insiders became LHCG insiders following the merger. Consequently, among previous LHCG and AFAM insiders (named employees and directors), three of the top five holders of post-merger LHCG shares were not insiders after the deal was completed, leaving them free to sell their LHCG shares without having to file with the SEC. Spruce Point is concerned that “effective” insider selling might have accelerated even more rapidly following the completion of the deal, as individuals with intimate knowledge of AFAM might have sold their shares without other investors’ knowledge.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "5ea55aab-6597-4d23-b874-8a112aa37c95",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.5,
        "x": 0.05,
        "y": 0.96
      },
      "kind": "source-note",
      "text": "Source: LHCG Filings and Transcripts, Spruce Point Estimates. 1. Ownership disclosed in 10K/A on 4/27/18 and then converted to LHCG shares based on 0.915 exchange ratio",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a7617b97-1623-49d5-a942-05ba6cd447b9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.55,
        "w": 0.9,
        "x": 0.05,
        "y": 0.37
      },
      "kind": "table",
      "text": "Table of insiders, shares, roles, and status",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c42fb923-675b-4fc5-bbc8-3f26e2eb670d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.65,
        "x": 0.31,
        "y": 0.05
      },
      "kind": "title",
      "text": "Former AFAM Insiders No Longer Have To File",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ade0d94e-4d5a-4cac-8e2b-5a454e5bb3a2",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "aa1ba1c1-da57-4322-852a-38fd15c93011",
      "evidence": "Highlighting lack of SEC disclosure for insiders with significant holdings",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 41,
      "from": 34,
      "beatId": "9f377837-bf12-44ef-87c2-ec9967b0f16d",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Solution",
      "beatSlug": "problem-agitate-solution-solution-provide-relief",
      "evidence": "The valuation and downside risk slides present Spruce Point's solution and conclusion.",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": "Resolution",
      "parentBeatSlug": "resolution"
    }
  ],
  "loops": [
    {
      "to": 41,
      "from": 3,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "100ad489-dbf4-43de-8e22-48ed5d7f68fc",
      "evidence": "The deck implies that investors will suffer financial losses if they do not heed Spruce Point's warning.",
      "position": 0,
      "objective": "The cost of inaction for investors who fail to recognize LHCG's true financial performance.",
      "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
}