{
  "docId": "019dd923-622c-750b-8b98-ef240a9cc70a",
  "docSlug": "c3be1f268cc3",
  "documentTitle": "Prestige Consumer Healthcare Inc. (PBH)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-06-30 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 20,
  "pageCount": 122,
  "prevPage": 19,
  "nextPage": 21,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 36,
  "notes": "Uses a bar chart with a data table overlay to show the discrepancy between reported post-synergy multiples and actual pre-synergy multiples for the Fleet acquisition.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "bar_chart_vertical",
    "data_table",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-ef240a9cc70a/20",
  "deckHref": "/decks/019dd923-622c-750b-8b98-ef240a9cc70a",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-ef240a9cc70a.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-ef240a9cc70a#slide-20",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "As organic growth has disappeared, PBH looks to have become reliant on generating growth through acquisitions, whatever the cost.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-2b63-72e1-b60b-1d97d6139b16",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.45,
        "w": 0.96,
        "x": 0.02,
        "y": 0.38
      },
      "kind": "chart",
      "text": "Bar chart showing acquisition multiples for various brands",
      "attrs": null,
      "subkind": "bar-vertical",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c3f49c3c-b31a-4b42-a905-732119f39f80",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "EBITDA multiple: 16.2x",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-2b63-72e1-b60b-22c5efd0f4aa",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.96,
        "x": 0.02,
        "y": 0.175
      },
      "kind": "paragraph",
      "text": "According to the Company's disclosures, transaction multiples have increased from ~7x EBITDA to 10-12x over the past few deals. However, we believe recent multiples are understated due to the reported “synergy adjusted multiples” which are lower than the comparable multiple. PBH’s most recent acquisition of Fleet, while reported at 11.8x post-synergy EBITDA, valued the business at 16.2x its pre-synergy amount. When the Fleet and DenTek deals were announced, management discussed high single-digit revenue growth, yet these acquisitions have resulted in limited organic growth for PBH. As organic growth has disappeared, PBH looks to have become reliant on generating growth through acquisitions, whatever the cost.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3734cab1-4b84-41f7-88d2-b40af0d6aff7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.5,
        "x": 0.02,
        "y": 0.96
      },
      "kind": "source-note",
      "text": "1) Weighted average based on transaction value Note: $ millions Source: Company filings",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b1f627d4-d8e3-46d4-b461-f1c7e46e8f77",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.96,
        "x": 0.02,
        "y": 0.83
      },
      "kind": "table",
      "text": "Table showing TEV, TEV/Rev, and EBITDA Margin for each acquisition",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4a6e1798-144f-40e8-9a63-00db96bd63ab",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.39,
        "x": 0.305,
        "y": 0.025
      },
      "kind": "title",
      "text": "Acquisition Multiples Increasing",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ea763fb1-8cfd-48d6-8e70-90df7a984b2c",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "57188995-516a-43cc-bfc8-6e46bc00bf7b",
      "evidence": "Exposing understated acquisition multiples to suggest management deception.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 122,
      "from": 11,
      "beatId": "fc4ac38d-48bf-454d-9d50-344d1705ba33",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Expose Contradiction",
      "beatSlug": null,
      "evidence": "The majority of the document is dedicated to exposing contradictions and concerns in Prestige Brands' financials, operations, and governance.",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    },
    {
      "to": 122,
      "from": 10,
      "beatId": "91479d45-6cb5-49fc-9f03-ea82d8e93c6b",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Evidence",
      "beatSlug": "evidence",
      "evidence": "The document provides extensive evidence to support its claims, including financial data, comparisons to peers, and testimonials.",
      "position": 3,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [
    {
      "to": 20,
      "from": 11,
      "name": "Aha Moment",
      "slug": "03-aha-moment",
      "bestFor": "Data-heavy sections, research findings, analytical arguments",
      "matchId": "269328d8-c80a-431b-889d-e0676be672ad",
      "evidence": "The document highlights several contradictions, such as underperforming organic revenue growth and stretched accounts receivable.",
      "position": 0,
      "objective": "To reveal contradictions in Prestige Brands' financial performance",
      "structure": "The Problem/Question -> What the Data Shows -> The Insight",
      "confidence": 0.7,
      "description": "Establish a tension, present data, then deliver the insight that changes everything"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}