{
  "docId": "019dd923-622c-750b-8b98-fa7fcd640a8d",
  "docSlug": "522270211ac4",
  "documentTitle": "Sunnova Energy International Inc. (NOVA)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-09-29 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 15,
  "pageCount": 91,
  "prevPage": 14,
  "nextPage": 16,
  "slideType": "valuation_table",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 156,
  "notes": "The table demonstrates the discrepancy between company-reported adjusted OCF and Spruce Point's adjusted OCF by subtracting items the company adds back.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "data_table",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-fa7fcd640a8d/15",
  "deckHref": "/decks/019dd923-622c-750b-8b98-fa7fcd640a8d",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-fa7fcd640a8d.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-fa7fcd640a8d#slide-15",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "When adjusting for these items, Sunnova’s cash flow profile appears much worse than the Company reports.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-0397-72dc-a88f-8b947d1f6dc1",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Adjusted Operating Cash Flow",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-0397-72dc-a88f-8eb088e291e3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.94,
        "x": 0.03,
        "y": 0.18
      },
      "kind": "paragraph",
      "text": "Spruce Point believes Sunnova's adjusted operating cash flow is not reflective of the nature of Sunnova's financing business. We believe items such as dealer exclusivity payments and prepaid inventory should not be added back to cash flow as they are true operating costs of the business. In addition, Sunnova ignores financing transaction costs despite financing being core to its business. When adjusting for these items, Sunnova's cash flow profile appears much worse than the Company reports.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "fb39207a-70e5-4c68-9964-dad8cd51ccef",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.45,
        "x": 0.03,
        "y": 0.96
      },
      "kind": "source-note",
      "text": "Note: Figures may not add due to rounding Source: Company filings",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c5c1bdb5-63a0-4c8c-a039-8d550436db23",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.65,
        "w": 0.94,
        "x": 0.03,
        "y": 0.29
      },
      "kind": "table",
      "text": "Table showing reconciliation of Sunnova Reported OCF to Spruce Point Adjusted OCF across multiple periods from FY 2017 to Q2 2020.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0188330d-83ac-4048-9b84-aab66e80f9e9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.68,
        "x": 0.28,
        "y": 0.03
      },
      "kind": "title",
      "text": "Sunnova's Adjusted Operating Cash Flow Is Not Representative Of True Operating Cash Flow",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b75c9879-e84f-4bb6-bddf-ec8d7ce065fd",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "c3c385f5-45e2-4d9e-a847-56249815cc3e",
      "evidence": "The slide explicitly argues that the company's adjusted metrics are misleading and provides a corrective calculation to expose the 'true' financial state.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 20,
      "from": 10,
      "beatId": "eeb9862f-c1fe-491b-b05e-efa43ea17900",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Agitate (Make it worse)",
      "beatSlug": "problem-agitate-solution-agitate-make-it-worse",
      "evidence": "The document agitates these issues, highlighting the flaws in Sunnova's business model and the risks associated with investing in the company.",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": "Development",
      "parentBeatSlug": "development"
    }
  ],
  "loops": [
    {
      "to": 20,
      "from": 14,
      "name": "Iceberg",
      "slug": "10-iceberg",
      "bestFor": "Consulting, complex problem solving, organizational change",
      "matchId": "c4380bb7-8803-46bc-b224-96b35d652057",
      "evidence": "The document highlights the differences between Sunnova's reported financial performance and its true financial performance.",
      "position": 0,
      "objective": "To reveal the true financial performance of Sunnova",
      "structure": "The Symptom (Visible) -> The System (Hidden) -> The Root Cause",
      "confidence": 0.7,
      "description": "Reveal that the visible problem is merely a symptom of a deeper root cause"
    },
    {
      "to": 20,
      "from": 10,
      "name": "Hypothesis Test",
      "slug": "42-hypothesis-test",
      "bestFor": "Strategy validation, due diligence, research presentations",
      "matchId": "a5ad676f-ab36-4749-9d80-017ecacac760",
      "evidence": "The document presents evidence to support the hypothesis that Sunnova's business model is flawed.",
      "position": 2,
      "objective": "To test the hypothesis that Sunnova's business model is flawed",
      "structure": "The Hypothesis -> Test 1 (Supports/Refutes) -> Test 2 (Supports/Refutes) -> Conclusion (Validated/Pivoted)",
      "confidence": 0.6,
      "description": "State a hypothesis upfront, then systematically prove or disprove it with evidence"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}