{
  "docId": "019dd923-622c-750b-8b99-1e32ee1ceb49",
  "docSlug": "cce862680d4f",
  "documentTitle": "Heska Corporation (HSKA)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2021-10-25 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 64,
  "pageCount": 128,
  "prevPage": 63,
  "nextPage": 65,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 30,
  "notes": "The slide uses a red flag icon to highlight a 'troubling' finding and red boxes to emphasize specific data points and contradictions.",
  "elementsJson": [
    "headline_text",
    "callout_box",
    "data_table",
    "paragraph"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-1e32ee1ceb49/64",
  "deckHref": "/decks/019dd923-622c-750b-8b99-1e32ee1ceb49",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-1e32ee1ceb49.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-1e32ee1ceb49#slide-64",
  "components": [
    {
      "bbox": {
        "h": 0.25,
        "w": 0.47,
        "x": 0.03,
        "y": 0.69
      },
      "kind": "callout",
      "text": "Negative Trend: 2020 saw a material decline in Min CSV per subscription per month with an accelerating decline expected in 2021. While some of this decline may be due to smaller vet practices in Europe, the metric has seen large domestic declines in the past, and we note that Heska expects Min CSV / month to decline only 6% in 2021 (see previous page).",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6e5691f7-3d68-4238-8f2f-b5be4d962351",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.47,
        "x": 0.52,
        "y": 0.69
      },
      "kind": "callout",
      "text": "Conflicting Analysis: Heska has disclosed that five-year terms were standard until a switch to six-year terms in 2016. Therefore, we find it hard to find an explanation for the consistency in months per subscription given the significant change in the number of new subscriptions as a percent of total (ie, the percent of subscriptions contributing a full term of months).",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9ac5fda8-0e4c-40ae-90ca-8ec79690e5c0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.88,
        "x": 0.11,
        "y": 0.17
      },
      "kind": "callout",
      "text": "We find it troubling that Heska Min CSV per Subscription per Month declined materially in 2020 and is expected to decline again in 2021. Furthermore, our analysis of average months per subscription yields a relatively consistent range of values when the declining mix of new subscriptions in recent years should result in more variability.",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a5131d50-c833-41b8-bad9-061536b176d1",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "We find it troubling that Heska Min CSV per Subscription per Month declined materially in 2020 and is expected to decline again in 2021.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-3f3c-7011-a9ab-47070ad09c8b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Min CSV / Sub / Month: -24%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-3f3c-7011-a9ab-4b8cedeed157",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.25,
        "x": 0.03,
        "y": 0.97
      },
      "kind": "source-note",
      "text": "Source: Heska press releases dated 2/23/21",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "fc6ab7a9-b248-4452-965b-ac6b388e4172",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.96,
        "x": 0.03,
        "y": 0.35
      },
      "kind": "table",
      "text": "Analysis of Heska Min CSV and Subscription Months",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "7d4ad52a-9b9f-4673-b825-133dc3f3a25c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.67,
        "x": 0.31,
        "y": 0.03
      },
      "kind": "title",
      "text": "Our Analysis of Min CSV / Sub / Month Shows Rapid Deterioration And Sub Months Don't Make Sense",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "dd0909f2-1c71-460c-bc5c-5ec00440b947",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "expose_contradiction",
      "slug": null,
      "matchId": "771a5d8f-0c04-4372-96bc-e479cfaebe1d",
      "evidence": "The slide explicitly contrasts company disclosures with observed data trends to highlight a potential inconsistency.",
      "confidence": 1
    }
  ],
  "arcBeats": [
    {
      "to": 128,
      "from": 51,
      "beatId": "4e43434d-b2d5-4e85-8876-a8ed1db53557",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Victory",
      "beatSlug": "overcoming-monster-the-victory",
      "evidence": "The deck concludes with a strong sell opinion and a call to action for investors.",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": "Turn",
      "parentBeatSlug": "turn"
    }
  ],
  "loops": [
    {
      "to": 70,
      "from": 50,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "5757e4f8-7cdf-47a2-9b16-5ff0d9fc9db3",
      "evidence": "The deck presents a thorough analysis of Heska Corp.'s financials and business model, highlighting several red flags.",
      "position": 1,
      "objective": "The cost of inaction for investors is significant, as Heska Corp.'s stock price may decline.",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.6,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}