{ "docId": "019dd923-622c-750b-8b99-3dd81deb19cb", "docSlug": "0cee9cc55960", "documentTitle": "Generac Holdings, Inc. (GNRC)", "authorId": "54_Spruce_Point_Capital", "authorName": "Ben Axler", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2022-06-22 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 108, "pageCount": 145, "prevPage": 107, "nextPage": 109, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 21, "notes": "Uses a table to compare Generac's missing data against 7 peers, followed by a chronological sequence of contradictory management statements.", "elementsJson": [ "headline_text", "paragraph", "comparison_table", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b99-3dd81deb19cb/108", "deckHref": "/decks/019dd923-622c-750b-8b99-3dd81deb19cb", "deckJsonHref": "/decks/019dd923-622c-750b-8b99-3dd81deb19cb.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-3dd81deb19cb#slide-108", "components": [ { "bbox": null, "kind": "callout", "text": "Spruce Point doesn't believe Generac's margin goals for its clean energy business are credible.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-e6ed-775b-bcc3-ca9a79302940", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "EBITDA margin", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd952-e6ed-775b-bcc3-d3167c6a414a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.96, "x": 0.02, "y": 0.16 }, "kind": "paragraph", "text": "Spruce Point doesn't believe Generac's margin goals for its clean energy business are credible. We are skeptical how its rapid entrance and subscale business can hit margin targets that only some of the best, and largest players have achieved...", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ff555496-403a-4c87-8d70-1e627fab4185", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.96, "x": 0.02, "y": 0.89 }, "kind": "quote", "text": "CFO York Q3 2021: Today, clean energy, just thinking storage, that is a profitable business today. We haven't quoted exactly what margin profile is... over the next call it, few years, that will also grow into that mid- to high teens EBITDA margins.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7b15bc87-91a9-4ba1-bbde-9ad44743b442", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.96, "x": 0.02, "y": 0.71 }, "kind": "quote", "text": "CFO York Q4 2020: Yes. Ross, it's York. So yes, making very good progress on gross margin optimization... we do expect to ramp up our gross margins to somewhere in the mid-30% range.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a2f35fe5-b9e1-4715-87de-1904afe7cbf5", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.96, "x": 0.02, "y": 0.6 }, "kind": "quote", "text": "Roth Analyst: And then can you talk a little bit more about the profitability in your clean energy business and with PWRcell?...", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "aa988bca-0a87-4fff-8e3d-cf608bdd64ef", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"And then can you talk a little bit more about the profitability in your clean energy business and with PWRcell? ... And just how should we think of it more on like a 2 to 3-year basis as you continue to ramp?\" — Roth Analyst. \"Yes. Ross, it's York. So yes, making very good progress on gross margin optimization... we do expect to ramp up our gross margins to somewhere in the mid-30% range... maybe hitting double digits there by the end of the year for EBITDA margins.\" — CFO York, Q4 2020. \"Today, clean energy, just thinking storage, that is a profitable business today. We haven't quoted exactly what margin profile is. It's profitable today. But over time, over the next call it, few years, that will also grow into that mid- to high teens EBITDA margins as well.\" — CFO York, Q3 2021.", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-e6ed-775b-bcc3-cc610848b7a8", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.24, "w": 0.96, "x": 0.02, "y": 0.33 }, "kind": "table", "text": "Solar Companies comparison table showing Sales, Gross Margin, and EBITDA Margin for 8 companies including Generac.", "attrs": null, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "efdce3af-7c67-486c-ad40-73a7cfae1e81", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.07, "w": 0.68, "x": 0.28, "y": 0.03 }, "kind": "title", "text": "Generac Doesn't Report Clean Energy Margins And Expectations Seem Unreasonable", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3f9612c8-cea6-4792-9682-aa26d700a9f0", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "a12d7e4a-a562-425b-9154-8edacc805af7", "evidence": "Contrasting Q4 2020 and Q3 2021 management statements to highlight shifting guidance.", "confidence": 0.95 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }