{
  "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": 24,
  "pageCount": 145,
  "prevPage": 23,
  "nextPage": 25,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 80,
  "notes": "Includes red arrows pointing to specific rows in the table to emphasize growth trends.",
  "elementsJson": [
    "headline_text",
    "callout_box",
    "data_table"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-3dd81deb19cb/24",
  "deckHref": "/decks/019dd923-622c-750b-8b99-3dd81deb19cb",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-3dd81deb19cb.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-3dd81deb19cb#slide-24",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Spruce Point has analyzed Generac's warranty reporting and has serious concerns mirrored by numerous consumer complaints, product recalls, and reported injuries. We observe that warranty payments, provisions, and liabilities are increasing faster than its recent organic revenues.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-e6ed-775b-bcbc-f32e7d64b9dc",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Warranty Liabilities: $101.5",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd952-e6ed-775b-bcbc-f7835113668c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.085,
        "w": 0.864,
        "x": 0.068,
        "y": 0.168
      },
      "kind": "paragraph",
      "text": "Spruce Point has analyzed Generac's warranty reporting and has serious concerns mirrored by numerous consumer complaints, product recalls, and reported injuries. We observe that warranty payments, provisions, and liabilities are increasing faster than its recent organic revenues. Also, a very large change in warranty estimate was made in 2020. Lastly, we see that deferred revenue growth for extended warranties are also lagging the growth of other metrics.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0484e572-1f5c-461b-b774-9b3cef02a61d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.55,
        "x": 0.025,
        "y": 0.925
      },
      "kind": "source-note",
      "text": "Source: Generac financials and Spruce Point analysis. 1) In 2017, the Company launched a post-sale extended warranty marketing program with a third party.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "7496081d-1aa4-41b2-8128-6b6bcfa48467",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.605,
        "w": 0.95,
        "x": 0.025,
        "y": 0.298
      },
      "kind": "table",
      "text": "Financial table showing Warranty Payments, Provisions, Change in Estimate, Extended Warranties, and Standard Warranty Liabilities from 2016-Q1 2022.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "378bcea3-bf35-4fbb-9d34-52cc2e26a033",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.035,
        "w": 0.388,
        "x": 0.306,
        "y": 0.055
      },
      "kind": "title",
      "text": "Warranty Accounts Signal Problems",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "492406a2-bd85-47f0-b5c0-335285ea8142",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "f06ea2c2-17b1-47fe-98a6-64561888c13a",
      "evidence": "The slide explicitly frames financial data as 'signal problems' and 'serious concerns' regarding accounting practices.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 50,
      "from": 14,
      "beatId": "6efea6c0-5238-48d2-864d-0ad94f8d4ead",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Expose Contradiction",
      "beatSlug": null,
      "evidence": "Multiple contradictions in Generac's financials and operations",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}