{
  "docId": "019dd923-622c-750b-8b99-5499dc38e401",
  "docSlug": "0ce9434f48c5",
  "documentTitle": "Essential Utilities, Inc. (WTRG)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2023-03-08 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 33,
  "pageCount": 91,
  "prevPage": 32,
  "nextPage": 34,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 36,
  "notes": "The slide uses a comparison table to show peer differentiation and a financial table to show the impact of book overdrafts on net cash.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "comparison_table",
    "callout_box",
    "data_table",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-5499dc38e401/33",
  "deckHref": "/decks/019dd923-622c-750b-8b99-5499dc38e401",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-5499dc38e401.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-5499dc38e401#slide-33",
  "components": [
    {
      "bbox": null,
      "kind": "metric",
      "text": "Net C",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-64d2-7657-bbd7-8c79ebe5f3dd",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.96,
        "x": 0.02,
        "y": 0.58
      },
      "kind": "paragraph",
      "text": "The Company had a book overdraft, which represents transactions that have not cleared the bank accounts at the end of the period, for specific disbursement cash accounts of $28,694 and $81,722 at December 31, 2022 and 2021, respectively.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "5876a7ad-b016-4872-b5a9-c5b5c7b6134e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.09,
        "w": 0.96,
        "x": 0.02,
        "y": 0.18
      },
      "kind": "paragraph",
      "text": "WTRG is unique among its water and gas utility peers in that it reports book overdrafts (a current liability), or cash it owes to fund payments. We net the outstanding overdraft against reported cash on hand and observe that in many periods, WTRG effectively has no available cash. This is an alarming observation.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b8b6ed53-1844-43cd-be1d-1ce63a631fc9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.3,
        "x": 0.02,
        "y": 0.94
      },
      "kind": "source-note",
      "text": "Source: WTRG SEC filings (1) Cash raised to fund People's acquisition.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "69a8d51c-017f-4fe6-9aeb-a4181cb17598",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.2,
        "w": 0.96,
        "x": 0.02,
        "y": 0.73
      },
      "kind": "table",
      "text": "WTRG's Reported Book Overdraft",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "334c180a-a0eb-42b5-b65b-b545c0bcc8ff",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.96,
        "x": 0.02,
        "y": 0.31
      },
      "kind": "table",
      "text": "WTRG Peers Disclosing Overdrafts",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d16e1f93-6072-4d46-ae95-bca468b4ecb5",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.65,
        "x": 0.31,
        "y": 0.06
      },
      "kind": "title",
      "text": "WTRG Frequently Has No Cash On Hand",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "38224413-8da2-471c-8c54-26af593c3cac",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "9e8ae5d7-8402-4f05-b5c6-1b2afda47a0e",
      "evidence": "The slide highlights a specific accounting practice (book overdrafts) to argue that the company is in a worse financial position than it appears.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 40,
      "from": 21,
      "beatId": "ac45fd8f-0875-4abe-826e-f0cb488aef12",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Struggle",
      "beatSlug": null,
      "evidence": "The document presents a detailed analysis of WTRG's challenges, including its acquisition strategy and financial performance.",
      "position": 3,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [
    {
      "to": 33,
      "from": 31,
      "name": "Iceberg",
      "slug": "10-iceberg",
      "bestFor": "Consulting, complex problem solving, organizational change",
      "matchId": "80217b4f-0493-4024-949f-99def02a1094",
      "evidence": "The document critiques WTRG's capital raising strategy and financial performance.",
      "position": 1,
      "objective": "To highlight WTRG's capital raising issues and financial stress",
      "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"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}