{
  "docId": "019dd923-622c-750b-8b99-7df068ad1ae5",
  "docSlug": "55f4c152cfe0",
  "documentTitle": "WSP Global Inc. (WSP)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-04-03 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 43,
  "pageCount": 68,
  "prevPage": 42,
  "nextPage": 44,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 18,
  "notes": "Uses a 'CEO quote vs reality' structure to highlight the contradiction.",
  "elementsJson": [
    "headline_text",
    "callout_box",
    "quote_block",
    "comparison_table",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-7df068ad1ae5/43",
  "deckHref": "/decks/019dd923-622c-750b-8b99-7df068ad1ae5",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-7df068ad1ae5.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-7df068ad1ae5#slide-43",
  "components": [
    {
      "bbox": {
        "h": 0.07,
        "w": 0.22,
        "x": 0.75,
        "y": 0.68
      },
      "kind": "callout",
      "text": "Includes embedded payroll costs too",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "39a0d1c9-8039-4060-8fe1-e6bc9deb5d35",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.22,
        "x": 0.75,
        "y": 0.57
      },
      "kind": "callout",
      "text": "Ordinary and necessary costs to implement its roll-up strategy",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b1f523e2-7bc4-46dd-828c-254ddf29199e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.22,
        "x": 0.75,
        "y": 0.78
      },
      "kind": "callout",
      "text": "Potentially Dubious Provision Accounting Adjustment",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d38c0ab6-7c0e-4702-8821-1ed101a8cbaf",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "Spruce Point believes that WSP's Adj. EBITDA margin increase is purely an accounting mirage.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-0398-7399-b331-21f9a71c072d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "EBITDA margin: 15.6%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-0398-7399-b331-29e0a236e518",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.09,
        "w": 0.94,
        "x": 0.03,
        "y": 0.17
      },
      "kind": "paragraph",
      "text": "Spruce Point believes that WSP's Adj. EBITDA margin increase is purely an accounting mirage. WSP's business strategy is to be an industry roll-up acquiror in the engineering services industry. Yet, the Company wants investors to ignore ordinary and necessary costs to implement its strategy. In reality, we believe that WSP's margins are not increasing, but rather declining.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2362625f-605a-493c-8624-8972a5e60be8",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.82,
        "x": 0.15,
        "y": 0.28
      },
      "kind": "quote",
      "text": "Our capacity to improve our margin profile provides us with the confidence to achieve the strategic planned target to increase adjusted EBITDA margin annually by 30 to 50 basis points.",
      "attrs": null,
      "subkind": "testimonial",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c4396975-779c-43fb-98de-24c37ffa81d6",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "Our capacity to improve our margin profile provides us with the confidence to achieve the strategic planned target to increase adjusted EBITDA margin annually by 30 to 50 basis points. — CFO Michaud Q3'23",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-0398-7399-b331-271654b65048",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.45,
        "x": 0.03,
        "y": 0.95
      },
      "kind": "source-note",
      "text": "Source: WSP results, Q3 2023 Earnings Call and Spruce Point analysis.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "503e2845-7db8-49a8-9e01-601a12a64e2b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.5,
        "w": 0.72,
        "x": 0.03,
        "y": 0.4
      },
      "kind": "table",
      "text": "WSP vs. Spruce Point Adjusted EBITDA table",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "966c24c7-8e31-4cc0-a1d1-d94f8c5ccce9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.65,
        "x": 0.31,
        "y": 0.02
      },
      "kind": "title",
      "text": "Our Analysis Illustrates That Margins Are Not Improving....",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1c65f2a4-de63-4a10-940e-9df37bbfc536",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "ceo-quote-contradiction",
      "slug": null,
      "matchId": "d6135a1f-29bd-4f0d-b5ea-c78e18e132b3",
      "evidence": "Contrasts CFO quote with Spruce Point's adjusted financial analysis.",
      "confidence": 1
    }
  ],
  "arcBeats": [
    {
      "to": 68,
      "from": 9,
      "beatId": "f8978e98-df21-43e6-a756-a65765818a20",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Expose Contradiction",
      "beatSlug": null,
      "evidence": "The document repeatedly exposes contradictions in WSP's reporting and operations",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}