{
  "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": 49,
  "pageCount": 68,
  "prevPage": 48,
  "nextPage": 50,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 4,
  "notes": "Uses a comparative structure to contrast two different earnings call transcripts.",
  "elementsJson": [
    "headline_text",
    "callout_box",
    "quote_block",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-7df068ad1ae5/49",
  "deckHref": "/decks/019dd923-622c-750b-8b99-7df068ad1ae5",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-7df068ad1ae5.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-7df068ad1ae5#slide-49",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Spruce Point also takes issue with management's claims that tax issues are the culprit for recent cash flow headwinds.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-0398-7399-b332-a42166958eb4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.96,
        "x": 0.02,
        "y": 0.17
      },
      "kind": "paragraph",
      "text": "Spruce Point also takes issue with management's claims that tax issues are the culprit for recent cash flow headwinds. Management pointed out that the Wood E&I acquisition had a $200 million tax benefit that would allow WSP to reduce its future tax burden. However, it did not pro forma adjust its Free Cash Flow conversion to present a normalized conversion rate absent this benefit. Yet, when tax issues became a headwind, management was quick to point out the figure and adjust its conversion rate accordingly.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "202f6020-468a-4f45-99ba-e6e987d5a8f4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "The transaction is based on a cash consideration of USD 1.81 billion, which includes a tax benefit with a net present value of USD 200 million. The $200 million tax benefit comes from an election made by the seller as part of the transaction, resulting in amortizable goodwill for tax purposes, allowing us to reduce annually the amount of tax that WSP will have to pay in the future. — CFO Michaud, John Wood E&I Acquisition Call, June 1, 2022",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-0398-7399-b332-a9e4040a4ad0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.3,
        "x": 0.01,
        "y": 0.97
      },
      "kind": "source-note",
      "text": "Source: WSP financial results and Q4'23 earnings call",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ea25232c-2ebb-435d-8ffa-dd7e5f66bb88",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.6,
        "w": 0.96,
        "x": 0.02,
        "y": 0.33
      },
      "kind": "table",
      "text": "Comparison of management quotes regarding tax benefits vs tax headwinds.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3e3f305e-8cd1-4524-9cb6-f619d62ea7e7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.65,
        "x": 0.31,
        "y": 0.02
      },
      "kind": "title",
      "text": "WSP Speaks From Both Sides Of Its Mouth On Tax Effects",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "7aeb57fa-fdca-4c72-bac4-4d0fbadb08d0",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "ceo-quote-contradiction",
      "slug": null,
      "matchId": "b13163df-8b06-4c11-b9a7-fed3cba28fea",
      "evidence": "Contrasting two quotes from different time periods to expose inconsistent management logic.",
      "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
}