{ "docId": "019dd923-622c-750b-8b99-8a089025bb07", "docSlug": "75aa3b2bd0fb", "documentTitle": "Floor & Decor Holdings, Inc. (FND)", "authorId": "54_Spruce_Point_Capital", "authorName": "Spruce Point Capital Management", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2024-07-01 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 109, "pageCount": 125, "prevPage": 108, "nextPage": 110, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 12, "notes": "The slide uses a combination of narrative text, a direct quote from a 10-K, and a financial table to demonstrate a pattern of behavior.", "elementsJson": [ "headline_text", "callout_box", "data_table", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b99-8a089025bb07/109", "deckHref": "/decks/019dd923-622c-750b-8b99-8a089025bb07", "deckJsonHref": "/decks/019dd923-622c-750b-8b99-8a089025bb07.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-8a089025bb07#slide-109", "components": [ { "bbox": { "h": 0.08, "w": 0.96, "x": 0.02, "y": 0.31 }, "kind": "callout", "text": "Net cash provided by financing activities for fiscal 2004 was $8.7 million, compared with $11.4 million for fiscal 2003. In addition, the Company had no short-term borrowings at the end of fiscal years 2004 and 2003, other than amounts due GECC which are included in accounts payable.", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9c746e87-b20a-4621-adfc-8ffcda6de81b", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "FND's Audit Chairman William Giles has a previous history of mistakes with supply chain finance programs. While CFO and Chief Accounting Officer at Linens 'N Things, the company restated results.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-0f1e-7015-901c-1713a2841932", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.52, "w": 0.46, "x": 0.52, "y": 0.44 }, "kind": "paragraph", "text": "LIN Supply Chain Finance Restatement Discussion: Pursuant to the agreement with GECC any favorable economics realized by GECC for transactions under this program are shared with the Company. As a result of these adjustments, the Company now recognizes the gross discount earned as part of the program as a reduction of the cost of inventory in the Consolidated Balance Sheets and records the related portion of interest expense due GECC as interest expense in the Consolidated Statements of Operations.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "47039808-564b-43d7-89f9-7e1325ed83c7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.11, "w": 0.96, "x": 0.02, "y": 0.17 }, "kind": "paragraph", "text": "FND's Audit Chairman William Giles has a previous history of mistakes with supply chain finance programs. While CFO and Chief Accounting Officer at Linens 'N Things, the company restated results. Furthermore, it classified payments through the program as financing cash flows and not operating cash flows as indicated in the disclosure below. The effect of the restatement resulted in a decrease in historical EPS and book equity.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8260eafc-c5d8-460c-b08f-ab1b43f1a6f2", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"Net cash provided by financing activities for fiscal 2004 was $8.7 million, compared with $11.4 million for fiscal 2003. The decrease is primarily attributable to a decline in proceeds from common stock issued under stock incentive plans. In addition, the Company had no short-term borrowings at the end of fiscal years 2004 and 2003, other than amounts due GECC which are included in accounts payable.\" — Linens 2005 10-K", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-0f1e-7015-901c-1864ab210039", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.2, "x": 0.02, "y": 0.97 }, "kind": "source-note", "text": "Source: Linen 'N Things 2005 10-K", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f41b0834-e695-4d66-8d2b-6bf45107ba83", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.42, "w": 0.47, "x": 0.03, "y": 0.44 }, "kind": "table", "text": "Linens 'N Things Restatement table showing adjustments to cash flow from operating activities, property additions, and interest paid.", "attrs": null, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e54ff86e-9ede-45e4-ae96-df5aae28c79e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.65, "x": 0.31, "y": 0.03 }, "kind": "title", "text": "FND's Audit Chair Is No Stranger To Supply Finance Programs And Financial Restatement", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "abfeb3e0-bc0b-4b2c-b9df-f32e8d6f12e2", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "c93dd833-e474-4c44-8da4-25ea3aa2af3e", "evidence": "The slide explicitly links a past restatement to a current executive to imply a pattern of financial misconduct.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }