{
  "docId": "019dd923-622c-750b-8b99-a7a7a3284557",
  "docSlug": "1b5c4ae912d9",
  "documentTitle": "Dycom Industries, Inc. (DY)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2025-02-19 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 22,
  "pageCount": 43,
  "prevPage": 21,
  "nextPage": 23,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 18,
  "notes": "The slide uses a dual-axis chart to show revenue (bars) and EBITDA margin (line) over time, paired with a list of accounting/operational concerns.",
  "elementsJson": [
    "headline_text",
    "callout_box",
    "bar_chart_vertical",
    "line_chart",
    "bullet_list",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-a7a7a3284557/22",
  "deckHref": "/decks/019dd923-622c-750b-8b99-a7a7a3284557",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-a7a7a3284557.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-a7a7a3284557#slide-22",
  "components": [
    {
      "bbox": {
        "h": 0.07,
        "w": 0.96,
        "x": 0.02,
        "y": 0.17
      },
      "kind": "callout",
      "text": "Spruce Point believes DY's margins are not likely sustainable and may have benefited from various actions that may be difficult to continue. As further evidence of our concern, management has walked back talk of what its long-term EBITDA margin should be.",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0742e47d-e3c0-41ee-bacd-b019b5fec4b7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.58,
        "w": 0.64,
        "x": 0.05,
        "y": 0.26
      },
      "kind": "chart",
      "text": "DY Revenue, Adj. EBITDA and Margin",
      "attrs": null,
      "subkind": "bar-vertical",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "07e06040-9f15-44f2-b62f-d6a62e6b4320",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.96,
        "x": 0.02,
        "y": 0.89
      },
      "kind": "disclaimer",
      "text": "1) On the Q4 2024 conference call the CEO referenced deferred maintenance capex. 2) DY says a liability for unpaid claims and the associated claim expenses... Source: DY SEC filings and financial reports",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9830c1b7-7395-4ac7-a1df-8ffa41e23412",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.58,
        "w": 0.27,
        "x": 0.71,
        "y": 0.26
      },
      "kind": "list",
      "text": "Potential Factors Benefiting Margins: High DSOs, Maintenance capex deferral, Safety cutting corners, Delayed insurance expense recognition, Undisclosed related party benefits, Reduced organic headcount growth",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4c99f507-4869-47ca-ae8c-9fb2e50b6370",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "EBITDA margin: 12.7%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd952-ee38-728b-98bf-b07d9d741939",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.65,
        "x": 0.31,
        "y": 0.02
      },
      "kind": "title",
      "text": "We Believe DY's Margin Expansion Will Be Difficult To Sustain",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0cd30eb7-59ec-462f-a509-315d142575fd",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "c7315c7b-ad50-4219-aecf-7e32fa443203",
      "evidence": "The slide explicitly lists accounting and operational red flags (DSOs, deferred capex, safety issues) to argue that reported margins are unsustainable.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 24,
      "from": 10,
      "beatId": "38bef52a-4142-4519-9fb6-8c0be13ac0cd",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Agitate (Make it worse)",
      "beatSlug": "problem-agitate-solution-agitate-make-it-worse",
      "evidence": "The document agitates the problems with DY, highlighting issues such as DSO expansion, revenue recognition errors/revisions, and potential cash flow embellishment.",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": "Development",
      "parentBeatSlug": "development"
    }
  ],
  "loops": [
    {
      "to": 24,
      "from": 10,
      "name": "Mece Breakdown",
      "slug": "40-mece-breakdown",
      "bestFor": "Problem structuring, ensuring completeness, strategic analysis",
      "matchId": "02225060-c029-4bb4-a388-8bd977fde175",
      "evidence": "The document breaks down various concerns with DY, including financial and business issues.",
      "position": 2,
      "objective": "What are the specific concerns with DY?",
      "structure": "The Whole -> Category A (distinct) -> Category B (distinct) -> Category C (distinct) -> Complete Coverage",
      "confidence": 0.6,
      "description": "Divide a complex topic into mutually exclusive, collectively exhaustive categories"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}