{ "docId": "019dd923-622c-750b-8b9a-4b91788fc785", "docSlug": "5fadb686cc03", "documentTitle": "Twist Bioscience (TWST)", "authorId": "58_Scorpion_Capital", "authorName": "Scorpion Capital", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2022-11-15 00:00:00", "orientation": "landscape", "aspectRatio": 1.2941177, "pageNumber": 128, "pageCount": 236, "prevPage": 127, "nextPage": 129, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 4, "notes": "The slide uses direct quotes from an earnings call transcript to demonstrate the CFO's contradictory statements about where the $90-100MM CapEx is being spent.", "elementsJson": [ "paragraph", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-4b91788fc785/128", "deckHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785#slide-128", "components": [ { "bbox": null, "kind": "callout", "text": "We further observed that the CFO’s answers were incoherent and didn’t add up when asked to explain the capex and cash burn.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-0932-77cf-bfee-b840872c5b77", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.9, "x": 0.05, "y": 0.08 }, "kind": "paragraph", "text": "We further observed that the CFO’s answers were incoherent and didn’t add up when asked to explain the capex and cash burn. On the May 5, 2022 call, he indicated that the $90-100MM of projected FY2022 capex was “associated with increased investment in our Biopharma business” – contradicting his comments on previous calls, as well as later in the same call, which attributed most of the capex to the Factory of the Future. He then broke out the $90-100MM of cap ex as follows: “a good chunk...in ramping up R&D for biopharma,” although R&D is an operating expense, not capex; “reinvesting in the core business”; “$40MM in data storage”; and “the bulk of the capex...approximately $75MM...for the Factory of the Future.”", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6cc89560-8913-4392-a9dc-41c071d5fb72", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.07, "w": 0.9, "x": 0.05, "y": 0.65 }, "kind": "quote", "text": "Luke England Sergott, Barclays analyst: “Can you just update us on what your cash burn was on an organic basis ex the raise? Just trying to get a sense there of how you guys are thinking about that through the rest of the year.”", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "37323478-b68c-43cc-a7bb-a8deb3dc1e96", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.9, "x": 0.05, "y": 0.53 }, "kind": "quote", "text": "James Thorburn, Twist CFO: “CapEx for the quarter was $22 million, mostly associated with our Factory of the Future investment...Projected CapEx for fiscal '22 is expected to be in the range of $90 million to $100 million, associated with increased investment in our Biopharma business.”", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3966e1fe-0dee-417f-99ba-5ca3772368c1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.75 }, "kind": "quote", "text": "James Thorburn, Twist CFO: “...In terms of CapEx, we're projecting approximately $90 million to $100 million for CapEx. So that should help you frame the cash burn. So if you step back and look at that, it's approximately around about $260 million for the year... I mean, obviously, a good chunk of that is being invested in ramping up R&D for biopharma, reinvesting in the core business. We're investing about $40 million in Data Storage. And obviously, for overall CapEx, the bulk of the CapEx investment, approximately $75 million of the $100 million this year is for the Factory of the Future.”", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "db60aeb7-6a93-4463-a2f0-db6dca551cf8", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“CapEx for the quarter was $22 million, mostly associated with our Factory of the Future investment...Projected CapEx for fiscal '22 is expected to be in the range of $90 million to $100 million, associated with increased investment in our Biopharma business.” — James Thorburn, Twist CFO; “...In terms of CapEx, we're projecting approximately $90 million to $100 million for CapEx. So that should help you frame the cash burn. So if you step back and look at that, it's approximately around about $260 million for the year... I mean, obviously, a good chunk of that is being invested in ramping up R&D for biopharma, reinvesting in the core business. We're investing about $40 million in Data Storage. And obviously, for overall CapEx, the bulk of the CapEx investment, approximately $75 million of the $100 million this year is for the Factory of the Future.” — James Thorburn, Twist CFO", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-0932-77cf-bfee-bc9c33c852e5", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.25, "x": 0.05, "y": 0.95 }, "kind": "source-note", "text": "Source: Capital IQ earnings call transcripts", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3366880d-ecd3-4f40-96de-e853a06b5285", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.3, "x": 0.05, "y": 0.48 }, "kind": "title", "text": "Earnings call excerpts – May 5, 2022", "attrs": null, "subkind": "subtitle", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "75bfc189-dce0-41fe-aa6b-0cb0ebfdd5ac", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "fa0d700f-9704-4a37-aeb7-0dcdfa7520ec", "evidence": "The slide explicitly contrasts the CFO's statements to expose incoherence.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }