{
  "docId": "019dd923-622c-750b-8b9a-6238ed4ba0d1",
  "docSlug": "5402c37b0a60",
  "documentTitle": "GTT Communications, Inc. (GTT)",
  "authorId": "60_Wolfpack_Research",
  "authorName": "Wolfpack Research",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-06-06 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 6,
  "pageCount": 33,
  "prevPage": 5,
  "nextPage": 7,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 18,
  "notes": "The slide uses a table to contrast organic growth against reported growth to expose obfuscation tactics.",
  "elementsJson": [
    "paragraph",
    "data_table"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b9a-6238ed4ba0d1/6",
  "deckHref": "/decks/019dd923-622c-750b-8b9a-6238ed4ba0d1",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-6238ed4ba0d1.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-6238ed4ba0d1#slide-6",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "For us to be as clear as possible about the length GTT goes to obscure its organic growth rate, we have broken it down quarter by quarter since Q1 2017.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-0398-7399-b328-cb7e10669e03",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "organic revenue growth: -1.0%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-0398-7399-b328-cdfe2fe16dfa",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.78,
        "x": 0.11,
        "y": 0.35
      },
      "kind": "paragraph",
      "text": "Q4 2017 is the most bizarre example of GTT’s efforts to obfuscate its organic growth capabilities. GTT made a buzzer-beating acquisition of Custom Connect on the last day of the year.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "101206d5-c03d-4b50-8a2b-75f673688ff4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.78,
        "x": 0.11,
        "y": 0.6
      },
      "kind": "paragraph",
      "text": "We gave GTT the benefit of the doubt and calculated organic growth using $0 for Custom Connect’s revenue contribution to Q4 2017. We found that GTT’s sequential organic revenue growth rate was -0.5%.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "66985e10-503e-465d-8db0-eb31aaa3c0c8",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.78,
        "x": 0.11,
        "y": 0.75
      },
      "kind": "paragraph",
      "text": "GTT does disclose and even at times boasts about its sequential revenue growth. With no acquisitions or asset purchases in Q1 2019, GTT reported revenue of $450.2 million, a decrease of -$4.6 million, or -1.0%.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a927af30-be59-407e-abf2-77fed24db76f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.78,
        "x": 0.11,
        "y": 0.45
      },
      "kind": "paragraph",
      "text": "We estimate that GTT paid 110.0x EBITDA for Custom Connect — approximately 2,100% above management’s guidance of 5.0x.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ba2d9e85-e5b4-4e01-ad85-4dccffb69545",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.78,
        "x": 0.11,
        "y": 0.09
      },
      "kind": "paragraph",
      "text": "For us to be as clear as possible about the length GTT goes to obscure its organic growth rate, we have broken it down quarter by quarter since Q1 2017.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "bd217ec0-aace-45ab-827d-9b65c795217f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.2,
        "w": 0.535,
        "x": 0.23,
        "y": 0.158
      },
      "kind": "table",
      "text": "Organic vs. Reported Revenue Growth table showing Q1 2017 to Q1 2019",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "bcfd3cf3-0fab-4242-83f5-2ef8039092e6",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "730d19aa-6b96-4acc-9d71-44cf242225ff",
      "evidence": "The slide explicitly details how the company obfuscates organic growth through acquisitions and accounting.",
      "confidence": 0.95
    }
  ],
  "arcBeats": [
    {
      "to": 20,
      "from": 4,
      "beatId": "5aa0fabb-1510-45fb-80eb-9e740851cb61",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Monster",
      "beatSlug": "overcoming-monster-the-monster",
      "evidence": "The document presents a series of contradictions and manipulations in GTT's financials, highlighting the 'monster' of manipulated growth",
      "position": 0,
      "confidence": 0.8,
      "parentBeatName": "Hook",
      "parentBeatSlug": "hook"
    }
  ],
  "loops": [
    {
      "to": 11,
      "from": 4,
      "name": "Pattern Hunter",
      "slug": "02-pattern-hunter",
      "bestFor": "Time-pressed audiences, building consensus, when data is strong",
      "matchId": "150c87d0-c011-40cd-b0fe-6025def84de3",
      "evidence": "The document presents a series of examples highlighting GTT's manipulated financials",
      "position": 0,
      "objective": "Identify patterns of manipulation in GTT's financials",
      "structure": "Evidence A -> Evidence B -> Evidence C -> Pattern/Conclusion",
      "confidence": 0.7,
      "description": "Group multiple pieces of evidence that together point to a pattern or conclusion"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}