Callouts & quotes from 676+ activist slides

"The Company is arbitrarily selecting the ONLY time period in recent history where relative TSR against performance peers has performed better. We believe this is a blatant attempt to mislead shareholders on the Company's track record of dismal relative TSR."

"Disney has a much better “hand to play” than its peers to weather any disruption... but Disney's response to a changing landscape was ill-conceived and reactive... in large part because the Board disincentivized management to act – paid execs $1bn since ‘13"

"TASK is the only company among its peers that we could identify trying to sell investors on COVID-19 related expense adjustments to improve EBITDA and EPS. Analysts aren't asking any questions or pushing back on what we believe are aggressive adjustments."

"Spruce Point believes sell-side analysts and investors are not factoring in multiple issues that will likely cause Generac to severely miss its lofty financial expectations and/or should factor into Generac receiving a lower valuation relative to peers."

"At Phillips 66 (NYSE: PSX), the numbers don't lie. The company has dramatically underperformed its peers since 2019, and shareholders have missed out on substantial returns. Vote the GOLD proxy card today to support a better tomorrow with #Streamline66."

"Marathon today reports lower RINs expense than merchant peers because Speedway reports no RINs revenue. If Speedway were a separate company, it would recognize higher revenue from RINs commensurate with the higher cost of RINs at Marathon’s refineries."

"P&G’s $6bn of COGS reduction target from FY 2011 to 2016 translates into less than 3% annual COGS efficiency. Many CPG peers undertaking productivity initiatives have demonstrated significantly higher annual COGS productivity in the range of 3.5% to 4%"

"We believe Axon should be valued relative to traditional weapons and firearms manufacturers and connected device and location electronics companies, not high growth SaaS peers with bigger TAMs, lower business risks, and proven recurring revenue models."

"It seems to us that if one were to overstate revenue in a global business, one wouldn't want the margins to seem glaringly out of line with peers. Therefore, we would expect that a smart person (or people) would find a way to inflate expenses as well."

"We believe Essential is signaling that it will miss its targets for the first time since 2015, is richly valued with a poor risk / reward, and should trade at a discount – not a premium – to peers given the numerous issues we’ve identified including:"

"We also note that PetIQ is amortizing its “customer relationships” over an egregiously-long twenty-year period. This stands in contrast to peers which amortize acquisition-derived customer relationships over far shorter periods – typically ten years."

"Not only has Crown Castle's AFFO per share grown more slowly than that of peers, but its AFFO also includes less of its total capex. In other words, Crown Castle is growing cash flow per share slower than its peers despite spending far more capital"

"We find Sunnova reports metrics that are not aligned with those its peers report. Spruce Point has concerns about the quality and relevance of these metrics including Adjusted EBITDA, Adjusted Operating Expenses and Adjusted Operating Cash Flow."

"Manufacturers of clean energy solutions don't necessarily carry higher valuation multiples. Excluding Enphase, which has margins that Generac will likely never achieve, peers are trading around 2.7x and 2.0x 2022E and 2023E sales, respectively."

"A November 2022 report by the Markup found that Intuit peers TaxAct, TaxSlayer, and H&R Block used website pixels to collect and send sensitive personal financial information to Meta and Google, which resulted in a Congressional investigation."

"Spruce Point believes that WSP's backlog is one of the least descriptive among its global peers. Furthermore, unlike Canadian counterparts Stantec and AtkinsRealis (SNC-Lavalin), WSP's backlog differs from remaining performance obligation."

"Management compensation is a significant percentage of EBITDA and has been immune to Kratos’ struggles and poor performance. Among small cap aerospace and defense contracting peers, Kratos’ management is excessively paid relative to EBITDA"

"If Norfolk Southern's claims of having a PSR operating model right now were true, the Company's operating and financial metrics would not materially lag those of CSX and Class I peers (before and after the East Palestine, Ohio disaster)."

"In light of our interview of a former TASK Business Development employee who claimed that TASK's technology offerings were a step behind peers, we find it notable that TASK recently retracted benefit claims related to its core offerings."

"As a result of the Company’s subpar performance, Autodesk shareholders have suffered. As shown below, Autodesk’s share price has meaningfully underperformed its peers, the software market, and the broader market over the last five years."

"Limbach's stock-based compensation payments, which are at the high-end when compared to peers, coupled with warrant issuances and a public offering in 2021, have left Limbach's shares outstanding nearly 50% higher than they were in 2019."

"This consistent underperformance is troubling and puzzling, given both the strong performance of Mellanox’s peers and the tailwinds provided by the Company’s favorable exposure to many of the most attractive end markets in the industry."

"We believe the new BDC (ACAP) will have inferior returns relative to peers because it has lower asset yields and a higher cost structure. As a result we believe this investment will continue to trade at a deep discount to its book value"

"As we’ve demonstrated, Amdocs is at best a no-growth company, and at worst declining organically. If it received a multiple in-line with peers to reflect this reality at 1.0x-1.5x its share price would be approximately 21% to 45% lower."

"An efficient “low-cost” miner should be among the best in generating operating cash flow from its fleet. Riot screens as the worst among its closest peers while also among the worst when it comes to share dilution though ATM issuance."

"O Realty looks priced for perfection. O trades at the highest multiple within their retail triple net lease peers. As highlighted below, when the growth profile of a REIT begins to decline, the AFFO multiple compresses significantly."

"O Realty looks priced for perfection. O trades at the highest multiple within their retail triple net lease peers. As highlighted below, when the growth profile of a REIT begins to decline, the AFFO multiple compresses significantly."

"Disney's supposed "progress" appears elusive - the Company has significantly underperformed its Media Industry (Proxy) Peers since Mr. Iger returned as CEO in late 2022 and since the Company's "transformation" began in February 2023."

"Disney’s supposed “progress” appears elusive – the Company has significantly underperformed its Media Industry (Proxy) Peers since Mr. Iger returned as CEO in late 2022 and since the Company’s “transformation” began in February 2023."

"Sunnova's business model aligns itself closer to specialty finance / leasing peers than solar businesses. Despite its undifferentiated offerings and lagging financial metrics, Sunnova trades at a premium to peers across all metrics."

"Spruce Point believes that Stryker's inability to raise prices to offset inflation speaks volumes about the quality of its business vs. peers. Most are sticking to margin improvements despite inflationary and supply chain headwinds."

"Monster is dependent on keeping the perceived value of its equity high because it is the most aggressive issuer of stock-based compensation at 1.2% of revenue and almost ~$15,000 per employee among selected food and beverage peers."

"DND is a high-quality business with competitive products and cash flows of a similar quality to peers. However, it has significantly underperformed its benchmark indices and self-selected peer group over all relevant time horizons"

"After backing out the value of publicly traded MLP interests and the estimated value of other non-refining businesses, Marathon's current trading price implies a significant discount to the trading value of merchant refining peers"

"Dollarama has zero social media presence, unlike all of its peers. Not only is the Company out of touch with customers in an industry which demands a high level of customer engagement, but its brand is becoming demonstrably stale."

"LSPD was the only Company among its close peers talking about "quick" and "rapid" growth starting in April 2020. Other peers gave a more muted perspective, with one saying it really took until late June/July to see an improvement."

"The Summary White Paper contemplated a separation of the portfolio as a means to an end to increase the probability that the individual businesses eliminate operational underperformance vs. peers and achieve a multiple re-rating."

"Avery's NTM valuation relative to its closest materials and specialty chemical adhesive peers cannot be justified by Avery having higher free cash flow, or faster sales growth potential. It's dividend yield is also below market."

"We believe that DOX should not trade at a material premium to midcap technology and business process outsourcing (BPO) peers as a result of its opaque and complex structure, below avg growth, accounting and governance concerns."

"Phillips 66's choice of only looking at Lashier's tenure as CEO hides the fact that Lashier's stint as COO led to >50% relative underperformance vs. its refining peers, given poor operations during the "Golden Age" of refining."

"Phillips 66's choice of only looking at Lashier's tenure as CEO hides the fact that Lashier's stint as COO led to >50% relative underperformance vs. its refining peers, given poor operations during the "Golden Age" of refining."

"BP's peers such as Chevron and ExxonMobil are being much more realistic in their capital allocation: they plan to spend around 10% of their capex in the next five years on low carbon solutions, which compares with 30%+ for BP."

"Without a proper focus on Kao’s strongest brands, it is hard to believe that Kao has the same ‘right to win’ in the global marketplace as peers and its poor portfolio management will continue to act as a drag on a turnaround."

"As Phillips 66’s refining EBITDA eroded due to poor operating performance, the refining weight in its synthetic peer group dropped, masking the impact of Phillips’ underperformance against its core peers, Marathon and Valero"

"As Phillips 66's refining EBITDA eroded due to poor operating performance, the refining weight in its synthetic peer group dropped, masking the impact of Phillips' underperformance against its core peers, Marathon and Valero"

"PGNY is generally considered a technology laggard compared to its fertility benefit manager peers, which either have strong digital DNA given their recent founding or have sought to partner with leading technology platforms."

"Spruce Point believes it is customary for large and global U.S. public financial reporting peers to disclose how much cash and equivalents are held outside of the U.S. in foreign subsidiaries or permanently invested abroad."

"The Hyundai Motor Group is a brand recognized for quality: HMC and Kia have consistently outperformed their peers in the J.D. Power Initial Quality Survey ("IQS"), a testament to the superior craftsmanship of their products"

"To ensure that Crown Castle's management team is properly aligned with shareholders, we are recommending a revised incentive plan that encourages sound capital allocation and bridging the performance gap to industry peers"

"Despite having the largest revenue base in media, arguably the best IP, iconic studios, and multiple distribution channels, Disney's Media business ("Entertainment" and "Sports") significantly under-earns its media peers."

"Despite having the largest revenue base in media, arguably the best IP, iconic studios, and multiple distribution channels, Disney’s Media business (“Entertainment” and “Sports”) significantly under-earns its media peers."

"Phillips 66's refining assets are some of the best assets in their respective markets; the complexity, scale and flexibility of each refinery should allow it to better compete with peers Valero or Marathon in each region."

"While choices around insourcing vs. outsourcing impact headcount comparisons, BK also spends the greatest % of revenues on professional and outside service fees compared to other custody, asset management and G-SIB peers"

"Disclosures are varied and limited among peers related to inventory reserves and charges. However, it’s clear that reserves run closer to 3.0% - 4.0% and not 7.7% - 27.9% as illustrated by Mettler’s foreign subsidiaries."

"Despite our belief that Danimer’s selected peer group is not a strong representation of its business, Danimer trades at substantially higher multiples that its self-selected peers on a projected revenue and EBITDA basis."

"How is Billy Taubman, Taubman's Chief Operating Officer, supposed to provide an independent review when the Company's operating performance - which he is responsible for - massively underperforms its Class A Mall Peers?"

"We Believe That Viacom is Significantly Undervalued Relative to its Peers and Assets and Can Deliver Material Returns Over The Long-term For Its Shareholders With Changes Made to its Leadership and Board of Directors"

"Compared to its DTC peers, FIGS allocates nearly all fulfillment and distribution expenses to the operating expense line items, instead of COGS. This results in FIGS gross margins being overstated relative to peers."

"Marathon has excelled since it took bold actions to improve operations and governance, resulting in a ~150% relative share-price outperformance versus its peers Phillips 66 (NYSE: PSX) and Valero Energy (NYSE: VLO)."

"We analyze the annual capex reporting as a percent of its Gross P&E relative to a diversified set of aggregate and building material peers and find USCR to be a significant outlier when adjusted for capital leases."