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Thursday, March 28, 2024

Marc Cohodes Badger Daylighting Short Thesis

By Jacob Wolinsky. Originally published at ValueWalk.

Marc Cohodes the shrewd Canadian short seller and chicken farmer who called the collapse of Valeant, Concordia and Home Capital Group among others has a new report out on another Canadian company in sight –  Badger Daylighting – news that he was short Badger Daylighting sent the company down around 25% in Friday’s trading session. He has just released slides on his short thesis which can be found below.

First some text on Badger Daylighting followed by full PDF

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Check Out The Management, Directors & Auditor Departures!


q May 2014 : CFO Greg Kelly departs after 15 years at Badger despite not having another job


q June 2014: Accounting Manager, Lynn Quiding, is fired a month after her boss is no longer with company


q November 2014: Chairman George Watson departs


q March 2015: Director (and Audit Committee Member) Richard Couillard chooses not to stand for re-election


q April 2015: Ernst & Young steps down as Badger’s Auditor


q June 2015: VP of Ops (#3 Exec in Co) Derek Dillon leaves. The same month, a jury enters a US$13.7mn verdict in favor of a former


franchisee in Oklahoma.


q March 2016: CEO Tor Wilson announces plan to retire after 13 years at company (last day is August 2016) due to health reasons yet


maintains aggressive workouts?


q March 2016: Midwest Director of Operations Dan Hutchison, who helped operate and build Badger’s U.S. finance and operations, is


demoted and eventually leaves the company in November 2016 to join Remax.


q June 2016: Credit & Collection Manager James Mink, a former colleague of Dan Hutchison responsible for over $40mn A/R portfolio


at Badger, leaves to become an assistant at a golf pro shop in Florida.

Paul Vanderberg, CEO, Motto: I know nothing about Hydrovac


• Paul Vanderberg, CEO of Badger since July 2016 – here is what he had to say on his first conference call:


• 2Q:16 Earnings Call – Paul Vanderberg, Chief Executive Officer…”I’ve been in the construction business for 35 years and very


involved in commercial construction activity, not as much on the infrastructure side, but a lot of things are related. And I know very


little about hydrovac”.


• Paul Vanderberg was employed as Director of Operations from January 18, 2016 to June 20, 2016 at Gypsum Gator, a subsidiary of


GMS Inc.. We weren’t familiar with his bio included in release so reached out to his former company, Gypsum Gator, for background


checks and got the following responses:


• From GMS (Parent of Gypsum Gator) Investor Relations: “We had a discussion with the GMS and the local team today. This is


a complete non-event. (He) joined a local subsidiary of GMS earlier this year in a training capacity with no direct reports. He


was far removed from GMS corporate, reporting to the local Vice President.”


• The Badger press release doesn’t include dates to show the ~6 mos. stint at Gator Gypsum and has the wrong title. In addition, it shows


he was President of Winroc SPI from 2000 to 2014, but not providing dates avoids showing there is a gap from November 2014 to


January 2016 in his CV (the time he left Winroc SPI “to pursue other interests” until he started to train to be a VP of operations for


Florida subsidiary of GMS).

Schielfbein, CFO, Motto: Don’t mind my background


• Jerry Schiefelbein, CFO of Badger since June 2014


• Appointed CFO of Ivanhoe Energy Nov 13, 2009


• Resigned May 16, 2014


• On February 20th 2015, Ivanhoe Energy filed a Notice of Intention to make a proposal under the Bankruptcy and Insolvency Act Canada


(BIA).


• Not an accountant. Not a CPA.

Badger Daylighting  Full PDF below

turnoutthebadgerdaylight

Badger Daylighting Marc Cohodes
Badger Daylighting

The post Marc Cohodes Badger Daylighting Short Thesis appeared first on ValueWalk.

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