Cpi Card Group Inc. · NASDAQ:PMTS
Cpi Card — FY2019 Earnings Presentation
21 slides from Cpi Card's earnings presentation, Mar 9, 2020
Slide 1: Fourth Quarter and Full Year 2019 Earnings Conference Call
Copyright 2020 CPI Card Group Fourth Quarter and Full Year 2019 Earnings Conference Call March 9, 2020
Slide 2: Safe Harbor Forward-Looking Statements
Copyright 2020 CPI Card Group Safe Harbor Forward-Looking Statements: Certain statements and information in this presentation (as well as information included in our accompanying written or oral statements) may constitute “forward-looking statements” within the meaning of the Private Securities Liti
Slide 3: Business Summary
Copyright 2020 CPI Card Group Business Summary Scott Scheirman President and CEO
Slide 4: Fourth Quarter and Full Year 2019 Highlights
Copyright 2020 CPI Card Group 4 Fourth Quarter and Full Year 2019 Highlights * Financial results included in this presentation for all periods reflect continuing operations. ** See Appendix for definitions of our Non-GAAP financial measures and reconciliations to the most comparable GAAP financial m
Slide 5: 2019 Business Highlights
Copyright 2020 CPI Card Group 5 2019 Business Highlights Growth Through Targeted Initiatives • Deep customer focus • Winning in dual interface through experience, differentiated products, and expanded relationships • Built upon our relationship with one of the largest U.S.-based card-issuing financi
Slide 6: Strategic Priorities
Copyright 2020 CPI Card Group Strategic Priorities 6 Deep Customer Focus • Be the trusted partner in payments • Exceed expectations through high quality, collaboration and innovative products Market-Leading Quality Products and Customer Service • Continually raise the bar on delivering innovative, q
Slide 7: Strong Portfolio of Differentiated Products and Solutions
Copyright 2020 CPI Card Group Secure Card 7 • We believe we can continue to win in the market with our differentiated products and solutions • Support the U.S. migration to dual interface and contactless cards • Further our position with Second WaveTM and other sustainable products Strong Portfolio
Slide 8: Summary
Copyright 2020 CPI Card Group Summary 8 • We executed well in 2019 on our strategies and operational initiatives to deliver strong top-line growth, significantly improving bottom-line performance and offering more robust products and solutions to customers. • We remain committed to our vision of bei
Slide 9: Financial Summary
Copyright 2020 CPI Card Group Financial Summary John Lowe Chief Financial Officer
Slide 10: Fourth Quarter and Full Year 2019 Results
Copyright 2020 CPI Card Group $72.6 $278.1 $68.5 $255.8 Q4 2018 Q4 2019 FY 2018 FY 2019 Net Sales 6% 9% 10 Fourth Quarter and Full Year 2019 Results* Solid Execution of Our Strategic Priorities * Financial results included in this presentation for all periods reflect continuing operations. ** See Ap
Slide 11: Solid Execution Relative to Strategic Priorities
Copyright 2020 CPI Card Group 11 Fourth Quarter and Full Year 2019 Results* Solid Execution Relative to Strategic Priorities * Financial results included in this presentation for all periods reflect continuing operations. ** See Appendix for definitions of our Non-GAAP financial measures and reconci
Slide 12: Segment Results
Copyright 2020 CPI Card Group 12 U.S. Debit and Credit • Fourth quarter: • Net sales of $61.6 million, up 24% year over year • Income from operations of $11.4 million, up 68% from Q4 2018 • Full year 2019: • Net sales of $213.1 million, up 19% year over year • Income from operations of $36.0 million
Slide 13: Cash, Debt and Liquidity
Copyright 2020 CPI Card Group Cash, Debt and Liquidity 13 • New $30 million Senior Credit Facility • Provides liquidity as Revolver was set to mature August 20201 • Provides approximately $27 million in additional net cash to execute our strategic plan • Funded by two current First Lien Term Loan le
Slide 14: U.S. Market Outlook in 2020
Copyright 2020 CPI Card Group Secure Card 14 • We expect steady card manufacturing volume growth. • We expect dual interface and contactless cards will continue to grow and become a larger part of the market. U.S. Market Outlook in 2020 Card@Once® • We expect strong market growth in the number of sm
Slide 15: Appendix
Copyright 2020 CPI Card Group Appendix
Slide 16: Non-GAAP Measures
Copyright 2020 CPI Card Group Non-GAAP Measures 16 Non-GAAP Financial Information In addition to financial results reported in accordance with U.S. generally accepted accounting principles (GAAP), we have provided the following non-GAAP financial measures in this presentation, all on a continuing op
Slide 17: Non-GAAP Measures Reconciliation
Copyright 2020 CPI Card Group Non-GAAP Measures 17 Reconciliation (1) Represents net legal costs incurred in connection with certain patent and shareholder litigation. (2) Represents executive severance charges in 2019. Represents employee and lease termination costs incurred in 2018 in connection w
Slide 18: Non-GAAP Reconciliation
Copyright 2020 CPI Card Group Non-GAAP 18 Reconciliation (1) During the second quarter of 2019, the Company recognized in operating income a $6.0 million gain related to the cash settlement of litigation. The litigation has been disclosed in the CPI’s SEC filings since CPI brought the complaint in 2
Slide 19: Non-GAAP Reconciliation
Copyright 2020 CPI Card Group Non-GAAP 19 Reconciliation (1) Represents net legal costs incurred in connection with certain patent and shareholder litigation. (2) Represents executive severance charges in 2019. Represents employee and lease termination costs incurred in 2018 in connection with the d
Slide 20: Non-GAAP Reconciliation
Copyright 2020 CPI Card Group Non-GAAP 20 Reconciliation
Slide 21: Non-GAAP Reconciliation
Copyright 2020 CPI Card Group Non-GAAP 21 Reconciliation (1) During the second quarter of 2019, the Company recognized in operating income a $6.0 million gain related to the cash settlement of litigation. The litigation has been disclosed in the CPI’s SEC filings since CPI brought the complaint in 2