CPI Card Group Inc. · NASDAQ:PMTS
CPI Card — Q4 2021 Earnings Presentation
15 slides from CPI Card's earnings presentation, Mar 8, 2022
Slide 1: Investor Presentation Fourth Quarter 2021
Investor Presentation Fourth Quarter 2021 March 8, 2022 The Contactless Indicator mark, consisting of four graduating arcs, is a trademark owned by and used with permission of EMVCo, LLC.
Slide 2: Cautionary Statements
Cautionary Statements Forward Looking Statements Certain statements and information in this presentation (as well as information included in other written or oral statements we make from time to time) may contain or constitute “forward‐looking statements” within the meaning of the Private Securities
Slide 3: Agenda
1 Business Update 2 2022 Expectations and Capital Allocation Agenda 3 Financial Review 4 Summary 3
Slide 4: Business Update: 2021 Highlights
Business Update 2021 Highlights Strong full‐year performance Balance sheet improvement; reduced Net Leverage Net sales increased 20% to $375 million Ratio Net income of $16 million; Adjusted EBITDA¹ of $76 million Fourth quarter impacted by increases in certain costs, as expected Commitment to i
Slide 5: 2022 Expectations and Capital Allocation
2022 Expectations and Capital Allocation 2022 Expectations The Company expects mid‐single digit net sales and Adjusted EBITDA growth in 2022 Strong growth expected from Debit and Credit segment, partially offset by expected declines in Prepaid Debit segment due to comparisons with record year in 2
Slide 6: Financial Review
Financial Review 6
Slide 7: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights (in millions, except per share data) 4Q21 4Q20 % Change Commentary Net Sales $93.2 $84.1 11% • Net Sales increase driven by the transition to contactless cards, instant issuance Gross Profit $30.9 $31.0 0% growth, and sales to new customers % Margin 33.2% 36.8% •
Slide 8: Full-Year Financial Highlights
Full‐Year Financial Highlights (in millions, except per share data) FY 21 FY 20 % Change Commentary Net Sales $375.1 $312.2 20% • Net Sales increase driven by the ongoing transition to contactless cards and sales to Gross Profit $141.4 $110.3 28% new customers in the Debit and Credit % Margin 37.7%
Slide 9: Financial Highlights – Segments
Financial Highlights – Segments ($ in millions) Debit and Credit 4Q Net Sales & Operating Income FY Net Sales & Operating Income $18.6 $79.5 $16.9 $54.8 $77.4 24.0% $296.2 $69.6 $250.4 26.8% 24.3% 21.9% 2020 2021 2020 2021 2020 2021 2020 2021 Net Sales Operating Income & Margin Net Sales Operating I
Slide 10: Balance Sheet, Liquidity, Net Leverage and Cash Flow
Balance Sheet, Liquidity, Net Leverage and Cash Flow ($ in millions, except ratios) Dec 31, Dec 31, Balance Sheet, Liquidity and Net Leverage Ratio 2021 2020 Our capital structure and allocation strategies are focused on maintaining ample liquidity, investing in Cash on hand $21 $58 the business, in
Slide 11: Summary
Summary Strong performance in 2021, with growth across portfolio Fourth consecutive year of strong sales and Adjusted EBITDA growth, with significant estimated market share gains over that period Fourth quarter impacted by previously noted cost increases and certain large expense items Mid‐s
Slide 12: Contact
Contact (877) 369‐9016 InvestorRelations@cpicardgroup.com www.cpicardgroup.com
Slide 13: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non‐GAAP Financial Measures Adjusted EBITDA and Adjusted EBITDA Margin EBITDA represents earnings before interest, taxes, depreciation and amortization, all on a continuing operations basis. Adjusted EBITDA is presented on a continuing operations basis Three Months Ended December
Slide 14: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non‐GAAP Financial Measures Twelve Months Ended December 31, LTM Adjusted EBITDA 2021 2020 Reconciliation of net income to LTM EBITDA and Adjusted ($ in millions) ($ in millions) We define LTM Adjusted EBITDA as Adjusted EBITDA (defined EBITDA previously) for the last twelve month
Slide 15: Supplemental Financial Measures
Supplemental Financial Measures Net Leverage Ratio As of December 31, 2021 2020 Management and various investors use the ratio of debt principal outstanding, Calculation of Net Leverage Ratio: ($ in millions) ($ in millions) plus finance lease obligations, less cash divided by LTM Adjusted EBITDA, o