Slide 1: Q1 2024 Earnings Presentation
Q1 2024 Earnings Presentation May 6, 2024
Slide 2: Disclaimers
Disclaimers 2 Forward Looking Statements This presentation contains forward - looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of management. Although the Company believes that its plans, intentions, and
Slide 3: Summary
Summary Reiterating guidance for f ull y ear 2024 n et s ales expected to be in the range of $ 408 mm to $ 428 mm a nd adjusted EBITDA of $147mm to $157mm Given strong cash generation, the Board of Directors declared a special cash dividend of $0.30 per share reflecting commitment to delivering valu
Slide 4: Key Highlights – New Metal Card Programs
Key Highlights – New Metal Card Programs 4 TP Bank - Vietnam Robinhood - US Delta Reserve (Amex) - US Citibanamex - Mexico Bradesco (Amex) - Brazil Atlas – US Rogers Bank - Canada Lloyds Bank - UK
Slide 5: Recent Trends across Payment Cards
- 32% 30% 14% 4% 51% 9% -40% -20% 0% 20% 40% 60% Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 American Express JP Morgan Chase Recent Trends across Payment Cards 1 American Express & JP Morgan Chase Earnings Presentations 2 Am
Slide 6: Card Issuer and Payment Network Sentiment
Card Issuer and Payment Network Sentiment 1 Q1 ‘24 Earnings Transcripts 2 Q2 ‘24 Earnings Transcript “We are pleased with this growth and continue to expect to exit the year with some further momentum reflecting our cycle of product refreshes. In the quarter, we acquired 3.4 million new cards, demon
Slide 7: Arculus Capabilities
Arculus Capabilities The Arculus Cold Storage wallet has recently launched multi - card/wallet support allowing customers to split assets among multiple cards 7 Arculus Authenticate Arculus Cold Storage Hardware - bound PassKey authenticator • Secure login on any iPhone, Android phone, or platform e
Slide 8: Financial Overview
Financial Overview
Slide 9: Q1 2024 Results
Q1 2024 Results $37.8mm Q1 ‘24 Q2 YTD ‘22 Net Sales $104.0mm 36.3% $17.1mm 53.1% $95.3mm $10.7mm 56.0% $35.5mm 37.2% 9% Record domestic quarter offset by lower international sales 59% (289 bps) 6% (92 bps) Net Income Gross Margin Adjusted EBITDA 1 Adjusted EBITDA Margin 1 Q1 ‘23 % Change Commentary
Slide 10: Net Sales Trend
$74 $78 $84 $86 $93 $22 $21 $13 $14 $11 $95 $99 $97 $100 $104 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 International Domestic Net Sales Trend International mix for the trailing 12 months was 15% of total net sales, but is expected to increase in the balance of year to be more in line with long range view
Slide 11: Balance Sheet (Unaudited)
Balance Sheet (Unaudited) Source: Company financials Note: Financial position has been derived from CompoSecure’s consolidated financial statements for the quarters ended March 3 1, 2024 and December 31, 2023 respectively 11 Q4 202 3 A Q 1 202 4 A ($mm) Assets Current Assets $41 $55 Cash & cash equi
Slide 12: Statement of Cash Flows (Unaudited)
Statement of Cash Flows (Unaudited) Source: Company financials Note: Cash flows have been derived from CompoSecure’s consolidated financial statements for the three months ended March 31, 202 4 and 2023 respectively 12
Slide 13: Q1 Earnings per Share: GAAP
Q1 Earnings per Share: GAAP 20.6mm 3 Basic Q2 YTD ‘22 GAAP Net Income $17.1mm $0.20 $4.0mm 1 Three months ended 3/31/24 Three months ended 3/31/23 $17.1mm $16.0mm 2 96.2mm 4 $0.17 $10.7mm $10.7mm $2.3mm $10.7mm 17.6mm 94.7mm $0.13 $0.11 Net Income used in EPS Total Shares used in EPS Earnings per Sh
Slide 14: Q1 Adjusted Earnings per Share
Q1 Adjusted Earnings per Share 80.5mm 3 Basic Q2 YTD ‘22 GAAP Net Income $17.1mm $0.29 $23.1mm 1 Three months ended 3/31/24 Three months ended 3/31/23 $17.1mm $23.1mm 1 91.3mm 4 $0.25 $10.7mm $10.7mm $20.6mm 2 $20.6mm 2 77.6mm 3 89.8mm 5 $0.27 $0.23 Adjusted Net Income Total Shares used in EPS Adjus
Slide 15: 2024 Guidance
2024 Guidance Reaffirming full year net sales and adjusted EBITDA guidance Net Sales Adjusted EBITDA 1 2023A $391mm $145mm 1 Adjusted EBITDA is a non - GAAP financial metric. For a reconciliation of Adjusted EBITDA to the most - comparable GAAP metric, plea se see the Appendix to this presentation $
Slide 16: 2024 Company Objectives
2024 Company Objectives Grow and diversify metal payment cards while delivering exceptional quality to our customers Innovate across products, processes and platforms to differentiate from competition and continue emphasis on environmental impact Drive Arculus Authenticate and Cold Storage by demons
Slide 17: Investor Relations Contact
Investor Relations Contact ir.composecure.com Sean Mansouri 720 - 330 - 2829 ir@composecure.com 17 17
Slide 18: Appendix
Py 2 ‘| Appendix
Slide 19: Summary Equity Capitalization Table
CompoSecure, Inc. (Nasdaq: CMPO) Summary Equity Capitalization Table (with net exercise model) As of March 31, 2024 Holders # of Shares Issued & Outstanding # of Shares Issued & Outstanding Public Shareholders: Class A 20.6mm 20.6mm Historic CompoSecure Owners : Class B 60.0mm 60.0mm Subtotal 80.6mm
Slide 20: Statement of Operations (Unaudited)
Statement of Operations (Unaudited) 20 Source: Company financials Note: Operating results have been derived from CompoSecure’s consolidated financial statements for the three months ended Mar ch 31, 2024 and 2023 and twelve months ended December 31, 2023 and 2022 respectively Note: Totals may not su
Slide 21: Non-GAAP Adjusted EBITDA Reconciliation (Unaudited)
Non - GAAP Adjusted EBITDA Reconciliation (Unaudited) Source: Company financials Non - Cash Equity Awards : Equity based expenses related to the equity incentive plan Non - Cash Mark - to - Market Adjustments : Related to changes in fair value of liabilities for warrants, earnouts and derivatives as
Slide 22: Non-GAAP EPS Reconciliation (Unaudited)
Non - GAAP EPS Reconciliation (Unaudited) 22 Source: Company financials 1 Assumes treasury stock method, valuation at assumed FMV of $18.00 2 Includes options, RSUs, and ESPP shares Three Months Ended March 31, 2023 Three Months Ended March 31, 2024 DILUTED BASIC DILUTED BASIC ($mm) $10.7 $10.7 $ 17