Cpi Card Group Inc. · NASDAQ:PMTS
Cpi Card — Q2 2019 Earnings Presentation
18 slides from Cpi Card's earnings presentation, Aug 7, 2019
Slide 1: Second Quarter 2019 Earnings Conference Call
Copyright 2019 CPI Card Group Second Quarter 2019 Earnings Conference Call August 7, 2019
Slide 2: Safe Harbor Forward-Looking Statements
Copyright 2019 CPI Card Group Safe Harbor Forward-Looking Statements: Certain statements and information in this presentation may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended
Slide 3: Business Summary
Copyright 2019 CPI Card Group Business Summary Scott Scheirman President and CEO
Slide 4: Second Quarter and First Half 2019 Highlights
Copyright 2019 CPI Card Group 4 Second Quarter and First Half 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
Slide 5: Strategic Priorities
Copyright 2019 CPI Card Group 5 Strategic Priorities Deep Customer Focus Market-Leading Quality Products & Customer Service Market- Competitive Business Model Continuous Innovation
Slide 6: 2019 Strategy: Growth Through Targeted Initiatives
Copyright 2019 CPI Card Group 2019 Strategy: Growth Through Targeted Initiatives 6 Four Strategic Priorities to Foster Growth and Strengthen Our Platform Deep Customer Focus • Strengthen and deepen customer relationships • Deliver value and help our customers thrive Market-Leading Quality Products a
Slide 7: Summary
Copyright 2019 CPI Card Group Summary 7 • We remain committed to the vision of being the partner of choice by providing market-leading quality products and customer service with a market competitive business model. • We believe second quarter and first half results reflect solid execution towards th
Slide 8: Financial Summary
Copyright 2019 CPI Card Group Financial Summary John Lowe Chief Financial Officer
Slide 9: Second Quarter and First Half 2019 Results
Copyright 2019 CPI Card Group 9 Second Quarter and First Half 2019 Results Solid Execution Relative to Strategic Priorities* * Financial results included in this presentation for all periods reflect continuing operations. • Net sales increased year over year by 9% in Q2, 15% in first half of 2019 •
Slide 10: Second Quarter and First Half 2019 Results
Copyright 2019 CPI Card Group 10 Second Quarter and First Half 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 reconc
Slide 11: Segment Results
Copyright 2019 CPI Card Group 11 U.S. Debit and Credit • Second quarter: • Net sales of $51.1 million, up 17% year over year • Income from operations of $8.0 million, up 20% from $6.6 million in Q2 2018 • First half: • Net sales of $100 million, up 24% year over year • Income from operations of $15.
Slide 12: Financial Results: Debt and Liquidity
Copyright 2019 CPI Card Group Financial Results 12 Debt and Liquidity • Revolver Borrowing Availability of $20 million; Liquidity** of $37.5 million • Term Loan matures August 17, 2022; Revolver matures August 17, 2020 * See Appendix for definitions of our Non-GAAP financial measures and reconciliat
Slide 13: Appendix
Copyright 2019 CPI Card Group Appendix
Slide 14: Non-GAAP Measures
Copyright 2019 CPI Card Group Non-GAAP Measures 14 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 15: Non-GAAP Measures Reconciliation
Copyright 2019 CPI Card Group Non-GAAP Measures 15 Reconciliation (1) Represents net legal costs incurred in connection with certain patent and shareholder litigation. (2) Represents primarily employee and lease termination costs incurred in connection with the decision to consolidate three personal
Slide 16: Non-GAAP Reconciliation
Copyright 2019 CPI Card Group Non-GAAP 16 Reconciliation (1) Represents net legal costs incurred in connection with certain patent and shareholder litigation. (2) Represents primarily employee and lease termination costs incurred in connection with the decision to consolidate three personalization o
Slide 17: Non-GAAP Reconciliation
Copyright 2019 CPI Card Group Non-GAAP 17 Reconciliation
Slide 18: Non-GAAP Reconciliation
Copyright 2019 CPI Card Group Non-GAAP 18 Reconciliation (1) Relates to the settlement of litigation in Q2 2019. This litigation has been disclosed in CPI’s SEC filings since CPI brought the complaint in 2017, and details of the settlement are disclosed in CPI’s Form 10-Q for the period ended June 3