CPI Card Group Inc. · NASDAQ:PMTS
CPI Card — Q1 2019 Earnings Presentation
16 slides from CPI Card's earnings presentation, May 9, 2019
Slide 1: First Quarter 2019 Earnings Conference Call
First Quarter 2019 Earnings Conference Call May 9, 2019 Copyright 2019 CPI Card Group
Slide 2: Safe Harbor
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 (the “1933 Act”) and Section 2
Slide 3: Business Summary
Business Summary Scott Scheirman President and CEO Copyright 2019 CPI Card Group
Slide 4: Q1 2019 Highlights
Q1 2019 Highlights First Quarter 2019 Highlights from Continuing Operations* • Continuing to perform well against our strategic priorities • Net sales increased 22% for the first quarter of 2019, inclusive of 32% increase in U.S. Debit and Credit segment net sales and an 8% increase in U.S. Prepaid
Slide 5: Strategic Priorities
Strategic Priorities Market-Leading Market- Quality Products & Competitive Customer Service Business Model Deep Customer Continuous Focus Innovation Copyright 2019 CPI Card Group 5
Slide 6: 2019 Strategy: Growth Through Targeted Initiatives
2019 Strategy: Growth Through Targeted Initiatives 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 and Customer Service • Commitment
Slide 7: Summary
Summary • Strong start to 2019 underscores confidence in strategy and ability to deliver results • 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 Copyright 2019 CPI Card Group
Slide 8: Financial Summary
Financial Summary John Lowe Chief Financial Officer Copyright 2019 CPI Card Group
Slide 9: Q1 2019 Results
Q1 2019 Results Solid Execution Relative to Strategic Priorities* ($ in millions) Net loss from Continuing Net Sales Gross Profit Adjusted EBITDA** Operations $8.0 $66.9 $54.9 $21.5 $14.4 $4.0 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 $(3.1) Margin 26% 32% $(5.7) • Net sales in
Slide 10: Segment Results
Segment Results • U.S. Debit and Credit • Net sales of $48.9 million, up 32% year over year • Income from operations of $7.8 million, up 208% from $2.5 million in Q1 2018 • U.S. Prepaid Debit • Net sales of $16.7 million, up 8% year over year • Income from operations of $5.3 million, up 23% from $4.
Slide 11: Financial Results: Debt and Liquidity
Financial Results Debt and Liquidity • Revolver Borrowing Availability of $20 million • Term Loan matures August 2022; Revolver matures August 2020 * See Appendix for definitions of our Non-GAAP financial measures and reconciliations to the most comparable GAAP financial measures. ** Equal to cash a
Slide 12: Appendix
Appendix Copyright 2019 CPI Card Group
Slide 13: Non-GAAP Measures
Non-GAAP Measures 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 operations basis: EBITDA, Adjusted
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation (1) (2) (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 operations in the United S
Slide 15: Non-GAAP Reconciliation
Non-GAAP Reconciliation Copyright 2019 CPI Card Group 15
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation Copyright 2019 CPI Card Group 16