Cpi Card Group Inc. · NASDAQ:PMTS
Cpi Card — Q4 2022 Earnings Presentation
16 slides from Cpi Card's earnings presentation, Mar 8, 2023
Slide 1: Investor Presentation Fourth Quarter 2022
Investor Presentation Fourth Quarter 2022 March 8, 2023
Slide 2: Forward Looking Statements
2 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 Litigation Reform A
Slide 3: Agenda
3 Agenda 1 2022 Q4 and Full Year Highlights 4 Financial Review 5 Summary 3 Strategy Review 2 2023 Expectations
Slide 4: 2022 Q4 and Full Year Highlights
4 2022 Q4 and Full Year Highlights Strong Sales and Profit Growth; Improved Financial Position ▪ Net Sales increased 27% to $475.7 million; growth across portfolio ▪ Net Income increased 129% to $36.5 million; Adjusted EBITDA¹ increased 28% to $97.7 million; Adjusted EBITDA¹ margin increased from 20
Slide 5: 2023 Expectations
5 2023 Expectations Company expects continued growth and share gains in a slower-growth market ▪ Mid-single digit net sales growth ▪ Mid-to-high single digit Adjusted EBITDA¹ growth ▪ Free Cash Flow more than double the 2022 level ▪ Net Leverage Ratio improvement to between 2.5x and 3.0x at year-end
Slide 6: Strategy Review: Key Strategic Priorities
6 ▪ Deep Customer Focus ▪ Market-Leading Quality Products and Customer Service ▪ Continuous Innovation ▪ Market-Competitive Business Model Strategy Review Key Strategic Priorities The Contactless Indicator mark, consisting of four graduating arcs, is a trademark owned by and used with permission of
Slide 7: Financial Review
7 Financial Review
Slide 8: Fourth Quarter Financial Highlights
8 Fourth Quarter Financial Highlights 1) Adjusted EBITDA and Adjusted EBITDA margin are not measurements of financial performance prepared in accordance with GAAP. See “Reconciliations of Non-GAAP Financial Measures” at the end of this document for more information and reconciliations to the most di
Slide 9: Full Year Financial Highlights
9 Full Year Financial Highlights 1) Adjusted EBITDA and Adjusted EBITDA margin are not measurements of financial performance prepared in accordance with GAAP. See “Reconciliations of Non-GAAP Financial Measures” at the end of this document for more information and reconciliations to the most directl
Slide 10: Financial Highlights – Segments
10 $79.5 $110.0 $18.6 $31.2 $296.2 $390.6 $77.4 $104.9 Financial Highlights – Segments Debit and Credit Q4 Net Sales & Operating Income Full Year Net Sales & Operating Income Q4 Net Sales & Operating Income Full Year Net Sales & Operating Income Prepaid Debit ($ in millions) 24.0% 29.8% Net Sales Op
Slide 11: Balance Sheet, Liquidity, Net Leverage and Cash Flow
11 Balance Sheet, Liquidity, Net Leverage and Cash Flow 1) “Available Liquidity” is cash plus borrowing available on our ABL Revolver. “Net Leverage Ratio” is a Supplemental Financial Measure, see “Supplemental Financial Measures” at the end of this document for more information. “Total Debt” includ
Slide 12: Summary
12 ▪ 2022 was an outstanding year for CPI • Strong sales and profit growth driven by innovative products, high quality and customer service, proactive supply-chain management, and robust market growth • Improved financial position ▪ Initial outlook for 2023 projects continued share gains, solid grow
Slide 13: Contact
Contact www.cpicardgroup.com (877) 369-9016 InvestorRelations@cpicardgroup.com
Slide 14: Reconciliations of Non-GAAP Financial Measures: Adjusted EBITDA
14 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 and is defined as EBITDA
Slide 15: Reconciliations of Non-GAAP Financial Measures: LTM Adjusted EBITDA
15 Reconciliations of Non-GAAP Financial Measures LTM Adjusted EBITDA We define LTM Adjusted EBITDA as Adjusted EBITDA (defined previously) for the last twelve months. Free Cash Flow We define Free Cash Flow as cash flow from operating activities (continuing operations) less capital expenditures. We
Slide 16: Supplemental Financial Measures: Net Leverage Ratio
16 Supplemental Financial Measures Net Leverage Ratio Management and various investors use the ratio of debt principal outstanding, plus finance lease obligations, less cash divided by LTM Adjusted EBITDA, or “Net Leverage Ratio,” as a measure of our financial strength when making key investment dec