Cpi Card Group Inc. · NASDAQ:PMTS
Cpi Card — Q3 2021 Earnings Presentation
15 slides from Cpi Card's earnings presentation, Nov 5, 2021
Slide 1: Investor Presentation Third Quarter 2021
Investor Presentation Third Quarter 2021 November 5, 2021
Slide 2: Forward Looking 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 Litigation Reform Act
Slide 3: Agenda
Agenda 1 Business Update 2 Vision and Strategic Priorities 3 Financial Review 4 Summary 3
Slide 4: Business Update: 3Q21 Highlights
Business Update 3Q21 Highlights • Net sales increased 20% to $100 million • Strong net sales contributions from the ongoing conversion to contactless cards, Card@Once® instant issuance, CPI On- Demand®, and Prepaid Debit • Net income of $6.6 million and diluted EPS of $0.56 per share • Adjusted EBIT
Slide 5: Vision and Strategic Priorities
Vision and Strategic Priorities Execution on our strategic priorities has generated strong results over the past four years • Enhanced position as a top secure card and Deep personalization provider in the U.S. Customer Focus • Produced innovative solutions with CPI-On- Demand®, Card@Once® instant i
Slide 6: Financial Review
Financial Review 6 The Contactless Indicator mark, consisting of four graduating arcs, is a trademark owned by and used with permission of EMVCo, LLC.
Slide 7: Third Quarter Financial Highlights
Third Quarter Financial Highlights (in millions, except per share data) 3Q21 3Q20 % Change Commentary Net Sales $99.6 $82.7 20% • Net sales increase driven by the ongoing transition to contactless cards and new Gross Profit $37.7 $30.6 23% customer growth % Margin 37.8% 37.0% • Gross profit margin i
Slide 8: Year to Date Financial Highlights
Year to Date Financial Highlights (in millions, except per share data) YTD 21 YTD 20 % Change Commentary Net Sales $281.9 $228.0 24% • Net sales increase driven by new customer growth and the ongoing transition to Gross Profit $110.5 $79.3 39% contactless cards in the Debit and Credit % Margin 39.2%
Slide 9: Financial Highlights – Segments
Financial Highlights – Segments ($ in millions) Debit and Credit 3Q Net Sales & Operating Income YTD Net Sales & Operating Income $20.5 $60.9 $14.7 $37.9 $76.1 26.9% $218.8 $62.7 $180.9 27.8% 23.5% 21.0% 2020 2021 2020 2021 2020 2021 2020 2021 Net Sales Operating Income & Margin Net Sales Operating
Slide 10: Balance Sheet, Liquidity, Net Leverage and Cash Flow
Balance Sheet, Liquidity, Net Leverage and Cash Flow ($ in millions, except ratios) Sept 30, Dec 31, Balance Sheet, Liquidity and Net Leverage Ratio We continue to focus on our capital structure 2021 2020 strategy to maintain ample liquidity, invest in the Cash on hand $21 $58 business and de-levera
Slide 11: Summary
Summary • Strong third quarter results, with net sales growth across our portfolio • Business has been resilient throughout pandemic; organization adapting and responding to supply-chain and labor shortage challenges • Company expects fourth quarter results not to be as strong as the first nine mont
Slide 12: Contact
Contact (877) 369-9016 InvestorRelations@cpicardgroup.com www.cpicardgroup.com 12
Slide 13: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non-GAAP Financial Measures Adjusted EBITDA and Adjusted EBITDA Margin EBITDA represents earnings before interest, taxes, depreciation and amortization, all on a continuing operations basis. Adjusted EBITDA is presented on a continuing operations basis Three Months Ended September
Slide 14: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non-GAAP Financial Measures Twelve Months Ended LTM Adjusted EBITDA September 30, 2021 December 31, 2020 We define LTM Adjusted EBITDA as Adjusted EBITDA (defined Reconciliation of net income from continuing operations to LTM ($ in millions) ($ in millions) EBITDA and Adjusted EBI
Slide 15: Supplemental Financial Measures
Supplemental Financial Measures As of Net Leverage Ratio September 30, 2021 December 31, 2020 Management and various investors use the ratio of total debt, plus finance Calculation of Net Leverage Ratio: ($ in millions) ($ in millions) lease obligations, less cash divided by LTM Adjusted EBITDA, or