Cpi Card Group Inc. · NASDAQ:PMTS
Cpi Card — Q2 2021 Earnings Presentation
18 slides from Cpi Card's earnings presentation, Aug 12, 2021
Slide 1: Investor Presentation Second Quarter and First Half 2021
Investor Presentation Second Quarter and First Half 2021 August 12, 2021
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 2 3 Strategic Update Financial Review Summary 4 Vision and Strategic Priorities
Slide 4: Strategic Update
4 Strategic Update The Contactless Indicator mark, consisting of four graduating arcs, is a trademark owned by and used with permission of EMVCo, LLC.
Slide 5: 2Q21 Highlights
5 Strategic Update 2Q21 Highlights Strong performance Improved balance sheet Nasdaq listing • Strong operating and financial performance • Year-over-year net sales growth driven by new customer acquisitions, existing customer growth and the ongoing transition to contactless payment cards • Net sales
Slide 6: Vision and Strategic Priorities
6 Vision and Strategic Priorities Our vision is to be the partner of choice by providing market-leading quality products and customer service with a market-competitive business model. Deep Customer Focus We strive to be the trusted partner in payments and exceed expectations through collaboration an
Slide 7: Vision and Strategic Priorities
7 Deep Customer Focus Market- Leading Quality Products Continuous Innovation Market Competitive Business Model Vision and Strategic Priorities • Acquired new customers in the attractive small-to-medium financial institution and fast growing FinTech spaces • Added another large U.S. national chain to
Slide 8: Financial Review
8 Financial Review The Contactless Indicator mark, consisting of four graduating arcs, is a trademark owned by and used with permission of EMVCo, LLC.
Slide 9: Second Quarter Financial Highlights
9 (in millions, except per share data) 2Q21 2Q20 % Change Net Sales $93.2 $71.4 31% Gross Profit $37.1 $23.1 61% % Margin 39.8% 32.3% Net Income $6.2 $1.3 387% Diluted EPS $0.53 $0.11 382% Adjusted EBITDA $19.3 $10.1 91% % Margin 20.7% 14.2% Second Quarter Financial Highlights 1) Adjusted EBITDA and
Slide 10: Year to Date Financial Highlights
10 (in millions, except per share data) YTD 21 YTD 20 % Change Net Sales $182.3 $145.3 25% Gross Profit $72.8 $48.7 49% % Margin 39.9% 33.5% Net Income $8.6 $3.0 185% Diluted EPS $0.74 $0.27 174% Adjusted EBITDA $41.4 $22.5 84% % Margin 22.7% 15.5% Year to Date Financial Highlights 1) Adjusted EBITD
Slide 11: Financial Highlights – Segments
11 $13.5 $20.4 Financial Highlights – Segments Debit and Credit 2Q Net Sales & Operating Income 1H Net Sales & Operating Income 2Q Net Sales & Operating Income 1H Net Sales & Operating Income Prepaid Debit ($ in millions) $58.3 $72.9 $10.7 $20.3 18.4% 27.8% Net Sales Operating Income & Margin $118.1
Slide 12: Balance Sheet, Liquidity, Net Leverage and Cash Flow
12 Balance Sheet, Liquidity, Net Leverage and Cash Flow Balance Sheet, Liquidity and Net Leverage Ratio June 30, 2021 Dec 31, 2020 Cash $30.7 $57.6 Available Liquidity $80.6 $57.6 Total Debt $314.4 $347.7 Adjusted EBITDA (LTM) $76.4 $57.5 Net Leverage Ratio 3.7x 5.0x Cash Flow YTD Q2 2021 YTD Q2 202
Slide 13: Summary
13 We remain committed to being the partner of choice by providing market-leading quality products and customer service through a market- competitive business model. Summary • Solid execution throughout the business • Strong net sales growth and margin expansion • Well positioned to deliver on our s
Slide 14: Contact
14 Contact www.cpicardgroup.com (877) 369-9016 InvestorRelations@cpicardgroup.com
Slide 15: Reconciliations of Non-GAAP Financial Measures: Adjusted Net Income
15 Adjusted Net Income non-GAAP reconciliation: GAAP Net Income $ 8,642 $ 3,035 Loss on debt extinguishment 5,048 92 Make-whole interest expense 2,635 — Tax effect of adjustments (1,909) (51) Non-GAAP Adjusted Net Income $ 14,416 $ 3,076 Adjusted Net Income (% Change 2021 vs. 2020) 369% Adjusted Ear
Slide 16: Reconciliations of Non-GAAP Financial Measures: Adjusted EBITDA
16 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 17: Reconciliations of Non-GAAP Financial Measures: LTM Adjusted EBITDA
17 Reconciliations of Non-GAAP Financial Measures LTM Adjusted EBITDA We define LTM Adjusted EBITDA as Adjusted EBITDA (defined previously) for the last twelve months. (1) Represents net legal costs incurred with certain patent and shareholder litigation. (2) Represents estimated sales tax (benefit)
Slide 18: Supplemental Financial Measures
18 Supplemental Financial Measures Net Leverage Ratio Management and various investors use the ratio of total debt, 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 decisions and evalu