Slide 1: Q2 2024 Earnings Presentation
Q2 2024 Earnings Presentation August 7, 2024
Slide 2: Disclaimers
Disclaimers ‘This presentation contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on the bellofs and assumptions of management or Resolute Holdings, a6 applicable. Although CompoSecure and Resolute Holdings, as applicabl
Slide 3: Stock Purchase Agreement Terms & Benefits
3 Stock Purchase Agreement Terms & Benefits • All Class B shares converted to Class A • Resolute Holdings purchases 49.3 million out of 51.9 million converted Class A shares at $7.55 per share. Represents an equity investment of $372 million by The David Cote Family • Represents majority control of
Slide 4: David Cote's Career Built on a Consistent Track Record of Success
David Cote’s Career Built on a Consistent Track Record of Success Unparalleled Experience Across the Industrials Space Honeywell & Vertiv Total Shareholder Return’ (“TSR”) During Cote's Tenure + Renowned diversified industrial executive 197 % + 40+ years of operating experience across a wide range o
Slide 5: Summary
Summary Narrows fiscal 2024 full year guidance; now anticipates Net Sales between $418mm to $428mm and Adjusted EBITDA of $150mm to $157mm. Expanded our partnership with Fiserv to include the marketing and reselling of Arculus Authenticate capabilities; enhances our ability to bring FIDO2 secure aut
Slide 6: New Metal Card Programs
New Metal Card Programs 6 American Express White Gold Turkish Airlines Premier Atlas Wells Fargo - Expedia One Key+
Slide 7: Recent Trends across Payment Cards
Recent Trends across Payment Cards 1 American Express & JP Morgan Chase Earnings Presentations 2American Express Earnings Presentations CompoSecure’s Largest Customers Report Continued Purchase Volume Growth vs. Prior Year Year over Year Purchase Volume Growth1 7 American Express Hit 3.3mm New Cards
Slide 8: Card Issuer and Payment Network Sentiment
Card Issuer and Payment Network Sentiment 1 Q2 ‘24 Earnings Transcripts 2 Q3 ‘24 Earnings Transcript "In fact, we now expect to invest around $6 billion in marketing this year, up about $800 million versus last year, all of it funded from the results of our core business. And we continue to attract
Slide 9: Arculus Capabilities
Arculus Capabilities Enabled Arculus Web3 payment capabilities using digital assets for everyday purchases at point of sale 9 Arculus Authenticate Arculus Cold Storage Hardware-bound PassKey authenticator • Secure login on any iPhone, Android phone, or platform enabled with FIDO2 technology • New de
Slide 10: Financial Overview
@ Financial Overview
Slide 11: Q2 2024 Results
Q2 2024 Results $40.0mm Q2 ‘24 Q2 YTD ‘22 Net Sales $108.6mm 36.8% $33.6mm 51.6% $98.5mm $32.7mm 54.7% $36.9mm 37.4% 10% Up $10.0mm, or 10% from Q2 '23. Primarily due to domestic up $7.2mm and international up $2.8mm 3% (309.6 bps) 8% (58.3bps) Net Income Gross Margin Adjusted EBITDA1 Adjusted EBITD
Slide 12: YTD June 2024 Results
YTD June 2024 Results $77.8mm YTD Jun ‘24 Q2 YTD ‘22 Net Sales $212.6mm 36.6% $50.7mm 52.4% $193.8mm $43.4mm 55.3% $72.3mm 37.3% 10% Up $18.7mm, or 10% from YTD '23. Primarily due to domestic up $26.3mm offset by international down $7.6mm 17% (299.9bps) 7% (74.6 bps) Net Income Gross Margin Adjusted
Slide 13: Net Sales Trend
Net Sales Trend International mix for year to date June '24 was over 16% of total net sales In millions International Domestic 14% 86% 13% 87% 11% 89% 13 79% International - YTD Q2 '24 $34.6mm (16.3% of Total) (18)% vs. YTD Q2 '23 Domestic - YTD Q2 '24 $178.0mm (83.7% of Total) 17.4% vs. YTD Q2 '23
Slide 14: Balance Sheet & Credit Facility
Balance Sheet & Credit Facility (Unaudited) Source: Company financials Note: Financial position has been derived from CompoSecure’s consolidated financial statements for the periods ended June 30, 2024 and December 31, 2023, respectively 14 in millions Q2 2024 Q4 2023 Assets Current Assets Cash and
Slide 15: Statement of Cash Flows
Statement of Cash Flows (Unaudited) Source: Company financials Note: Cash flows have been derived from CompoSecure’s consolidated financial statements for the six months ended June 30, 2024 and 2023 respectively 15 in millions Six months ended June 30, 2024 Six months ended June 30, 2023 Cash flows
Slide 16: Q2 Earnings per Share: GAAP
Q2 Earnings per Share: GAAP 25.4mm3 Basic Q2 YTD ‘22 GAAP Net Income $33.6mm $0.44 $11.1mm1 Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 $33.6mm $30.5mm2 96.6mm4 $0.32 $32.7mm $32.7mm $5.7mm $10.1mm 18.5mm 35.5mm $0.31 $0.29 Net Income used in EPS Total Shares used in EPS Earnin
Slide 17: Q2 Adjusted Earnings per Share
Q2 Adjusted Earnings per Share 81.2mm3 Basic Q2 YTD ‘22 GAAP Net Income $33.6mm $0.31 $25.2mm1 Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 $33.6mm $25.2mm1 91.7mm4 $0.27 $32.7mm $32.7mm $22.9mm2 $22.9mm2 78.5mm3 90.6mm5 $0.29 $0.25 Adjusted Net Income Total Shares used in EPS A
Slide 18: YTD Earnings per Share: GAAP
YTD Earnings per Share: GAAP 23.0mm3 Basic Q2 YTD ‘22 GAAP Net Income $50.7mm $0.74 $17.0mm1 Six months ended June 30, 2024 Six months ended June 30, 2023 $50.7mm $46.9mm2 96.4mm4 $0.49 $43.4mm $43.4mm $8.1mm $14.2mm 18.1mm 35.2mm $0.45 $0.41 Net Income used in EPS Total Shares used in EPS Earnings
Slide 19: YTD Adjusted Earnings per Share
YTD Adjusted Earnings per Share 80.8mm3 Basic Q2 YTD ‘22 GAAP Net Income $50.7mm $0.60 $48.2mm1 Six months ended June 30, 2024 Six months ended June 30, 2023 $50.7mm $48.2mm1 91.5mm4 $0.53 $43.4mm $43.4mm $43.5mm2 $43.5mm2 78.0mm3 90.2mm5 $0.56 $0.48 Adjusted Net Income Total Shares used in EPS Adju
Slide 20: 2024 Guidance
2024 Guidance Narrows full year Net Sales and Adjusted EBITDA guidance Net Sales Adjusted EBITDA1 2023A $391mm $145mm 1 Adjusted EBITDA is a non-GAAP financial metric. For a reconciliation of Adjusted EBITDA to the most-comparable GAAP metric, please see the Appendix to this presentation $418mm - $4
Slide 21: 2024 Company Objectives
2024 Company Objectives Grow and diversify metal payment cards while delivering exceptional quality to our customers Innovate across products, processes and platforms to differentiate from competition and continue emphasis on environmental impact Drive Arculus Authenticate and Cold Storage by demons
Slide 22: Investor Relations Contact
Investor Relations Contact ir.composecure.com Sean Mansouri 720-330-2829 ir@composecure.com 22 22
Slide 23: Appendix
@ Appendix
Slide 24: Summary Equity Capitalization Table
CompoSecure, Inc. (Nasdaq: CMPO) Summary Equity Capitalization Table (with net exercise model) As of June 30, 2024 Holders # of Shares Issued & Outstanding # of Shares Issued & Outstanding Public Shareholders: Class A 29.8mm 29.8mm Historic CompoSecure Owners: Class B 51.9mm 51.9mm Subtotal 81.7mm 8
Slide 25: Statement of Operations
Statement of Operations (Unaudited) 25 Source: Company financials Note: Operating results have been derived from CompoSecure’s consolidated financial statements for the three and six months ended June 30, 2024 and 2023. Note: Totals may not sum due to rounding 1 Includes other income (expense) and i
Slide 26: Non-GAAP Adjusted EBITDA Reconciliation
Non-GAAP Adjusted EBITDA Reconciliation (Unaudited) 26 in millions Q2 2024 Q2 2023 YTD 2024 YTD 2023 Net Income $ 33.6 $ 32.7 $ 50.7 $ 43.4 Interest expense 5.6 5.8 11.4 12.3 Depreciation and amortization 2.4 2.1 4.6 4.2 Income tax expense (benefit) 0.3 1.0 (0.6) (0.3) Unadjusted EBITDA $ 41.9 $ 41.
Slide 27: Non-GAAP EPS Reconciliation
Non-GAAP EPS Reconciliation (Unaudited) 27 Source: Company financials 1 Assumes treasury stock method, valuation at assumed FMV of $18.00 2 Includes options, RSUs, and ESPP shares Three months ended June 30, 2024 Three months ended June 30, 2023 in millions BASIC DILUTED BASIC DILUTED GAAP Net Incom
Slide 28: Non-GAAP EPS Reconciliation
Non-GAAP EPS Reconciliation (Unaudited) 28 Source: Company financials 1 Assumes treasury stock method, valuation at assumed FMV of $18.00 2 Includes options, RSUs, and ESPP shares Six months ended June 30, 2024 Six months ended June 30, 2023 in millions BASIC DILUTED BASIC DILUTED GAAP Net Income $