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
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 Strategic Update 2 Vision and Strategic Priorities 3 Financial Review 4 Summary 3
Slide 4: Strategic Update
Strategic Update The Contactless Indicator mark, consisting of four graduating arcs,4is a trademark owned by and used with permission of EMVCo, LLC.
Slide 5: Strategic Update: 2Q21 Highlights
Strategic Update 2Q21 Highlights • 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 increased 31% year-over-year to $93 million Nasdaq Improve
Slide 6: Vision and Strategic Priorities
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 Continuous Innovation We strive to be the trusted partner in payments We collaborate with our cust
Slide 7: Vision and Strategic Priorities: First Half 2021 Execution
Vision and Strategic Priorities Execution on our strategic priorities has delivered strong results in the first half of 2021 • Acquired new customers in the attractive Deep small-to-medium financial institution and fast Customer Focus growing FinTech spaces • Added another large U.S. national chain
Slide 8: Financial Review
Financial Review 8 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
Second Quarter Financial Highlights (in millions, except per share data) 2Q21 2Q20 % Change Commentary Net Sales $93.2 $71.4 31% • Net sales increase driven by new customer growth, the ongoing transition to higher- Gross Profit $37.1 $23.1 61% priced contactless cards, and growth with % Margin 39.8%
Slide 10: Year to Date Financial Highlights
Year to Date Financial Highlights (in millions, except per share data) YTD 21 YTD 20 % Change Commentary Net Sales $182.3 $145.3 25% • Net sales increase driven by new customer growth, the ongoing transition to higher- Gross Profit $72.8 $48.7 49% priced contactless cards, and growth with % Margin 3
Slide 11: Financial Highlights – Segments
Financial Highlights – Segments ($ in millions) Debit and Credit 2Q Net Sales & Operating Income 1H Net Sales & Operating Income $20.3 $40.4 $72.9 $142.7 $58.3 $10.7 $118.1 $23.2 27.8% 28.3% 18.4% 19.6% 2020 2021 2020 2021 2020 2021 2020 2021 Net Sales Operating Income & Margin Net Sales Operating I
Slide 12: Balance Sheet, Liquidity, Net Leverage and Cash Flow
Balance Sheet, Liquidity, Net Leverage and Cash Flow ($ in millions, except ratios) Balance Sheet, Liquidity and Net Leverage Ratio June 30, Dec 31, We continue to focus on our capital structure 2021 2020 strategy to maintain ample liquidity, invest in the business and de-leverage the balance sheet
Slide 13: Summary
Summary We remain committed to being the partner of choice by providing market-leading • Solid execution throughout the business quality products and customer service through a market- • Strong net sales growth and margin expansion competitive business model. • Well positioned to deliver on our stra
Slide 14: Contact
Contact (877) 369-9016 InvestorRelations@cpicardgroup.com www.cpicardgroup.com 14
Slide 15: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non-GAAP Financial Measures Adjusted Net Income Six Months Ended June 30, Adjusted Net Income is computed as GAAP net income adjusted for the loss on 2021 2020 debt extinguishment and make-whole premium interest expense, net of their Dollars in thousands income tax impact. These i
Slide 16: 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 and is defined as EBITDA adj
Slide 17: Reconciliations of Non-GAAP Financial Measures
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) ex
Slide 18: Supplemental Financial Measures
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 evaluati