Cpi Card Group Inc. · NASDAQ:PMTS
Cpi Card — Q2 2023 Earnings Presentation
17 slides from Cpi Card's earnings presentation, Aug 8, 2023
Slide 1: Second Quarter 2023 Investor Presentation
Second Quarter 2023 Investor Presentation August 8, 2023
Slide 2: Cautionary Statements
Cautionary 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
Slide 3: Agenda
Agenda 1 Strategy Review 2 2023 Q2 Highlights 3 2023 Expectations 4 Financial Review 5 Summary 3
Slide 4: Strategy Review
Strategy Review Key Strategic Priorities Deep Customer Focus Market-Leading Quality Products and Customer Service Continuous Innovation Market-Competitive Business Model The Contactless Indicator mark, consisting of four graduating arcs, is a trademark owned by and used with permission of EM
Slide 5: Visa and Mastercard U.S. Cards in Circulation
Visa and Mastercard U.S. Cards in Circulation Cards in circulation have grown at a 10% CAGR over the last three years to 1.9 billion, up from 1.5 billion 1,892 1,921 1,842 1,759 1,793 1,679 1,715 1,627 1,586 1,543 1,455 1,472 1,483 682 698 677 645 656 616 636 600 606 599 583 576 577 1,165 1,210 1,22
Slide 6: 2023 Q2 Highlights
2023 Q2 Highlights Slight Sales Increase, Solid Profit Growth Profit Growth and Margin Expansion Driven by Reduced Operating Expenses • Net Sales increased 1% to $115 million • Net Income increased 6% to $6.5 million; Net Income margin increased from 5.4% to 5.7% • Adjusted EBITDA¹ increased 18% to
Slide 7: 2023 Expectations
2023 Expectations Updated Net Sales Outlook; Affirmed Adjusted EBITDA, Free Cash Flow, and Net Leverage Outlooks 2023 Outlook Flat to low single-digit net sales growth (previously mid- single digit growth) Mid-to-high single-digit Adjusted EBITDA¹ growth Free Cash Flow more than double the 202
Slide 8: Financial Review
Financial Review cpi.
Slide 9: Second Quarter Financial Highlights
Second Quarter Financial Highlights (in millions, except per share data) Q2 23 Q2 22 % Change Commentary • Net Sales increase driven by Prepaid Debit Net Sales $ 115.0 $ 113.3 1% segment; Debit and Credit segment sales Gross Profit $ 40.8 $ 40.6 1% declined due to high prior year sales of eco- % Mar
Slide 10: First Half Financial Highlights
First Half Financial Highlights (in millions, except per share data) YTD 23 YTD 22 % Change Commentary • Net Sales increase driven by contactless Net Sales $ 235.8 $ 224.7 5% cards, personalization and instant issuance Gross Profit $ 83.9 $ 79.8 5% services, non-EMV® cards, and Prepaid % Margin 35.6
Slide 11: Financial Highlights - Segments
Financial Highlights - Segments ($ in millions) Debit and Credit Q2 Net Sales & Operating Income First Half Net Sales & Operating Income $55.1 $25.3 $25.1 $94.2 $94.2 $93.2 $186.2 $195.2 $49.4 $93.2 $94.2 $93.2 26.9% 26.9% 26.5% 28.2% 24.0% 29.8% 26.9% 26.9% 26.8% 28.2% 2022 2023 2022 2023 2022 2023
Slide 12: Balance Sheet, Liquidity, Net Leverage and Cash Flow
Balance Sheet, Liquidity, Net Leverage and Cash Flow ($ in millions, except ratios) June 30, Dec. 31, Our capital structure and allocation strategies Balance Sheet, Liquidity and Net Leverage Ratio 2023 2022 are focused on maintaining ample liquidity; investing in the business, including strategic C
Slide 13: Summary
Summary Solid profit growth in Q2 despite challenging net sales comparisons and market softness in Debit and Credit • Net sales increased 1% • Net income increased 6% • Adjusted EBITDA1 increased 18% Updated 2023 outlook • Adjusted net sales outlook to a range of flat to low single-digit growth • Af
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 EBITDA and Adjusted EBITDA Margin Three Months Ended June 30, 2023 2022 Six Months Ended June 30, 2023 2022 Reconciliation of net income to EBITDA and ($ in millions) EBITDA represents earnings before interest, taxes, depreciation and amortizat
Slide 16: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non-GAAP Financial Measures LTM Adjusted EBITDA Last Twelve Months Ended June 30, 2023 December 31, 2022 We define LTM Adjusted EBITDA as adjusted EBITDA (defined Reconciliation of net income to LTM EBITDA and Adjusted EBITDA: Net income $ ($ in millions) 41.8 $ 36.5 previously) f
Slide 17: Supplemental Financial Measures
Supplemental Financial Measures Net Leverage Ratio As of June 30, 2023 December 31, 2022 Management and various investors use the ratio of debt Calculation of Net Leverage Ratio: ($ in millions) principal outstanding, plus finance lease obligations, less cash Senior Notes $ 270.0 $ 285.0 divided by