Cpi Card Group Inc. · NASDAQ:PMTS
Cpi Card — Q2 2024 Earnings Presentation
18 slides from Cpi Card's earnings presentation, Aug 5, 2024
Slide 1: Second Quarter 2024 Investor Presentation
Second Quarter 2024 Investor Presentation August 5, 2024
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 Overview and Strategy 2 Q2 Financial Review 3 2024 Outlook 4 Summary CPI Confidential and Proprietary | Not for distribution 3
Slide 4: Overview
Overview Q2 returned to sales growth ▪ Continued solid growth in Prepaid solutions, Card@Once® instant issuance and other card personalization services ▪ Card sales trends improved; strong increase vs. Q1 2024 outlook updated ▪ Net sales outlook updated to mid-single digit growth ▪ Adjusted EBITDA a
Slide 5: Strategy Review
Strategy Review Build from Strong Foundation ▪ A leader in the U.S. payments market with portfolio that includes Secure Card, Personalization, Instant Issuance and Prepaid ▪ Strong value proposition from our focus on customer service, quality and innovation ▪ Strong and long-standing customer relati
Slide 6: 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 2.1 billion, up from 1.6 billion 2,111 2,059 1,979 2,008 1,885 1,915 1,829 1,758 1,783 1,679 1,714 1,627 770 1,587 753 726 739 679 694 656 674 645 616 636 600 606 1,269 1,306 1,34
Slide 7: 2024 Q2 Financial Review
2024 Q2 Financial Review CPI Confidential and Proprietary | Not for distribution 7
Slide 8: Q2 Highlights
Q2 Highlights Q2 sales trends improved due to ongoing growth in Prepaid solutions, instant issuance and other card personalization services and improvement in debit and credit card sales ▪ Net sales increased 3% to $118.8 million ▪ Gross margin increased from 35.5% to 35.7% ▪ Net income decreased 8%
Slide 9: Second Quarter Financial Highlights
Second Quarter Financial Highlights (in millions, except per share data) Q2 24 Q2 23 % Change Commentary Net Sales $ 118.8 $ 115.0 3% ▪ Net sales increase driven primarily by growth from Prepaid, instant issuance, and other card personalization services Gross Profit $ 42.4 $ 40.8 4% % Margin 35.7% 3
Slide 10: First Half Financial Highlights
First Half Financial Highlights (in millions, except per share data) YTD 24 YTD 23 % Change Commentary Net Sales $ 230.8 $ 235.8 -2% • Net Sales decrease driven by reduced volumes of debit and credit cards, partially offset by increases in Prepaid, Gross Profit $ 83.9 $ 83.9 0% instant issuance and
Slide 11: Financial Highlights - Segments
Financial Highlights - Segments ($ in millions) Debit and Credit Q2 Net Sales & Operating Income First Half Net Sales & Operating Income $25.1 $25.4 $55.1 $48.1 $94.2 $93.2 $93.2 $94.2 $95.6 $93.2 26.9% 26.6% $195.2 $183.6 26.2% 24.0% 29.8% 28.2% 26.9% 26.9% 26.8% 28.2% 2023 2024 2023 2024 2023 2024
Slide 12: Balance Sheet, Liquidity, Net Leverage and Cash Flow
Balance Sheet, Liquidity, Net Leverage and Cash Flow $ in millions Jun. 30, Dec. 31, Our capital structure and allocation strategies are Balance Sheet, Liquidity and Net Leverage Ratio focused on: 2024 2023 1. Maintaining ample liquidity Cash on hand $ 7.5 $ 12.4 2. Investing in the business, includ
Slide 13: 2024 Outlook
2024 Outlook Updated full year outlook for Net Sales; affirmed full year outlooks for Adjusted EBITDA and Free Cash Flow Full-year outlook 2024 ▪ Mid-single digit increase in Net Sales (previously slight increase) ▪ Slight increase in Adjusted EBITDA (unchanged) ▪ Free Cash Flow approximately half t
Slide 14: Summary
Summary Second quarter sales trends improved ▪ Continued solid growth in Prepaid solutions, instant issuance and other card personalization services ▪ Debit and credit card sales trends improved; increased vs. Q1 Full year sales outlook increased ▪ Adjusted EBITDA and Free Cash Flow outlooks affirme
Slide 15: Contact
Contact (877) 369-9016 investorrelations@cpicardgroup.com www.cpicardgroup.com 15
Slide 16: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non-GAAP Financial Measures Adjusted EBITDA and Adjusted EBITDA Margin Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 EBITDA represents earnings before interest, taxes, depreciation and Reconciliation of net income to EBITDA and Adjusted ($ in millions)
Slide 17: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non-GAAP Financial Measures LTM Adjusted EBITDA Last Twelve Months Ended June 30, 2024 December 31, 2023 Reconciliation of net income to LTM EBITDA and Adjusted EBITDA: ($ in millions) We define LTM Adjusted EBITDA as adjusted EBITDA Net income $ 18.0 $ 24.0 (defined previously) f
Slide 18: Supplemental Financial Measures
Supplemental Financial Measures Net Leverage Ratio June 30, 2024 As of December 31, 2023 Management and various investors use the ratio of debt Calculation of Net Leverage Ratio: ($ in millions) principal outstanding, plus finance lease obligations, less cash divided by LTM Adjusted EBITDA, or “Net