Cpi Card Group Inc. · NASDAQ:PMTS
Cpi Card — Q4 2024 Earnings Presentation
18 slides from Cpi Card's earnings presentation, Mar 4, 2025
Slide 1: Fourth Quarter 2024 Investor Presentation
Fourth Quarter 2024 Investor Presentation March 4, 2025
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 Q4 Financial Review 3 2025 Outlook 4 Summary CPI Confidential and Proprietary | Not for distribution 3
Slide 4: Overview
Overview Strong progress in 2024 ▪ Strategies refined and advanced o Enhanced focus on adjacent market expansion o Investment in the business for long-term growth ▪ Returned to growth; strong performance in second half of year ▪ Prepaid surpassed $100 million net sales for full year Capital structur
Slide 5: Strategy Review
Strategy Review Vision: To be the most trusted partner for innovative payments technology. Strategic Pillars ▪ Customer focus ▪ Quality and efficiency ▪ Innovation and diversification ▪ People and culture Innovation and Diversification: Expand Addressable Markets ▪ Leverage technology connections an
Slide 6: 2024 Q4 Financial Review
2024 Q4 Financial Review CPI Confidential and Proprietary | Not for distribution 6
Slide 7: Q4 Highlights
Q4 Highlights Strong Q4 sales growth in Prepaid, debit and credit cards, personalization services; strong increase in full-year cash flow ▪ Q4 net sales increased 22% to $125.1 million ▪ Gross margin decreased from 34.4% to 34.1% ▪ Net income increased 148% to $6.8 million due to sales growth and CE
Slide 8: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights (in millions, except per share data) Q4 24 Q4 23 % Change Commentary Net Sales $ 125.1 $ 102.9 22% • Net sales increase driven primarily by strong growth from Prepaid, contactless debit and credit cards, and personalization services Gross Profit $ 42.6 $ 35.4 20%
Slide 9: Full Year Financial Highlights
Full Year Financial Highlights (in millions, except per share data) 2024 2023 % Change Commentary Net Sales $ 480.6 $ 444.5 8% • Net Sales increase driven by increased Prepaid, personalization services, and contactless card sales, led Gross Profit $ 171.2 $ 155.5 10% by eco-focused cards % Margin 35
Slide 10: Financial Highlights - Segments
Financial Highlights - Segments ($ in millions) Debit and Credit Q4 Net Sales & Operating Income Full Year Net Sales & Operating Income $94.9 $92.9 $19.0 $17.7 $94.2 $93.2 $82.1 $94.2 $91.9 $93.2 23.2% 19.2% $361.1 $375.3 26.3% 24.7% 24.0% 29.8% 26.9% 26.9% 26.8% 28.2% 2023 2024 2023 2024 2023 2024
Slide 11: Balance Sheet, Liquidity, Net Leverage and Cash Flow
Balance Sheet, Liquidity, Net Leverage and Cash Flow $ in millions Our capital structure and allocation strategies are focused on: Balance Sheet, Liquidity and Net Leverage Ratio Dec. 31, 2024 Dec. 31, 2023 1. Investing in the business, including strategic acquisitions 2. De-leveraging the balance s
Slide 12: Visa and Mastercard U.S. Cards in Circulation
Visa and Mastercard U.S. Cards in Circulation Cards in circulation have grown at a 9% CAGR over the last three years to 2.2 billion, up from 1.7 billion 2,158 2,088 2,113 2,051 1,978 2,008 1,885 1,914 1,829 1,758 1,783 1,679 1,714 766 792 753 763 725 739 679 693 656 674 645 616 636 1,298 1,325 1,347
Slide 13: 2025 Outlook
2025 Outlook Outlook for 2025 projects good growth Full-year outlook 2025 ▪ Mid-to-high single-digit increase in net sales ▪ Mid-to-high single-digit increase in Adjusted EBITDA¹ o Investing for future growth ▪ Free Cash Flow¹ slightly below the 2024 level ▪ Net Leverage Ratio2 below the 2024 year-e
Slide 14: Summary
Summary Good year in 2024 ▪ Outstanding Prepaid performance ▪ Return to growth for Debit and Credit ▪ Strong Free Cash Flow ▪ Significant capital structure actions Outlook for 2025 projects good growth ▪ Also reflects increased investments to drive long-term growth Long-term secular trends remain in
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 December 31, Year Ended December 31, 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 Year Ended December 31, 2024 2023 Reconciliation of net income to LTM EBITDA and Adjusted EBITDA: ($ in millions) We define LTM Adjusted EBITDA as adjusted EBITDA Net income $ 19.5 $ 24.0 (defined previously) for the last twelve mont
Slide 18: Supplemental Financial Measures
Supplemental Financial Measures Net Leverage Ratio As of December 31, 2024 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 Leverage