Cpi Card Group Inc. · NASDAQ:PMTS
Cpi Card — FY2018 Earnings Presentation
21 slides from Cpi Card's earnings presentation, Mar 6, 2019
Slide 1: Fourth Quarter and Full Year 2018 Earnings Conference Call
Copyright 2019 CPI Card Group Fourth Quarter and Full Year 2018 Earnings Conference Call March 6, 2019
Slide 2: Safe Harbor Forward-Looking Statements
Copyright 2019 CPI Card Group Safe Harbor Forward-Looking Statements: Certain statements and information in this presentation may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended
Slide 3: Business Summary
Copyright 2019 CPI Card Group Business Summary Scott Scheirman President and CEO
Slide 4: 2018 Highlights
Copyright 2019 CPI Card Group 4 2018 Highlights * Financial results included in this presentation for all periods reflect continuing operations. ** See Appendix for definitions of our Non-GAAP financial measures and reconciliations to the most comparable GAAP financial measures. Fourth Quarter and F
Slide 5: 2018 Highlights (Continued)
Copyright 2019 CPI Card Group 2018 Highlights (Continued) 5 • Deep customer focus strengthened existing relationships, drove new business • Believe we gained or retained market share across our U.S. businesses* • Market leading quality and customer service yielded industry awards and new business wi
Slide 6: Strategic Priorities
Copyright 2019 CPI Card Group 6 Strategic Priorities Deep Customer Focus Market-Leading Quality Products & Customer Service Market- Competitive Business Model Continuous Innovation
Slide 7: 2019 Strategy: Growth Through Targeted Initiatives
Copyright 2019 CPI Card Group 2019 Strategy: Growth Through Targeted Initiatives 7 Four Strategic Priorities to Foster Growth and Strengthen Our Platform Deep Customer Focus • Strengthen and deepen customer relationships • Deliver value and help our customers thrive Market-Leading Quality Products a
Slide 8: Summary
Copyright 2019 CPI Card Group Summary 8 • We remain committed to the vision of being the partner of choice by providing market-leading quality products and customer service with a market competitive business model • We made solid strides getting “fit for growth” in 2018 • We believe we have the righ
Slide 9: Financial Summary
Copyright 2019 CPI Card Group Financial Summary John Lowe Chief Financial Officer
Slide 10: Financial Results Fourth Quarter and Full Year 2018
Copyright 2019 CPI Card Group 10 * Financial results included in this presentation for all periods reflect continuing operations. ** See Appendix for definitions of our Non-GAAP financial measures and reconciliations to the most comparable GAAP financial measures. • Fourth quarter 2018 • Net sales o
Slide 11: U.S. Debit and Credit Segment Review
Copyright 2019 CPI Card Group 11 * Financial results included in this presentation for all periods reflect continuing operations. ** See Appendix for definitions of our Non-GAAP financial measures and reconciliations to the most comparable GAAP financial measures. • Fourth quarter 2018 • Net sales o
Slide 12: U.S. Prepaid Debit Segment Review
Copyright 2019 CPI Card Group 12 * Financial results included in this presentation for all periods reflect continuing operations. ** See Appendix for definitions of our Non-GAAP financial measures and reconciliations to the most comparable GAAP financial measures. • Fourth quarter 2018 • Net sales o
Slide 13: Operating and Free Cash Flow
Copyright 2019 CPI Card Group Financial Results 13 Operating and Free Cash Flow * See Appendix for definitions of our Non-GAAP financial measures and reconciliations to the most comparable GAAP financial measures. ** Note numbers may not foot due to rounding. $6.6 $8.3 -$3.8 $1.4 Q4 2017 Q4 2018 FY
Slide 14: Debt and Liquidity
Copyright 2019 CPI Card Group Financial Results 14 Debt and Liquidity • Revolver Borrowing Availability of $20 million • Term Loan matures August 2022; Revolver matures August 2020 * See Appendix for definitions of our Non-GAAP financial measures and reconciliations to the most comparable GAAP finan
Slide 15: The Market
Copyright 2019 CPI Card Group The Market 15 U.S. Market Conditions* • We expect U.S. industry card manufacturing volume to grow in 2019, driven by dual-interface conversions and EMV® reissuance • We expect dual-interface to grow gradually as a proportion of the U.S. market • We expect small and medi
Slide 16: Appendix
Copyright 2019 CPI Card Group Appendix
Slide 17: Financial Results Fourth Quarter and Full Year 2018
Copyright 2019 CPI Card Group Financial Results 17 Fourth Quarter and Full Year 2018* N/M Not Meaningful * Financial results included in this presentation for all periods reflect continuing operations. The sale of CPI U.K., which had historically been reported in the U.K. Limited segment, has been a
Slide 18: Non-GAAP Measures
Copyright 2019 CPI Card Group Non-GAAP Measures 18 Non-GAAP Financial Information In addition to financial results reported in accordance with U.S. generally accepted accounting principles (GAAP), we have provided the following non-GAAP financial measures in this presentation, all on a continuing op
Slide 19: Non-GAAP Reconciliation
Copyright 2019 CPI Card Group Non-GAAP 19 Reconciliation (1) (2) (1) Represents net legal costs incurred in connection with certain patent and shareholder litigation. (2) Represents primarily employee and lease termination costs incurred in connection with the decision to consolidate three personali
Slide 20: Non-GAAP Reconciliation
Copyright 2019 CPI Card Group Non-GAAP 20 Reconciliation Share and per share amounts reflect the one-for-five reverse stock split for all periods presented
Slide 21: Non-GAAP Reconciliation
Copyright 2019 CPI Card Group Non-GAAP 21 Reconciliation