Cpi Card Group Inc. · NASDAQ:PMTS
Cpi Card — Q1 2023 Earnings Presentation
15 slides from Cpi Card's earnings presentation, May 9, 2023
Slide 1: First Quarter 2023 Investor Presentation
First Quarter 2023 Investor Presentation May 9, 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 2023 Q1 Highlights 2 2023 Expectations 3 Strategy Review 4 Financial Review 5 Summary CPI Confidential and Proprietary | Not for distribution 3
Slide 4: 2023 Q1 Highlights
2023 Q1 Highlights Strong First Quarter Performance Sales and Profit Growth; Margin Expansion; Improved Financial Position • Net Sales increased 8% to $120.9 million ‐ Growth across Debit and Credit portfolio, led by contactless cards; benefits from pricing actions • Net Income increased 81% to $10.
Slide 5: 2023 Expectations
2023 Expectations Affirmed 2023 Outlook Provided in March Company expects continued growth and share gains in a slower-growth market Mid-single digit net sales growth Mid-to-high single digit Adjusted EBITDA¹ growth Free Cash Flow more than double the 2022 level Net Leverage Ratio improvemen
Slide 6: Strategy Review
Strategy Review Key Strategic Priorities Deep Customer Focus Market-Leading Quality Products and Customer Service Continuous Innovation Market-Competitive Business Model CPI Confidential and Proprietary | Not for distribution The Contactless Indicator mark, consisting of four graduating arcs
Slide 7: Financial Review
Financial Review CPI Confidential and Proprietary | Not for distribution 7
Slide 8: First Quarter Financial Highlights
First Quarter Financial Highlights (in millions, except per share data) Q1'23 Q1'22 % Change Commentary • Net Sales increase driven by growth from Net Sales $ 120.9 $ 111.4 8% contactless cards Gross Profit $ 43.1 $ 39.3 10% • Gross Profit margin increase primarily due % Margin 35.7% 35.3% to operat
Slide 9: Financial Highlights - Segments
Financial Highlights - Segments ($ in millions) Debit and Credit Prepaid Debit Q1 Net Sales & Operating Income Q1 Net Sales & Operating Income $30.0 $24.1 $6.0 $3.7 $102.0 $19.1 $92.0 29.4% $19.5 $19.1 23.4% 26.2% $19.5 $20.4 $19.2 24.3% 30.7% 37.0% 19.2% 27.7% 2022 2023 2022 2023 2022 2023 2022 202
Slide 10: Balance Sheet, Liquidity, Net Leverage and Cash Flow
Balance Sheet, Liquidity, Net Leverage and Cash Flow ($ in millions, except ratios) Balance Sheet, Liquidity and Net Leverage Ratio Mar 31, 2023 Dec 31, 2022 Our capital structure and allocation strategies are focused on maintaining ample liquidity; investing in the business, including strategic Cas
Slide 11: Summary
Summary Strong first quarter performance • Increased net sales • Increased Adjusted EBITDA margin • Improved Free Cash Flow generation • Reduced Net Leverage Affirmed 2023 full year outlook provided in March; monitoring risks from banking industry turmoil and taking responsive actions. Announced app
Slide 12: Contact
Contact (877) 369-9016 INVESTORRELATIONS@CPICARDGROUP.COM www.CPIcardgroup.com CPI Confidential and Proprietary | Not for distribution 12
Slide 13: 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 Three Months Ended March 31, on a continuing operations basis. Adjusted EBITDA is presented on a continuing 2023 2022 operat
Slide 14: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non-GAAP Financial Measures Last Twelve Months Ended LTM Adjusted EBITDA March 31, 2023 December 31, 2022 Reconciliation of net income to LTM EBITDA and Adjusted EBITDA: ($ in millions) We define LTM Adjusted EBITDA as adjusted EBITDA (defined Net income $ 41.4 $ 36.5 previously)
Slide 15: Supplemental Financial Measures
Supplemental Financial Measures Net Leverage Ratio As of March 31, 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 $ 277.0 $ 285.0 divided by