CPI Card Group Inc. · NASDAQ:PMTS
CPI Card — Q2 2019 Earnings Presentation
18 slides from CPI Card's earnings presentation, Aug 7, 2019
Slide 1: Second Quarter 2019 Earnings Conference Call
Second Quarter 2019 Earnings Conference Call August 7, 2019 Copyright 2019 CPI Card Group
Slide 2: Safe Harbor
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 (the “1933 Act”) and Section 2
Slide 3: Business Summary
Business Summary Scott Scheirman President and CEO Copyright 2019 CPI Card Group
Slide 4: Second Quarter and First Half 2019 Highlights
Second Quarter and First Half 2019 Highlights Highlights from Continuing Operations* • Solid execution against customer-centric strategy. • Net sales increased 9% for Q2 2019, a 15% increase for the first half of 2019. • Q2 net sales increase of 17% in U.S. Debit and Credit segment and 3% increase i
Slide 5: Strategic Priorities
Strategic Priorities Market-Leading Market- Quality Products & Competitive Customer Service Business Model Deep Customer Continuous Focus Innovation Copyright 2019 CPI Card Group 5
Slide 6: 2019 Strategy: Growth Through Targeted Initiatives
2019 Strategy: Growth Through Targeted Initiatives 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 and Customer Service • Commitment
Slide 7: Summary
Summary • 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 believe second quarter and first half results reflect solid execution towards this goal. Copyright 2019 CPI Card
Slide 8: Financial Summary
Financial Summary John Lowe Chief Financial Officer Copyright 2019 CPI Card Group
Slide 9: Second Quarter and First Half 2019 Results
Second Quarter and First Half 2019 Results Solid Execution Relative to Strategic Priorities* ($ in millions) Net Sales Gross Profit $43.9 $133.8 $34.3 $116.3 $19.9 $22.4 $61.5 $66.9 Q2 2018 Q2 2019 YTD 2018 YTD 2019 Q2 2018 Q2 2019 YTD 2018 YTD 2019 Margin 32.3% 33.5% 29.5% 32.8% • Net sales increas
Slide 10: Second Quarter and First Half 2019 Results
Second Quarter and First Half 2019 Results Solid Execution Relative to Strategic Priorities* ($ in millions) Net Income (Loss) from Continuing Adjusted EBITDA** $16.5 Operations $12.9 $1.6 $8.9 $8.5 Q2 2018 Q2 2019 YTD 2018 YTD 2019 -$0.8 -$1.5 Q2 2018 Q2 2019 YTD 2018 YTD 2019 -$6.5 • Net Income (l
Slide 11: Segment Results
Segment Results U.S. Debit and Credit • Second quarter: • Net sales of $51.1 million, up 17% year over year • Income from operations of $8.0 million, up 20% from $6.6 million in Q2 2018 • First half: • Net sales of $100 million, up 24% year over year • Income from operations of $15.8 million, up 72%
Slide 12: Financial Results: Debt and Liquidity
Financial Results Debt and Liquidity • Revolver Borrowing Availability of $20 million; Liquidity** of $37.5 million • Term Loan matures August 17, 2022; Revolver matures August 17, 2020 * See Appendix for definitions of our Non-GAAP financial measures and reconciliations to the most comparable GAAP
Slide 13: Appendix
Appendix Copyright 2019 CPI Card Group
Slide 14: Non-GAAP Measures
Non-GAAP Measures 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 operations basis: Income from Opera
Slide 15: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation (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 personalization operations in the United
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation (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 personalization operations in the United States to
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation Copyright 2019 CPI Card Group 17
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation (1) Relates to the settlement of litigation in Q2 2019. This litigation has been disclosed in CPI’s SEC filings since CPI brought the complaint in 2017, and details of the settlement are disclosed in CPI’s Form 10-Q for the period ended June 30, 2019. Copyright 2019 CPI Card