Net Sales of $66.9 million, Up 22%
Year-Over-Year
Continuing Operations - GAAP Net Loss of $3.1
Million, a 45% Improvement Year-Over-Year
Adjusted EBITDA from Continuing Operations of
$8.0 Million, up 101% Year-Over-Year
Cash of $7.9 million, Available Revolver of
$20.0 million, Available Liquidity of $27.9 million at Quarter
End
Call scheduled for Thursday, May 9, 2019 at 9:00 a.m. Eastern
Time
CPI Card Group Inc. (Nasdaq: PMTS; TSX: PMTS.TO) (“CPI Card
Group” or the “Company”) today reported financial results for the
first quarter ended March 31, 2019.
“Our first quarter results reflect solid execution against our
strategic priorities as we continue to focus on strengthening the
business and achieving our vision,” said Scott Scheirman, President
and Chief Executive Officer of CPI. “During the quarter, we
delivered 22% year-over-year net sales growth, improved our net
loss by 45% and grew adjusted EBITDA 101%, as a result of strong
performance across all of our business units. We continued to make
investments in the business to enhance our ability to be responsive
to our customers’ needs and market opportunities. This strong start
to 2019 is encouraging and underscores our commitment to being the
partner of choice for our customers by providing market-leading
quality products and customer service with a market-competitive
business model.”
Financial results for all comparative 2018 periods, including
non-GAAP measures, discussed in this press release reflect
continuing operations unless otherwise noted. The sale of CPI U.K.,
which had historically been reported as the U.K. Limited segment,
has been accounted for as discontinued operations, and comparative
financial information has been restated in accordance with U.S.
GAAP (“GAAP”) requirements.
First Quarter 2019 Consolidated Financial Highlights from
Continuing Operations
Net sales were $66.9 million in the first quarter of 2019, an
increase of 21.9% from the first quarter of 2018. First quarter
2019 income from operations was $3.6 million, compared with a loss
from operations of $2.4 million in the first quarter of 2018. First
quarter 2019 net loss was $3.1 million, or $0.28 per diluted share,
compared with a net loss of $5.7 million, or $0.51 per diluted
share, in the first quarter of 2018.
Adjusted EBITDA for the first quarter of 2019 was $8.0 million,
up 101% from the prior year first quarter. These year-over-year
improvements are primarily the result of net sales growth and
favorable mix towards higher-margin products and services.
First Quarter Segment Information from Continuing
Operations
U.S. Debit and Credit:
Net sales increased 31.7% year-over-year to $48.9 million in the
first quarter of 2019, driven by increased volumes from EMV®
financial payment card manufacturing, including dual-interface EMV®
cards, as well as card personalization and fulfillment. Card@Once®
year-over-year growth was also a contributor to U.S. Debit and
Credit net sales growth in the first quarter.
U.S. Prepaid Debit:
Net sales increased 7.9% to $16.7 million in the first quarter
of 2019 compared with the first quarter of 2018, driven by
additional sales volumes from our existing customer base, including
timing of certain customer sales.
Balance Sheet, Liquidity, and Cash Flow from Continuing
Operations
As expected, and consistent with historical cash flow patterns
due to the nature of the business, the Company’s operations
generated a use of cash during the first quarter. For the first
quarter of 2019, cash used in operating activities was $10.2
million, resulting primarily from changes in working capital
related to initiatives to support the growth of the business. First
quarter 2019 capital expenditures totaled $2.1 million, and free
cash flow was a negative $12.3 million.
As of March 31, 2019, cash and cash equivalents totaled $7.9
million. The Company’s revolving credit facility, which matures in
August 2020, had no borrowings outstanding and available borrowings
of $20.0 million as of March 31, 2019.
Total debt principal outstanding, comprised of the Company’s
First Lien Term Loan, was $312.5 million at March 31, 2019,
unchanged from December 31, 2018. Net of debt issuance costs and
discount, total debt was $306.3 million as of March 31, 2019. The
Company’s First Lien Term Loan matures in August 2022.
John Lowe, Chief Financial Officer, stated, “We continue to
execute on our plan to strengthen the business. Our solid start to
2019 was punctuated by strong year-over-year growth in net sales,
adjusted EBITDA and adjusted EBITDA margins, as our success in
growing the top line yielded greater operating leverage. We believe
we have adequate cash and liquidity to support our business
plan.”
EMV® is a registered trademark or trademark of EMVCo LLC in the
United States and other countries.
Non-GAAP Financial Measures
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 release,
all reported on a continuing operations basis: EBITDA, Adjusted
EBITDA, and Free Cash Flow. These non-GAAP financial measures are
utilized by management in comparing our operating performance on a
consistent basis between fiscal periods. We believe that these
financial measures are appropriate to enhance an overall
understanding of our underlying operating performance trends
compared to historical and prospective periods and our peers.
Management also believes that these measures are useful to
investors in their analysis of our results of operations and
provide improved comparability between fiscal periods. Non-GAAP
financial measures should not be considered in isolation from, or
as a substitute for, financial information calculated in accordance
with GAAP. Our non-GAAP measures may be different from similarly
titled measures of other companies. Investors are encouraged to
review the reconciliation of these historical non-GAAP measures to
their most directly comparable GAAP financial measures included in
Exhibit E to this press release.
EBITDA
EBITDA represents earnings before interest, taxes, depreciation
and amortization, all on a continuing operations basis. EBITDA is
presented because it is an important supplemental measure of
performance, and it is frequently used by analysts, investors and
other interested parties in the evaluation of companies in our
industry. EBITDA is also presented and compared by analysts and
investors in evaluating our ability to meet debt service
obligations. Other companies in our industry may calculate EBITDA
differently. EBITDA is not a measurement of financial performance
under GAAP and should not be considered as an alternative to cash
flow from operating activities or as a measure of liquidity or an
alternative to net (loss) income or net (loss) income from
continuing operations as indicators of operating performance or any
other measures of performance derived in accordance with GAAP.
Because EBITDA is calculated before recurring cash charges,
including interest expense and taxes, and is not adjusted for
capital expenditures or other recurring cash requirements of the
business, it should not be considered as a measure of discretionary
cash available to invest in the growth of the business.
Adjusted EBITDA
Adjusted EBITDA is presented on a continuing operations basis
and is defined as EBITDA adjusted for impairments, litigation and
related charges incurred in connection with certain patent and
shareholder litigation; stock-based compensation expense;
restructuring and other charges; foreign currency gain or loss; and
other items that are unusual in nature, infrequently occurring or
not considered part of our core operations, as set forth in the
reconciliation on Exhibit E. Adjusted EBITDA is also a defined term
in our existing credit agreement, which generally conforms to the
definition above, and impacts certain credit measures and
compliance targets within the credit agreement. Adjusted EBITDA is
intended to show our unleveraged, pre-tax operating results and
therefore reflects our financial performance based on operational
factors, excluding non-operational, non-cash or non-recurring
losses or gains. Adjusted EBITDA has important limitations as an
analytical tool, and you should not consider it in isolation, or as
a substitute for, analysis of our results as reported under GAAP.
For example, Adjusted EBITDA does not reflect: (a) our capital
expenditures, future requirements for capital expenditures or
contractual commitments; (b) changes in, or cash requirements for,
our working capital needs; (c) the significant interest expenses or
the cash requirements necessary to service interest or principal
payments on our debt; (d) tax payments that represent a reduction
in cash available to us; (e) any cash requirements for the assets
being depreciated and amortized that may have to be replaced in the
future; (f) the impact of earnings or charges resulting from
matters that we and the lenders under our credit agreement may not
consider indicative of our ongoing operations; or (g) the impact of
any discontinued operations. In particular, our definition of
Adjusted EBITDA allows us to add back certain non-cash,
non-operating or non-recurring charges that are deducted in
calculating net (loss) income, even though these are expenses that
may recur, vary greatly and are difficult to predict and can
represent the effect of long-term strategies as opposed to
short-term results.
In addition, certain of these expenses can represent the
reduction of cash that could be used for other purposes. Further,
although not included in the calculation of Adjusted EBITDA, the
measure may at times allow us to add estimated cost savings and
operating synergies related to operational changes ranging from
acquisitions to dispositions to restructurings and/or exclude
one-time transition expenditures that we anticipate we will need to
incur to realize cost savings before such savings have occurred.
Further, management and various investors use the ratio of total
debt less cash to Adjusted EBITDA, or "net debt leverage", as a
measure of our financial strength and ability to incur incremental
indebtedness when making key investment decisions and evaluating us
against peers. The metric “total debt less cash” includes borrowed
long term debt, letters of credit, and capital lease obligations,
less cash. Adjusted EBITDA margin percentage as shown in Exhibit E
is computed as Adjusted EBITDA divided by total net sales.
Free Cash Flow
We define Free Cash Flow as cash flow from continuing operations
less capital expenditures from continuing operations. We use this
metric in analyzing our ability to service and repay our debt.
However, this measure does not represent funds available for
investment or other discretionary uses since it does not deduct
cash used to service our debt, nor does it reflect the cash impacts
of our discontinued operations.
About CPI Card Group Inc.
CPI Card Group is a leading provider in payment card production
and related services, offering a single source for credit, debit
and prepaid debit cards including EMV® chip and dual interface,
personalization, instant issuance, fulfillment and digital payment
services. CPI has more than 20 years of experience in the payments
market and is a trusted partner to financial institutions. Our
solid reputation of product consistency, quality and outstanding
customer service supports our position as a leader in the market.
Serving our customers from locations throughout the United States,
we have a large network of high security facilities, each of which
is certified by one or more of the payment brands: Visa,
Mastercard®, American Express and Discover®. Learn more at
www.cpicardgroup.com.
Conference Call and Webcast
CPI Card Group Inc. will hold a conference call on May 9, 2019
at 9:00 a.m. ET to review its first quarter 2019 results. To
participate in the Company's conference call via telephone or
online:
Participant Toll-Free Dial-In Number: (800)
860-2442Participant International Dial-In Number: (412)
858-4600Webcast Link:
https://services.choruscall.com/links/pmts190508.html
Participants are advised to login for the live webcast 10
minutes prior to the scheduled start time.
A replay of the conference call and webcast will be available
until May 22, 2019 at:
Replay: (877) 344-7529 or (412)
317-0088;Conference ID: 10129853Webcast replay:
http://investor.cpicardgroup.com
Forward-Looking Statements
Certain statements and information in this earnings release 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
21E of the Securities Exchange Act of 1934, as amended (the “1934
Act”). The words “believe,” “estimate,” “project,” “expect,”
“anticipate,” “plan,” “intend,” “foresee,” “should,” “would,”
“could” or other similar expressions are intended to identify
forward-looking statements, which are generally not historical in
nature. These forward-looking statements are based on our current
expectations and beliefs concerning future developments and their
potential effect on us, and other information currently available.
Such statements reflect our current views with respect to future
events and are subject to certain risks, uncertainties and
assumptions. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those described herein as
anticipated, believed, estimated, expected or intended. We are
making investors aware that such forward-looking statements,
because they relate to future events, are by their very nature
subject to many important factors that could cause actual results
to differ materially from those contemplated. These risks and
uncertainties include, but are not limited to: our substantial
indebtedness, including inability to make debt service payments or
refinance such indebtedness; the restrictive terms of our credit
facility and covenants of future agreements governing indebtedness
and the resulting restraints on our ability to pursue our business
strategies; our limited ability to raise capital in the
future; system security risks, data protection breaches and
cyber-attacks and possible exposure to litigation and/or regulatory
penalties under applicable data privacy and other laws for failure
to prevent such incidents; interruptions in our operations,
including our information technology systems, or in the operations
of the third parties that operate the data centers or computing
infrastructure on which we rely; our failure to maintain our
listing on the NASDAQ Capital Market; our inability to adequately
protect our trade secrets and intellectual property rights from
misappropriation or infringement, claims that our technology is
infringing on the intellectual property of others, and risks
related to open source software; defects in our software; problems
in production quality and process; our failure to retain our
existing customers or identify and attract new customers; a loss of
market share or a decline in profitability resulting from
competition; our inability to recruit, retain and develop qualified
personnel, including key personnel; our inability to sell, exit,
reconfigure or consolidate businesses or facilities that no longer
meet with our strategy; our inability to develop, introduce and
commercialize new products; the effect of legal and regulatory
proceedings; developing technologies that make our existing
technology solutions and products less relevant or a failure to
introduce new products and services in a timely
manner; quarterly variation in our operating results;
infringement of our intellectual property rights, or claims that
our technology is infringing on third-party intellectual property;
our inability to realize the full value of our long-lived assets;
our failure to operate our business in accordance with the PCI
Security Standards Council (“PCI”) security standards or other
industry standards such as Payment Card Brand certification
standards; costs relating to the obligatory collection of sales tax
and claims for uncollected sales tax in states that impose sales
tax collection requirements on out-of-state retailers; disruption
or delays in our manufacturing operations or supply chain; a
decline in U.S. and global market and economic conditions and
resulting decreases in consumer and business spending; costs
relating to product defects and any related product liability
and/or warranty claims; maintenance and further imposition of
tariffs and/or trade restrictions on goods imported into the United
States; our dependence on licensing arrangements;
non-compliance with, and changes in, laws in the United States and
in foreign jurisdictions in which we operate and sell our products;
risks associated with the controlling stockholders’ ownership of
our stock; and other risks that are described in Part I, Item 1A
– Risk Factors in our Annual Report on Form 10-K for the
year ended December 31, 2018 filed with the SEC on March 6, 2019
and our other reports filed from time to time with the Securities
and Exchange Commission (the “SEC”).
We caution and advise readers not to place undue reliance on
forward-looking statements, which speak only as of the date hereof.
These statements are based on assumptions that may not be realized
and involve risks and uncertainties that could cause actual results
to differ materially from the expectations and beliefs contained
herein. We undertake no obligation to publicly update or revise any
forward-looking statements after the date they are made, whether as
a result of new information, future events or otherwise.
For more information:
CPI encourages investors to use its investor relations website
as a way of easily finding information about the company. CPI
promptly makes available on this website, free of charge, the
reports that the company files or furnishes with the SEC, corporate
governance information and press releases. CPI uses its investor
relations site (http://investor.cpicardgroup.com) as a means of
disclosing material information and for complying with its
disclosure obligations under Regulation FD.
CPI Card Group Inc. Earnings
Release Supplemental Financial Information
Exhibit A Condensed Consolidated
Statements of Operations and Comprehensive Loss - Unaudited for the
three months ended March 31, 2019 and 2018 Exhibit B
Condensed Consolidated Balance Sheets – Unaudited as of March 31,
2019 and December 31, 2018 Exhibit C Condensed Consolidated
Statements of Cash Flows - Unaudited for the three months ended
March 31, 2019 and 2018 Exhibit D Segment Summary
Information – Unaudited for the three months ended March 31, 2019
and 2018 Exhibit E Supplemental GAAP to Non-GAAP
Reconciliations - Unaudited for the three months ended March 31,
2019 and 2018 EXHIBIT A
CPI Card Group Inc. and
Subsidiaries Condensed Consolidated Statements of Operations
and Comprehensive Loss (Amounts in Thousands, Except Share
and Per Share Amounts) (Unaudited)
Three Months Ended March 31, 2019
2018 Net sales: Products $ 32,757 $ 24,744 Services
34,109 30,113 Total net sales 66,866
54,857 Cost of sales: Products (exclusive of
depreciation and amortization shown below) 21,489 16,318 Services
(exclusive of depreciation and amortization shown below) 21,166
20,663 Depreciation and amortization 2,690
3,448 Total cost of sales 45,345 40,429
Gross profit 21,521 14,428 Operating expenses: Selling,
general and administrative (exclusive of depreciation and
amortization shown below) 16,418 15,329 Depreciation and
amortization 1,533 1,462
Total operating expenses
17,951 16,791 Income from operations
3,570 (2,363 ) Other expense, net: Interest, net (6,324 ) (5,506 )
Foreign currency gain 41 202 Other income, net 19
4 Total other expense, net (6,264 )
(5,300 ) Loss from continuing operations before income taxes (2,694
) (7,663 ) Income tax (expense) benefit (403 ) 1,985
Net loss from continuing operations (3,097 ) (5,678 ) Net
income (loss) from discontinued operation, net of tax 42
(1,613 ) Net loss $ (3,055 ) $ (7,291 ) Basic and
diluted loss per share: Continuing operations $ (0.28 ) $ (0.51 )
Discontinued operation 0.01 (0.14 ) Net loss
per share $ (0.27 ) $ (0.65 ) Basic and Diluted
Weighted-average shares outstanding: 11,160,473 11,134,714
Comprehensive loss: Net loss $ (3,055 ) $ (7,291 ) Currency
translation adjustment 31 309 Total
comprehensive loss $ (3,024 ) $ (6,982 ) EXHIBIT B
CPI Card Group Inc. and Subsidiaries Condensed
Consolidated Balance Sheets (Amounts in Thousands, Except
Share and Per Share Amounts)
March 31, December 31, 2019
2018 (Unaudited) Assets Current assets: Cash
and cash equivalents $ 7,882 $ 20,291 Accounts receivable, net of
allowances of $201 and $211, respectively 45,240 43,794 Inventories
14,232 9,827 Prepaid expenses and other current assets 4,874 4,997
Income taxes receivable 5,450 5,564
Total current assets 77,678 84,473 Plant, equipment and leasehold
improvements, net 45,640 39,110 Intangible assets, net 34,273
35,437 Goodwill 47,150 47,150 Other assets 843
1,034 Total assets $ 205,584 $ 207,204
Liabilities and stockholders’ deficit Current liabilities:
Accounts payable $ 17,081 $ 16,511 Accrued expenses 18,870 23,853
Deferred revenue and customer deposits 363 912
Total current liabilities
36,314 41,276 Long-term debt 306,307 305,818 Deferred income taxes
5,999 5,749 Other long-term liabilities 9,432
3,937 Total liabilities 358,052 356,780
Commitments and contingencies Stockholders’ deficit: Common
stock; $0.001 par value—100,000,000 shares authorized; 11,160,537
and 11,160,377 shares issued and outstanding as of March 31, 2019
and December 31, 2018, respectively 11 11 Capital deficiency
(112,091 ) (112,223 ) Accumulated loss (39,059 ) (36,004 )
Accumulated other comprehensive loss (1,329 ) (1,360
) Total stockholders’ deficit (152,468 ) (149,576 )
Total liabilities and stockholders’ deficit $ 205,584 $
207,204 EXHIBIT C
CPI Card Group Inc. and
Subsidiaries Condensed Consolidated Statements of Cash
Flows (Amounts in Thousands) (Unaudited)
Three Months Ended March 31, 2019
2018 Operating activities Net loss $
(3,055 ) $ (7,291 ) Adjustments to reconcile net loss to net cash
used in operating activities: Loss (income) from discontinued
operation (42 ) 1,613 Depreciation and amortization expense 4,223
4,910 Stock-based compensation expense 147 395 Amortization of debt
issuance costs and debt discount 489 486 Deferred income taxes 250
(1,738 ) Other, net (45 ) (196 ) Changes in operating assets and
liabilities: Accounts receivable (1,420 ) (59 ) Inventories (4,382
) 891 Prepaid expenses and other assets 309 (164 ) Income taxes 114
310 Accounts payable 403 (871 ) Accrued expenses (6,716 ) 670
Deferred revenue and customer deposits (551 ) (209 ) Other
liabilities 80 (322 ) Cash used in operating
activities - continuing operations (10,196 ) (1,575 )
Cash provided by (used in) operating activities - discontinued
operation 42 (210 )
Investing
activities Acquisitions of plant, equipment and leasehold
improvements (2,146 ) (690 ) Cash used in investing
activities - continuing operations (2,146 ) (690 )
Cash used in investing activities - discontinued operation —
(471 )
Financing activities Proceeds from
revolving credit facility 5,000 — Payments on revolving credit
facility (5,000 ) — Payments on capital lease obligations
(143 ) (129 ) Cash used in financing activities (143 ) (129
) Effect of exchange rates on cash 34 66
Net decrease in cash and cash equivalents (12,409 ) (3,009 )
Cash and cash equivalents, beginning of period 20,291
23,205 Cash and cash equivalents, end of period $
7,882 $ 20,196
Supplemental disclosures of cash
flow information Cash paid during the period for: Interest $
5,736 $ 4,760 Income taxes, net (refunds) payments $
(41 ) $ (88 ) Capital lease obligations incurred for certain
machinery and equipment leases $ — $ 821 Accounts
payable for acquisitions of plant, equipment and leasehold
improvements $ 1,238 $ 370 EXHIBIT D
CPI
Card Group Inc. and Subsidiaries Segment Summary
Information For the Three Months Ended March 31, 2019 and
March 31, 2018 (Dollars in Thousands) (Unaudited)
Net Sales Three Months Ended March
31, 2019 2018
$ Change
% Change Net sales by segment:
U.S. Debit and Credit
$ 48,929 $ 37,148 $ 11,781 31.7 % U.S. Prepaid Debit 16,744 15,512
1,232 7.9 % Other 1,679 2,699 (1,020 )
(37.8
)%
Eliminations (486 ) (502 ) 16 * % Total
$ 66,866 $ 54,857 $ 12,009 21.9 %
* Calculation not meaningful
Gross Profit Three Months Ended
March 31, 2019 % of NetSales
2018 % of NetSales
$ Change
% Change Gross profit by segment:
U.S. Debit and Credit
$ 15,272 31.2 % $ 8,483 22.8 % $ 6,789 80.0 % U.S. Prepaid Debit
6,346 37.9 % 5,368 34.6 % 978 18.2 % Other (97 )
(5.8
)%
577 21.4 % (674 ) * % Total $ 21,521 32.2 % $
14,428 26.3 % $ 7,093 49.2 %
* Calculation not meaningful
Income from Operations Three Months
Ended March 31, 2019 % of
NetSales 2018 % of
NetSales
$ Change
% Change Income (loss) from operations by
segment:
U.S. Debit and Credit
$ 7,776 15.9 % $ 2,522 6.8 % $ 5,254 208.3 % U.S. Prepaid Debit
5,316 31.7 % 4,325 27.9 % 991 22.9 % Other (9,522 ) * %
(9,210 ) * % (312 ) 3.4 % Total $ 3,570 5.3 %
$ (2,363 )
(4.3
)%
$ 5,933 * %
* Calculation not meaningful
EBITDA
Three Months Ended March 31, 2019
% of NetSales 2018
% of NetSales $
Change % Change EBITDA by segment:
U.S. Debit and Credit
$ 10,380 21.2 % $ 5,718 15.4 % $ 4,662 81.5% U.S. Prepaid Debit
5,779 34.5 % 4,819 31.1 % 960 19.9% Other (8,306) * %
(7,784) * % (522) 6.7% Total $ 7,853 11.7 % $ 2,753 5.0 % $
5,100 185.3%
Reconciliation of Income (loss) from
Operations by Segment to EBITDA by Segment
Three Months Ended March 31, 2019
U.S. Debit andCredit
U.S. PrepaidDebit
Other Total EBITDA by
segment: Income (loss) from operations $ 7,776 $ 5,316 $ (9,522 ) $
3,570 Depreciation and amortization 2,605 463 1,155 4,223 Other
expenses (income) (1 ) — 61 60
EBITDA $ 10,380 $ 5,779 $ (8,306 ) $ 7,853
Three Months Ended March 31, 2018
U.S. Debit andCredit
U.S. PrepaidDebit
Other Total EBITDA by segment: Income (loss) from
operations $ 2,522 $ 4,325 $ (9,210 ) $ (2,363 ) Depreciation and
amortization 3,204 494 1,212 4,910 Other expenses (income)
(8 ) — 214 206 EBITDA $ 5,718
$ 4,819 $ (7,784 ) $ 2,753
____________________Note the tables in this exhibit are
presented on a continuing operations basis.We completed the sale of
the U.K. Limited segment on August 3, 2018. Because the sale met
the criteria to report the U.K. Limited segment as a discontinued
operation, the financial position, results of operations and cash
flows have been restated for all periods to conform with
discontinued operations presentation.
EXHIBIT E
CPI Card Group Inc. and Subsidiaries
Supplemental GAAP to Non-GAAP Reconciliation (Dollars in
Thousands) Three Months
Ended March 31, 2019 2018 EBITDA
and Adjusted EBITDA: Net loss from continuing operations $
(3,097 ) $ (5,678 ) Interest expense, net 6,324 5,506 Income tax
expense (benefit) 403 (1,985 ) Depreciation and amortization
4,223 4,910
EBITDA $ 7,853 $ 2,753
Adjustments to EBITDA: Stock-based compensation
expense 147 395 Litigation and related charges (1) 20 696
Restructuring and other charges (2) — 329 Foreign currency (gain)
(41 ) (202 ) Subtotal of adjustments to EBITDA
126 1,218
Adjusted EBITDA $ 7,979
$ 3,971 Adjusted EBITDA margin (% of Net Sales) 11.9
% 7.2 % Adjusted EBITDA growth (% Change 2019 vs. 2018) 100.9 %
Three Months Ended March 31, 2019 2018
Reconciliation of cash (used in) operating activities -
continuing operations (GAAP) to free cash flow: Cash used in
operating activities - continuing operations $ (10,196 ) $ (1,575 )
Acquisitions of plant, equipment and leasehold improvements
(2,146 ) (690 ) Free cash flow - continuing operations $
(12,342 ) $ (2,265 )
____________________Note that tables in this exhibit are
presented on a continuing operations basis.
(1) Represents net legal costs incurred 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 two facilities.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190509005219/en/
CPI Card Group Inc. Investor Relations:Jennifer
Almquist(877) 369-9016InvestorRelations@cpicardgroup.comCPI Card
Group Inc. Media Relations:Media@cpicardgroup.com
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