CPI Card Group Inc. (NASDAQ:PMTS) Q2 2022 Earnings Conference Call August 8, 2022 9:00 PM ET

Company Participants

Mike Salop - Head of Investor Relations

Scott Scheirman - President and Chief Executive Officer

Amintore Schenkel - Chief Financial Officer

Conference Call Participants

Jaeson Schmidt - Lake Street

Operator

Hello. And welcome to CPI Card Group's Second Quarter 2022 Earnings Conference Call. My name is Alex, and I will be coordinating the call today. [Operator Instructions].

I would now like to hand over to our host, Mike Salop, Head of Investor Relations. Mike, over to you.

Mike Salop

Thanks, operator, and good morning, everyone. Welcome to the CPI Card Group's Second Quarter 2022 Earnings Webcast and Conference Call. Today's date is August 8, 2022, and on the call today from CPI Card Group are Scott Scheirman, President and Chief Executive Officer; and Amintore Schenkel, Chief Financial Officer. Before we begin, I'd like to remind everyone that this call may contain forward-looking statements as they are defined under the Private Securities Litigation Reform Act of 1995.

These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. For a discussion of such risks and uncertainties, please see CPI Card Group's most recent filings with the SEC. All forward-looking statements made today reflect our current expectations only, and we undertake no obligation to update any statement to reflect the events that occur after this call.

Also, during the course of today's call, the company will be discussing one or more non-GAAP financial measures, including, but not limited to, EBITDA, adjusted EBITDA, adjusted EBITDA margin, net leverage ratio and free cash flow. Reconciliations of these non-GAAP financial measure to most directly comparable GAAP measures are included in the press release and slide presentation we issued this morning. Copies of today's press release as well as a presentation that accompanies this conference call are accessible on CPI’s Investor Relations website, investor.cpicardgroup.com. In addition, CPIs Form 10-Q for the quarter ended June 30, 2022 will be available on CPI’s Investor Relations website.

And now I'd like to turn the call over to President and Chief Executive Officer, Scott Sherman.

Scott Scheirman

Thanks Mike. And good morning everyone. During today's call, I will provide an overview of CPI’s performance in the second quarter, update our 2022 expectations and review our long-term strategy. Amintore will review the quarterly financial results in more detail, and then we will open up the call for questions. We will start on slide 4. We continued our strong start to the year with second quarter sales increasing 22% to $113 million. Another record quarterly sales level driven by strong customer demand across our business. Second quarter sales growth has led by our debit and credit segments which increased 29% and included strong contributions from contactless cards, including eco focus cards and our Software-as-a-Service-based Card@Once instant issuance solutions. We sold more than 18 million eco-focused cards in the quarter led by our recovered ocean-bound plastic offerings, increasing our total to nearly 80 million cards sold since launch in late 2019.