CPI Card Group Inc. (NASDAQ:PMTS) Q1 2024 Earnings Conference Call May 7, 2024 9:00 AM ET

Company Participants

Mike Salop - Head, Investor Relations
John Lowe - President and Chief Executive Officer
Jeff Hochstadt - Chief Financial Officer

Conference Call Participants

Jaeson Schmidt - Lake Street Capital Markets
Andrew Scutt - Ross Capital

Operator

Welcome to CPI Card Group's First Quarter 2024 Earnings Call. My name is Catherine, I will be your operator today. [Operator Instructions]

And now I would like to turn the call over to Mike Salop, CPI's Head of Investor Relations. Please go ahead.

Mike Salop

Thanks, operator, and good morning, everyone. Welcome to the CPI Card Group first quarter 2024 earnings webcast and conference call. Today's date is May 7, 2024. And on the call today from CPI Card Group are John Lowe, President and Chief Executive Officer; and Jeff Hochstadt, Chief Financial Officer.

Before we begin, I'd like to remind everyone that this call may contain forward-looking statements as they are defined in 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 statements 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 measures to the 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 the presentation that accompanies this conference call are accessible on CPI's Investor Relations website, investor.cpicardgroup.com. In addition, CPI's Form 10-Q for the quarter ended March 31, 2024, will be available on CPI's Investor Relations website. On today's call, our growth rates refer to comparisons with the prior year period, unless otherwise noted.

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

John Lowe

Thanks, Mike, and good morning, everyone. On today's call, I will give a brief overview of the quarter and our ongoing strategies. Jeff will go into more detail on the results in our 2024 financial outlook, and then we will open the call up for questions. Let's start on slide 4. Overall, we're pleased with the first quarter performance, which puts us solidly on track to achieve our full year net sales and adjusted EBITDA financial outlook. As we discussed, we reported our first quarter results. We anticipated the first half of this year would be challenging as customers continue to work down their card inventory levels. While card sales declined as expected, this impact was partially offset by strong growth from our prepaid business, as well as from our instant issuance and card personalization services businesses within debit and credit.