Net Sales Up 20% and Diluted EPS of $0.21 per
share, Up 37% Year Over Year
Net Income of $2.4 Million, Up 37% Year Over
Year
Adjusted EBITDA of $22.1 Million, Up 78% Year
Over Year
Debt Maturities Extended Approximately Five
Years
Cash of $25 Million and $34 Million available
under the ABL Revolver at Quarter End
CPI Card Group Inc. (OTCQX: PMTS; TSX: PMTS) (“CPI” or the
“Company”) today reported financial results for the first quarter
ended March 31, 2021.
“Our first quarter results reflect the strength and commitment
of our organization to be the partner of choice to our customers by
providing market-leading quality products and customer service,”
said Scott Scheirman, President and Chief Executive Officer of CPI.
“During the quarter, we delivered 20% year over year net sales
growth, improved our net income by 37% and grew Adjusted EBITDA
78%, as a result of strong performance across all of our businesses
and new customer sales.”
Scheirman continued, “We continue to focus on our strategic
priorities, including our commitment to meeting customers’ needs by
delivering high quality and differentiated products and services
such as our eco-focused payment cards, secure prepaid packaging,
personalization solutions and Card@Once®, our Software-as-a-Service
instant issuance solution. Our strong start to 2021 is encouraging
and we believe we are well-positioned to capitalize on market
opportunities.”
First Quarter 2021 Financial Highlights
Net sales increased 20% year over year to $89.1 million in the
first quarter of 2021. Gross profit increased 39% year over year in
the first quarter of 2021 to $35.7 million. Gross profit margin
increased to 40.1% in the first quarter of 2021, compared to 34.7%
in the prior year period. Income from operations increased 137%
year over year to $17.8 million in the first quarter of 2021.
The Company extended its debt maturities by approximately five
years, and enhanced liquidity by entering into a $50 million
secured asset based revolving credit facility, as further described
below. During the first quarter of 2021, the Company recognized a
loss on debt extinguishment of $5.0 million and $2.6 million of
make-whole interest expense, relating to the termination and
repayment of its existing credit facilities as the Company
refinanced its debt.
First quarter 2021 net income and diluted earnings per share
increased 37% to $2.4 million and $0.21 per share, respectively.
Net income and diluted earnings per share were adversely impacted
by the debt extinguishment costs and make-whole interest expense
described above.
Adjusted EBITDA increased 78% to $22.1 million in the first
quarter of 2021, compared to $12.4 million in the prior year
period, as a result of net sales growth and improved operating
leverage.
First Quarter Segment Information
Debit and Credit:
Debit and Credit Segment net sales increased 17% year over year
to $69.8 million in the first quarter of 2021, driven primarily by
higher volumes of contactless card sales and card personalization,
including new customer growth.
Prepaid Debit:
Prepaid Debit Segment net sales increased 34% year over year to
$19.5 million in the first quarter of 2021. Net sales increased due
to higher volumes from an existing customer, which included new
portfolio wins.
Balance Sheet, Liquidity, and Cash Flow
In the first quarter of 2021, the Company completed a private
offering by its wholly-owned subsidiary, CPI CG Inc., of $310
million aggregate principal amount of 8.625% senior secured notes
due March 2026 (the “Senior Notes”), and concurrently entered into
a $50 million secured asset based revolving credit facility (the
“ABL Revolver”) maturing in December 2025. The Company used
proceeds from the Senior Notes offering and initial borrowings
under the ABL Revolver, plus cash on hand, to repay in full and
terminate its existing credit facilities and to pay related fees
and expenses.
As of March 31, 2021, cash and cash equivalents was $24.9
million. Cash provided by operating activities was $0.1 million and
capital expenditures were $2.5 million in the first quarter of
2021, yielding Free Cash Flow usage of $2.4 million. This compares
with the first quarter of 2020, when cash provided by operating
activities was $3.2 million and capital expenditures were $0.9
million, yielding Free Cash Flow of $2.3 million. Year over year,
Free Cash Flow decreased $4.6 million, primarily due to changes in
working capital to support the business.
As of March 31, 2021, total debt principal outstanding was
comprised of the $310 million Senior Notes and $15 million of
borrowings under the ABL Revolver. At quarter end, $34 million was
available for borrowing under the ABL Revolver.
“Our solid start to 2021 was punctuated by strong year over year
growth in net sales and profitability, and our success in growing
the top line contributed to greater operating leverage,” said John
Lowe, Chief Financial Officer. “The strong results combined with
our recent debt refinancing provide flexibility to support our
strategic initiatives by extending debt maturities and enhancing
liquidity. We are encouraged by our solid execution during the
first quarter of 2021 and remain committed to our strategy.”
Additional Investor Commentary
The Company has provided additional written commentary regarding
its first quarter performance and other business matters. This
earnings press release and the additional written commentary are
available at investor.cpicardgroup.com.
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, Adjusted EBITDA margin, 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.
Adjusted EBITDA
Adjusted EBITDA is presented on a continuing operations basis
and is defined as EBITDA (which represents earnings before
interest, taxes, depreciation and amortization) adjusted for
stock-based compensation expense; estimated sales tax expense
(benefit); restructuring and other charges; loss on debt
extinguishment; 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 in
Exhibit E. 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, unusual 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-operating,
unusual or non-recurring charges that are deducted in calculating
net 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 represent the reduction of cash
that could be used for other purposes. 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 provided by (used in)
operating activities less capital expenditures. 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
discontinued operations. Free Cash Flow should not be considered in
isolation, or as a substitute for, cash (used in) provided by
operating activities or any other measures of liquidity derived in
accordance with GAAP.
About CPI Card Group Inc.
CPI Card Group® is a payment technology company and leading
provider of credit, debit and prepaid solutions delivered
physically, digitally and on-demand. CPI helps our customers foster
connections and build their brands through innovative and reliable
solutions, including financial payment cards, personalization and
Software-as-a-Service (SaaS) instant issuance. CPI has more than 20
years of experience in the payments market and is a trusted partner
to financial institutions and payments services providers. Serving
customers from locations throughout the United States, CPI has a
large network of high security facilities, each of which is
registered as PCI compliant by one or more of the payment brands:
Visa, Mastercard®, American Express® and Discover®. Learn more at
www.cpicardgroup.com.
Forward-Looking Statements
Certain statements and information in this release (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 Litigation
Reform Act of 1995, Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. The words “believe,” “estimate,” “project,” “expect,”
“anticipate,” “plan,” “intend,” “foresee,” “should,” “would,”
“could,” “continue,” “committed,” “guides,” “provides guidance,”
“provides outlook” or other similar expressions are intended to
identify forward-looking statements, which are not historical in
nature. These forward-looking statements, including statements
about our strategic initiatives and market opportunities, are based
on our current expectations and beliefs concerning future
developments and their potential effect on us and other information
currently available. Such forward-looking statements, because they
relate to future events, are by their very nature subject to many
important risks and uncertainties that could cause actual results
or other events to differ materially from those contemplated.
These risks and uncertainties include, but are not limited to:
the potential effects of COVID-19 on our business, including our
supply-chain, customer demand, workforce, operations and ability to
comply with certain covenants in our credit facilities; our lack of
eligibility to participate in government relief programs related to
COVID-19 or inability to realize material benefits from such
programs; our substantial indebtedness, including inability to make
debt service payments or refinance such indebtedness; the
restrictive terms of our credit facilities 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; a disruption or other failure in
our supply chain; the effects of current or additional U.S.
government tariffs as well as economic downturns or disruptions,
including delays or interruptions in our ability to source raw
materials and components used in our products; system security
risks, data protection breaches and cyber-attacks; 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; failure to comply
with regulations, customer contractual requirements and evolving
industry standards regarding consumer privacy and data use and
security; disruptions in production at one or more of our
facilities; our failure to retain our existing customers or
identify and attract new customers; our inability to recruit,
retain and develop qualified personnel, including key personnel;
our inability to adequately protect our trade secrets and
intellectual property rights from misappropriation, infringement
claims brought against us and risks related to open source
software; defects in our software; problems in production quality,
materials and process; a loss of market share or a decline in
profitability resulting from competition; our inability to develop,
introduce and commercialize new products; new and developing
technologies that make our existing technology solutions and
products obsolete or less relevant or our failure to introduce new
products and services in a timely manner; costs and impacts to our
financial results 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 businesses, as
well as new U.S. tax legislation increasing the corporate income
tax rate and challenges to our income tax positions; failure to
meet the continued listing standards of the Toronto Stock Exchange
or the rules of the OTCQX® Best Market; a decrease in the value of
our common stock combined with our common stock not being traded on
a United States national securities exchange, which may prevent
investors or potential investors from investing or achieving a
meaningful degree of liquidity; quarterly variation in our
operating results; our inability to realize the full value of our
long-lived assets; our failure to operate our business in
accordance with the Payment Card Industry Security Standards
Council security standards or other industry standards; 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; our dependence on licensing arrangements; risks associated
with international operations; non-compliance with, and changes in,
laws in the United States and in foreign jurisdictions in which we
operate and sell our products and services; the effect of legal and
regulatory proceedings; our ability to comply with a wide variety
of environmental, health and safety laws and regulations and the
exposure to liability for any failure to comply; risks associated
with the majority stockholders’ ownership of our stock; the
influence of securities analysts over the trading market for and
price of our common stock; our inability to sell, exit, reconfigure
or consolidate businesses or facilities that no longer meet with
our strategy; potential conflicts of interest that may arise due to
our board of directors being comprised in part of directors who are
principals of our majority stockholders; certain provisions of our
organizational documents and other contractual provisions that may
delay or prevent a change in control and make it difficult for
stockholders other than our majority stockholders to change the
composition of our board of directors; 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, 2020 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
or other events 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 Income - Unaudited for the three
months ended March 31, 2021 and 2020
Exhibit B
Condensed Consolidated Balance Sheets –
Unaudited as of March 31, 2021 and December 31, 2020
Exhibit C
Condensed Consolidated Statements of Cash
Flows - Unaudited for three months ended March 31, 2021 and
2020
Exhibit D
Segment Summary Information – Unaudited
for the three months ended March 31, 2021 and 2020
Exhibit E
Supplemental GAAP to Non-GAAP
Reconciliations - Unaudited for the three months ended March 31,
2021 and 2020
EXHIBIT A
CPI Card Group Inc. and
Subsidiaries
Condensed Consolidated
Statements of Operations and Comprehensive Income
(Amounts in Thousands, Except
Share and Per Share Amounts)
(Unaudited)
Three Months Ended March
31,
2021
2020
Net sales:
Products
$
47,013
$
42,501
Services
42,079
31,468
Total net sales
89,092
73,969
Cost of sales:
Products (exclusive of depreciation and
amortization shown below)
27,287
26,379
Services (exclusive of depreciation and
amortization shown below)
23,668
19,187
Depreciation and amortization
2,416
2,755
Total cost of sales
53,371
48,321
Gross profit
35,721
25,648
Operating expenses:
Selling, general and administrative
(exclusive of depreciation and amortization shown below)
16,146
16,663
Depreciation and amortization
1,806
1,485
Total operating expenses
17,952
18,148
Income from operations
17,769
7,500
Other expense, net:
Interest, net
(8,976
)
(6,088
)
Other income (expense), net
25
(3
)
Loss on debt extinguishment
(5,048
)
(92
)
Total other expense, net
(13,999
)
(6,183
)
Income from continuing operations before
income taxes
3,770
1,317
Income tax (expense) benefit
(1,360
)
465
Net income from continuing operations
2,410
1,782
Net loss from discontinued operations, net
of tax
—
(26
)
Net income
$
2,410
$
1,756
Basic and diluted earnings per share:
Earnings per share from continuing
operations - Basic and Diluted:
$
0.21
$
0.16
Earnings per share - Basic and
Diluted:
$
0.21
$
0.16
Basic weighted-average shares
outstanding:
11,230,482
11,224,500
Diluted weighted-average shares
outstanding:
11,639,015
11,262,359
Comprehensive income:
Net income
$
2,410
$
1,756
Total comprehensive income
$
2,410
$
1,756
EXHIBIT B
CPI Card Group Inc. and
Subsidiaries
Condensed Consolidated Balance
Sheets
(Amounts in Thousands, Except
Share and Per Share Amounts)
(Unaudited)
March 31,
December 31,
2021
2020
Assets
Current assets:
Cash and cash equivalents
$
24,884
$
57,603
Accounts receivable, net of allowances of
$237 and $289, respectively
60,479
54,592
Inventories
33,490
24,796
Prepaid expenses and other current
assets
5,193
5,032
Income taxes receivable
9,152
10,511
Total current assets
133,198
152,534
Plant, equipment and leasehold
improvements and operating lease right-of-use assets, net
38,188
39,403
Intangible assets, net
25,058
26,207
Goodwill
47,150
47,150
Other assets
2,700
857
Total assets
$
246,294
$
266,151
Liabilities and stockholders’
deficit
Current liabilities:
Accounts payable
$
21,792
$
18,883
Accrued expenses
22,618
28,149
Current portion of long-term debt
—
8,027
Deferred revenue and customer deposits
1,316
1,868
Total current liabilities
45,726
56,927
Long-term debt
317,503
328,681
Deferred income taxes
7,232
7,409
Other long-term liabilities
11,409
11,171
Total liabilities
381,870
404,188
Commitments and contingencies
Series A Preferred Stock; $0.001 par
value—100,000 shares authorized; 0 shares issued and outstanding at
March 31, 2021 and December 31, 2020
—
—
Stockholders’ deficit:
Common stock; $0.001 par value—100,000,000
shares authorized; 11,230,482 shares issued and outstanding at
March 31, 2021 and December 31, 2020
11
11
Capital deficiency
(111,807
)
(111,858
)
Accumulated loss
(23,780
)
(26,190
)
Total stockholders’ deficit
(135,576
)
(138,037
)
Total liabilities and stockholders’
deficit
$
246,294
$
266,151
EXHIBIT C
CPI Card Group Inc. and
Subsidiaries
Condensed Consolidated
Statements of Cash Flows
(Amounts in Thousands)
(Unaudited)
Three Months Ended March
31,
2021
2020
Operating activities
Net income
$
2,410
$
1,756
Adjustments to reconcile net income to net
cash provided by operating activities:
Loss from discontinued operations
—
26
Depreciation and amortization expense
4,222
4,240
Stock-based compensation expense
51
41
Amortization of debt issuance costs and
debt discount
887
634
Loss on debt extinguishment
5,048
92
Deferred income taxes
(177
)
537
Other, net
200
488
Changes in operating assets and
liabilities:
Accounts receivable
(5,884
)
(911
)
Inventories
(8,885
)
521
Prepaid expenses and other assets
107
1,138
Income taxes receivable, net
1,359
(846
)
Accounts payable
3,705
(2,747
)
Accrued expenses
(2,790
)
(1,856
)
Deferred revenue and customer deposits
(556
)
177
Other liabilities
447
(86
)
Cash provided by operating activities -
continuing operations
144
3,204
Cash used in operating activities -
discontinued operations
—
(26
)
Investing activities
Capital expenditures for plant, equipment
and leasehold improvements
(2,524
)
(938
)
Other
155
—
Cash used in investing activities
(2,369
)
(938
)
Financing activities
Principal payments on First Lien Term
loan
(312,500
)
-
Principal payments on Senior Credit
Facility
(30,000
)
-
Proceeds from Senior Notes
310,000
-
Proceeds from ABL Revolver, net of
discount
14,750
-
Proceeds from Senior Credit Facility, net
of discount
-
29,100
Debt issuance costs
(9,452
)
(2,507
)
Payments on debt extinguishment
(2,685
)
-
Payments on finance lease obligations
(610
)
(593
)
Cash (used in) provided by financing
activities
(30,497
)
26,000
Effect of exchange rates on cash
3
(18
)
Net (decrease) increase in cash and cash
equivalents
(32,719
)
28,222
Cash and cash equivalents, beginning of
period
57,603
18,682
Cash and cash equivalents, end of
period
$
24,884
$
46,904
Supplemental disclosures of cash flow
information
Cash paid (refunded) during the period
for:
Interest
$
8,382
$
5,538
Income taxes
$
1
$
(232
)
Right-to-use assets obtained in exchange
for lease obligations:
Operating leases
$
432
$
141
Financing leases
$
526
$
251
Accounts payable, and accrued expenses for
capital expenditures for plant, equipment and leasehold
improvements
$
256
$
345
EXHIBIT D
CPI Card Group Inc. and
Subsidiaries
Segment Summary
Information
For the Three Months Ended
March 31, 2021 and March 31, 2020
(Dollars in Thousands)
(Unaudited)
Net Sales
Three Months Ended March
31,
2021
2020
$ Change
% Change
Net sales by segment:
Debit and Credit
$
69,817
$
59,839
$
9,978
16.7
%
Prepaid Debit
19,458
14,540
4,918
33.8
%
Eliminations
(183
)
(410
)
227
*
%
Total
$
89,092
$
73,969
$
15,123
20.4
%
* Calculation not meaningful
Gross Profit
Three Months Ended March
31,
2021
% of Net Sales
2020
% of Net Sales
$ Change
% Change
Gross profit by segment:
Debit and Credit
$
27,549
39.5
%
$
20,408
34.1
%
$
7,141
35.0
%
Prepaid Debit
8,172
42.0
%
5,240
36.0
%
2,932
56.0
%
Total
$
35,721
40.1
%
$
25,648
34.7
%
$
10,073
39.3
%
* Calculation not meaningful
Income from Operations
Three Months Ended March
31,
2021
% of Net Sales
2020
% of Net Sales
$ Change
% Change
Income (loss) from operations by
segment:
Debit and Credit
$
20,154
28.9
%
$
12,476
20.8
%
$
7,678
61.5
%
Prepaid Debit
7,018
36.1
%
4,116
28.3
%
2,902
70.5
%
Other
(9,403
)
*
%
(9,092
)
*
%
(311
)
3.4
%
Total
$
17,769
19.9
%
$
7,500
10.1
%
$
10,269
136.9
%
* Calculation not meaningful
EBITDA
Three Months Ended March
31,
2021
% of Net Sales
2020
% of Net Sales
$ Change
% Change
EBITDA by segment:
Debit and Credit
$
22,400
32.1
%
$
14,959
25.0
%
$
7,441
49.7
%
Prepaid Debit
7,573
38.9
%
4,660
32.0
%
2,913
62.5
%
Other
(13,005
)
*
%
(7,974
)
*
%
(5,031
)
63.1
%
Total
$
16,968
19.0
%
$
11,645
15.7
%
$
5,323
45.7
%
Reconciliation of Income (loss)
from
Operations by Segment to EBITDA by
Segment
Three Months Ended March 31,
2021
Debit and Credit
Prepaid Debit
Other
Total
EBITDA by segment:
Income (loss) from operations
$
20,154
$
7,018
$
(9,403
)
$
17,769
Depreciation and amortization
2,237
539
1,446
4,222
Other income (expenses)
9
16
(5,048
)
(5,023
)
EBITDA
$
22,400
$
7,573
$
(13,005
)
$
16,968
Three Months Ended March 31,
2020
Debit and Credit
Prepaid Debit
Other
Total
EBITDA by segment:
Income (loss) from operations
$
12,476
$
4,116
$
(9,092
)
$
7,500
Depreciation and amortization
2,493
548
1,199
4,240
Other (expenses)
(10
)
(4
)
(81
)
(95
)
EBITDA
$
14,959
$
4,660
$
(7,974
)
$
11,645
EXHIBIT E
CPI Card Group Inc. and
Subsidiaries
Supplemental GAAP to Non-GAAP
Reconciliation
(Dollars in Thousands)
(Unaudited)
Three Months Ended March
31,
2021
2020
EBITDA and Adjusted EBITDA:
Net income
$
2,410
$
1,756
Net loss from discontinued operations
—
26
Interest expense, net
8,976
6,088
Income tax expense (benefit)
1,360
(465
)
Depreciation and amortization
4,222
4,240
EBITDA
$
16,968
$
11,645
Adjustments to EBITDA:
Stock-based compensation expense
51
41
Sales tax (benefit) expense (1)
(80
)
121
Restructuring and other charges (2)
121
467
Loss on debt extinguishment (3)
5,048
92
Foreign currency (gain) loss
(25
)
8
Subtotal of adjustments to EBITDA
5,115
729
Adjusted EBITDA
$
22,083
$
12,374
Net income (% Change 2021 vs. 2020)
37.2
%
Adjusted EBITDA margin (% of Net
Sales)
24.8
%
16.7
%
Adjusted EBITDA growth (% Change 2021 vs.
2020)
78.5
%
Three Months Ended March
31,
2021
2020
Free Cash Flow:
Cash provided by operating activities
$
144
$
3,204
Capital expenditures for plant, equipment
and leasehold improvements
(2,524
)
(938
)
Free Cash Flow (usage)
$
(2,380
)
$
2,266
(1)
Represents estimated sales tax (benefit)
expense relating to a contingent liability due to historical
activity in certain states where it is probable that the Company
will be subject to sales tax plus interest and penalties. During
the year ended December 31, 2020, the Company revised its prior
period financial statements to adjust immaterial items, primarily
due to estimated sales tax expense relating to 2017 through the
second quarter of 2020. Refer to Note 1 of the Form 10-Q for the
quarter ended March 31, 2021 for an explanation of the immaterial
prior period adjustments.
(2)
Represents restructuring severance
charges.
(3)
The Company terminated and repaid its
Senior Credit Facility and First Lien Term Loan during the first
quarter of 2021 and expensed the unamortized deferred financing
costs and debt discount. Additionally, the Company terminated its
previous Revolving Credit Facility during the first quarter of 2020
and expensed the remaining unamortized deferred financing
costs.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210511005707/en/
CPI Card Group Inc. Investor Relations: (877) 369-9016
InvestorRelations@cpicardgroup.com
CPI Card Group Inc. Media Relations:
Media@cpicardgroup.com
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