as of 10-06-2026 3:37pm EST
GPGI Inc is a diversified holding permanent capital platform designed to acquire, own, and scale high-quality businesses that hold great positions in good industries.
| Founded: | 2000 | Country: | United States |
| Employees: | N/A | City: | SOMERSET |
| Market Cap: | 3.8B | IPO Year: | 2020 |
| Target Price: | $20.00 | AVG Volume (30 days): | 1.4M |
| Analyst Decision: | Buy | Number of Analysts: | 2 |
| Dividend Yield: | Dividend Payout Frequency: | N/A | |
| EPS: | -0.66 | EPS Growth: | -0.82 |
| 52 Week Low/High: | $11.16 - $25.66 | Next Earning Date: | 11-02-2026 |
| Revenue: | $59,824,000 | Revenue Growth: | -85.78% |
| Revenue Growth (this year): | 3276.36% | Revenue Growth (next year): | 15.26% |
| P/E Ratio: | -19.59 | Index: | N/A |
| Free Cash Flow: | -22882000.0 | FCF Growth: | N/A |
SEC 8-K filings with transcript text
Aug 6, 2026
cmpo-20260806
false000182314400018231442026-08-062026-08-06
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 6, 2026
GPGI, Inc.
(Exact Name of Registrant as Specified in its Charter)
Nevada001-3968785-2749902
(State or Other Jurisdiction
of Incorporation) (Commission File Number)(IRS Employer Identification No.)
309 Pierce Street
Somerset, New Jersey 08873
(Address of Principal Executive Offices)(Zip Code)
(908) 518-0500
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, par value $0.0001 per shareGPGINew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On August 6, 2026, GPGI, Inc. (the “Company”) issued a press release announcing its financial results for the three and six months ended June 30, 2026, and provided an investor presentation to accompany the press release. Copies of the press release and the investor presentation are furnished herewith as Exhibits 99.1 and 99.2, respectively.
The information in Item 2.02 of this Form 8-K, including the information set forth in Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 8.01 Other Events
The Company’s board of directors has declared a quarterly cash dividend in the amount of $0.0025 per share of Class A common stock of the Company, payable on September 1, 2026 to all holders of record as of August 17, 2026.
Item 9.01 (d) Financial Statements and Exhibits
Exhibit No.
Exhibit Description
99.1 Press Release of GPGI, Inc. dated August 6. 2026
99.2 Investor Presentation of GPGI, Inc. dated August 6, 2026
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
GPGI, Inc.
Date: August 6, 2026 By:
/s/ Kurt Schoen
Name: Kurt Schoen
Title: Principal Financial Officer
May 7, 2026
2 a991-gpgi_1q26earningspr.htm
a991-gpgi_1q26earningspr
News Release GPGI Reports First Quarter 2026 Results § CompoSecure delivers record ROS-driven results § Husky impacted by unexpected market headwinds due to oil and resin price shock and continued tariff uncertainty § ROS deployment accelerating across the enterprise First Quarter Highlights Results compared to prior year period unless otherwise noted; pro forma metrics inclusive of Husky Technologies for full quarter. § Pro Forma Adjusted Net Sales of $421.2 million, up 3% § GAAP Net Loss of $235.0 million § Pro Forma Adj. EBITDA of $82.1 million, down 16%, and Pro Forma Adj. EBITDA margin of 19.5%, down 430 bps Second Quarter 2026 Outlook Following quarterly guidance is based upon expectations for the combined results of CompoSecure and Husky Technologies. § Adjusted Net Sales of $425 to $475 million § Adjusted EBITDA of $105 to $120 million Full Year 2026 Outlook Following annual guidance is based upon expectations for the combined results of CompoSecure and Husky Technologies including for full first quarter. § Pro Forma Adjusted Net Sales of $1,950 to $2,100 million § Pro Forma Adjusted EBITDA of $550 to $610 million § Pro Forma Adjusted Free Cash Flow of $275 to $325 million § Non-GAAP year-end Net LTM Leverage of approximately 3.0x NEW YORK, NY, May 7, 2026 – GPGI, Inc. (NYSE: GPGI), a diversified multi-industry platform for companies with great positions in good industries, today announced its financial and operating results for the first quarter ended March 31, 2026. Dave Cote, GPGI’s Executive Chairman, noted: “The first quarter was highlighted by record sales at CompoSecure, reflecting the effectiveness of implementing the Resolute Operating System for both growth and profitability. At Husky, we unfortunately encountered unanticipated market headwinds due to oil and resin price volatility and continued tariff uncertainty. As a result, we are taking necessary cost actions while continuing to make strategic investments for future growth. We will navigate these market headwinds, implement ROS, and become a stronger business as we exit the year.” Tom Knott, GPGI’s Chief Investment Officer, added: “While the abrupt macroeconomic headwinds facing Husky overshadowed the record sales at CompoSecure, we remain focused on driving cultural change, ROS implementation, and continued seed planting to make 2026 a foundational year that sets us up to deliver best-in-class top line growth, margin expansion, and free cash flow generation.” Financial Results – First Quarter 2026 (1) Pro Forma measures reflect financial results as if the business combination with Husky Technologies had occurred on January 1, 2025. (2) Adjusted measures reflect financial results as if GPGI consolidated the results of GPGI Holdings, L.L.C., including its operating businesses CompoSecure and Husky, for the periods shown. (3) As of March 31, 2026, $115.1mn of cash and restricted cash was held at GPGI Holdings, and not included in the GAAP results. !"#A%&"'( FGG+ +%A(,A%-.( /A0NFGG+(2PQ(2RQ !"#A%&"'( FGG+ +%A(,A%-.( /A0NFGG+(2PQ(2RQ !"#ABCD"E)DCE*+IDBE-.EL0ENLIIL20BP 4 67RP8R .5ST8 67P98: !"#ABCD"E9:;<=!E-.EL0ENLIIL20BP 4 6;R8P 4 6<:8: !"#A%&"'( FGG+ G'=>?&"'( /A0NFGG+(2RQ !"#A%&"'( FGG+ G'=>?&"'( /A0NFGG+(2RQ )DCE;0>2NDE-?2BBP -.@A5TBP 6@R8: .@CT5 6R;8@ 9a*E4E=LIACD" -.BT8bP 698PR .BTBb 698RA c+BdEeE*d2IC4<DINE;0JDBCND0CBE-.EL0ENLIIL20BPE-AP .hT5 6PRP8B .ST5 6:P8: <2C+IE=DiCE-.EL0ENLIIL20BPE 4 6RCP:A89 4 6P<A89 Pa(R9RB Pa(R9RA
Note on Accounting Treatment As a result of the spin-off of Resolute Holdings Management, Inc. (“Resolute Holdings”) and the execution of the management agreement with Resolute Holdings (the “CompoSecure Management Agreement”) on February 28, 2025, GPGI is required to account for the operating results of its wholly owned operating subsidiary, GPGI Holdings, L.L.C. (“GPGI Holdings”), under the equity method in accordance with U.S. GAAP, effective February 28, 2025. Both the CompoSecure and Husky Technologies business units are under GPGI Holdings. The GAAP results presented above for the first quarter 2026 and the portion of the 2025 comparative period from February 28 to March 30, 2025 reflect the conversion to equity method accounting. For clarity of comparisons and to best reflect the financial results, the Company is also presenting the first quarters of 2026 and 2025 on a consolidated basis consistent with historical presentation under the “Non-GAAP” headings. First Quarter 2026 Earnings Conference Call GPGI’s leadership team will discuss the Company’s results during a conference call on Thursday, May 7, 2026, starting at 8:00 a.m. EDT. The call and accompanying presentation will contain forward-looking statements and other material information regarding GPGI’s financial and operating results. A live webcast and replay of the call will be a
Mar 12, 2026
2 tm268632d1_ex99-1.htm
Exhibit 99.1
News Release
GPGI Reports Strong Fourth Quarter with Organic Revenue Growth of 17%, Net Income Growth of 189%, and Pro Forma Adjusted EBITDA Growth of 41%
Fourth Quarter 2025
Results compared to prior year period unless otherwise noted; does not include results for Husky Technologies
§Non-GAAP Net Sales of $118 million, up 17%
§GAAP Net Income of $43 million, up 189%
§Pro Forma Adj. EBITDA of $43 million, up 41%, and Pro Forma Adj. EBITDA margin of 36.5%, up 640 basis points
Full Year 2025
Results compared to prior year period unless otherwise noted; does not include results for Husky Technologies
§Non-GAAP Net Sales of $462 million, up 10%
§GAAP Net Loss of $136 million, down 48%
§Pro Forma Adj. EBITDA of $171 million, up 24%, and Pro Forma Adj. EBITDA margin of 36.9%, up 408 basis points
Recent Business Developments
§Completed business combination with Husky Technologies, rebranded to GPGI, completed debt refinancing to extend maturities and support future growth, and initiated a quarterly cash dividend
§Appointed Graham Robinson as President & CEO of CompoSecure and Rob Domodossola as President & CEO of Husky Technologies
Full Year 2026 Outlook
Following annual guidance is based upon expectations for the combined results of CompoSecure and Husky Technologies. Guidance for Non-GAAP Pro Forma Adjusted EBITDA includes payment of the Resolute Holdings management fee.
§Pro Forma Adj. Net Sales of $2,183 to $2,228 million
§Pro Forma Adj. EBITDA of $620 to $650 million
§Pro Forma Adj. Free Cash Flow of $325 to $375 million
§Non-GAAP Year-end Net LTM Leverage less than 3.0x
NEW YORK, NY, March 12, 2026 – GPGI, Inc. (NYSE: GPGI), a diversified multi-industry platform for companies with great positions in good industries, today announced its financial and operating results for the fourth quarter and full year ended December 31, 2025.
Dave Cote, GPGI’s Executive Chairman, noted: “We are pleased with the strong fourth quarter and full year results that demonstrate our continued momentum and reinforce our position for long-term sustainable growth. We are confident in the strong underlying fundamentals for both businesses and are well positioned to deliver best-in-class top line growth, margin expansion, and healthy free cash flow generation in 2026.”
Tom Knott, GPGI’s Chief Investment Officer, added: “GPGI enters 2026 with significant momentum and energy under new leadership at CompoSecure and Husky Technologies. The Resolute Operating System continues to serve as the foundation of our execution, and we remain focused on making foundational investments to drive growth, as well as cultivating a high-performance culture across GPGI.”
Financial Results – Fourth Quarter and
Full Year 2025 at CompoSecure (Pre-Husky Transaction)
4Q 2025 4Q 2024 FY 2025 FY 2024
Non-GAAP
Non-GAAP
Non-GAAP
Non-GAAP
Net Sales ($ in millions) (1) - $117.7 $100.9 $100.9 $59.8 $462.1 $420.6 $420.6
Gross Profit ($ in millions) (1) - $65.5 $52.5 $52.5 $28.7 $260.2 $219.2 $219.2
Gross Margin (%) (1) - 55.7% 52.1% 52.1% 48.1% 56.3% 52.1% 52.1%
Net Income (Loss) / Adjusted Net Income (Loss) $43.3 $30.6 $(48.4) $22.1 $(136.0) $119.2 $(83.2) $87.9
Pro Forma Adjusted EBITDA ($ in millions) (2) (5) - $43.0 - $30.4 - $170.7 - $138.2
EPS / Adjusted EPS - Diluted $0.31 $0.23 $(0.53) $0.18 $(1.23) $0.99 $(1.22) $0.85
Cash ($ in millions) (3) (6) $114.6 $271.6 $77.5 $77.5 $114.6 $271.6 $77.5 $77.5
Short-Term
Investments ($ in millions) (4) (7) - $41.1 - - - $41.1 - -
Total Debt ($ in millions) - $186.3 $197.5 $197.5 - $186.3 $197.5 $197.5
(1) All measures other than Net Income (Loss) / Adjusted Net Income (Loss), Pro Forma Adjusted EBITDA, and EPS / Adjusted EPS – Diluted are identical on a GAAP and non-GAAP basis, because such measures have historically been shown on a consolidated basis. (2) Pro Forma Adjusted EBITDA includes $4.0mm and $3.3mm management fee expense in 4Q25 and 4Q24, respectively. It was included as a pro forma adjustment to 4Q24 to allow for comparability across periods. (3) As of December 31, 2025, $157.0mm of cash was held at GPGI Holdings, and not included in the GAAP results. (4) Investment in U.S. treasury bills as of December 31, 2025. (5) Pro Forma Adjusted EBITDA includes $14.3mm and $13.2mm management fee expense in FY25 and FY24, respectively. It was included as a pro forma adjustment to FY24 and 1Q25 to allow for comparability across periods. (6) As of December 31, 2025, $157.0mm of cash was held at GPGI Holdings, and not included in the GAAP results. (7) Investment in US treasury bills as of December 31, 2025.
Note on Accounting Treatment
As a result of the spin-off of Resolute Holdings
Management, Inc. (“Resolute Holdings”) on February 28, 2025 and the execution of the management agreement with Resolute Holdings (the “CompoSecure Management Agreement”), GPGI is required to account for the operating results of it
Nov 3, 2025
cmpo-20251103
false000182314400018231442025-11-032025-11-030001823144us-gaap:CommonStockMember2025-11-032025-11-030001823144us-gaap:WarrantMember2025-11-032025-11-03
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 3, 2025
CompoSecure, Inc.
(Exact Name of Registrant as Specified in its Charter)
Delaware 001-39687 85-2749902
(State or Other Jurisdiction
of Incorporation) (Commission File Number) (IRS Employer Identification No.)
309 Pierce Street
Somerset, New Jersey 08873
(Address of Principal Executive Offices) (Zip Code)
(908) 518-0500
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Class A Common stock, par value $0.0001 per share CMPO New York Stock Exchange
Redeemable warrants, each whole warrant exercisable for one share of Class A Common Stock CMPOW Nasdaq Global Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On November 3, 2025, CompoSecure, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 2025, and provided an investor presentation to accompany the press release. Copies of the press release and the investor presentation are furnished herewith as Exhibits 99.1 and 99.2, respectively.*
Item 7.01 Regulation FD Disclosure
The information included under Item 2.02 of this Current Report on Form 8-K is incorporated into this Item 7.01 by reference.*
Item 9.01 (d) Financial Statements and Exhibits
Exhibit No.
Exhibit Description
99.1
Press Release of CompoSecure, Inc. dated October 31, 2025
99.2
Investor Presentation of CompoSecure, Inc. dated October 31, 2025
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
* The information in Items 2.02 and 7.01 of this Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
CompoSecure, Inc.
Date: November 3, 2025 By:
/s/ Steven J. Feder
Name: Steven J. Feder
Title: General Counsel & Corporate Secretary
Aug 7, 2025
2 ex991_q22025composecurepre.htm
Document
CompoSecure Reports Record Second Quarter 2025 Financial Results
•Operating results exceed expectations across all key metrics
•Strong top line growth driven by domestic programs from traditional banks and fintechs
•Record profitability demonstrates early results from CompoSecure Operating System
•Raising previously issued full-year 2025 guidance
SOMERSET, N.J., August 7, 2025 -- CompoSecure, Inc. (Nasdaq: CMPO), a leader in metal payment cards, security, and authentication solutions, today announced its financial and operating results for the second quarter ended June 30, 2025.
“Our strong second quarter was driven by accelerating sales and improved profitability,” said Jon Wilk, President and CEO of CompoSecure. “We achieved record results, fueled by robust domestic demand and growth across both traditional banks and fintechs as well as generated another net positive quarter for Arculus. With strong gross margin improvement in the quarter, we are beginning to realize the benefits of the CompoSecure Operating System (COS), which is driving improved execution and enhanced profitability.”
Mr. Wilk added, “We saw exciting customer launches during the quarter including programs with Chase Sapphire Reserve, XP Legacy, Crypto.com, MGM Rewards and Gemini, among others, showcasing the benefits that our innovative products deliver as part of a card program’s overall value proposition. The Arculus team was also proud to announce the new Coinbase One Card, the first crypto card on the American Express network. Looking ahead, we anticipate sustained market demand as we focus on accelerating growth, delivering innovation, and executing against our strategic priorities.”
Dave Cote, CompoSecure’s Executive Chairman, stated: “CompoSecure’s second quarter results demonstrate our continued momentum and reinforce our position for long-term sustainable growth. The focus on establishing operational excellence through the CompoSecure Operating System and building a high-performance culture is starting to deliver improved profitability. While still early in unlocking CompoSecure’s full potential, we are encouraged by the team’s progress in driving efficiencies throughout the organization and accelerating commercial momentum with new customer wins. At the time we made our initial investment in CompoSecure, we had strong conviction that the business had a significant opportunity ahead of
1
it. As I evaluate this quarter’s performance, I have even greater confidence today in CompoSecure’s ability to create long-term value for our shareholders.”
Financial Results
As a result of the spin-off of Resolute Holdings Management, Inc. (“Resolute Holdings”) on February 28, 2025 and the execution of the management agreement with Resolute Holdings (the “Management Agreement”), CompoSecure is required to account for the operating results of its wholly owned operating subsidiary, CompoSecure Holdings L.L.C. (“CompoSecure Holdings”), under the equity method in accordance with U.S. GAAP, effective February 28, 2025.
The GAAP results presented below for the second quarter of 2025 reflect the conversion to equity method accounting. For clarity of comparisons and to best reflect the financial results, the Company is also presenting the full second quarter on a consolidated basis consistent with historical presentation under the “Non-GAAP” heading.
GAAPNon-GAAPGAAPNon-GAAP
Net Sales ($ in millions) $ —
$ 119.6 1 $ 108.6 2 $ 108.6 1,2
Gross Profit ($ in millions) $ —
$ 68.8 1 $ 56.1 2 $ 56.1 1,2
Gross Margin (%) —
57.5 1 51.6 2 51.6 1,2
Pro-Forma Adjusted EBITDA ($ in millions)
$ 46.3 1 $ 36.7 1,3
EPS/Adjusted EPS - Diluted $ (0.26)
$ 0.25 1 $ 0.32
$ 0.23 1
Total Cash ($ in millions) $ 4.8
$ 96.5 2,4 $ 35.4 2,5 $ 35.4 2,5
Total Debt ($ in millions)$— $ 192.5 4,6$330.92,5,6 $ 330.9 2,5,6
1Refers to a Consolidated Non-GAAP measure. 2For 2Q24, Net Sales, Gross Profit, Gross Margin, Total Cash and Total Debt are identical on a GAAP and Non-GAAP basis, because such measures have historically been shown on a consolidated basis. As of June 30. 2025, $91.7 million of cash was held at CompoSecure Holdings, and not included in the GAAP results. 3Pro forma Adjusted EBITDA includes ~$3.4mm and $3.3mm management fee expense in 2Q25 and 2Q24, respectively. It was included as a pro forma adjustment to 2Q24 to allow for comparability across periods. 4As of June 30, 2025. 5As of June 30, 2024. 6 Non-GAAP Total Debt is comprised entirely of debt at Holdings.
Operating Results: Q2 2025 Financial Highlights (vs. Q2 2024)
•Non-GAAP Net Sales increased 10% to $119.6 million during the second quarter of 2025 compared to $108.6 million during the second quarter of 2024, driven by strong domestic demand and growth across both traditional financial institutions and fintech partners.
•Non-GAAP Gross Profit increas
May 12, 2025
2 tm2514707d1_ex99-1.htm
Exhibit 99.1
CompoSecure Reports First Quarter 2025 Financial Results
·Operating results in line with expectations
·Reiterating previously issued full-year 2025 guidance
·Completed spin-off of Resolute Holdings Management, Inc. (Nasdaq: RHLD)
·Accounting standards related to the spin-off require the Company to report results using equity method of accounting in accordance with U.S. GAAP
·Non-GAAP results are also included below and provide a clearer picture of the underlying financial performance of the operating business consistent with historical reporting
SOMERSET, N.J., May 12, 2025 -- CompoSecure, Inc. (Nasdaq: CMPO), a leader in metal payment cards, security, and authentication solutions, today announced its financial and operating results for the first quarter ended March 31, 2025.
“We started the year with solid execution across our payment card and Arculus business,” said Jon Wilk, President and CEO of CompoSecure. “Demand has continued to strengthen throughout the second quarter, reflecting strong sales momentum, and we anticipate this sustained growth trajectory will carry through the remainder of the year. Our team remains focused on continuing to implement the CompoSecure Operating System (“COS”) throughout the business and we are beginning to see these ongoing efforts yield results.”
Mr. Wilk added, “We delivered record results for Arculus, generating another net positive contribution in Q1 as we are seeing metal card customers beginning to future-proof their offerings by bundling Arculus Authenticate with payment capabilities. As previously stated, we expect a net positive contribution for the full year as Arculus remains a powerful differentiator that sets CompoSecure apart in the digital asset and evolving Web3 payments landscape.”
Dave Cote, CompoSecure’s Executive Chairman, stated: “I am pleased with our first quarter results and with the team’s continued engagement implementing COS. Our metal cards enhance brand loyalty and deliver accelerated returns for our customers through superior acquisition, spending, and retention. As more issuers recognize the value our products deliver, we see significant opportunities for continued growth and are planting seeds through strategic investments to execute on the market opportunity we see while leveraging the COS to enhance efficiency and execution. Taken together, we are excited about the work at CompoSecure and believe the Company is well positioned for the remainder of 2025.”
1
Financial Results
As a result of the spin-off of Resolute Holdings
Management, Inc. (“Resolute Holdings”) on February 28, 2025 and the execution of the management agreement with Resolute Holdings, CompoSecure is required to account for the operating results of its wholly owned operating subsidiary, CompoSecure Holdings L.L.C. (“CompoSecure Holdings”), under the equity method in accordance with U.S. GAAP, effective February 28, 2025.
The GAAP results presented below reflect the consolidated operating results of CompoSecure from January 1, 2025 to February 27, 2025 and the subsequent conversion to the equity method
with the standalone payment card and Arculus business, the Company is also presenting the full first quarter on a historical consolidated basis under the “Non-GAAP Results” heading below.
Accounting Treatment
Non-GAAP
Non-GAAP
Net Sales ($ in millions) $59.8 $103.9 (1) $104.0(1) $104.0(1)
Gross Profit ($ in millions) $28.70 $54.50(1) $55.20(1) $55.20(1)
Gross Margin (%) 48.1 52.5(1) 53.1(1) 53.1(1)
Pro-Forma Adjusted EBITDA ($ in millions)
$33.7(2)
$34.5(2)
EPS/Adjusted EPS – Diluted $0.07 $0.25 $0.17 $0.24
Cash ($ in millions) $9.5 $71.7(1,3) $55.1(1,4) $55.1(1,4)
Total Debt ($ in millions)
$195.0(3)
$335.6(4)
(1) Refers to a Consolidated Non-GAAP Measure. For 1Q24, Net Sales, Gross Profit, Gross Margin, and Cash are identical on a GAAP and Non-GAAP basis, because such measures have historically been shown on a consolidated basis; (2) Pro-Forma Adjusted EBITDA in the table includes (~$3.2mm) expense in both 1Q25 and 1Q24. This expense represents a full quarter of management fees due to Resolute Holdings. The adjustment was made to allow for comparability across periods. The actual payment to Resolute Holdings in 1Q25 was $1.1mm because the contract has been effective since February 28th spin-off. $0 were paid in 1Q24 because Resolute Holdings did not exist. Please see Statement of Operations on page 9 for full reconciliation. (3) As of March 31, 2025. (4) As of March 31, 2024.
2
GAAP Results: Q1 2025 Financial Highlights (vs. Q1 2024)
Important Note: These GAAP results reflect the consolidation of CompoSecure Holdings, L.L.C. through February 27, 2025, and the application of equity method accounting beginning February 28, 202
Mar 5, 2025
2 tm258155d1_ex99-1.htm
Exhibit 99.1
CompoSecure Reports Fourth Quarter and Full Year 2024 Financial Results
·FY 2024 Net Sales up 8% to $420.6 million — In-Line with Preliminary Results on February 10, 2025
·FY 2024 Cash Flow from Operations up 24% to $129.6 million and Free Cash Flow up 62% to $84.9 million
·Company Expects Mid-Single Digit Growth for 2025 Net Sales and Adjusted EBITDA
·Completed Spin-Off of Resolute Holdings on February 28, 2025
N.J., March 5, 2025 -- CompoSecure, Inc. (Nasdaq: CMPO), a leader in metal payment cards, security, and authentication solutions, today announced its operating results for the fourth quarter and full year ended December 31, 2024.
Jon Wilk, President and CEO of CompoSecure, commented: “2024 was a foundational year for CompoSecure, marked by high-single digit Net Sales growth, robust Free Cash Flow, international momentum and unique product innovations. We also made significant progress in fortifying our balance sheet in 2024, reducing net debt by 60% to $120 million.
During the fourth quarter, we made strategic investments in the CompoSecure Operating System (COS) to deliver consistent excellence across the organization and focused on planting seeds to drive both organic and inorganic growth. For 2025, we will accelerate the adoption of COS and expect to build sales momentum throughout the year. Notably, we closed out the year with our first quarter of positive net contribution from Arculus in Q4, and continue to expect Arculus to be net positive for full year 2025.”
Dave Cote, CompoSecure’s Executive Chairman, added: “As we enter 2025, I am excited about the opportunities ahead for our business. The spin-off of Resolute Holdings marks an important step in our evolution as we position the business for accelerated growth and diversification of revenue. We are committed to cultivating a culture of high performance, driving efficiency through our CompoSecure Operating System, reigniting organic growth, and delivering on accretive M&A.”
Financial Highlights (Q4 2024 vs. Q4 2023 )
·Net Sales: Net Sales increased 1% to $100.9 million compared to $99.9 million.
·Gross Profit: Gross Profit was $52.5 million or 52.1% of Net Sales, compared to $52.9 million or 52.9%.
·Net Income(Loss)/EPS: Net Income/(Loss) was $(48.4) million compared to $31.0 million. The decrease was driven by an improvement to the Company’s stock price during the quarter, which led to a change in the fair value of warrant liabilities, earnout consideration liability and derivative liability. Net Income/(Loss) per share attributable to Class A common shareholders was $(0.53) (Basic) and $(0.53) (Diluted), compared to $0.17 (Basic) and $0.17 (Diluted) in the year-ago period.
·Adjusted Net Income/Adjusted EPS: Adjusted Net Income (a non-GAAP measure) increased 8% to $24.7 million compared to $22.8 million in the year-ago period. Adjusted EPS (a non-GAAP measure) was $0.27 (Basic) and $0.20 (Diluted) compared to $0.29 (Basic) and $0.24 (Diluted) in the year-ago period.
·Adjusted EBITDA: Adjusted EBITDA (a non-GAAP measure) decreased 10% to $33.6 million compared to $37.2 million primarily driven by investment in our M&A capabilities.
See reconciliation of non-GAAP measures shown in table below.
FY 2024 Financial Highlights (vs. FY 2023)
·Net Sales: Net Sales increased 8% to $420.6 million compared to $390.6 million. The increase was primarily driven by continued domestic growth of 7%, and international growth of 11%.
·Gross Profit: Gross Profit was $219.2 million or 52.1% of Net Sales, compared to $209.1 million or 53.5%. The decline in gross margin was primarily due to lower production efficiencies from new and innovative card constructions, as well as the impact of inflationary pressure on wages and materials.
·Net Income(Loss)/EPS: Net Income was $(83.2) million compared to $112.5 million. The decrease was driven by an improvement to the Company’s stock price which led to changes to the fair value of warrant liabilities, earnout consideration liability and derivative liability. Net Income per share attributable to Class A common stockholders was $(1.22) (Basic) and $(1.22) (Diluted), compared to $1.03 (Basic) and $0.96 (Diluted) in the year-ago period.
·Adjusted Net Income/Adjusted EPS: Adjusted Net Income (a non-GAAP measure) increased 11% to $98.2 million compared to $88.1 million in the year-ago period. Adjusted EPS (a non-GAAP measure) was $1.17 (Basic) and $0.95 (Diluted) compared to $1.12 (Basic) and $0.92 (Diluted) in the year-ago period.
·Adjusted EBITDA: Adjusted EBITDA (a non-GAAP measure) increased 4% to $151.4 million compared to $145.0 million.
Liquidity and Capital Structure
Balance Sheet: At December 31, 2024, CompoSecure had $77.5 million of cash and cash equivalents and $197.5 million of total debt (resulting in net debt of $120 million). This compares to cash and cash equivalents of $41.2 million and total debt of $340.3 million at
Feb 10, 2025
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Exhibit 99.1
CompoSecure Board of Directors Approves Spin-Off
of Resolute Holdings and
Authorizes Expanded Share Repurchase Program to $100 Million
· Record date set at February 20, 2025 to receive shares of Resolute Holdings Management, Inc
·Pro rata distribution of shares expected to be completed February 28, 2025
·Distribution ratio of one share of Resolute Holdings for every twelve shares of CompoSecure stock
·Resolute Holdings shares expected to trade on Nasdaq under ticker “RHLD” with “when-issued” trading expected to commence on or about February 20, 2025
·Transaction is expected to be taxable for both CompoSecure and all its shareholders on the record date
·Resolute Holdings expected to have limited profitability in FY 2025
·CompoSecure Issues Preliminary FY 2024 Results In-Line with Guidance
SOMERSET, N.J., Feb. 10, 2025 (GLOBE NEWSWIRE) -- CompoSecure, Inc. (Nasdaq: CMPO)(“CompoSecure” or the “Company”), a leader in metal payment cards, security, and authentication solutions, today announced that its Board of Directors has approved the previously announced plan to spin-off its newly formed subsidiary, Resolute Holdings Management, Inc. (“Resolute Holdings”). The Board of Directors has also approved an increase to CompoSecure’s current share repurchase authorization from $40 million up to $100 million.
The record date for shareholders of CompoSecure to receive shares of Resolute Holdings has been set as February 20, 2025 and the distribution is expected to occur prior to the opening of trading on February 28, 2025. All CompoSecure shareholders as of the record date will receive one share of Resolute Holdings for every twelve shares of CompoSecure. Shares of Resolute Holdings are expected to trade on Nasdaq under the ticker “RHLD” with “when-issued” trading expected to commence on or about February 20, 2025.
The distribution of shares of Resolute Holdings will give rise to a taxable gain to CompoSecure and will be treated as a taxable dividend to all existing CompoSecure shareholders for U.S. federal and applicable state and local tax purposes.
Resolute Holdings anticipates limited profitability in fiscal year 2025 as it establishes operations and builds out infrastructure, including adding to its investment and operating team. These investments are designed to facilitate the acceleration of organic and value enhancing inorganic growth at CompoSecure.
Goldman Sachs & Co. LLC is serving as financial advisor to CompoSecure, and Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal advisor.
Preliminary Financial Information
The Company also announced that it expects to report net sales for the year ended December 31, 2024 of $420.6 million (in line with previous guidance of $418 to $424 million), net income expected to be in the range of $(89.2) to $(87.7) million, and adjusted EBITDA (a non-GAAP measure) expected to be in the range of $149.4 to $151.4 million (in line with previous guidance of $148 to $151 million). The Company expects to report its audited 2024 financial results and hold an investor conference call in late February or early March.
The financial information presented herein are preliminary estimates prepared by the Company’s management, and they have not been audited by Grant Thornton LLP, the Company’s independent auditors. Accordingly, this information is subject to the finalization of year-end financial and accounting procedures, and Grant Thornton LLP does not express an opinion or any other form of assurance with respect thereto. The preliminary financial information presented herein are forward-looking statements and may differ materially from actual results. These estimates should not be viewed as substitutes for the Company’s full annual financial statements prepared in accordance with United States generally accepted accounting principles (GAAP). Accordingly, investors should not place undue reliance on these preliminary unaudited financial results. The preliminary unaudited financial results should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the Company’s historical consolidated financial statements and the notes thereto in its annual report on Form 10-K for the year ended December 31, 2023 and its quarterly reports on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024, and September 30, 2024.
Non-GAAP Financial Measure Reconciliation
This press release includes GAAP financial measures as well as non-GAAP financial measures, including EBITDA and Adjusted EBITDA, which is a financial measure not calculated in accordance with GAAP. Investors should refer to the supplemental non-GAAP financial information below for reconciliations of the differences between such non-GAAP financial measure and its most directly comparable GAAP financial measure.
CompoSecure, Inc.
FY 2024 Preliminary Financial Results EBITDA Reconc
Nov 8, 2024
2 tm2427773d1_ex99-1.htm
Exhibit 99.1
CompoSecure Reports Strong Third Quarter 2024 Financial Results
·Q3 Net Sales up 11% to $107.1 million
Net Income/(Loss) of $(85.5) million due to significant stock price improvement negatively impacting the fair value of non-cash items
·Q3 Adjusted Net Income up 18% to $25.6 million
·Q3 Adjusted EBITDA up 13% to $40.0 million
·Completed Resolute Holdings transaction; appointed new Executive Chairman and Board members
·Revises 2024 outlook: Net Sales guidance to range between $418-$424 million; Adjusted EBITDA guidance to range between $148-$151 million to reflect investments for future growth
N.J., November 8, 2024 -- CompoSecure, Inc. (Nasdaq: CMPO), a leader in metal payment cards, security, and authentication solutions, today announced its operating results for the third quarter ended September 30, 2024.
Jon Wilk, President and CEO of CompoSecure, commented: “We are very pleased with our third quarter performance which included double-digit growth for both Net Sales and Adjusted EBITDA. The quarter was driven by strong international execution, continued growth of new programs, and the growing adoption of our innovative payment cards. I am also happy to announce that we signed a two-year contract extension with Capital One.”
“Although we are reporting a GAAP Net Loss for the quarter, this was entirely driven by the significant improvement in our stock price this quarter, which impacts the valuation of non-cash items. Importantly, our Adjusted Net Income was up 18% compared to the year-ago period, which we believe more accurately reflects our operating performance.”
Mr. Wilk continued: “We are also enhancing our capabilities to drive accretive M&A and remain focused on strategic investments in our business. To support this growth, we are revising our Adjusted EBITDA guidance for the year to account for additional investments aimed at accelerating our momentum.”
Dave Cote, CompoSecure’s Executive Chairman, added: “As we embark on this next chapter, I want to express how excited I am about our long-term opportunities as well as our challenges ahead. We were attracted to the business because it hit the six hot buttons we used to evaluate acquisitions at Honeywell: Great position, good industry, technology differentiator, organic and inorganic sales growth, and margin expansion. That being said, this is a pivotal time for the company, and we are committed to building a culture centered on high performance, improving efficiency through the CompoSecure Operating System, reinvigorating organic growth, and driving accretive M&A. That work will require investment and you will see that reflected in our full year estimate.”
Financial Highlights (Q3 2024 vs. Q3 2023 )
·Net Sales: Net Sales increased 11% to $107.1 million compared to $96.9 million. The increase was primarily driven by strong international demand and product innovation.
·Gross Profit: Gross Profit increased to $55.4 million or 52% of Net Sales, compared to $48.9 million or 50%. The increase was driven by favorable product mix and improved production efficiencies.
·Net Income/EPS: Net Income/(Loss) of $(85.5) million compared to $38.0 million. The decrease was driven by an improvement to the Company’s stock price during the quarter, which led to a change in the fair value of warrant liabilities, earnout consideration liability and derivative liability. Net Income/(Loss) per share attributable to Class A common shareholders was $(1.10) (Basic) and $(1.10) (Diluted), compared to $0.39 (Basic) and $0.34 (Diluted) in the year-ago period.
·Adjusted Net Income/Adjusted EPS: Adjusted Net Income (a non-GAAP measure) increased 18% to $25.6 million compared to $21.7 million in the year-ago period. Adjusted EPS (a non-GAAP measure), which includes both Class A and Class B shares, was $0.31 (Basic) and $0.27 (Diluted) compared to $0.27 (Basic) and $0.24 (Diluted) in the year-ago period (see reconciliation of non-GAAP measures shown in table below).
·Adjusted EBITDA: Adjusted EBITDA (a non-GAAP measure) increased 13% to $40.0 million compared to $35.5 million, with the increase driven by net sales growth and gross margin expansion.
Liquidity and Capital Structure
Balance Sheet: At September 30, 2024, CompoSecure had $52.7 million of cash and cash equivalents and $330.0 million of total debt, which included $200.0 million of term loan and $130.0 million of exchangeable notes. This compares to cash and cash equivalents of $41.2 million and total debt of $340.3 million at December 31, 2023, and cash and cash equivalents of $23.8 million and total debt of $345.0 million at September 30, 2023. CompoSecure’s secured debt leverage ratio was 1.06x at September 30, 2024 compared to 1.39x at December 31, 2023 and 1.48x at September 30, 2023.
Shares Outstanding: On September 17, 2024, Resolute Holdings and its affiliated vehicles (“Resolute”) completed the acquisition of a majority
Aug 7, 2024
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Exhibit 99.1
CompoSecure Reports Record Second Quarter 2024 Financial Results; Narrows 2024 Full Year Guidance to High End of Range
Q2 Net Sales up 10% to $108.6 million; Q2 Net Income up 3% to $33.6 million; Q2 Adj. EBITDA up 8% to $40.0 million
Narrows fiscal 2024 guidance; now anticipates Net Sales between $418-$428 million and Adjusted EBITDA between $150-$157 million
David Cote, former CEO of Honeywell and current executive chairman of Vertiv, to become executive chairman of CompoSecure following the acquisition of a majority interest in the Company by the David Cote Family; Expected to simplify corporate structure and unlock shareholder value
N.J., August 7, 2024 -- CompoSecure, Inc. (Nasdaq: CMPO), a leader in metal payment cards, security, and authentication solutions, today announced its operating results for the second quarter ended June 30, 2024.
“I am pleased to report another record quarter of Net Sales and Adjusted EBITDA, driven by continued growth in our domestic business and strong international demand from the launch of new programs,” said Jon Wilk, President and CEO of CompoSecure. We continue to support our customer’s ability to offer highly attractive premium card programs such as the limited edition Amex White Gold Card and the first Wells Fargo and Expedia co-branded metal card, as well as driving growth with innovative products through our Echo Mirror Card and LED card.
“I am also excited to announce an expansion of our strategic partnership with Fiserv to include the marketing and reselling of Arculus Authenticate. Building on our already successful metal payment card collaboration, this partnership will enhance the ability to bring FIDO 2 secure authentication capabilities to Fiserv’s extensive customer base of financial institutions and fintechs.”
As just announced in a separate press release, the David Cote Family is investing $372 million through Resolute and Dave Cote will become the executive chairman of the board of directors of CompoSecure upon closing of the transaction. Resolute will become the majority shareholder of the Company and will focus on deploying operational and M&A best practices to drive long-term value creation for all shareholders. Importantly, the transaction will remove the dual-share structure, delivering higher retained annual cash flow and better alignment of all shareholders with the elimination of the tax distributions related to the Class B units.
Mr. Wilk continued, “I am thrilled to have David Cote serve as Executive Chairman of the Board of Directors. David’s career and track record is unparalleled, setting the standard for how organizations can simultaneously drive both short and long-term performance to realize their full potential. We believe his experience steering global public companies, such as Honeywell and Vertiv, will be invaluable to CompoSecure as we enter a new phase of growth and value creation for shareholders, employees, and customers.”
Wilk added, “Today, we have also amended our credit facility with lower rates, an upsized revolving line of credit, a longer term and more flexible covenants. This reflects the confidence our lenders have in our business and provides capacity for continued growth and to retire our exchangeable notes maturing in December 2026.”
Financial Highlights (Q2 2024 vs. Q2 2023 )
·Net Sales: Net Sales increased 10% to $108.6 million compared to $98.5 million. The increase was primarily driven by continued domestic growth and improved international demand.
·Gross Profit: Gross Profit was $56.1 million or 52% of Net Sales, compared to $53.9 million or 55%. The decrease in gross margin was primarily due to product mix, as well as inflationary pressure on wages.
·Net Income/EPS: Net Income increased 3% to $33.6 million compared to $32.7 million. Net Income per share attributable to Class A common shareholders was $0.44 (Basic) and $0.32 (Diluted), compared to $0.31 (Basic) and $0.29 (Diluted) in the year-ago period.
·Adjusted Net Income/Adjusted EPS: Adjusted Net Income (a non-GAAP measure) increased 10% to $25.2 million compared to $22.9 million in the year-ago period. Adjusted EPS (a non-GAAP measure), which includes both Class A and Class B shares, was $0.31 (Basic) and $0.27 (Diluted) compared to $0.29 (Basic) and $0.25 (Diluted) in the year-ago period (see reconciliation of non-GAAP measures shown in table below).
·Adjusted EBITDA: Adjusted EBITDA (a non-GAAP measure) increased 8% to $40.0 million compared to $36.9 million, with the increase driven by net sales growth.
Liquidity and Capital Structure
Balance Sheet: At June 30, 2024, CompoSecure had $35.4 million of cash and cash equivalents and $330.9 million of total debt, which included $200.9 million of term loan and $130 million of exchangeable notes. This compares to cash and cash equivalents of $41.2 million and total debt of $340.3 million at December 31, 2023, and cash and cas
May 6, 2024
2 tm2413480d1_ex99-1.htm
Exhibit 99.1
CompoSecure Reports Record First Quarter 2024 Financial Results and Declares Special Cash Dividend
Q1 Net Sales up 9% to $104.0 Million; Q1 Net Income up 59% to $17.1 Million; Q1 Adjusted EBITDA up 6% to $37.8 Million
Declares Special Cash Dividend of $0.30 per Share
N.J., May 6, 2024 -- CompoSecure, Inc. (Nasdaq: CMPO), a leader in metal payment cards, security, and authentication solutions, today announced its operating results for the first quarter ended March 31, 2024.
“We are off to a strong start in 2024 as we generated a record quarter of revenue, driven by continued momentum in our domestic business,” said Jon Wilk, President and CEO of CompoSecure. “We were excited to see several high-profile customer programs that garnered significant attention in the marketplace including a new, limited edition version of a payment card made from a recycled airplane and the Robinhood Gold Card. CompoSecure continues to generate meaningful free cash flow and ended the quarter with a cash balance of $55 million, which has more than doubled from one year ago.”
Mr. Wilk continued, “Given the Company’s robust cash position, our Board of Directors has declared a special cash dividend of $0.30 per share. This announcement reflects our commitment to rewarding CompoSecure shareholders as well as our confidence in continuing to generate strong free cash flow. We are pleased to incorporate another avenue for enhancing shareholder value into our capital allocation framework, which now encompasses organic growth investments, debt paydowns, securities repurchases, and consideration of additional dividends.”
Financial Highlights (vs. Q1 2023)
·Net Sales: Net Sales increased 9% to $104.0 million compared to $95.3 million. The increase was primarily driven by a record quarter for CompoSecure’s metal payment card business.
·Gross Profit: Gross Profit increased 3% to $55.2 million or 53.1% of Net Sales, compared to $53.4 million or 56.0% of Net Sales. The decrease in gross margin was primarily due to inflationary pressure on wages as well as product mix.
·Net Income/EPS: Net Income increased 59% to $17.1 million compared to $10.7 million. The increase was primarily driven by higher net sales and changes to the fair value of warrant liabilities, earnout consideration liability and derivative liability. Net Income per share attributable to class A shareholders was $0.20 (Basic) and $0.17 (Diluted), compared to $0.13 (Basic) and $0.11 (Diluted) in the year-ago period.
·Adjusted Net Income/Adjusted EPS: Adjusted Net Income (a non-GAAP measure) increased 12% to $23.1 million compared to $20.6 million in the year-ago period. Adjusted EPS (a non-GAAP measure), which includes both class A and class B shares, was $0.29 (Basic) and $0.25 (Diluted) compared to $0.27 (Basic) and $0.23 (Diluted) in the year-ago period (see reconciliation of non-GAAP measures shown in table below).
·Adjusted EBITDA: Adjusted EBITDA (a non-GAAP measure) increased 6% to $37.8 million compared to $35.5 million, with the increase driven by higher Net Sales.
Liquidity and Capital Structure
·Balance Sheet: At March 31, 2024, CompoSecure had $55.1 million of cash and cash equivalents and $335.6 million of total debt, which included $205.6 million of term loan, and $130.0 million of exchangeable notes. This compares to cash and cash equivalents of $41.2 million and total debt of $340.3 million at December 31, 2023, and cash and cash equivalents of $22.6 million and total debt of $362.8 million at March 31, 2023. CompoSecure’s secured debt leverage ratio was 1.34x at March 31, 2024 compared to 1.39x at December 31, 2023 and 1.60x at March 31, 2023.
·Shares Outstanding: At March 31, 2024, CompoSecure had 80.6 million shares outstanding which included 20.6 million class A shares and 60.0 million class B shares (for more information on shares outstanding, both Basic and Diluted, please refer to CompoSecure’s SEC filings and the accompanying earnings presentation).
Operational Highlights
·Strong domestic growth demonstrated by 26% increase in Net Sales compared to Q1 2023.
·Several high-profile customer card programs launched this quarter, including a new limited edition version of the Delta Reserve card made from a recycled airplane, the Robinhood Gold Card, Lloyds Bank in the UK, and Rogers Bank in Canada, among others.
·Product highlights:
oEcho Mirror Card now available in black and gold, in addition to silver
oArculus Cold Storage multi-card/wallet support, allowing customer to split assets among multiple Arculus cards
oArculus Cold Storage support for additional blockchains including XDC, Provenance, and Stellar as well as Ondo tokens and Polygon NFTs
·CompoSecure Leadership recognition:
oTim Fitzsimmons, CFO, NJBIZ Leaders in Finance Award
oGreg Maes, COO, finalist, 2024 Manufacturing Leadership Awards
Special Cash Dividend
CompoSecure’s Board of Directors (the “Bo
Mar 6, 2024
2 tm248036d1_ex99-1.htm
Exhibit 99.1
CompoSecure Reports Fourth Quarter and Full Year 2023 Financial Results
Q4 Net Sales up 7% to $100 Million; Q4 Net Income up 39% to $31 Million; Q4 Adj. EBITDA up 22% to $37 Million
Issues 2024 Guidance of Net Sales Between $408-$428 Million; Adj. EBITDA Between $147-$157 Million
Announces up to $40 Million Securities Repurchase Program to Capitalize on Strong Financial Position
N.J., March 6, 2024 – CompoSecure, Inc. (Nasdaq: CMPO), a leader in metal payment cards, security, and authentication solutions, today announced its financial and operating results for the fourth quarter and full year ended December 31, 2023.
“Our fourth quarter provided a strong close to 2023, capping off another year of record revenue and profitability. In addition, profitability was in-line with our original guidance issued in March 2023,” said Jon Wilk, President and CEO of CompoSecure. “Sustained U.S. customer demand continued to drive our domestic net sales, which highlighted a record quarter and was up 9% for the year."
“We have a long history of delivering profitable growth while maintaining our leadership position in the global metal payment card market, which we do not believe is fully reflected in the valuation of our securities. I am excited to announce that the CompoSecure board of directors has approved a repurchase program for up to $40 million of the Company’s outstanding shares of common stock, warrants and/or convertible notes over the next three years to provide us with a new mechanism to unlock shareholder value.”
Mr. Wilk added: “Looking ahead, we expect to maintain a strategic approach to capital allocation that continues to focus on driving organic growth and paying down debt but now also includes additional flexibility to repurchase securities or other opportunities to deliver shareholder value. We believe CompoSecure is well-positioned for another record year as we execute on our growth and profitability objectives.”
Q4 2023 Financial Highlights (vs. Q4 2022)
•Net Sales: Net Sales increased 7% to $99.9 million compared to $93.8 million. The increase was driven by continued domestic growth in CompoSecure’s metal payment card business, partially offset by select clients more tightly managing inventory, and lower international sales which is a more variable market due to global economic uncertainty.
•Gross Profit: Gross Profit increased to $52.9 million or 52.9% of Net Sales, compared to $50.3 million or 53.6%.
•Net Income/EPS: Net Income increased 39% to $31.0 million compared to $22.4 million. The increase was primarily driven by prudent operating expense controls, as reflected by a reduction in selling, general and administrative expenses, as well as changes to the fair value of warrant liabilities, earnout consideration liability and derivative liability. Net Income per share attributable to class A common shareholders was $0.17 (Basic) and (Diluted), compared to $0.14 (Basic) and (Diluted) in the year-ago period.
•Adjusted Net Income/Adjusted EPS: Adjusted Net Income (a non-GAAP measure) increased 30% to $23.1 million compared to $17.7 million in the year-ago period. Adjusted EPS (a non-GAAP measure), which includes both class A and class B shares, was $0.29 (Basic) and $0.26 (Diluted) compared to $0.23 (Basic) and $0.20 (Diluted) in the year-ago period (see reconciliation of non-GAAP measures shown in table below).
•Adjusted EBITDA: Adjusted EBITDA (a non-GAAP measure) increased 22% to $37.2 million compared to $30.6 million, with the increase driven by net sales growth and operating expense reductions.
FY 2023 Financial Highlights (vs. FY 2022)
•Net Sales: Net Sales increased 3% to $390.6 million compared to $378.5 million. The increase was primarily driven by continued domestic growth in CompoSecure’s metal payment card business, which was up 9%. This was offset by lower international sales.
•Gross Profit: Gross Profit was $209.1 million or 53.5% of Net Sales, compared to $219.6 million or 58.0%. The decrease was primarily due to lower production efficiencies from new and innovative card constructions, as well as the impact of inflationary pressure on wages and materials.
•Net Income/EPS: Net Income was $112.5 million compared to $131.8 million. The decrease was due to lower gross profit, changes to the fair value of warrant liabilities, earnout consideration liability and derivative liability, offset by a decrease in operating expenses. Net Income per share attributable to class A common stockholders was $1.03 (Basic) and $0.96 (Diluted), compared to $1.21 (Basic) and $1.13 (Diluted) in the year-ago period.
•Adjusted Net Income/Adjusted EPS: Adjusted Net Income (a non-GAAP measure) was $88.0 million compared to $83.0 million in the year-ago period. Adjusted EPS (a non-GAAP measure), which includes both class A and class B shares, was $1.12 (Basic) and $0.97 (Diluted) compared to $1.10 (Basic) and $0.94 (Diluted) in
Nov 9, 2023
2 tm2329716d1_ex99-1.htm
Exhibit 99.1
CompoSecure Reports Third Quarter 2023 Financial Results
Revises Full Year Outlook, Which Lowers Net Sales Target to $386-$392 million While Capturing Low End of Previously Issued Adjusted EBITDA Outlook
N.J., November 9, 2023 – CompoSecure, Inc. (Nasdaq: CMPO), a leader in metal payment cards, security, and authentication solutions, today announced its financial and operating results for the third quarter ended September 30, 2023.
“During the quarter, we exceeded our record US revenue from the year-ago period overcoming global economic uncertainty that impacted our international business, which was down albeit on a smaller revenue base,” said Jon Wilk, President and CEO of CompoSecure.
“Consumer demand for premium metal cards remains strong based on card issuer feedback and industry sentiment. At the same time, select customers are more tightly managing inventory levels, which impacted order volumes in Q3 and into Q4. As a result, we are revising our full year 2023 outlook which lowers our sales guidance and captures the low end of our previously issued Adjusted EBITDA guidance.
Mr. Wilk added: “We are on track to achieve the most successful year in our company's history in terms of Net Sales, Adjusted EBITDA, and Operating Cash Flow, following a record year of growth and profitability in 2022. We continue to optimize our balance sheet and prudently manage operating expenses while investing in growth, including incrementally reducing our outstanding debt this quarter to further improve our leverage ratio.”
Q3 2023 Financial Highlights (vs. Q3 2022)
·Net Sales: Net Sales were $96.9 million compared to $103.3 million. The decrease was driven by lower international sales, which is a more variable market due to global economic uncertainty, customer mix and a smaller sales base. Domestic sales increased modestly compared to the record year-ago period.
·Gross Profit: Gross Profit was $48.9 million or 50.5% of Net Sales, compared to $61.8 million or 59.8%. The decrease was primarily due to lower production efficiencies from new and innovative card constructions, as well as an impact from inflationary pressure on wages and materials.
·Net Income/EPS: Net Income increased 74% to $38.0 million compared to $21.9 million. The increase was primarily driven by prudent operating expense controls, as reflected by a reduction in selling, general and administrative expenses, as well as changes to the fair value of warrant liabilities, earnout consideration liability and derivative liability. Net Income per share attributable to class A common stockholders was $0.39 (Basic) and $0.34 (Diluted), compared to $0.18 (Basic) and (Diluted) in the year-ago period.
·Adjusted Net Income/Adjusted EPS: Adjusted Net Income (a non-GAAP measure) increased 10% to $21.7 million compared to $19.8 million in the year-ago period. Adjusted EPS (a non-GAAP measure), which includes both class A and class B shares, was $0.27 (Basic) and $0.24 (Diluted) compared to $0.26 (Basic) and $0.22 (Diluted) in the year-ago period (see reconciliation of non-GAAP measures shown in table below).
·Adjusted EBITDA: Adjusted EBITDA (a non-GAAP measure) increased 9% to $35.5 million compared to $32.7 million, with the increase driven in-part by the aforementioned operating expense controls.
·Balance Sheet: At September 30, 2023, the Company’s secured debt leverage ratio decreased to 1.48x compared to 2.92x at September 30, 2022.
Recent Operational Highlights
·Customers launched several new metal card programs this quarter including Amex Hilton Aspire, Amex SAS Elite and Axis Magnus, to name a few.
·Arculus Authenticate hardware passkeys received official designation as a Microsoft FIDO2 security key vendor and is now compatible within the Microsoft ecosystem, offering users a reliable and user-friendly secure passwordless authentication solution
·Arculus Cold Storage enhancements included:
·Custom tokens across three additional chains—Binance Smart Chain, Ethereum, and Polygon; now supporting 95% of crypto tokens by market cap.
·Expanded Arculus integration with MetaMask, bolstering security by enabling the Arculus card as a signing device for safe offline private key storage.
·Cross-chain DeFi capabilities via WalletConnect across major chains—Binance Smart Chain, Ethereum, Polygon, Avalanche.
2023 Financial Outlook
The Company is revising its guidance for full year 2023 results, and now expects net sales to be in the range of $386-$392 million (previously $400-$425 million) and adjusted EBITDA in the range of $141-$146 million (previously $145-$155 million).
Conference Call
The Company will host a conference call and live audio webcast today at 5:00 p.m. Eastern time to discuss its financial and operational results, followed by a question-and-answer period.
Date: Thursday, November 9, 2023
Time: 5:00 p.m. Eastern time
Dial-in
registration link: here
Live webcast reg
Aug 14, 2023
2 tm2323515d1_ex99-1.htm
Exhibit 99.1
CompoSecure Reports Second Quarter 2023 Financial Results
– Secures Long-Term Contract Renewal for One of Its Largest Customers –
– Reaffirms 2023 Net Sales and Adjusted EBITDA Guidance –
SOMERSET, N.J., August 14, 2023 -- CompoSecure, Inc. (Nasdaq: CMPO), a leader in metal payment cards, security, and authentication solutions, today announced its financial and operating results for the second quarter ended June 30, 2023.
“We continue to demonstrate the performance and consistency of our business as our second quarter results were in-line with our expectations despite continued macroeconomic uncertainties,” said Jon Wilk, President and CEO of CompoSecure. “General sentiment from our customers around the premium payment card market remained positive during the quarter. We are poised to continue to drive growth and cash flow generation for the remainder of the year, delivering new and innovative products to market while executing on our sales and profitability objectives.”
“We are also pleased to announce a five-year contract extension through December 2028 as the exclusive provider of metal cards for one of our largest customers that was set to expire at the end of this year (see filed 8-K). We have now signed long-term renewals with our top two customers.”
“Throughout our 20 year history, our company has been driven by delivering unmatched value and business impact as well as innovation, while establishing long-term partnerships across the market, and I am proud that we continue to demonstrate that unique value proposition.”
Q2 2023 Financial Highlights (vs. Q2 2022)
·Net Sales: Net Sales increased 1% to $98.5 million compared to $97.2 million, with the increase primarily driven by continued domestic growth in the Company’s metal payment card business, which was up 11%. This was partially offset by lower international sales, which is a more variable market due to customer mix and a smaller sales base. International sales remained in-line with the Company’s targeted revenue mix of approximately 20%.
·Gross Profit: Gross Profit was $53.9 million or 54.7% of Net Sales, compared to $58.9 million or 60.5%. The decrease was primarily due to higher material costs resulting from inflationary pressures and product mix. Gross margin was in-line with the Company’s previously stated mid-50% target.
·Net Income/EPS: Net Income was $32.7 million compared to $60.7 million. The decrease was primarily driven by a $25.4 million change in non-cash mark to market adjustments related to the fair value of warrant liabilities, earnout consideration liability and derivative liability. Net Income per share attributable to class A common stockholders was $0.31 (Basic) and $0.29 (Diluted), compared to $0.56 (Basic) and $0.52 (Diluted) in the year-ago period.
·Adjusted Net Income/Adjusted EPS: Adjusted Net Income (a non-GAAP measure) was $22.9 million compared to $25.3 million in the year-ago period. Adjusted EPS (a non-GAAP measure), which includes both class A and class B shares, was $0.29 (Basic) and $0.25 (Diluted) compared to $0.33 (Basic) and $0.29 (Diluted) in the year-ago period (see reconciliation of non-GAAP measures shown in table below).
·Adjusted EBITDA: Adjusted EBITDA (a non-GAAP measure) was $36.9 million compared to $39.7 million, with the decrease primarily driven by lower gross margin.
Recent Operational Highlights
·Continued metal payment card momentum including Barclays UK, Citizen’s Bank, Mars (a Turkish based Fintech), and Step Financial.
·Signed new Arculus customers for the quarter including Plug Wallet, an online crypto wallet, and Radix DeFi, a decentralized network, among others.
·Arculus was nominated for the Pay Tech Awards, Tech of the Future – Fighting Fraud & Financial Crime award.
·Named a New Jersey Top Workplace by NJ.com for the fourth year in a row.
2023 Financial Outlook
The Company is reaffirming its guidance for full year 2023 results, with net sales expected to be in the range of $400-$425 million and adjusted EBITDA in the range of $145-$155 million.
Conference Call
The Company will host a conference call and live audio webcast today at 5:00 p.m. Eastern time to discuss its financial and operational results, followed by a question-and-answer period.
Date: Wednesday, August 14, 2023
Time: 5:00 p.m. Eastern time
Dial-in registration link: here
Live webcast registration link: here
If you have any difficulty registering or connecting with the conference call, please contact Elevate IR at (720) 330-2829.
A live webcast and replay of the conference call will be available on the investor relations section of the Company’s website at https://ir.composecure.com/news-events/events.
About CompoSecure
Founded in 2000, CompoSecure (Nasdaq: CMPO) is a technology partner to market leaders, fintechs and consumers enabling trust for millions of people around the globe. The company combines elegance, simplicity and securi
May 3, 2023
2 tm2314349d1_ex99-1.htm
Exhibit 99.1
CompoSecure Reports First Quarter 2023 Financial Results
Reiterates 2023 Net Sales and Adjusted EBITDA Guidance
N.J., May 3, 2023 -- CompoSecure, Inc. (Nasdaq: CMPO), a leader in metal payment cards, security, and authentication solutions, today announced its financial and operating results for the first quarter ended March 31, 2023.
“2023 is off to a solid start driven by strong sales execution, deep customer engagement, and continued demand for our premium metal cards,” said Jon Wilk, President and CEO of CompoSecure. “In addition, we remain encouraged by recent positive card-issuer sentiment that underscores consumer and business resilience even in the face of slower macroeconomic growth.”
“This quarter, we were extremely pleased to extend a key contract with one of our largest customers. Looking ahead, we are reiterating our net sales and adjusted EBITDA guidance for 2023 based on our expectation of continued sales execution. As always, we remain focused on a prudent approach to capital allocation while simultaneously delivering innovative offerings to the market that can deliver long term shareholder value.”
Q1 2023 Financial Highlights (vs. Q1 2022)
•Net Sales: Net Sales increased 13% to $95.3 million compared to $84.2 million, with the increase primarily driven by strong sales execution and continued growth in the Company’s premium payment card business.
•Gross Profit: Gross Profit increased 9% to $53.4 million or 56.0% of Net Sales, compared to $48.8 million or 57.9%.
•Net Income/EPS: Net Income was $10.7 million compared to $26.9 million. Net income for Q1 2023 was primarily impacted by non-cash expenses of $13.4 million related to the fair value of the Company’s warrants, earnout consideration and derivative liabilities, which was driven by improvement in the Company’s stock price; and $4 million in stock-based compensation. Net Income per share attributable to class A common stockholders was $0.13 (Basic) and $0.11 (Diluted), compared to $0.23 (Basic) and $0.23 (Diluted) in the year-ago period.
•Adjusted Net Income/Adjusted EPS: Adjusted Net Income (a non-GAAP measure) was $20.6 million compared to $20.4 million in the year-ago period. Adjusted EPS (a non-GAAP measure), which includes both class A and class B shares, was $0.27 (Basic) and $0.23 (Diluted) compared to $0.27 (Basic) and $0.23 (Diluted) in the year-ago period (see reconciliation of non-GAAP measures shown in table below).
•Adjusted EBITDA: Adjusted EBITDA (a non-GAAP measure) increased 6% to $35.5 million compared to $33.3 million, with the increase primarily driven by Net Sales growth.
Recent Operational Highlights
•Extended a contract with one of its largest customers, American Express, through July 2026.
•Demonstrated continued metal payment card success with card launches including Rocket Mortgage, Xapo Bank, Papara prepaid card, H-E-B grocery, and UMB private bank.
•Advancements on Arculus implementations including progress on a pilot for payment plus authentication with a major crypto exchange, working with NBC Banq to deliver an all-in-one payment with digital asset cold storage, Chainge Finance launching a self-custody hardware cold storage wallet powered by Arculus, and inbestgo going live with Arculus cold storage wallet for their customers in Latin America.
•Enhanced Arculus B2B and B2C functionality to cryptographically include support for more than 10K coins, implemented enhanced security for card to mobile device communication, and launched B2C cold storage wallet sales in Canada with additional international locations anticipated in the second quarter.
2023 Financial Outlook
The Company is reaffirming its guidance for full year 2023 results, with net sales expected to be in the range of $400-$425 million and adjusted EBITDA expected to be in the range of $145-$155 million.
Conference Call
The Company will host a conference call and live audio webcast today at 5:00 p.m. Eastern time to discuss its financial and operational results, followed by a question-and-answer period.
Date: Wednesday, May 3, 2023
Time: 5:00 p.m. Eastern time
Dial-in
registration link: here
Live webcast registration link: here
If you have any difficulty registering or connecting with the conference call, please contact Elevate IR at (720) 330-2829.
A live webcast and replay of the conference call will be available on the investor relations section of the Company’s website at https://ir.composecure.com/news-events/events.
About CompoSecure
Founded in 2000, CompoSecure (Nasdaq: CMPO) is a technology partner to market leaders, fintechs and consumers enabling trust for millions of people around the globe. The company combines elegance, simplicity and security to deliver exceptional experiences and peace of mind in the physical and digital world. CompoSecure’s innovative payment card technology and metal cards with Arculus security and authentication capabil
Mar 1, 2023
2 tm238061d1_ex99-1.htm
Exhibit 99.1
CompoSecure Reports Record Full Year 2022 Financial Results
and Issues 2023 Outlook
FY Net Sales up 41% to $378.5 Million; FY Net Income up 58% to $131.8 Million; FY Adj. EBITDA up 33% to $136.2 Million
Q4 Net Sales up 25% to $93.8 Million; Q4 Net Income up 12% to $22.4 Million; Q4 Adj. EBITDA up 44% to $30.6 Million
Expects 2023 Net Sales Between $400-$425 Million; Adj. EBITDA Between $145-$155 Million
N.J., March 1, 2023 -- CompoSecure, Inc. (Nasdaq: CMPO), a leader in metal payment cards, security, and authentication solutions, today announced its financial and operating results for the fourth quarter and full year ended December 31, 2022.
“Our fourth quarter performance capped off a remarkable year for CompoSecure. For the full year 2022, we established records across all key financial metrics and demonstrated impressive domestic, international and fintech customer growth,” said Jon Wilk, President and CEO of CompoSecure. “Our ability to deliver these results despite the uncertain macroeconomic conditions speaks to the durability of our business driven by deep customer relationships, best-in-class products, and strong sales execution. Looking ahead, we are well positioned to continue driving organic growth, which is supported by positive card issuer trends. We also remain committed to prudent investments in product innovation across payment card and security technologies to deliver long term shareholder value.”
Full Year 2022 Financial Highlights (vs. FY 2021)
●Net Sales: Net Sales increased 41% to $378.5 million compared to $267.9 million.
●Gross Profit: Gross Profit increased 52% to $219.6 million or 58% of Net Sales, compared to $144.8 million or 54.1%.
●Net Income/EPS: Net Income increased 58% to $131.8 million compared to $83.4 million. Net Income per share attributable to class A common stockholders was $1.21 (Basic) and $1.13 (Diluted).
●Adjusted Net Income/Adjusted EPS: Adjusted Net Income (a non-GAAP measure) was $83.0 million. Adjusted EPS (a non-GAAP measure), which includes both class A and class B shares, was $1.10 (Basic) and $0.94 (Diluted) (see reconciliation of non-GAAP measures shown in table below).
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●Adjusted EBITDA: Adjusted EBITDA (a non-GAAP measure) increased 33% to $136.2 million compared to $102.3 million.
●Balance Sheet: As of December 31, 2022, the Company had $13.6 million of cash and cash equivalents and $363 million of total debt, which includes $233 million of term loan, and $130 million of exchangeable notes.
●Shares Outstanding: As of December 31, 2022, the Company had approximately 76.7 million shares outstanding which includes approximately 16.4 million class A shares and approximately 60.3 million class B shares (for more information on shares outstanding, both Basic and Diluted, please refer to the Company’s 10-K and the accompanying earnings presentation).
Q4 2022 Financial Highlights (vs. Q4 2021)
●Net Sales: Net Sales increased 25% to $93.8 million compared to $75.3 million, with the increase primarily driven by strong sales execution, growth from new and existing programs, and continued international demand.
●Gross Profit: Gross Profit increased 28% to $50.3 million or 53.6% of Net Sales, compared to $39.3 million or 52.2%. The increase in Gross Profit and margin was primarily driven by improved operational efficiencies and volume.
●Net Income/EPS: Net Income increased 12% to $22.4 million compared to $20.0 million. Net Income per share attributable to class A common stockholders was $0.14 (Basic) and $0.14 (Diluted).
●Adjusted Net Income/Adjusted EPS: Adjusted Net Income (a non-GAAP measure) was $17.7 million. Adjusted EPS (a non-GAAP measure), which includes both class A and class B shares, was $0.23 (Basic) and $0.20 (Diluted) (see reconciliation of non-GAAP measures shown in table below).
●Adjusted EBITDA: Adjusted EBITDA (a non-GAAP measure) increased 44% to $30.6 million compared to $21.2 million, with the increase primarily driven by Net Sales growth, margin expansion, as well as managing investments related to Arculus.
Recent Operational Highlights
●Enhanced security for cardholders:
oSecure Authentication – received approval from Visa and Mastercard to add secure authentication to payment cards using FIDO2 technology and working on pilots with several customers.
oBiometric Card – includes
a fingerprint sensor on a metal payment card delivering enhanced security at the point of a transaction.
oDynamic CVV – converts the 3-digit CVV code from
a static number printed on the back of the metal card to a tiny e-ink screen that refreshes the CVV periodically.
●Launched innovative payment card designs:
oLED Card – makes the issuing bank logo light
up with LEDs when a contactless transaction is initiated at the point of sale.
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oLux Glass™ Card – CompoSecure is the first to manufacture a transparent payment card made of Corning® Gorilla® Glass with a metal bezel.
Nov 2, 2022
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Exhibit 99.1
CompoSecure Reports Record Third Quarter 2022 Financial Results and Raises 2022 Guidance
- Net Sales up 56% YoY to a Record $103.3 Million -
- Net Income up 17% YoY to $21.9 Million or
- Adjusted EBITDA up 33% YoY to a Record $32.7 Million -
- Expects 2022 Net Sales at the High End of Guidance; Raises 2022 Adjusted EBITDA Outlook -
SOMERSET, N.J., November 2, 2022 -- CompoSecure, Inc. (Nasdaq: CMPO), a leader in payment cards, security and authentication solutions, today announced financial and operating results for the third quarter ended September 30, 2022.
Jon Wilk, President and CEO of CompoSecure commented, “We are very excited to announce another record quarter for Net Sales, as we continue to capitalize on the high demand for our premium metal card products through strong sales execution, deep customer relationships, and increased international demand.”
He added, “In addition, the Company has achieved better than anticipated profitability with Net Income up 17% year-over-year and Adjusted EBITDA up 33% year-over-year, through a combination of our ability to drive significant economies of scale, a commitment to operational excellence and efficiency, and a measured approach to Arculus long-term growth investments.”
Mr. Wilk continued, “Overall, we believe the Arculus platform is well positioned to support today’s growing security, payment, and authentication needs across many industries and we are increasingly focused on executing our B2B sales and marketing efforts. We also remain confident in our Arculus cold storage offering but consistent with last quarter, uncertainty in the digital asset market persists and we are working to better time investment to growth.”
“Based on our strong performance year-to-date, we are narrowing the Net Sales guidance range to the high end of our previously announced guidance and now expect Net Sales for the year between $370-$380 million. We are also raising our 2022 Adjusted EBITDA guidance and now expect it to range from $130-137 million given our continued margin expansion and profitability,” Wilk concluded.
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Q3 2022 Financial Highlights (vs. Q3 2021)
·Net Sales: Net Sales increased 56% to $103.3 million compared to $66.2 million, with the increase primarily driven by continued growth in the Company’s premium payment card business, customer expansion and international demand.
·Gross Profit: Gross Profit increased 71% to $61.8 million or 59.8% of Net Sales, compared to $36.1 million or 54.6%. The increase in Gross Profit and margin was primarily driven by higher card issuance volumes and operational efficiencies.
·Net Income/EPS: Net Income increased 17% to $21.9 million compared to $18.7 million. Net Income per share attributable to class A common stockholders was $0.18 per basic and diluted share.
·Adjusted Net Income/Adjusted EPS: Adjusted Net Income (a non-GAAP measure) was $19.8 million. Adjusted EPS (a non-GAAP measure), which includes both class A and class B shares, was $0.26 per basic share and $0.22 per diluted share (see reconciliation of non-GAAP measures shown in table below).
·Adjusted EBITDA: Adjusted EBITDA (a non-GAAP measure) increased 33% to $32.7 million compared to $24.6 million, with the increase primarily driven by Net Sales growth and margin expansion, as well as managing investments based on growth expectations.
·Balance Sheet: As of September 30, 2022, the Company had approximately $15.4 million of cash and cash equivalents and $373.1 million of total debt, which includes approximately $233 million of term loan, $10 million of revolver, and $130 million of exchangeable notes.
·Shares Outstanding: As of September 30, 2022, the Company had approximately 76.3 million shares outstanding which includes approximately 15.8 million class A shares and 60.6 million class B shares (for more information on shares outstanding, both basic and diluted, please refer to our 10-Q and the accompanying earnings presentation).
Recent Operational Highlights
·Strong domestic growth in payment card business including new clients across banking, gaming, fintech, entertainment and exchanges.
·International Net Sales up more than 35% year-over-year to $19.5 million, primarily driven by strong demand for premium payment cards and growth in distributor channels.
·Added Walmart.com and Newegg.com as distribution channels for the Arculus cold storage wallet.
·Appointed fintech and banking veteran Paul Galant to the Company’s Board of Directors.
2022 Financial Outlook
The Company is narrowing its Net Sales range for 2022 to the high end of our previously announced guidance and now expects Net Sales for the year between $370-$380 million (previously $355-$380 million) reflecting an approximate 40% increase from 2021 at the midpoint. CompoSecure is also increasing its 2022 outlook for Adjusted EBITDA and now expects it to range from $130-137 million (previously $110-120 million
Aug 4, 2022
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Exhibit 99.1
CompoSecure, Inc. Announces Record Second Quarter 2022 Financial Results and Raises 2022 Guidance
•Second quarter Net Sales of $97.2 million, up 54.9% year-over-year
•Second quarter Net Income of $60.7 million, up 182.4% year-over-year
•Second quarter Adjusted EBITDA of $39.7 million, up 45.2% year-over-year
•Arculus named most Innovative Cold Storage Wallet by ABI Research
•Raises 2022 full year fiscal guidance
Somerset, NJ – August 4, 2022 – CompoSecure, Inc. (Nasdaq: CMPO), a leader in payment, security, and authentication solutions, today announced financial results for the second quarter ended June 30, 2022.
Jon Wilk, CompoSecure’s President and CEO commented, “We had an outstanding quarter, and I am proud that we have achieved record results through strong sales execution, deep customer relationships, and international expansion. Looking ahead, we expect continued growth in our metal payment card business driven by both new customers and expansion of business from our existing base. In addition, we believe that we will benefit from ongoing card issuer trends such as the robust demand for travel and entertainment spending, and the high demand for premium metal card products.”
He continued, “Current challenges in the digital asset market, including crypto exchanges freezing or limiting withdrawals, are driving an increased need for consumers to control their private keys, and we are encouraged by recent partnerships for security, authentication, and cold storage leveraging our Arculus platform. At the same time, this market cycle has created uncertainty in timing for our anticipated Arculus ramp up since some of our partners and targets have been impacted. As we have stated, we continue to be thoughtful about how we are running the business and remain focused on margins while simultaneously managing our investments to capture long-term value for our shareholders. We are confident that our Arculus platform is well positioned to meet the current and anticipated needs of the market.”
Mr. Wilk added, “We have delivered exceptional results through the first half of the year while navigating a dynamic environment. Given our performance and continued confidence in the strength of our sales pipeline, we are raising our 2022 full fiscal year guidance.”
Second Quarter 2022 Financial Highlights
•Net Sales: Net Sales for the second quarter of 2022 were $97.2 million, up 54.9 % compared to $62.7 million in the second quarter of 2021, and grew 15.0% sequentially from the first quarter of 2022
•Net Income: Net Income for the second quarter of 2022 was $60.7 million compared to a net income of $21.5 million in the second quarter of 2021.
•Adjusted EBITDA: Adjusted EBITDA for the second quarter of 2022 was $39.7 million, compared to $27.3 million for the second quarter of 2021, up 45.2% year over year.
•Gross Profit/Margin: Gross Profit for the second quarter of 2022 was $58.9 million, compared to $35.1 million for the second quarter of 2021. Gross margin for the second quarter of 2022 was 60.6%, compared to 56.0% for the second quarter of 2021.
•Earnings Per Share: Net Income Per Share attributable to Class A common stockholders for the second quarter of 2022 was $.56 per share (basic) and $.52 per share (diluted).
•Change in EPS Accounting Policy: Adopted alternative method under U.S. GAAP for calculating basic and diluted EPS by allocating changes in fair value adjustments of mark-to-market instruments among the public company and operating subsidiaries to better reflect the actual economic impact of conversion of such instruments on net income on a per share basis.
Second Quarter 2022 Highlights
•Record Net Sales driven by strong sales execution, new customers and expansion of business from existing base.
•Strong international growth with second quarter international Net Sales of $27.1 million, 71.0% higher than second quarter of 2021 due to expansion of international sales team, distributor growth, and demand for premium payment cards in international markets.
•Arculus ranked as the most innovative Cold Storage Wallet by ABI Research and included as one of the top three leaders for storing cryptocurrency and other digital assets.
•InBestGo, a Latin American based fintech, has selected CompoSecure to launch a metal credit card that combines premium payment card technology and best-in-class digital authentication; Separately, InBestGo to white label the Arculus cold storage wallet, giving their users the option to securely custody their own keys for their digital assets.
Financial Outlook
•Full Year 2022 Guidance: The Company is raising its full fiscal year 2022 guidance. For the full year 2022 the Company now expects Net Sales to be in the range of $355mm to $380mm (up from $336mm to $376mm) and full year 2022 Adjusted EBITDA guidance to be in the range of $110mm to $120mm (up from $100mm to $110mm).
Conference Call and Webcast
Com
May 9, 2022
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Exhibit 99.1
CompoSecure, Inc. Announces First Quarter 2022 Financial Results
· First quarter Net Sales of $84.2 million, up 32.1% year-over-year
· First quarter Net Income of $26.9 million, up 16% year-over-year
· First quarter Adjusted EBITDA of $33.3 million, up 14% year-over-year
· Payment card plus ArculusTM digital authentication and/or crypto cold storage selected by several cryptocurrency platforms and fintech partners.
Somerset, NJ – May 9, 2022 – CompoSecure, Inc. (Nasdaq: CMPO), a leading provider of premium financial payment cards and cryptocurrency storage and security solutions, today announced financial results for the first quarter ended March 31, 2022.
“We achieved record first quarter net sales and profitability driven by the strength of our premium payment card business and international growth. We are off to a strong start for 2022 and believe we will continue to see increased demand among new and existing customers, bolstered by solid sales execution and deep relationships,” said CEO Jon Wilk. “In addition, our relentless focus on operational excellence supports our ability to meet growing demand and deliver premium-quality products to our customers while enhancing our overall profitability.”
Wilk added, “It’s exciting to have been selected by several cryptocurrency platforms and fintech partners to launch programs combining our payment card technology plus our Arculus solution. We were also encouraged by the positive consumer response to Arculus at the Bitcoin 2022 conference held in Miami in April, where more than 25,000 digital asset enthusiasts had a chance to experience our best-in-class cold storage wallet. We expect to continue to increase Arculus investment throughout the year to drive further adoption, deliver product enhancements, and support brand momentum, in line with our previously shared marketing strategy.”
First Quarter 2022 Financial Highlights
·Net Sales: Net sales for the first quarter of 2022 were $84.2 million, up 32.1% compared to $63.7 million in the first quarter of 2021, and grew 11.8% sequentially from the fourth quarter in 2021.
·Gross Profit/Margin: Gross Profit for the first quarter of 2022 was $49 million, compared to $34 million for the first quarter of 2021. Gross margin for the first quarter of 2022 was 57.9%, compared to 53.9% for the first quarter of 2021.
·Net Income: Net Income for the first quarter of 2022 was $26.9 million compared to a net income of $23.2 million in the first quarter of 2021.
·Adjusted EBITDA: Adjusted EBITDA for the quarter was $33.3 million, compared to $29.3 million for the first quarter of 2021.
First Quarter 2022 Highlights
·Strong international growth with quarterly international net sales of $21.8 million, driven by sales execution and growing demand for premium payment cards in international markets.
·Focus on operational excellence drove improved productivity and efficiency, continued high-quality product delivery, and enhanced profitability.
·Payment card plus Arculus digital authentication and/or crypto cold storage has been selected by several cryptocurrency platforms and fintech partners—Voyager Digital Ltd., Lode and MassPay.
·Strong, positive response from consumers at Bitcoin 2022; more than 25,000 attendees were exposed to the Arculus cold storage wallet.
·On track for anticipated mid-June Arculus WalletTM update delivering access to the Defi ecosystem through WalletConnect and the ability to visualize NFTs, as well as ongoing expansion of supported cryptocurrencies.
Financial Outlook
·Full Year 2022 Guidance: The Company reaffirmed its guidance for expected full year 2022 operating results with net sales expected to be in the range of $336 million to $376 million and adjusted EBITDA expected to be in the range of $100 million to $110 million.
Conference Call and Webcast
CompoSecure will host a conference call today at 5:00 p.m. Eastern Time to review the Company’s financial results for the first quarter ended March 31, 2022. To access this call, dial (877) 270-2148 for the U.S. or Canada, or (412) 902-6510 for international callers. A live webcast of the conference call will be accessible from the Investors section of our website at https://ir.composecure.com/news-events/events.
About CompoSecure
Founded in 2000, CompoSecure is a pioneer and leading provider of premium payment cards and cryptocurrency and digital asset storage and security solutions. The company focuses on serving the affluent customers of payment card issuers worldwide using proprietary production methods that meet the highest standards of quality and security. The company offers secure, innovative, and durable proprietary products that implement leading-edge engineering capabilities and security. CompoSecure’s mission is to increase clients’ brand equity in the marketplace by offering products and solutions which differentiate the brands they represent, thus elevating card
Mar 10, 2022
2 tm228735d1_ex99-1.htm
Exhibit 99.1
FINAL – For Release March 10, 4:05 PM EST.
CompoSecure, Inc. Announces Fourth Quarter and Full Year 2021 Financial Results
·Fourth quarter net sales of $75.3 million, up 40.2% year-over-year
·Full year net sales of $267.9 million, in line with guidance
·Full year Adjusted EBITDA of $102.4 million, at high end of guidance range
·Launched Arculus—The next generation cold storage wallet for digital assets
Somerset, NJ – March 10, 2022 – CompoSecure, Inc. (NASDAQ:CMPO), a leading provider of premium financial payment cards and cryptocurrency storage and security solutions, today announced financial results for the fourth quarter and full year ended December 31, 2021.
“2021 was an exciting year for CompoSecure in which we became a newly listed public company, achieved record net sales, and launched a best-in-class three-factor authentication cold storage product for securing digital assets called Arculus,” said Jon Wilk, CEO of CompoSecure.
“The Company’s fourth-quarter performance was highlighted by net sales growth of 40.2% versus the prior year, providing substantial momentum for the business as we enter 2022. Our premium card business is being driven by strong sales execution as well as our deep customer relationships. As we move forward, we expect to benefit from the trends of increased solicitation by card issuers and growing consumer demand for premium cards as the economy emerges from the challenges of the pandemic. And with the launch of Arculus, we are in position to support a large and growing need for security and authentication solutions in the digital asset marketplace including Crypto, NFTs, and step-up authentication for log in for critical accounts.”
Fourth Quarter 2021 Financial Highlights
•Net sales: Net sales for the fourth quarter of 2021 were $75.3 million, up 40.2% compared to $53.7 million in the fourth quarter of 2020, and grew 13.8% sequentially from the third quarter in 2021.
•Gross Profit/Margin: Gross profit for the fourth quarter of 2021 was $39.3 compared to $25.8 million for the fourth quarter of 2020. Gross margin for the fourth quarter of 2021 was 52.2%, compared to 48.0% for the fourth quarter of 2020.
•Adjusted EBITDA: Adjusted EBITDA for the quarter was $21.2 million, compared to $20.1 million for the fourth quarter of 2020 and reflects significant investment in Arculus marketing, product development, and sales.
•Net Income: Net Income for the fourth quarter of 2021 was $20.0 million compared to a net income of $2.9 million in the fourth quarter of 2020.
Full Year 2021 Financial Highlights
•Net Sales: Net sales for the full year 2021 were $267.9 million, compared to the full year 2020 at $260.6 million.
•Gross Profit/Margin: Gross profit for the full year 2021 was $144.8 million, compared to $132.6 million from 2020. Gross margin for the year was 54.1%, compared to 50.9% for 2020.
•Adjusted EBITDA: Adjusted EBITDA for 2021 was $102.3 million, compared to $115.4 million for 2020 and reflects significant investment in Arculus marketing, product development, and sales.
•Net Income: Net Income for the full year 2021 was $83.4 million, compared to a net income of $77.8 million in 2020.
Fourth Quarter 2021 Highlights
•Officially announced the launch of Arculus, the first three-factor authentication cold storage product for securing digital assets.
•Established a business partnership to provide a co-branded Arculus KeyTM Card crypto security solution to the first 25,000 registered attendees at Bitcoin 2022, one of the largest Bitcoin conferences in the world.
•Enhanced organizational strength with key leadership appointments: Amanda Gourbault, Chief Revenue Officer; Esra Alev, Global Head of Marketing; Thomas D’Eletto, Head of Product for Arculus; and Joe Fahy, Head of Development for Arculus.
Financial Outlook
•Full Year 2022 Guidance: The Company reaffirmed its guidance for expected full year 2022 operating results with net sales expected to be in the range of $336 million to $376 million. Adjusted EBITDA is expected to be in the range of $100 million to $110 million.
Conference Call and Webcast
CompoSecure will hold its quarterly earnings call on March 10, 2022 at 5:00 p.m. ET. Conference call details for participation on the call are listed below. Promptly following the call, a transcript will be posted to the Investor Relations section of our website at https://ir.composecure.com/.
Investors and participants can register for the call via live webcast here. The archived webcast will be available shortly after the call on the company website, https://ir.composecure.com/.
About CompoSecure
Founded in 2000, CompoSecure is a pioneer and category leader in premium payment cards and a provider of cryptocurrency and digital asset storage and security solutions. The company focuses on serving the affluent customers of payment card issuers worldwide using proprietary production methods that meet the
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