Table of Contents Washington, D.C. 20549 Form 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 For the Quarterly Period Ended September 30, 2021. or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period from to Commission File Number: 001-37584 CPI Card Group Inc. (Exact name of the registrant as specified in its charter) Delaware 26-0344657 (State or other jurisdiction of incorporatio ...

Investor Presentation Second Quarter and First Half 2021 August 12, 2021 Forward Looking Statements Certain statements and information in this presentation (as well as information included in other written or oral statements we make from time to time) may contain or constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The wo ...

Financial Data and Key Metrics Changes - CPI Card Group reported a 31% increase in net sales year-over-year, reaching $93 million in Q2 2021, driven by new customer acquisition and the transition to contactless cards [9][31] - Diluted earnings per share rose to $0.53, nearly five times the $0.11 from the same quarter last year, with net income increasing by 387% to $6.2 million [10][34] - Adjusted EBITDA increased by 91% to $19.3 million, with an adjusted EBITDA margin of 20.7%, up 650 basis points year-over-year [10][34] Business Line Data and Key Metrics Changes - The Debit and Credit segment saw a 25% increase in net sales to nearly $73 million, with income from operations rising 89% to $20 million [31][40] - The Prepaid Debit segment experienced a 51% increase in net sales to $20.4 million, with income from operations more than doubling to $7.6 million [42][43] - For the first half of 2021, net sales in the Debit and Credit segment increased by 21% to nearly $143 million, while the Prepaid Debit segment achieved a 42% growth, totaling nearly $40 million [35][41] Market Data and Key Metrics Changes - The U.S. payment card market is transitioning to contactless solutions, with an estimated 30% of debit and credit cards being contactless-enabled by the end of 2020, expected to rise to 50% by the end of 2021 [25] - CPI's eco-focused card portfolio has sold over 33 million cards since its introduction in 2019, establishing the company as a market leader in this segment [20] Company Strategy and Development Direction - CPI's strategic priorities include deep customer focus, market-leading quality products, continuous innovation, and a competitive business model [14][29] - The company aims to enhance its position in the growing FinTech space and maintain strong relationships with financial institutions [16][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as labor shortages and global supply chain constraints, which are expected to impact costs and operations in the second half of 2021 [51][52] - The company remains committed to investing in equipment and inventory to address these challenges and enhance operational efficiency [52][53] Other Important Information - CPI successfully refinanced its debts and paid down its ABL revolver to zero, improving its balance sheet and liquidity [12][45] - The company reported a cash balance of $30.7 million as of June 30, 2021, with total available liquidity exceeding $80 million [45] Q&A Session Summary Question: What are the expectations for net sales growth in the second half of 2021? - Management indicated that while strong net sales growth from new customer onboarding may not repeat in the second half, they are focused on maintaining growth through existing customer relationships [50] Question: How is CPI addressing supply chain constraints? - The company is investing in inventory and equipment to mitigate supply chain issues and enhance operational capabilities [52]

Table of Contents Form 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 For the Quarterly Period Ended June 30, 2021. or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period from to Commission File Number: 001-37584 CPI Card Group Inc. (Exact name of the registrant as specified in its charter) Delaware 26-0344657 (State or other jurisdiction of incorporation or organization) 10368 W. ...

Financial Performance - Total net sales for the three months ended March 31, 2021, were $89,092,000, representing a 20.5% increase from $73,969,000 in the same period of 2020[8] - Gross profit for the first quarter of 2021 was $35,721,000, up 39.3% from $25,648,000 in Q1 2020[8] - Net income from continuing operations for Q1 2021 was $2,410,000, compared to $1,782,000 in Q1 2020, reflecting a 35.2% increase[8] - Basic and diluted earnings per share for Q1 2021 were $0.21, compared to $0.16 in Q1 2020, indicating a 31.3% increase[8] - EBITDA for the same period increased to $16,968,000 in 2021 from $11,645,000 in 2020, representing a 45.5% growth[108] - Net income for the three months ended March 31, 2021, was $2,410,000, compared to $1,756,000 in 2020, marking a 37.2% increase[108] Assets and Liabilities - Total current assets decreased to $133,198,000 as of March 31, 2021, down from $152,534,000 at the end of 2020, a decline of 12.7%[7] - Total liabilities decreased to $381,870,000 as of March 31, 2021, down from $404,188,000 at the end of 2020, a reduction of 5.5%[7] - Total assets decreased to $246,294,000 as of March 31, 2021, from $266,151,000 at December 31, 2020, a decline of 7.4%[91] - As of March 31, 2021, total long-term debt amounted to $317.5 million, a decrease from $336.7 million as of December 31, 2020, reflecting a reduction in borrowings[51] - The Company had total liabilities of $381.9 million as of March 31, 2021, down from $404.2 million at the end of 2020[7] Cash Flow - Cash and cash equivalents at the end of Q1 2021 were $24,884,000, down from $57,603,000 at the end of 2020, a decrease of 56.8%[12] - Operating activities generated a net cash flow of $144,000 for continuing operations in Q1 2021, compared to $3,204,000 in Q1 2020[12] - Cash provided by operating activities decreased to $0.1 million for the three months ended March 31, 2021, compared to $3.2 million in the same period of 2020[144] - Cash used in investing activities increased to $2.4 million for the three months ended March 31, 2021, from $0.9 million in the prior year, primarily for capital expenditures[146] - Cash used in financing activities was $30.5 million during the three months ended March 31, 2021, with proceeds from the Senior Notes and ABL Revolver totaling $310 million and $14.8 million, respectively[147] Inventory and Receivables - Trade accounts receivable as of March 31, 2021, amounted to $49,708, an increase from $44,305 as of December 31, 2020[32] - Raw materials inventory increased to $31,802 as of March 31, 2021, compared to $23,009 as of December 31, 2020, reflecting a rise of 38.4%[33] - Accounts receivable increased to $60,479 million as of March 31, 2021, up from $54,592 million at December 31, 2020, reflecting a growth of approximately 3.2%[32] - Inventories rose to $33,490 million as of March 31, 2021, compared to $24,796 million at December 31, 2020, indicating a significant increase of about 35%[33] Debt and Financing - The Company issued $310 million in senior secured notes with an interest rate of 8.625%, maturing on March 15, 2026, to refinance existing debt[52] - The ABL Revolver was established with a borrowing capacity of up to $50 million, with an interest rate of 1.356% as of March 31, 2021[52] - The Company had outstanding borrowings of $30 million under the Senior Credit Facility and $304.7 million under the First Lien Term Loan prior to their termination[54] - The Company recorded a loss of $5.048 million on debt extinguishment due to the termination of the Senior Credit Facility and First Lien Term Loan[63] - The early termination of the Senior Credit Facility incurred a "make-whole" premium of $2,635, recorded as interest expense for Q1 2021[54] Tax and Compliance - The effective income tax rate for the three months ended March 31, 2021, was 36.1%, with an income tax expense of $1.36 million on a pre-tax income of $3.77 million[64] - The effective income tax rate for the three months ended March 31, 2021, was 36.1%, compared to (35.3)% in 2020, reflecting significant changes due to the CARES Act provisions[65] - The Company believes approximately $852 million of unrecognized tax benefits may be recognized in the next year due to settlements with taxing authorities[67] Operational Insights - The company continues to monitor supply chain impacts due to COVID-19, which may affect future operations and costs[16] - The company continues to monitor its supply chain and has purchased additional inventory to mitigate potential constraints due to COVID-19[16] - The company serves approximately 2,000 direct customers, including major debit and credit card issuers in the U.S.[101] - The company is focused on maintaining compliance with PCI Security Standards to ensure the security of its operations[102] Segment Performance - The Company’s reportable segments include Debit and Credit, Prepaid Debit, and Other, with the Debit and Credit segment primarily producing Financial Payment Cards[85] - The Debit and Credit segment generated net sales of $69,817,000 in Q1 2021, up from $59,839,000 in Q1 2020, reflecting a 16.5% increase[90] - The Prepaid Debit segment's net sales rose to $19,458,000 in Q1 2021 from $14,540,000 in Q1 2020, an increase of 33.7%[90] Legal Matters - The Company is currently involved in a patent infringement lawsuit filed by Smart Packaging Solutions, which alleges infringement of four patents related to antenna technology[73]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2020 Or ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission File Number 001-37584 CPI Card Group Inc. (Exact name of the registrant as specified in its charter) Delaware 26-0344657 (I.R.S ...

Fourth Quarter and Full Year 2019 Earnings Conference Call March 9, 2020 Copyright 2020 CPI Card Group Safe Harbor Forward-Looking Statements: Certain statements and information in this presentation (as well as information included in our accompanying written or oral statements) may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the "1933 Act") and Section 21E of the Securities Exchang ...

Financial Data and Key Metrics Changes - The company reported a net sales increase of 6% in Q4 2019 and 9% for the full year, with a 9% increase in Q4 and 12% for the full year when excluding the Canadian business [8][23] - Net loss improved by 71% for both Q4 and the full year, with adjusted EBITDA increasing by 74% year-over-year for Q4 and 39% for the full year [9][27] - Gross profit for Q4 was $22 million, up 5% year-over-year, while full year gross profit was $91.3 million, up 16% compared to 2018 [24][25] Business Line Data and Key Metrics Changes - The U.S. Debit and Credit segment net sales increased by 24% year-over-year to $61.6 million in Q4, with full year sales up 19% to $213.1 million [28] - The U.S. prepaid debit segment saw a decline in net sales, with Q4 sales at $11.2 million and full year sales at $64.3 million, down from record sales in 2018 [29] Market Data and Key Metrics Changes - The company noted strong demand for dual interface EMV cards, including the Second Wave product, which contributed to market share gains [10][28] - The U.S. market for tap-to-pay cards is expected to grow significantly, with projections of reaching 300 million cards by the end of 2020 [34] Company Strategy and Development Direction - The company focuses on a customer-centric strategy, emphasizing high-quality products and customer service to gain market share [10][12] - Key strategies include continuous innovation, market-competitive business models, and enhancing customer relationships [17][20] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on market opportunities, particularly in the dual interface card segment [16][34] - The company is closely monitoring the potential impacts of the coronavirus on its supply chain and operations, stating that there has been no significant impact so far [33] Other Important Information - The company ended the year with a cash balance of $18.7 million and total debt of $312.5 million, with a net debt leverage ratio improved to 8.0x [30][31] - A new $30 million credit facility was announced to support ongoing strategic initiatives and provide additional cash flow [32] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the Q&A session may not have been included in the transcript.

Copyright 2019 CPI Card Group Third Quarter 2019 Earnings Conference Call November 6, 2019 Safe Harbor Forward-Looking Statements: Certain statements and information in this presentation may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the "1933 Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "1934 Act"). The words "believe," "estimate," "project," "expe ...

CPI Card Group Inc (NASDAQ:PMTS) Q3 2019 Results Conference Call November 6, 2019 9:00 AM ET Company Participants Jennifer Almquist - Investor Relations Scott Scheirman - President and Chief Executive Officer John Lowe - Chief Financial Officer Operator Good morning, and welcome to the CPI Card Group Third Quarter and Year-to-date 2019 Earnings Conference Call. All participants are in listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference ...