poSecure(CMPO) - 2024 Q2 - Quarterly Results

Financial Performance - Q2 2024 Net Sales increased by 10% to $108.6 million compared to $98.5 million in Q2 2023[3] - Q2 2024 Adjusted EBITDA rose by 8% to $40.0 million, up from $36.9 million in the same period last year[5] - Net Income for Q2 2024 increased by 3% to $33.6 million, with Adjusted Net Income rising by 10% to $25.2 million[4] - Net sales for the three months ended June 30, 2024, were $108,567,000, representing a 10.4% increase from $98,527,000 for the same period in 2023[15] - Net income for the six months ended June 30, 2024, was $50,670,000, compared to $43,447,000 for the same period in 2023, reflecting a 16.0% increase[16] - Adjusted EBITDA for the six months ended June 30, 2024, was $77,750, up from $72,345 in the same period of 2023, reflecting a growth of 7.4%[17] - Adjusted net income per share (basic) increased to $0.31 in Q2 2024 from $0.29 in Q2 2023, a rise of 6.9%[18] - Adjusted net income for Q2 2024 was $25,165, compared to $22,898 in Q2 2023, representing a growth of 9.9%[18] Guidance and Projections - Fiscal 2024 guidance for Net Sales is now narrowed to between $418-$428 million, and Adjusted EBITDA is expected to range between $150-$157 million[8] Cash and Debt Management - The company has $35.4 million in cash and cash equivalents and total debt of $330.9 million as of June 30, 2024[6] - Total current assets decreased to $136,481,000 as of June 30, 2024, from $139,377,000 as of December 31, 2023[13] - Total liabilities increased to $422,471,000 as of June 30, 2024, compared to $406,814,000 as of December 31, 2023[13] - Cash and cash equivalents decreased to $35,391,000 as of June 30, 2024, from $41,216,000 as of December 31, 2023[16] - The secured debt leverage ratio improved to 1.29x at June 30, 2024, down from 1.39x at December 31, 2023[6] - The current portion of long-term debt increased to $13,437,000 as of June 30, 2024, from $10,313,000 as of December 31, 2023[13] - The accumulated deficit improved to $(766,719,000) as of June 30, 2024, from $(846,825,000) as of December 31, 2023[13] Operating Expenses and Income - Operating expenses for the six months ended June 30, 2024, totaled $149,649,000, up from $134,084,000 for the same period in 2023[15] - Interest expense for the six months ended June 30, 2024, was $11,394, down from $12,345 in the same period of 2023, a decrease of 7.7%[17] - Income tax expense for Q2 2024 was $(6,982), compared to $(6,190) in Q2 2023, reflecting an increase of 12.8%[18] Strategic Initiatives - CompoSecure expanded its partnership with Fiserv to market and resell Arculus Authenticate capabilities[8] - The company launched new customer card programs, including the Wells Fargo Expedia Onekey Card and the Amex White Gold Card[8] - David Cote Family is investing $372 million, and David Cote will become the executive chairman of CompoSecure[2] Stock and Shareholder Information - The company reported a basic net income per share attributable to Class A common stockholders of $0.74 for the six months ended June 30, 2024, compared to $0.45 for the same period in 2023[15] - Total shares outstanding used in computing diluted adjusted net income per share was 91,735 for Q2 2024, compared to 90,581 in Q2 2023, indicating an increase of 1.3%[18] - Stock-based compensation expense for Q2 2024 was $5,238, up from $4,393 in Q2 2023, marking a 19.2% increase[18] Market Adjustments - Mark-to-market adjustments for Q2 2024 were $(7,710), an improvement from $(9,180) in Q2 2023, showing a reduction of 16.0%[17] - The company incurred secondary offering transaction costs of $586 in Q2 2024, with no such costs reported in Q2 2023[18]