poSecure(US:CMPO)2025-05-12 20:05Financial Performance - CompoSecure reported Q1 2025 net sales of $59.8 million, a decrease from $104.0 million in Q1 2024, reflecting a shift in accounting due to the spin-off of Resolute Holdings[7]. - Consolidated gross profit for Q1 2025 was $54.5 million, with a gross margin of 52.5%, down from $55.2 million and 53.1% in Q1 2024, primarily due to product mix[10]. - Adjusted net income increased by 21% to $28.4 million compared to $23.3 million in the year-ago period[10]. - Pro forma adjusted EBITDA for Q1 2025 was $33.7 million, a slight decrease from $34.5 million in Q1 2024, attributed to higher general and administrative expenses[10]. - Net sales for Q1 2025 were $59,824,000, compared to $44,065,000 in Q1 2024, representing a 35.9% increase[27]. - Gross profit for Q1 2025 was $28,749,000, while it was $25,799,000 in Q1 2024, indicating an increase of 7.5%[27]. - Operating income for Q1 2025 was $6,044,000, down from $15,722,000 in Q1 2024, reflecting a decrease of 61.6%[27]. - Net income for Q1 2025 was $21,492,000, compared to $17,073,000 in Q1 2024, showing an increase of 25.5%[31]. - The company reported an EBITDA of $53,190,000 for Q1 2025, significantly higher than $24,204,000 in Q1 2024, an increase of 120.2%[27]. Cash and Debt Management - As of March 31, 2025, CompoSecure had $9.5 million in cash and cash equivalents under GAAP, while non-GAAP results showed $71.7 million in cash[16]. - Total debt as of March 31, 2025, was $195.0 million, down from $335.6 million a year earlier, resulting in a net debt of $180.7 million[16]. - Cash and cash equivalents at the end of Q1 2025 were $71,676,000, down from $77,461,000 at the end of Q4 2024, a decrease of 7.3%[31]. - The company reported a net cash provided by operating activities of $18,154,000 for Q1 2025, down from $33,751,000 in Q1 2024, a decrease of 46.3%[31]. - Total liabilities as of March 31, 2025, were $379,630,000, compared to $617,364,000 as of December 31, 2024, a reduction of 38.6%[25]. - The total current liabilities for Q1 2025 were $47,093,000, compared to $76,322,000 in Q4 2024, a decrease of 38.3%[25]. Shareholder Information - Adjusted net income per share (basic) for Q1 2025 was $0.28, slightly down from $0.29 in Q1 2024[33]. - Adjusted net income per share (diluted) for Q1 2025 was $0.25, compared to $0.24 in Q1 2024, indicating a 4.2% increase[33]. - Common shares outstanding for computing net income per share (basic) increased to 102,040,000 in Q1 2025 from 80,525,000 in Q1 2024[33]. - Total shares outstanding used in computing adjusted earnings per share (diluted) rose to 115,451,000 in Q1 2025 from 104,329,000 in Q1 2024[33]. Operational Highlights - The company is seeing strong demand for its Arculus product, which is expected to contribute positively to net income for the full year[3]. - CompoSecure reiterated its full-year 2025 guidance, expecting mid-single digit growth in both consolidated net sales and pro forma adjusted EBITDA[13]. - The company is focused on implementing the CompoSecure Operating System (COS) to enhance efficiency and execution across its operations[3]. Tax and Compensation - Income before income taxes for Q1 2025 was $48,496,000, significantly higher than $16,237,000 in Q1 2024[33]. - The provision for income taxes in Q1 2025 was $27,004,000, compared to a benefit of $(836,000) in Q1 2024[33]. - The company incurred $5,721,000 in stock-based compensation expense in Q1 2025, compared to $4,397,000 in Q1 2024, an increase of 30.1%[31]. - Stock-based compensation increased to $5,720,000 in Q1 2025 from $4,397,000 in Q1 2024[33]. - The company incurred spin-off costs of $5,019,000 in Q1 2025, with no such costs reported in Q1 2024[33].