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 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 $145.0 million
compared to $136.2 million.
Liquidity and Capital Structure
- Balance Sheet: At
December 31, 2023, CompoSecure had $41.2 million of cash and cash
equivalents and $340.3 million of total debt, which included $210.3
million of term loan, and $130.0 million of exchangeable notes.
This compares to cash and cash equivalents of $13.6 million and
total debt of $363.1 million at December 31, 2022. CompoSecure’s
secured debt leverage ratio has decreased to 1.39x at December 31,
2023 compared to 1.62x at December 31, 2022 and 2.8x at December
31, 2021.
- Shares Outstanding:
At December 31, 2023, CompoSecure had 79.4 million shares
outstanding which included 19.4 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 10-K and the
accompanying earnings presentation).
Full Year Operational Highlights
- Extended long-term agreements with CompoSecure’s two largest
customers: JP Morgan Chase and American Express
- Produced over 31 million metal payment cards that helped
support more than 150 new and ongoing card programs
- Ranked the #1 metal payment card provider by ABI Research, a
global technology market intelligence firm
- 2023 product and innovation highlights:
- Echo Mirror™ Card – a stainless-steel payment card
with a mirror-like finish
- LED Card – LED lights illuminate the card when a
contactless transaction is initiated
- Lux Glass™ Card – a transparent payment card with a metal
bezel
- Arculus Authenticate hardware passkeys received official
designation as a Microsoft FIDO2 security key vendor
- Arculus cross-chain DeFi capabilities via WalletConnect across
major chains
- Arculus cold storage wallet cryptographic support for more than
10K coins across additional chains
2024 Financial OutlookCompoSecure expects net
sales for the full year to range between $408-$428 million and
expects adjusted EBITDA to range between $147-$157 million.
Securities Repurchase Program
CompoSecure has a long history of delivering profitable growth
and leading the global market for metal payment cards, which the
Company does not believe is fully reflected in the valuation of its
securities. To provide a new mechanism to unlock investor value, an
independent committee of CompoSecure’s 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 notes
exchangeable for shares of common stock. The repurchase program is
effective March 7, 2024 through March 7, 2027.
Repurchases under this program may be made from time to time in
the open market, through privately negotiated transactions, tender
offers, or otherwise, and will be made as permitted by the terms
and conditions of the Company’s senior credit facility and
indenture for its exchangeable notes, as applicable. Repurchases of
common stock will be conducted in accordance with Rule 10b-18 of
the Exchange Act. To facilitate equity repurchases, the Company
expects to enter into a Rule 10b5-1 repurchase plan with a
third-party broker to allow the Company to repurchase equity at
times when it otherwise might be prevented from doing so under
insider trading laws or because of trading blackout periods imposed
under the Company’s Insider Trading Policy. Any exchangeable note
or warrant repurchases will be conducted in accordance with
applicable insider trading laws and the Company’s Insider Trading
Policy.
Any shares of common stock repurchased under the program may
either be returned to the status of authorized but unissued shares
of common stock or held as treasury stock of the Company. Subject
to applicable law, the Company may elect to amend or cancel the
repurchase program or amend the terms thereof.
The Company also entered into an amendment to the Company’s
senior credit facility which enables the Company to implement the
repurchase program in compliance with the senior credit
facility.
Conference CallCompoSecure 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, March 6, 2024Time: 5:00 p.m. Eastern
timeDial-in registration link: hereLive 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 CompoSecure’s
website at https://ir.composecure.com/news-events/events.
About CompoSecureFounded 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
capabilities deliver unique, premium branded experiences, enable
people to access and use their financial and digital assets, and
ensure trust at the point of a transaction. For more information,
please visit www.CompoSecure.com and www.GetArculus.com.
Forward-Looking StatementsThis press release
contains forward-looking statements as defined by the Private
Securities Litigation Reform Act of 1995. These statements are
based on the beliefs and assumptions of management. Although
CompoSecure believes that its plans, intentions, and expectations
reflected in or suggested by these forward-looking statements are
reasonable, CompoSecure cannot assure you that it will achieve or
realize these plans, intentions, or expectations. Forward-looking
statements are inherently subject to risks, uncertainties, and
assumptions. Generally, statements that are not historical facts,
including statements concerning CompoSecure’s possible or assumed
future actions, business strategies, events, or results of
operations, are forward-looking statements. In some instances,
these statements may be preceded by, followed by or include the
words “believes,” “estimates,” “expects,” “projects,” “forecasts,”
“may,” “will,” “should,” “seeks,” “plans,” “scheduled,”
“anticipates” or “intends” or the negatives of these terms or
variations of them or similar terminology. Forward-looking
statements are not guarantees of performance. You should not put
undue reliance on these statements which speak only as of the date
hereof. You should understand that the following important factors,
among others, could affect CompoSecure’s future results and could
cause those results or other outcomes to differ materially from
those expressed or implied in CompoSecure’s forward-looking
statements: the ability of CompoSecure to implement the
repurchase program as contemplated consistent with CompoSecure’s
strategic initiatives described above and the impact of the
repurchase program on CompoSecure; the ability of CompoSecure to
grow and manage growth profitably, maintain relationships with
customers, compete within its industry and retain its key
employees; the possibility that CompoSecure may be adversely
impacted by other global economic, business, competitive and/or
other factors; the outcome of any legal proceedings that may be
instituted against CompoSecure or others; future exchange and
interest rates; and other risks and uncertainties, including those
under “Risk Factors” in filings that have been made or
will be made with the Securities and Exchange Commission.
CompoSecure undertakes no obligations to update or revise publicly
any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
Use of Non-GAAP Financial MeasuresThis press
release includes certain non-GAAP financial measures that are not
prepared in accordance with accounting principles generally
accepted in the United States (“GAAP”) and that may be different
from non-GAAP financial measures used by other
companies. CompoSecure believes EBITDA, Adjusted EBITDA,
Adjusted Net Income, Adjusted EPS, and Free Cash Flow are
useful to investors in evaluating CompoSecure’s financial
performance. CompoSecure uses these measures internally
to establish forecasts, budgets and operational goals to manage and
monitor its business, as well as evaluate its underlying historical
performance and/or to measure incentive compensation, as we
believe that these non-GAAP financial measures depict the true
performance of the business by encompassing only relevant and
controllable events, enabling CompoSecure to evaluate and
plan more effectively for the future. Due to the forward-looking
nature of the financial guidance included above, specific
quantification of the charges excluded from the non-GAAP financial
measures included in such financial guidance, including with
respect to depreciation, amortization, interest, and taxes, that
would be required to reconcile the non GAAP financial measures
included in such financial guidance to GAAP measures are not
available, so it is not feasible to provide accurate forecasted
non-GAAP reconciliations without unreasonable effort. Consequently,
no disclosure of estimated comparable GAAP measures is included,
and no reconciliation of the forward looking non-GAAP financial
measures is included. In addition, CompoSecure’s debt
agreements contain covenants that use a variation of these measures
for purposes of determining debt covenant
compliance. CompoSecurebelieves that investors should have
access to the same set of tools that its management uses in
analyzing operating results. EBITDA, Adjusted EBITDA, Adjusted Net
Income, Adjusted EPS, and Free Cash Flow should not be
considered as measures of financial performance under U.S. GAAP,
and the items excluded from EBITDA, Adjusted EBITDA, Adjusted Net
Income, Adjusted EPS, and Free Cash Flow are significant
components in understanding and assessing CompoSecure’s
financial performance. Accordingly, these key business metrics have
limitations as an analytical tool. They should not be considered as
an alternative to net income or any other performance measures
derived in accordance with U.S. GAAP or as an alternative to cash
flows from operating activities as a measure of CompoSecure’s
liquidity and may be different from similarly titled non-GAAP
measures used by other companies. Please refer to the tables below
for the reconciliation of GAAP measures to these non-GAAP measures
for the year ended December 31, 2023.
Corporate ContactAnthony PiniellaHead of
Communications, CompoSecure(917)
208-7724apiniella@composecure.com
Investor Relations ContactSean Mansouri,
CFAElevate IR(720) 330-2829CMPO@elevate-ir.com
|
|
CompoSecure,
Inc. |
Condensed
Consolidated Balance Sheet Data |
(in
thousands) |
|
|
|
|
|
|
December 31, 2023 |
|
December 31, 2022 |
|
|
(unaudited) |
|
|
|
ASSETS |
|
|
|
|
Cash and cash equivalents |
$ |
41,216 |
|
|
$ |
13,642 |
|
|
Accounts
Receivable, net |
|
40,488 |
|
|
|
37,272 |
|
|
Inventories |
|
52,540 |
|
|
|
42,374 |
|
|
Prepaid
expenses and other current assets |
|
5,133 |
|
|
|
3,824 |
|
|
Property and
equipment, net |
|
25,212 |
|
|
|
22,655 |
|
|
Right of use
assets operating, net |
|
7,473 |
|
|
|
8,932 |
|
|
Deferred tax
asset |
|
23,697 |
|
|
|
25,569 |
|
|
Derivative
asset - interest rate swap |
|
5,258 |
|
|
|
8,651 |
|
|
Deposits and
other assets |
|
24 |
|
|
|
24 |
|
|
TOTAL ASSETS |
$ |
201,041 |
|
|
$ |
162,943 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current
portion of long-term debt |
$ |
10,313 |
|
|
$ |
14,372 |
|
|
Current
portion of lease liabilities |
|
1,948 |
|
|
|
1,846 |
|
|
Current
portion of tax receivable agreement liability |
|
1,425 |
|
|
|
2,367 |
|
|
Accounts
payable |
|
5,193 |
|
|
|
7,127 |
|
|
Accrued
expenses |
|
11,987 |
|
|
|
10,154 |
|
|
Commission
payable |
|
4,429 |
|
|
|
3,317 |
|
|
Bonus
payable |
|
5,616 |
|
|
|
8,177 |
|
|
Long-term
debt, net of deferred finance costs |
|
198,331 |
|
|
|
216,276 |
|
|
Convertible
notes, net of debt discount |
|
127,832 |
|
|
|
127,348 |
|
|
Derivative
liability - convertible notes |
|
425 |
|
|
|
285 |
|
|
Warrant
liability |
|
8,294 |
|
|
|
16,341 |
|
|
Earnout
consideration liability |
|
852 |
|
|
|
15,090 |
|
|
Lease
liabilities, operating |
|
6,220 |
|
|
|
7,766 |
|
|
Tax
receivable agreement liability |
|
23,949 |
|
|
|
24,475 |
|
|
Total
stockholders' (deficit) |
|
(205,773 |
) |
|
|
(291,998 |
) |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
201,041 |
|
|
$ |
162,943 |
|
|
|
|
|
|
|
CompoSecure,
Inc. |
Consolidated
Statements of Operations |
(in
thousands, except per share amounts) |
(unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net
sales |
$ |
99,900 |
|
|
$ |
93,790 |
|
|
$ |
390,629 |
|
|
$ |
378,476 |
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Cost of sales |
|
47,005 |
|
|
|
43,514 |
|
|
|
181,547 |
|
|
|
158,832 |
|
Selling, General and administrative |
|
22,368 |
|
|
|
25,425 |
|
|
|
89,995 |
|
|
|
104,749 |
|
Total operating expenses |
|
69,373 |
|
|
|
68,939 |
|
|
|
271,542 |
|
|
|
263,581 |
|
|
|
|
|
|
|
|
|
Income from
operations |
|
30,527 |
|
|
|
24,851 |
|
|
|
119,087 |
|
|
|
114,895 |
|
|
|
|
|
|
|
|
|
Total other
income (expense), net |
|
4,399 |
|
|
|
(1,872 |
) |
|
|
(2,011 |
) |
|
|
21,280 |
|
Income
before income taxes |
|
34,926 |
|
|
|
22,979 |
|
|
|
117,076 |
|
|
|
136,175 |
|
Income tax
(expense) benefit |
|
(3,901 |
) |
|
|
(622 |
) |
|
|
(4,556 |
) |
|
|
(4,360 |
) |
Net
income |
|
31,025 |
|
|
|
22,357 |
|
|
|
112,520 |
|
|
|
131,815 |
|
|
|
|
|
|
|
|
|
Net income
attributable to non-controlling interests |
|
27,730 |
|
|
|
20,113 |
|
|
|
93,281 |
|
|
|
113,158 |
|
Net income
attributable to CompoSecure, Inc |
$ |
3,295 |
|
|
$ |
2,244 |
|
|
$ |
19,239 |
|
|
$ |
18,657 |
|
|
|
|
|
|
|
|
|
Net income
per share attributable to Class A common stockholders -basic |
$ |
0.17 |
|
|
$ |
0.14 |
|
|
$ |
1.03 |
|
|
$ |
1.21 |
|
Net income
per share attributable to Class A common stockholders -
diluted |
$ |
0.17 |
|
|
$ |
0.14 |
|
|
$ |
0.96 |
|
|
$ |
1.13 |
|
|
|
|
|
|
|
|
|
Weighted
average shared used to compute net income per share attributable to
Class A common stockholders - basic (in thousands) |
|
19,375 |
|
|
|
16,059 |
|
|
|
18,661 |
|
|
|
15,372 |
|
Weighted
average shared used to compute net income per share attributable to
Class A common stockholders - diluted (in thousands) |
|
19,375 |
|
|
|
16,059 |
|
|
|
35,312 |
|
|
|
32,555 |
|
CompoSecure,
Inc. |
Consolidated
Statements of Cash Flows |
(in
thousands) |
(unaudited) |
|
|
|
|
|
|
Twelve Months Ended December 31, |
|
|
2023 |
|
2022 |
|
CASH FLOWS
FROM OPERATING ACTIVITES: |
|
|
|
|
Net income |
$ |
112,520 |
|
|
$ |
131,815 |
|
|
Adjustments to reconcile net income to net cash provided by
operating activities |
|
|
|
Depreciation |
|
8,387 |
|
|
|
8,575 |
|
|
Stock-based compensation expense |
|
17,562 |
|
|
|
11,465 |
|
|
Inventory reserve |
|
(1,182 |
) |
|
|
1,668 |
|
|
Amortization of deferred finance costs |
|
1,546 |
|
|
|
2,345 |
|
|
Change in fair value of earnout consideration liability |
|
(14,237 |
) |
|
|
(23,337 |
) |
|
Revaluation of warrant liability |
|
(8,047 |
) |
|
|
(18,930 |
) |
|
Change in fair value of derivative liability |
|
139 |
|
|
|
(266 |
) |
|
Deferred tax (benefit) expense |
|
2,667 |
|
|
|
3,193 |
|
|
Changes in
assets and liabilities |
|
|
|
|
Accounts receivable |
|
(3,216 |
) |
|
|
(9,347 |
) |
|
Inventories |
|
(8,984 |
) |
|
|
(18,237 |
) |
|
Prepaid expenses and other assets |
|
(1,309 |
) |
|
|
(1,228 |
) |
|
Accounts payable |
|
(1,934 |
) |
|
|
68 |
|
|
Deposits and other assets |
|
- |
|
|
|
(14 |
) |
|
Accrued expenses |
|
1,833 |
|
|
|
23 |
|
|
Other liabilities |
|
(1,433 |
) |
|
|
4,990 |
|
|
Net cash provided by operating activities |
|
104,312 |
|
|
|
92,783 |
|
|
CASH FLOWS
FROM INVESTING ACTIVITIES: |
|
|
|
|
Acquisition of property and equipment |
|
(10,944 |
) |
|
|
(9,053 |
) |
|
Net cash used in investing activities |
|
(10,944 |
) |
|
|
(9,053 |
) |
|
CASH FLOWS
FROM FINANCING ACTIVITIES: |
|
|
|
|
Proceeds from employee stock purchase plan and exercise of equity
awards |
|
1,196 |
|
|
|
82 |
|
|
Payments for taxes related to net share settlement of equity
awards |
|
(3,126 |
) |
|
|
- |
|
|
Payment of line of credit |
|
- |
|
|
|
(15,000 |
) |
|
Payment of Tax receivable agreement liability |
|
(2,436 |
) |
|
|
(110 |
) |
|
Deferred finance costs related to debt modification |
|
(256 |
) |
|
|
- |
|
|
Payment of term loan |
|
(22,810 |
) |
|
|
(16,878 |
) |
|
Distributions |
|
(38,362 |
) |
|
|
(36,293 |
) |
|
Payment of issuance cost
related to business combination |
|
- |
|
|
|
(23,833 |
) |
|
Net cash used in financing activities |
|
(65,794 |
) |
|
|
(92,032 |
) |
|
Net increase
(decrease) in cash and cash equivalents |
|
27,574 |
|
|
|
(8,302 |
) |
|
Cash and cash equivalents, beginning of period |
|
13,642 |
|
|
|
21,944 |
|
|
Cash and
cash equivalents, end of period |
$ |
41,216 |
|
|
$ |
13,642 |
|
|
|
|
|
|
|
Supplementary disclosure of cash flow information |
|
|
|
|
Cash
paid for interest expense |
|
27,247 |
|
|
|
21,379 |
|
|
Cash
paid for income taxes |
|
2,760 |
|
|
|
858 |
|
|
Supplemental
disclosure of non-cash financing activity: |
|
|
|
|
Derivative asset - interest rate swap |
|
5,258 |
|
|
|
8,651 |
|
|
|
|
|
|
|
CompoSecure,
Inc. |
Non-GAAP
Adjusted EBITDA Reconciliation |
(in
thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net income |
|
$ |
31,025 |
|
|
$ |
22,357 |
|
|
$ |
112,520 |
|
|
$ |
131,815 |
|
Add: |
|
|
|
|
|
|
|
|
Depreciation |
|
|
2,138 |
|
|
|
1,998 |
|
|
|
8,387 |
|
|
|
8,575 |
|
Interest
expense, net (1) |
|
|
5,800 |
|
|
|
6,182 |
|
|
|
24,156 |
|
|
|
22,544 |
|
Income tax
expense (benefit) |
|
|
3,901 |
|
|
|
622 |
|
|
|
4,556 |
|
|
|
4,360 |
|
EBITDA |
|
$ |
42,864 |
|
|
$ |
31,159 |
|
|
$ |
149,619 |
|
|
$ |
167,294 |
|
Stock-based
compensation |
|
|
4,510 |
|
|
|
3,730 |
|
|
|
17,562 |
|
|
|
11,465 |
|
Mark to
market adjustments (2) |
|
|
(10,198 |
) |
|
|
(4,310 |
) |
|
|
(22,145 |
) |
|
|
(42,533 |
) |
Adjusted
EBITDA |
|
$ |
37,176 |
|
|
$ |
30,579 |
|
|
$ |
145,036 |
|
|
$ |
136,226 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
amortization of deferred financing cost for the three and twelve
months ended December 31, 2023 and 2022, respectively. |
(2) Includes the
changes in fair value of warrant liability, derivative liabilities
and earnout consideration liability for the three and twelve months
ended December 30, 2023 and 2022, respectively |
|
|
|
|
|
|
|
|
|
CompoSecure,
Inc. |
Non-GAAP
Adjusted EPS Reconciliation |
(in
thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
(in thousands) except per share amounts |
Basic and
Diluted: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
31,025 |
|
|
$ |
22,357 |
|
|
$ |
112,520 |
|
|
$ |
131,815 |
|
Add:
provision for income taxes |
|
|
3,901 |
|
|
|
622 |
|
|
|
4,556 |
|
|
|
4,360 |
|
Income
before Income taxes |
|
|
34,926 |
|
|
|
22,979 |
|
|
|
117,076 |
|
|
|
136,175 |
|
Income tax
expense (1) |
|
|
(6,399 |
) |
|
|
(4,784 |
) |
|
|
(24,403 |
) |
|
|
(22,423 |
) |
Adjusted net
income before adjustments |
|
|
28,527 |
|
|
|
18,195 |
|
|
|
92,673 |
|
|
|
113,752 |
|
(Less):
mark-to-market adjustments (2) |
|
|
(9,974 |
) |
|
|
(4,227 |
) |
|
|
(22,284 |
) |
|
|
(42,267 |
) |
Add:
stock-based compensation |
|
|
4,510 |
|
|
|
3,730 |
|
|
|
17,562 |
|
|
|
11,465 |
|
Adjusted net
income |
|
$ |
23,063 |
|
|
$ |
17,698 |
|
|
$ |
87,951 |
|
|
$ |
82,950 |
|
Common
shares outstanding used in computing earnings per share,
basic: |
|
|
|
|
|
|
|
|
Class A and
Class B common shares (3) |
|
|
79,334 |
|
|
|
76,384 |
|
|
|
78,619 |
|
|
|
75,697 |
|
Common
shares outstanding used in computing earnings per share,
diluted: |
|
|
|
|
|
|
|
|
Warrants
(Public and Private) (4) |
|
|
8,094 |
|
|
|
8,094 |
|
|
|
8,094 |
|
|
|
8,094 |
|
Equity
awards |
|
|
2,988 |
|
|
|
3,859 |
|
|
|
3,651 |
|
|
|
4,183 |
|
Total Shares
outstanding used in computing adjusted earnings per share -
diluted |
|
|
90,416 |
|
|
|
88,337 |
|
|
|
90,364 |
|
|
|
87,974 |
|
|
|
|
|
|
|
|
|
|
Adjusted net
income per share- basic |
|
$ |
0.29 |
|
|
$ |
0.23 |
|
|
$ |
1.12 |
|
|
$ |
1.10 |
|
Adjusted net
income per share- diluted |
|
$ |
0.26 |
|
|
$ |
0.20 |
|
|
$ |
0.97 |
|
|
$ |
0.94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) Calculated using
the Company's blended tax
rate. |
2) Includes the
changes in fair value of warrant liability and earnout
consideration liability. |
3) Assumes both Class
A shares and Class B shares participate in earnings and are
outstanding at the end of the period. |
4) Assumes treasury
stock method, valuation at assumed fair market value of
$18.00. |
5) The Company did not
include the effect of Exchangeable Notes to its total shares
outstanding used in diluted adjusted net income per share. |
|
|
|
|
|
|
|
|
|
CompoSecure (NASDAQ:CMPO)
Historical Stock Chart
From Jun 2024 to Jul 2024
CompoSecure (NASDAQ:CMPO)
Historical Stock Chart
From Jul 2023 to Jul 2024