CompoSecure Inc (CMPO) 2022 Q4 法說會逐字稿

Good day, and thank you for standing by. Welcome to the CompoSecure fourth-quarter and full-year 2022 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Steve Feder, General Counsel and Corporate Secretary. Please go ahead.

美好的一天，謝謝你的支持。歡迎來到 CompoSecure 第四季度和 2022 年全年收益電話會議。 （操作員說明）請注意，今天的會議正在錄製中。現在，我想將會議交給今天的發言人，總法律顧問兼公司秘書史蒂夫·費德 (Steve Feder)。請繼續。

Good evening, and thank you for joining us to review CompoSecure's fourth-quarter and full-year 2022 financial results. With me on the call tonight is Jon Wilk, CompoSecure's Chief Executive Officer; and Tim Fitzsimmons, Chief Financial Officer. They will begin with prepared remarks, and then we will open the call for Q&A.

晚上好，感謝您與我們一起回顧 CompoSecure 的第四季度和 2022 年全年財務業績。今晚與我通話的是 CompoSecure 的首席執行官喬恩·威爾克 (Jon Wilk)；首席財務官蒂姆·菲茨西蒙斯 (Tim Fitzsimmons)。他們將從準備好的評論開始，然後我們將開啟問答環節。

During the call, we will make statements related to our business that may be considered forward looking, including statements concerning our plans to execute on our growth strategy and our ability to maintain existing and acquire new customers, as well as other statements regarding our plans and prospects.

在電話會議期間，我們將發表與我們的業務相關的可能被視為前瞻性的聲明，包括關於我們執行增長戰略的計劃和我們維持現有客戶和獲得新客戶的能力的聲明，以及關於我們的計劃和前景。

Forward-looking statements may often be identified with words such as we expect, we anticipate, or upcoming. These statements reflect our views only as of today and should not be considered our views as of any subsequent date. We undertake no obligation to update or revise these forward-looking statements. Forward-looking statements are not promises or guarantees of future performance, and are subject to a variety of risks and uncertainties that could cause the actual results to differ materially from our expectations.

前瞻性陳述通常可以用我們預期、我們預期或即將到來等詞語來識別。這些聲明僅反映我們截至今天的觀點，不應被視為我們在任何後續日期的觀點。我們不承擔更新或修改這些前瞻性陳述的義務。前瞻性陳述不是對未來業績的承諾或保證，受各種風險和不確定性的影響，這些風險和不確定性可能導致實際結果與我們的預期存在重大差異。

For a discussion of material risks and other important factors that could affect our actual results, please refer to the information in our annual report on Form 10-K and other reports filed with the SEC, which are available on the Investor Relations section of our website at composecure.com and on the SEC's website at sec.gov.

有關可能影響我們實際結果的重大風險和其他重要因素的討論，請參閱我們向美國證券交易委員會提交的 10-K 表格年度報告和其他報告中的信息，這些信息可在我們網站的投資者關係部分獲得在 composecure.com 和美國證券交易委員會的網站 sec.gov 上。

Please note that the discussion on today's call includes certain non-GAAP financial measures, including adjusted EBITDA, adjusted net income, and adjusted EPS. The company believes these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends impacting the company's financial condition and results of operations.

請注意，今天電話會議的討論包括某些非 GAAP 財務指標，包括調整後的 EBITDA、調整後的淨收入和調整後的每股收益。公司認為，這些非 GAAP 財務措施為管理層和投資者提供了有關影響公司財務狀況和經營業績的某些財務和業務趨勢的有用信息。

These non-GAAP financial measures should not be considered as an alternative to net income or any other performance measures derived in accordance with US GAAP, and may be different from similarly titled non-GAAP measures used by other companies. A reconciliation of GAAP to non-GAAP measures is available in our press release and earnings presentation available on the Investor Relations section of our website.

這些非 GAAP 財務指標不應被視為淨收入或根據美國 GAAP 得出的任何其他績效指標的替代方法，並且可能不同於其他公司使用的類似名稱的非 GAAP 指標。 GAAP 與非 GAAP 措施的對賬可在我們網站投資者關係部分的新聞稿和收益報告中找到。

Thank you. And with that said, let me turn the call over to Jon to discuss fourth-quarter and full-year earnings.

謝謝。話雖如此，讓我把電話轉給喬恩討論第四季度和全年收益。

Thank you, Steve. Good evening, everyone, and thank you for joining us for our fourth-quarter and full-year 2022 conference call. I'm excited to announce that we achieved a record of growth and profitability in 2022 while closing out the year on a high note with strong results for the fourth quarter. This year, we shipped approximately 30 million metal cards, up 36% from 2021. And I want to recognize and thank all of our employees for their ongoing commitment to our success.

謝謝你，史蒂夫。大家晚上好，感謝您加入我們的 2022 年第四季度和全年電話會議。我很高興地宣布，我們在 2022 年實現了創紀錄的增長和盈利能力，同時以第四季度的強勁業績結束了這一年。今年，我們出貨了大約 3000 萬張金屬卡，比 2021 年增長了 36%。我要表彰並感謝我們所有的員工，他們一直致力於我們的成功。

Before I go into further financial details, I want to spend a few moments contextualizing this remarkable year for CompoSecure with 41% net sales growth and 33% adjusted EBITDA, respectively. We've previously stated that we anticipate our business to grow on average at around a 15% CAGR. And I believe last year's outperformance was driven by our ability to capitalize on several fundamentals.

在詳細介紹財務細節之前，我想花一些時間來了解一下 CompoSecure 這一非凡的一年，分別實現了 41% 的淨銷售額增長和 33% 的調整後 EBITDA 。我們之前曾表示，我們預計我們的業務將以平均 15% 左右的複合年增長率增長。我相信去年的出色表現是由我們利用幾個基本面的能力推動的。

First, metal payment cards have become an important tool to help our clients deliver on their goals of increasing customer acquisition and taking greater share of their customers' spend, with the cards becoming top of wallet. Over the past eight years, the audience for metal cards has greatly expanded, beginning with high-net-worth individuals, moving to the mass affluent, and now becoming a highly sought-after product for millennial and Gen Z consumers.

首先，金屬支付卡已成為幫助我們的客戶實現增加客戶獲取和在客戶支出中佔據更大份額的目標的重要工具，卡成為錢包的首選。在過去的八年裡，金屬卡的消費群體大幅擴大，從高淨值人群開始，向大眾富裕人群轉移，現在成為千禧一代和 Z 世代消費者追捧的產品。

Second, we continue to demonstrate the value of our deep client relationships, best-in-class products, and strong sales execution. These factors, combined with our capacity to deliver the scale and high quality required by our clients, is simply unmatched.

其次，我們繼續展示我們深厚的客戶關係、一流的產品和強大的銷售執行力的價值。這些因素，再加上我們提供客戶所需的規模和高質量的能力，簡直是無與倫比的。

Lastly, following two years of COVID, there was pent-up demand for consumer spending, which provided a tailwind for our clients, and thus our own business. It's worth noting that we see consumers around the world demanding branded experiences that support and amplify their own identity. Our financial and fintech clients are turning to CompoSecure to incorporate innovative form factors as a component of the unique value proposition they can deliver to their customers.

最後，在 COVID 兩年之後，消費者支出的需求被壓抑，這為我們的客戶提供了順風，從而為我們自己的業務提供了動力。值得注意的是，我們看到世界各地的消費者都需要品牌體驗來支持和擴大他們自己的身份。我們的金融和金融科技客戶正在轉向 CompoSecure，將創新的外形因素作為他們可以提供給客戶的獨特價值主張的組成部分。

Now onto our financial results on slide 3. As a reminder, our original guidance for 2022 was $336 million to $376 million in revenue, and $100 million to $110 million in EBITDA. We raised guidance in August and November, with our last range being net sales of $370 million to $380 million, and adjusted EBITDA of $130 million to $137 million. I'm pleased to share that we achieved the top end of both ranges.

現在轉到幻燈片 3 上的財務結果。提醒一下，我們對 2022 年的最初指導是收入 3.36 億美元至 3.76 億美元，EBITDA 為 1 億美元至 1.1 億美元。我們在 8 月和 11 月提高了指引，我們的最後一個範圍是淨銷售額 3.7 億美元至 3.8 億美元，調整後的 EBITDA 為 1.3 億美元至 1.37 億美元。我很高興地分享我們達到了兩個範圍的頂端。

During the year, we achieved net sales of $378.5 million, up 41% from 2021, firmly meeting our raised guidance last year. Demand remains strong for our premium metal cards, and we continue to see solid sales trends domestically, internationally, and with fintech customers.

這一年，我們實現了 3.785 億美元的淨銷售額，比 2021 年增長 41%，完全達到了我們去年提出的指導方針。對我們優質金屬卡的需求依然強勁，我們繼續看到國內、國際和金融科技客戶的穩健銷售趨勢。

We also saw a 33% increase in adjusted EBITDA to $136.2 million. Our outperformance on the top and bottom line in 2022 was exceptional, driven by continued product innovation, deep and expanding customer relationships, consistent (technical difficulty) execution, economies of scale, and managing our investments in Arculus.

我們還看到調整後的 EBITDA 增長了 33%，達到 1.362 億美元。在持續的產品創新、深入和擴大的客戶關係、一致的（技術難度）執行、規模經濟以及管理我們對 Arculus 的投資的推動下，我們在 2022 年的收入和利潤表現出色。

Looking at macro drivers, the outlook for the economy is uncertain in 2023, and that has been factored into our guidance for the year. That said, card issuance trends remain positive as we enter the year. Regardless of how the macro environment evolves in 2023, we are well equipped to adapt our playbook accordingly as demonstrated by our performance in 2020, when faced with significant challenges due to COVID, and our adjustments to Arculus spend in 2022 given the challenges in the digital asset market to deliver strong results for shareholders in both cases.

從宏觀驅動因素來看，2023 年經濟前景不明朗，這已被納入我們今年的指導方針。也就是說，隨著我們進入今年，發卡趨勢依然積極。無論 2023 年的宏觀環境如何演變，我們都具備相應的能力來調整我們的劇本，正如我們在 2020 年的表現所證明的那樣，當時我們面臨著 COVID 帶來的重大挑戰，以及我們在 2022 年鑑於數字領域的挑戰對 Arculus 支出的調整在這兩種情況下，資產市場都能為股東帶來強勁的業績。

Regarding Arculus, in 2022, we established critical foundational elements, including technology enhancements and brand recognition required for arduous B2B security, authentication, and cold storage solutions. We emphatically believe in the product and continue to focus on B2B opportunities in authentication and cold storage to drive market adoption. I'll have more to discuss on Arculus later in the call.

關於 Arculus，我們在 2022 年建立了關鍵的基礎要素，包括艱鉅的 B2B 安全、身份驗證和冷存儲解決方案所需的技術增強和品牌知名度。我們堅信該產品，並繼續關注身份驗證和冷存儲方面的 B2B 機會，以推動市場採用。我將在稍後的電話會議中就 Arculus 進行更多討論。

For the upcoming year, we're providing net sales guidance of $400 million to $425 million, which is approximately a 12% increase from 2022 at the top end. For adjusted EBITDA, we're targeting a range between $145 million to $155 million, which is approximately 14% growth at the top end.

對於來年，我們將提供 4 億至 4.25 億美元的淨銷售額指導，與 2022 年相比增長約 12%。對於調整後的 EBITDA，我們的目標範圍在 1.45 億美元至 1.55 億美元之間，即高端增長約 14%。

These targets reflect the expectation of continued sales execution and driving economies of scale in our metal card business, as well as a net investment in Arculus which would be below our net Arculus investment in 2022. These expectations also consider some moderation of growth due to uncertainties in the macro environment. It's worth pointing out that our growth expectations for 2023 are on top of a revenue comp of 41% and an adjusted EBITDA comp of 33% in 2022.

這些目標反映了對我們金屬卡業務的持續銷售執行和推動規模經濟的預期，以及對 Arculus 的淨投資將低於我們在 2022 年對 Arculus 的淨投資。這些預期還考慮了由於不確定性導致的增長放緩在宏觀環境中。值得指出的是，我們對 2023 年的增長預期是在 2022 年 41% 的收入和 33% 的調整後 EBITDA 基礎之上的。

Moving onto slide 4, along with our record growth and profitability, we also shipped approximately 30 million cards through the year. We continue to deepen partnerships with our customers as reflected by the launch of multiple new metal card programs, such as Chase launching Disney's 100-year celebration card and Marriott Bonvoy returning to the metal card format for their popular Bonvoy travel-focused reward card.

轉到幻燈片 4，隨著我們創紀錄的增長和盈利能力，我們全年還出貨了大約 3000 萬張卡片。我們繼續深化與客戶的合作夥伴關係，這體現在推出多個新的金屬卡計劃，例如大通推出迪士尼 100 週年慶典卡和萬豪 Bonvoy 為其廣受歡迎的 Bonvoy 旅行獎勵卡回歸金屬卡格式。

For Capital One, we had Venture X where we continue to see strong momentum through co-branding with celebrities such as Taylor Swift, and they had a commercial which aired during the Super Bowl; and the rebranding of Capital One Spark Travel Elite to Venture X business card, highlighting a new design.

對於 Capital One，我們有 Venture X，通過與 Taylor Swift 等名人的聯合品牌，我們繼續看到強勁的勢頭，他們有一個在超級碗期間播出的廣告； Capital One Spark Travel Elite 更名為 Venture X 名片，突出了新設計。

We also had some other exciting launches during the quarter. We had Porsche, the German luxury and sports car manufacturer; AKT is a financial institution operating in the British Indian Ocean territories that's offering a Visa metal card to support payment or essential services with crypto; and CloudWalk or Infinite Bank, which is a Brazilian fintech, offering a metal card as part of their smart loyalty reward program for shoppers and merchants. Just as a few of the examples on the page.

我們在本季度還推出了其他一些令人興奮的產品。我們有德國豪華跑車製造商保時捷； AKT 是一家在英屬印度洋地區運營的金融機構，提供 Visa 金屬卡以支持加密支付或基本服務； CloudWalk 或 Infinite Bank，這是一家巴西金融科技公司，提供金屬卡作為其面向購物者和商家的智能忠誠度獎勵計劃的一部分。就像頁面上的一些示例一樣。

Turning to slide 5. On the left-hand side, you'll see that our largest customers continue to report solid purchase volume growth. Although this growth has tempered over the past several quarters, it remains in the double digits and is well above 2020 levels. It's worth noting that these are year-over-year comps. So hitting double-digit growth against a 30% comp in Q4 remains very impressive from our standpoint.

轉到幻燈片 5。在左側，您會看到我們最大的客戶繼續報告穩定的購買量增長。儘管這種增長在過去幾個季度有所緩和，但仍保持兩位數並且遠高於 2020 年的水平。值得注意的是，這些是同比比較。因此，從我們的角度來看，第四季度實現兩位數的增長和 30% 的增長仍然非常令人印象深刻。

Overall, we continue to hear positive messages from our clients: card issuers are finding that their fee-based products remain attractive for both new and existing consumers, and that travel and entertainment remain one of the strongest segments of consumer spend.

總體而言，我們繼續從客戶那裡聽到積極的信息：發卡機構發現他們的收費產品對新老消費者仍然具有吸引力，並且旅遊和娛樂仍然是消費者支出中最強勁的部分之一。

Moving to the right-hand side of the slide, physical cards continue to represent a significantly higher percentage of online and in-store forms of payments. This trend reinforces our belief that payment cards will remain the primary transacting method for consumers.

移動到幻燈片的右側，實體卡繼續代表在線和店內支付形式的更高百分比。這一趨勢強化了我們的信念，即支付卡仍將是消費者的主要交易方式。

On slide 6, you can see that American Express continued to report strong card acquisitions of 3 million new customers for the quarter and 12.5 million new card acquisitions for the year. In their recent Q4 earnings report, they stated that acquisitions of US consumer Platinum and Gold card members as well as Business Platinum card members all reached record highs for the year. Although Amex's Q4 new card acquisitions are lower than Q2 and Q3, they remain above 2020 and 2021 levels.

在幻燈片 6 中，您可以看到美國運通繼續報告本季度 300 萬新客戶和 1250 萬新卡收購的強勁卡收購。在他們最近的第四季度財報中，他們表示，美國消費者白金卡和金卡會員以及商務白金卡會員的收購均創下了今年的歷史新高。雖然美國運通Q4的新卡獲取量低於Q2和Q3，但仍高於2020年和2021年的水平。

We remain encouraged by the strong numbers and American Express's continued commitment to invest in marketing and business development growth as they exceeded their $5 billion marketing and business development spend target for 2022. This is all publicly available information, and we update this chart every quarter to provide insight into our customers' guidance.

我們仍然對強勁的數字和美國運通繼續致力於投資營銷和業務發展增長感到鼓舞，因為他們超過了 2022 年 50 億美元的營銷和業務發展支出目標。這些都是公開信息，我們每個季度都會更新此圖表以深入了解我們客戶的指導。

On slide 7, you can see the positive macro-economic sentiment expressed recently by a number of our large customers and partners, and the general view remains positive but cautious.

在幻燈片 7 中，您可以看到我們的一些大客戶和合作夥伴最近表達了積極的宏觀經濟情緒，總體觀點仍然是積極但謹慎的。

On slide 8, I want to discuss some of our new and exciting product innovations and security enhancements. Our DNA has always been about innovation and growth. In 2022, we had some very unique offerings such as an American Express Delta card made from a decommissioned 747 airplane. Going into 2023, it will be no different. Some of our recent advances include an LED card, which will eliminate the bank's logo when a contactless transaction is completed; we're currently in pilot with US Bank. We also expect to be the first to manufacture the Lux Glass card, a transparent payment card made of Corning Gorilla Glass that has a metal bezel.

在幻燈片 8 上，我想討論一些令人興奮的新產品創新和安全增強功能。我們的 DNA 始終與創新和增長有關。 2022 年，我們推出了一些非常獨特的產品，例如用退役的 747 飛機製作的美國運通達美卡。進入 2023 年，也不會有什麼不同。我們最近的一些進步包括 LED 卡，當非接觸式交易完成時，它將消除銀行的標誌；我們目前正在美國銀行進行試點。我們還希望率先製造 Lux Glass 卡，這是一種由康寧大猩猩玻璃製成的透明支付卡，帶有金屬邊框。

We added the Echo Mirror card to our portfolio, which is a durable, buffed stainless steel card featuring a wide variety of customization options with a mirror-like finish. We are also introducing a biometric card which includes a fingerprint sensor to verify transactions at the point-of-sale terminal, eliminating the need to physically type in a PIN. This delivers both an improved experience and enhanced security at the point of a transaction. And finally, we're adding a new dynamic CVV technology on metal cards as an added security feature.

我們將 Echo Mirror 卡添加到我們的產品組合中，這是一種耐用的拋光不銹鋼卡，具有多種定制選項，並具有鏡面效果。我們還推出了一種生物識別卡，其中包含指紋傳感器，可在銷售點終端驗證交易，無需實際輸入 PIN。這在交易點提供了改進的體驗和增強的安全性。最後，我們在金屬卡上添加了新的動態 CVV 技術作為附加的安全功能。

On slide 9, I want to switch gears to Arculus. I think it's important to provide further context on the Arculus value proposition for those newer to our story. Arculus is a security and authentication platform that has broad applicability across many areas and industries. The first application for us was a digital asset cold storage wallet for both B2B and B2C. At its core, Arculus' authentication capabilities can deliver secure login or step-up authentication, incorporating seamless multifactor authentication.

在幻燈片 9 上，我想切換到 Arculus。我認為為我們故事的新人提供有關 Arculus 價值主張的更多背景信息很重要。 Arculus 是一個安全和身份驗證平台，在許多領域和行業具有廣泛的適用性。我們的第一個應用是B2B和B2C的數字資產冷錢包。 Arculus 的身份驗證功能的核心是可以提供安全登錄或升級身份驗證，並結合無縫的多因素身份驗證。

Think about how you log into your bank account: it's with a password which is a growing security concern for organizations. Since 2017, there were over 500 million passwords stolen, and 81% of hacking-related breaches used stolen passwords and/or weak passwords. While many institutions offer some additional security for their customers in the form of YubiKeys or SMS codes, we don't believe those methods are the best way to evolve security and deliver great customer experiences. The synergy with our metal card business is that we can add functionality to a metal payment card, making that same physical card and authentication token to store private keys and ensure user authentication.

想一想您如何登錄您的銀行帳戶：它使用密碼，這是組織日益關注的安全問題。自 2017 年以來，有超過 5 億個密碼被盜，81% 的黑客相關違規行為使用了被盜密碼和/或弱密碼。雖然許多機構以 YubiKey 或 SMS 代碼的形式為其客戶提供一些額外的安全保護，但我們認為這些方法並不是提升安全性和提供出色客戶體驗的最佳方式。與我們的金屬卡業務的協同作用是我們可以為金屬支付卡添加功能，製作相同的物理卡和身份驗證令牌來存儲私鑰並確保用戶身份驗證。

So let's say a bank or a fintech wants to authenticate a user for login purposes or for high-value or riskier transactions. With Arculus secure multifactor authentication, all the customer would have to do is tap their payment card to the back of their phone and use their biometric and/or a unique six-digit PIN that's different than your phone.

因此，假設一家銀行或一家金融科技公司想要對用戶進行身份驗證以用於登錄目的或進行高價值或高風險交易。借助 Arculus 安全多因素身份驗證，客戶所要做的就是將他們的支付卡輕觸手機背面，並使用他們的生物識別和/或與手機不同的唯一六位數 PIN。

Turning to the chart on slide 10, you can see that consumers prefer authentication processes that are simple and seamless, but the most common used form today still remains passwords. We offer a frictionless security and an easy-to-use form factor that everyone carries, knows how to use, and has with them all the time. We think this can deliver big value for our clients, and believe the market opportunity for secure authentication is just as big or even greater than the opportunities within the digital asset market.

轉到幻燈片 10 上的圖表，您可以看到消費者更喜歡簡單無縫的身份驗證過程，但如今最常用的形式仍然是密碼。我們提供無摩擦的安全性和易於使用的外形尺寸，每個人都可以隨身攜帶、知道如何使用並隨身攜帶。我們認為這可以為我們的客戶帶來巨大價值，並且相信安全認證的市場機會與數字資產市場中的機會一樣大，甚至更大。

Moving on to some Arculus highlights for the year on slide 11. We are initiating a payment plus authentication pilot in partnership with a banking-as-a-service provider from global crypto exchange with over 1 million cardholders.

轉到幻燈片 11 上的 Arculus 今年的一些亮點。我們正在與全球加密貨幣交易所的銀行即服務提供商合作，啟動支付加身份驗證試點，擁有超過 100 萬持卡人。

In addition, CoinZoom, a US-based crypto exchange with customers in 194 countries, announced a partnership with Visa last year and will leverage their partnership to allow customers to convert crypto and send their fiat to eligible debit cards in real time. They plan to combine their current metal payment card, which we provide, with FIDO2 authentication capabilities.

此外，總部位於美國、客戶遍及 194 個國家/地區的加密貨幣交易所 CoinZoom 去年宣布與 Visa 建立合作夥伴關係，並將利用他們的合作夥伴關係，允許客戶轉換加密貨幣並將其法定貨幣實時發送到符合條件的借記卡。他們計劃將我們提供的當前金屬支付卡與 FIDO2 身份驗證功能相結合。

Meld is working with CompoSecure to issue a metal debit card that will double as a cold wallet. The Meld branded debit card provides a safe and easy way to store a crypto and NFTs, while interacting with the world of DeFi.

Meld 正在與 CompoSecure 合作發行一種金屬借記卡，它可以兼作冷錢包。 Meld 品牌借記卡提供了一種安全簡便的方式來存儲加密貨幣和 NFT，同時與 DeFi 世界互動。

In addition, we'll be partnering with IC Payments, a fintech program manager, and h-way, a financial platform that provides banking services. They will launch two separate programs this year: the first, a debit card powered by Arculus authentication which enables their customers to tap their cards to their mobile phones to authenticate as a way to enable money transfers; and two, a payment card plus Arculus cold storage, which will provide customers with a safe and easy way to store their digital assets.

此外，我們將與金融科技項目經理 IC Payments 和提供銀行服務的金融平台 h-way 合作。他們今年將推出兩個獨立的項目：第一個，由 Arculus 身份驗證提供支持的借記卡，使他們的客戶能夠將他們的卡輕觸他們的手機進行身份驗證，作為一種實現匯款的方式；二是支付卡加Arculus冷庫，為客戶提供安全便捷的數字資產存儲方式。

These opportunities, in addition to continuing to advance our work with clients like InBestGo and Chainge, continue to demonstrate the strength and capabilities of the Arculus platform.

這些機會，除了繼續推進我們與 InBestGo 和 Chainge 等客戶的合作之外，還繼續展示了 Arculus 平台的實力和能力。

As you turn to slide 12, you can see how some of the customers I just mentioned are now actively marketing and promoting Arculus as their cold storage wallet, including Chainge, InBestGo, and Meld.

當你翻到幻燈片 12 時，你可以看到我剛才提到的一些客戶現在如何積極營銷和推廣 Arculus 作為他們的冷藏錢包，包括 Chainge、InBestGo 和 Meld。

With that, I'll hand it over to Tim for a deeper discussion on our financials before returning for closing remarks.

有了這個，我將把它交給蒂姆，以便在返回結束語之前對我們的財務進行更深入的討論。

Thanks, Jon, and good evening, everyone. I'll provide a more detailed overview of our 2022 financial performance, and then turn it back to Jon before we open up the call for questions. Unless stated otherwise, all of the comparisons and variance in commentary is on a year-over-year basis.

謝謝，喬恩，大家晚上好。我將更詳細地概述我們 2022 年的財務業績，然後在我們開始提問之前將其轉回給喬恩。除非另有說明，否則評論中的所有比較和差異均基於同比。

As Jon mentioned, for the full-year 2022, net sales increased 41% to $378.5 million compared to $268 million. The increase was driven by continued strong sales execution and growth of our metal card business, domestically and abroad, for both new and existing customers.

正如喬恩所說，2022 年全年，淨銷售額從 2.68 億美元增長 41% 至 3.785 億美元。這一增長是由持續強勁的銷售執行力和我們的金屬卡業務在國內外為新老客戶帶來的增長所推動的。

Gross profit for 2022 increased 52% to $220 million, or 58% of net sales, compared to $145 million or 54% of net sales. Throughout the year, we benefited from higher card issuance volumes as well as operating efficiencies as we scaled business, which was partially offset by higher supply chain costs in the back half of the year versus the first half.

2022 年毛利增長 52% 至 2.2 億美元，占淨銷售額的 58%，而 1.45 億美元或占淨銷售額的 54%。全年，隨著業務規模的擴大，我們受益於更高的發卡量和運營效率，這部分被下半年與上半年相比更高的供應鏈成本所抵消。

Net income for 2022 increased 58% to $132 million, compared to $83 million; and adjusted EBITDA increased 33% to $136 million, compared to $102 million. The increase was driven by continued strong growth on the top line, gross margin expansion, and increases from revaluation of the earnout and the warrants.

與 8300 萬美元相比，2022 年的淨收入增長 58% 至 1.32 億美元；調整後的 EBITDA 增長 33% 至 1.36 億美元，高於 1.02 億美元。這一增長是由營收持續強勁增長、毛利率擴張以及收益和認股權證重估帶來的增長推動的。

Adjusted EBITDA margin for the year came in at 36% compared to 38%, with a decrease driven by a combination of factors, including public company costs, a one-time settlement of a dispute through arbitration which has been consistently disclosed in our quarterly filings, and continued investment in the Arculus platform.

本年度調整後的 EBITDA 利潤率為 36%，高於 38%，下降的原因是多種因素，包括上市公司成本、通過仲裁一次性解決爭議，這在我們的季度文件中一直得到披露，並繼續投資 Arculus 平台。

As Jon mentioned earlier, the net impact from Arculus revenue and investments was minus $21 million for all of 2022 and in line with our latest guidance issued last year, and significantly lower than the $33 million in our original projections. This reflects our continued commitment to driving profit while prudently managing our investments.

正如 Jon 之前提到的，Arculus 收入和投資的淨影響在 2022 年全年為負 2100 萬美元，這與我們去年發布的最新指南一致，但遠低於我們最初預測的 3300 萬美元。這反映了我們在審慎管理投資的同時繼續致力於推動利潤。

Turning to our balance sheet, on December 31, 2022, we had cash and cash equivalents of $14 million, and total debt of $363 million, which includes approximately $233 million of term loan and $130 million of exchangeable notes. This results in a total net debt of $349 million.

轉到我們的資產負債表，截至 2022 年 12 月 31 日，我們的現金和現金等價物為 1400 萬美元，總債務為 3.63 億美元，其中包括約 2.33 億美元的定期貸款和 1.3 億美元的可交換票據。這導致淨債務總額為 3.49 億美元。

We want to provide both our overall debt leverage ratio and our bank agreement secured debt leverage ratio as our bank agreement is calculated with slight differences. At December 31, our overall leverage ratio improved to 2.6 times based on net debt of $349 million and trailing 12-month adjusted EBITDA of $136 million. This compares to 3.6 times at December 31, 2021, with the improvement driven by a combination of paying down debt and growing EBITDA.

我們希望提供我們的整體債務槓桿率和我們的銀行協議擔保債務槓桿率，因為我們的銀行協議計算時略有不同。截至 12 月 31 日，基於 3.49 億美元的淨債務和 1.36 億美元的過去 12 個月調整後 EBITDA，我們的整體槓桿率提高到 2.6 倍。相比之下，2021 年 12 月 31 日為 3.6 倍，這是由於償還債務和不斷增長的 EBITDA 共同推動的。

At December 31, 2022, we had a bank agreement secured debt leverage ratio of 1.6 times based on a net debt of $233 million and trailing 12-month bank-adjusted EBITDA of $144 million. This compares to 2.4 times at December 31, 2021.

截至 2022 年 12 月 31 日，基於 2.33 億美元的淨債務和 1.44 億美元的過去 12 個月經銀行調整後的 EBITDA，我們的銀行協議擔保債務槓桿率為 1.6 倍。相比之下，2021 年 12 月 31 日是 2.4 倍。

Taking a look at our cash flow statement, we generated operating cash flow of $93 million, and we believe our cash balances, cash flow generation, and debt facilities provide us with more than adequate working capital to fund our operations.

查看我們的現金流量表，我們產生了 9300 萬美元的運營現金流，我們相信我們的現金餘額、現金流產生和債務融資為我們提供了足夠的營運資金來為我們的運營提供資金。

Let's turn quickly to fourth-quarter results. Fourth-quarter 2022 net sales grew 25% to $94 million compared to $75 million the same quarter last year. Gross margin for the quarter increased to 54% versus 52% for the same quarter the prior year. Net income for the fourth quarter of 2022 was up 12% to $22 million. This includes a $4-million net benefit for fair value adjustments associated with the mark-to-market of warrants and the earn-out.

讓我們快速轉向第四季度的結果。 2022 年第四季度淨銷售額增長 25% 至 9400 萬美元，而去年同期為 7500 萬美元。本季度毛利率增至 54%，而去年同期為 52%。 2022 年第四季度的淨收入增長 12% 至 2200 萬美元。這包括 400 萬美元的淨收益，用於與認股權證按市值計算和盈利相關的公允價值調整。

Adjusted EBITDA for the quarter was $31 million, up 44% compared to $21 million last year. And adjusted EBITDA margin in Q4 improved to 33%, compared to 28% in the fourth quarter of 2021. Arculus revenue and investments resulted in a net impact of approximately minus $6 million for the fourth quarter.

本季度調整後的 EBITDA 為 3100 萬美元，與去年的 2100 萬美元相比增長了 44%。第四季度調整後的 EBITDA 利潤率從 2021 年第四季度的 28% 提高到 33%。Arculus 的收入和投資導致第四季度的淨影響約為負 600 萬美元。

Let's take a look at our net sales trends. Taking a closer look at the sales trends, we continue to generate strong growth, both in the US and internationally, with them up 35% and 68% for the full year of 2022, respectively. US growth was once again driven by the strength of our sales execution and favorable industry trends; while international was up due to the expansion of our international sales team, continued distributor growth, and strong customer demand.

讓我們來看看我們的淨銷售額趨勢。仔細觀察銷售趨勢，我們繼續在美國和國際上實現強勁增長，2022 年全年分別增長 35% 和 68%。美國的增長再次受到我們強大的銷售執行力和有利的行業趨勢的推動；而由於我們國際銷售團隊的擴張、經銷商的持續增長以及強勁的客戶需求，國際業務有所增長。

Turning to earnings per share. As discussed last year, we adopted a method under GAAP for calculating basic and diluted EPS, which allows us to allocate changes in fair value adjustments of mark-to-market instruments among the public company and the operating subsidiaries that better reflect the actual economic impact of conversion of such instruments on our net income and our per share basis. The reason we are doing this is that we believe this method better reflects the economic impact for shareholders. Our Q2, Q3, and Q4 EPS figures, as reported, are consistently calculated under this GAAP measure.

轉向每股收益。正如去年所討論的那樣，我們採用了 GAAP 下的方法來計算基本和稀釋每股收益，這使我們能夠在上市公司和運營子公司之間分配市值工具公允價值調整的變化，以更好地反映實際經濟影響根據我們的淨收入和我們的每股基礎轉換此類工具。我們這樣做的原因是我們相信這種方法能更好地反映對股東的經濟影響。正如所報告的那樣，我們的第二季度、第三季度和第四季度每股收益數據始終是根據這一 GAAP 衡量標準計算的。

Having said that, let me run through our EPS calculations. GAAP EPS for the 12 months ended December 31, 2022, was $1.21 per basic share, and $1.13 per diluted share. GAAP EPS for the fourth quarter was $0.14 for both basic and diluted shares. You could read through the footnotes on the slides that take you through the complexities of the allocation of net income due to the Up-C structure and the shares that are included in the basic and diluted calculations. Note that the fair value adjustments in the quarter and the full year have been allocated among the operating companies that come to pre-allocation net income.

話雖如此，讓我來完成我們的 EPS 計算。截至 2022 年 12 月 31 日止 12 個月的 GAAP 每股收益為每股基本股 1.21 美元，稀釋後每股 1.13 美元。第四季度基本股和稀釋股的 GAAP 每股收益均為 0.14 美元。您可以通讀幻燈片上的腳註，了解由於 Up-C 結構以及包含在基本和稀釋計算中的股份而導致的淨收入分配的複雜性。請注意，本季度和全年的公允價值調整已分配給預分配淨收入的運營公司。

Now let's take a look at non-GAAP earnings per share. On slide 18, and in our MD&A, we're also providing a non-GAAP adjusted net income and adjusted EPS that takes out the impact of the non-cash fair value adjustments such as stock-based comp, warrant and earn-out revaluations. We believe that this provides a clearer picture of the economics of the company's operating results. Please note these non-cash adjustments can have both a positive and a negative impact on our net income.

現在讓我們來看看非 GAAP 每股收益。在幻燈片 18 和我們的 MD&A 中，我們還提供了非 GAAP 調整後的淨收入和調整後的每股收益，它們消除了非現金公允價值調整的影響，例如基於股票的補償、認股權證和盈利重估.我們認為，這可以更清楚地了解公司經營業績的經濟性。請注意，這些非現金調整可能對我們的淨收入產生正面和負面影響。

With that background, our non-GAAP EPS for the full-year 2022 was $1.10 per basic share and $0.94 per diluted share; while non-GAAP EPS for the fourth quarter was $0.23 per basic share and $0.20 per diluted share. In the appendix, you'll find a reconciliation between GAAP and non-GAAP net income used in these calculations.

在此背景下，我們 2022 年全年的非 GAAP 每股收益為基本股 1.10 美元和稀釋後每股 0.94 美元；而第四季度的非美國通用會計準則每股收益為每股基本股 0.23 美元，稀釋後每股收益 0.20 美元。在附錄中，您將找到這些計算中使用的 GAAP 和非 GAAP 淨收入之間的對賬。

I will now hand it back over to Jon for a final summary before we take questions.

在我們提問之前，我現在將把它交還給 Jon 做最後的總結。

Thanks, Tim. Now turning to slide 19, as I mentioned earlier, we're expecting another year of solid growth in 2023 as we anticipate net sales to range between $400 million and $425 million and expect adjusted EBITDA to finish between $145 million and $155 million.

謝謝，蒂姆。現在轉到幻燈片 19，正如我之前提到的，我們預計 2023 年將是又一年的穩健增長，因為我們預計淨銷售額將在 4 億至 4.25 億美元之間，並預計調整後的 EBITDA 將在 1.45 億美元至 1.55 億美元之間。

As a reminder, these targets reflect the expectation of continued sales execution and driving economies of scale in our metal card business as well as a net investment in Arculus below our net Arculus investment in 2022. In addition, this guidance takes into consideration some of the continuing uncertainty of the macro-economic environment as outlined earlier.

提醒一下，這些目標反映了我們對金屬卡業務的持續銷售執行和推動規模經濟的預期，以及對 Arculus 的淨投資低於 2022 年 Arculus 淨投資的預期。此外，本指南還考慮了一些如前所述，宏觀經濟環境的持續不確定性。

I want to close by touching on our strategic priorities on slide 20. It's been great to reflect on our record 2022 results, and I'm incredibly proud of our team for their hard work and commitment to get us to this point. However, our focus is now squarely on 2023. As we look ahead, we plan to continue driving organic growth in our premium metal payment card business, both here in the US and internationally, while also further diversifying our customer mix with fintech clients.

最後，我想談談我們在幻燈片 20 上的戰略重點。很高興回顧我們創紀錄的 2022 年業績，我為我們的團隊為實現這一點所做的辛勤工作和承諾感到無比自豪。然而，我們現在的重點是 2023 年。展望未來，我們計劃繼續推動我們在美國和國際上的優質金屬支付卡業務的有機增長，同時進一步豐富我們與金融科技客戶的客戶組合。

We will also continue to innovate our product suite on both metal payment cards as well as Arculus security authentication and cold storage offerings, while maintaining our prudent approach to capital allocation and driving efficiencies in our business to maximize the bottom line.

我們還將繼續在金屬支付卡以及 Arculus 安全認證和冷藏產品方面創新我們的產品套件，同時保持我們審慎的資本配置方法並提高業務效率以最大限度地提高利潤。

I want to thank all of you for taking the time to join us today. We very much appreciate your support, and I'll now open it up to questions.

我要感謝大家今天抽出時間加入我們。我們非常感謝您的支持，現在我將公開提問。

(Operator Instructions) John Todaro, Needham & Company.

（操作員說明）John Todaro, Needham & Company。

Hi, this is Dan Lehman, actually. I'm filling in for John. So I've got a few questions. The first one is, so at the midpoint of your sales outlook guide for '23, there's 10% growth year over year. Can you just give us some additional color on the level of conservatism you're baking into the outlook assumption, and whether you're a little bit more confident on the macro picture now relative to the third quarter?

嗨，實際上我是 Dan Lehman。我正在代替約翰。所以我有幾個問題。第一個是，所以在 23 年銷售前景指南的中點，同比增長 10%。您能否就您對前景假設的保守主義程度給我們一些額外的顏色，以及相對於第三季度，您現在對宏觀形勢是否更有信心？

Yeah, so I appreciate the question. Yeah, look, we think we gave an appropriate range on the guidance. Coming off a year of 40% growth, we've said, on average, we think we've got about a 15% growth business, the top end -- right about 14% on the top end. There, in our view, still remains a lot of macro uncertainty. Mixed data that keeps coming out, with inflation higher, raising rates, people with some concern about the back half.

是的，所以我很欣賞這個問題。是的，看，我們認為我們給出了適當的指導範圍。在經歷了 40% 的增長之後，我們說過，平均而言，我們認為我們的業務增長了大約 15%，最高端——大約是 14%。我們認為，那裡仍然存在很多宏觀不確定性。混合數據不斷出現，通脹走高，加息，人們對後半部分有些擔憂。

But I'd reiterate comments I've made on other calls, which are we've operated in tough environments before, and, if the back half were to get tough, we still believe we can deliver growth. And I don't know, we feel like we've laid out an appropriate range there for the top line that recognizes the context of the environment.

但我要重申我對其他電話所做的評論，即我們以前在艱難的環境中運營過，而且，如果後半部分變得艱難，我們仍然相信我們能夠實現增長。而且我不知道，我們覺得我們已經為識別環境背景的頂線佈置了一個合適的範圍。

Got it. Yeah, definitely makes sense. And thank you so much for the color on that. And then in terms of gross margin, it looks like the outlook is baking in an uptick in gross margin. So could you remind us of the levers that you could pull to achieve your target for full-year 2023? Thank you.

知道了。是的，絕對有道理。非常感謝你的顏色。然後就毛利率而言，看起來前景正在醞釀毛利率的上升。那麼，您能否提醒我們您可以利用哪些槓桿來實現 2023 年全年的目標？謝謝。

Sure. So the full-year 2023 guidance, if you use the low end in the low end and the high end in the high end, are around 36% EBITDA margin, which is actually in line with where we came in this year. So that's actually fairly steady from our perspective and recognizes that we will continue to invest in growing the core metal payment card business as well as Arculus. Although we've tried to be clear that that net impact, we believe, should be at or lower than what it was this year. So that's how we're thinking about the revenue and margin story for next year.

當然。因此，如果您使用低端中的低端和高端中的高端，那麼 2023 年全年的 EBITDA 利潤率約為 36%，這實際上與我們今年的情況一致。因此，從我們的角度來看，這實際上相當穩定，並認識到我們將繼續投資於發展核心金屬支付卡業務以及 Arculus。儘管我們試圖明確表示，我們認為淨影響應該等於或低於今年的水平。這就是我們考慮明年收入和利潤率的方式。

Reggie Smith, JPMorgan.

雷吉·史密斯，摩根大通。

Hey, good evening, guys. Thanks for taking the question.

嘿，晚上好，伙計們。感謝您提出問題。

Thanks, Reggie.

謝謝，雷吉。

I guess my first question -- I believe one of your key customer contracts expires this year. I guess, what can you tell us about the renegotiations? When does the contract expire exactly? And I guess historically as contracts have come up, how early did you renew them in the past? And I have a few follow-ups. Thanks.

我想我的第一個問題——我相信你的一個重要客戶合同今年到期。我想，關於重新談判，你能告訴我們什麼？合同具體什麼時候到期？我想從歷史上看，隨著合同的出現，你過去多早續約？我有一些後續行動。謝謝。

Thanks, Reggie. So the JPMorgan contract expires at the end of this year, and we would be negotiating in normal course with any client in that year when things are expiring. There are times when we might renew a contract earlier than not if there's specific reasons to. But the normal course would suggest in that final year is the time when we would be renewing.

謝謝，雷吉。因此，摩根大通的合同將於今年年底到期，我們將在合同到期時與那一年的任何客戶進行正常談判。有時，如果有特定原因，我們可能會提前續簽合同。但是正常的課程會建議在最後一年是我們更新的時候。

And Reggie (multiple speakers) I'd add one comment. We've been through multiple renewal cycles on that contract; it's not the first. I think there's been at least three renewal cycles at this point. The Amex contract, there have been at least four, if not more, renewals there.

Reggie（多位發言者）我要添加一條評論。我們已經經歷了該合同的多個續約週期；這不是第一個。我認為此時至少有三個更新周期。美國運通的合同，至少有四次，如果不是更多的話，在那裡續簽。

Got it. That makes sense. Okay. So I appreciate the color on the guidance. What can you tell us about, I guess, your order backlog today versus maybe this time last year? Just trying to get some context around what you're seeing right now on the ground versus maybe a year ago?

知道了。這就說得通了。好的。所以我很欣賞指南上的顏色。你能告訴我們什麼，我想，你今天的訂單積壓與去年這個時候相比？只是想了解一下您現在在實地看到的情況與一年前相比的情況？

I'd say it's actually fairly consistent, Reggie, in terms of strong visibility and what we refer to as the pipeline in the backlog. So that backlog is hard orders that cover kind of the next three or four months in the pipeline that goes out further than that.

我會說它實際上相當一致，Reggie，就強大的可見性和我們在積壓工作中所說的管道而言。因此，積壓訂單是硬訂單，涵蓋未來三四個月的管道，比這更遠。

And I think as you look into the back half of the year, I think it's when people -- there's more uncertainty out there. I think JPMorgan's CEO did an interview recently commenting on the back half, and it's uncertainty still remaining in the back half, just in general.

而且我認為當你回顧今年下半年時，我認為人們 - 那裡有更多的不確定性。我認為摩根大通的首席執行官最近接受采訪時對後半部分發表了評論，後半部分仍然存在不確定性，只是一般而言。

But if you look, and we put some of the commentary in our deck, generally speaking, our issuer clients believe that we are going to drive growth this year. They're planning for it. That's how we're planning, and what we've said is we're prepared if things turn, but we actually believe it could be quite a nice year.

但如果你看，我們在我們的平台上放了一些評論，一般來說，我們的發行人客戶相信我們將在今年推動增長。他們正在為此計劃。這就是我們的計劃，我們已經說過，如果事情發生變化，我們已經做好了準備，但我們實際上相信這可能是非常美好的一年。

Understood. Thinking about your EBITDA guidance, which is fairly strong, how should we think about debt repayment or use of cash as that EBITDA number continues to grow?

明白了。考慮到您的 EBITDA 指引相當強勁，隨著 EBITDA 數字的持續增長，我們應該如何考慮債務償還或現金使用？

So we've stated two priorities. I'll reiterate for folks in the phone. Driving organic growth in the business, and by that I mean the metal payment card business continuing to expand capacity, drive innovation around not just the form factor but new security technology, things like Dynamic CVV, biometrics, the authentication, and the integration of Arculus into credit and debit cards as kind of our first priority.

所以我們已經陳述了兩個優先事項。我會在電話中向大家重申。推動業務的有機增長，我的意思是金屬支付卡業務繼續擴大容量，不僅圍繞外形因素而且圍繞新的安全技術推動創新，例如動態 CVV、生物識別、身份驗證和 Arculus 的集成將信用卡和借記卡作為我們的首要任務。

And second, paying down debt. We did a very nice job paying down debt this year. And I think Tim highlighted that in his comments. We're talking about leverage ratios that went from -- I think it was 3.6 down well below 3 in total debt and secured debt at mid 2s down to 1.6.

第二，償還債務。今年我們在償還債務方面做得非常好。我認為蒂姆在他的評論中強調了這一點。我們談論的是槓桿率——我認為它是 3.6，遠低於總債務和擔保債務的 3，在 2s 中期下降到 1.6。

So we are delevering through a combination of paying down debt and growing EBITDA. And Reggie, I like the fact that we're doing it with both. For me, that's the right way to approach it, but we will continue to pay down debt.

因此，我們正在通過償還債務和增加 EBITDA 的組合來去槓桿化。還有 Reggie，我喜歡這樣的事實，即我們正在與兩者一起做。對我來說，這是處理它的正確方法，但我們將繼續償還債務。

Got it. And if I could sneak one more in. You had some really cool product announcements, new release that you talked about earlier in the call. How should we think about -- like how quickly can those go from launch to really seeing them out in the wild, if you will?

知道了。如果我能再偷偷進來一次。你有一些非常棒的產品公告，你在電話會議早些時候談到的新版本。我們應該如何考慮——比如從發射到真正在野外看到它們的速度有多快，如果你願意的話？

Yeah. I think for us, the types of products we talked about would be second half of this year into the first half of next year when we start to see those things start to appear, but strong interest from our perspective in a number of those.

是的。我認為對我們來說，我們討論的產品類型將在今年下半年到明年上半年開始出現，但從我們的角度來看，我們對其中一些產品很感興趣。

Perfect. Thank you.

完美的。謝謝。

Appreciate it, Reggie. Thank you.

欣賞它，雷吉。謝謝。

Thank you. And there are no other questions in the queue. I'd like to turn it back to Mr. Jon Wilk for any further remarks.

謝謝。隊列中沒有其他問題。我想把它轉回給 Jon Wilk 先生以徵求任何進一步的意見。

I just want to take a moment and thank all of the people who joined the webcast, who are listening to the story. We are excited about the year that we just completed. We think as our first year as a public company, raising guidance twice, finishing at the top end of that range, I'm extremely proud of what our team has accomplished.

我只想花點時間感謝所有參加網絡廣播並收聽這個故事的人。我們對剛剛結束的這一年感到興奮。我們認為，作為上市公司的第一年，兩次提高指引，最終達到該範圍的頂端，我為我們團隊所取得的成就感到非常自豪。

I'm even more excited for what's ahead of us in terms of continued growth of our metal payment card business, domestically, internationally, and with fintech clients, as well as continuing to push on the Arculus expansion on security authentication as well as cold storage for digital assets.

我對我們在國內、國際和金融科技客戶的金屬支付卡業務持續增長以及繼續推動 Arculus 在安全認證和冷存儲方面的擴展感到更加興奮對於數字資產。

So thank you all for attending. We appreciate it, and have a good night.

謝謝大家的出席。我們很感激，祝你有個美好的夜晚。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。