CompoSecure Inc (CMPO) 2025 Q3 法說會逐字稿

Thank you for standing by. My name is Liz, and I'll be your conference operator today. At this time, I would like to welcome everyone to the CompoSecure third-quarter 2025 earnings call. (Operator Instructions)

感謝您的耐心等待。我叫莉茲，今天我將擔任你們的會議接線生。在此，我謹代表 CompoSecure 歡迎各位參加 2025 年第三季財報電話會議。（操作說明）

I would now like to turn the call over to Steven Feder, CompoSecure's General Counsel. Please go ahead.

現在我想把電話交給 CompoSecure 的總法律顧問 Steven Feder。請繼續。

Good morning, and welcome to CompoSecure's conference call, where we will review CompoSecure's third-quarter 2025 financial results and discuss the planned business combination with Husky Technologies. With me on the call is Dave Cote, Executive Chairman of CompoSecure; Tom Knott, Chief Investment Officer of CompoSecure; Jon Wilk, Chief Executive Officer; Tim Fitzsimmons, our retiring CFO; and Mary Holt, incoming Chief Financial Officer. We will begin with prepared remarks and then open the call for Q&A.

早安，歡迎參加 CompoSecure 的電話會議，我們將回顧 CompoSecure 2025 年第三季的財務業績，並討論與 Husky Technologies 的計劃業務合併。與我一同參加電話會議的有：CompoSecure 執行董事長 Dave Cote；CompoSecure 首席投資長 Tom Knott；執行長 Jon Wilk；即將退休的財務長 Tim Fitzsimmons；以及即將上任的財務長 Mary Holt。我們將首先作準備好的發言，然後開放問答環節。

During the call, we will make statements related to our business that may be considered forward-looking, including statements about our growth strategy, customer demand, our ability to maintain existing and acquire new customers, implementation of the CompoSecure operating systems, and our guidance for '25 and '26 as well as other statements regarding plans and prospects. 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 and on the SEC's website at sec.gov.

在電話會議期間，我們將發表一些與我們業務相關的、可能被視為前瞻性的聲明，包括關於我們的成長策略、客戶需求、我們維持現有客戶和獲取新客戶的能力、CompoSecure 作業系統的實施以及我們對 2025 年和 2026 年的指導意見的聲明，以及其他關於計劃和前景的聲明。有關可能影響我們實際業績的重大風險和其他重要因素的討論，請參閱我們提交給美國證券交易委員會的 10-K 表格年度報告和其他報告，這些報告可在我們網站的投資者關係部分以及美國證券交易委員會的網站 sec.gov 上查閱。

Please note that effective as of February 28, 2025, the date of the spin-off of Resolute Holdings Management, Inc. and as a result of the management agreement between Resolute Holdings Management, Inc. and the company's wholly owned subsidiary, CompoSecure Holdings, the results of operations of CompoSecure Holdings and the operating companies which are its subsidiaries are not consolidated in the financial statements included in this report and instead are accounted for under the equity method of accounting.

請注意，自 2025 年 2 月 28 日（Resolute Holdings Management, Inc. 分拆之日）起，由於 Resolute Holdings Management, Inc. 與公司全資子公司 CompoSecure Holdings 之間的管理協議，CompoSecure Holdings 及其子公司（即營運公司）的經營業績不再合併到本報告所附的財務報表中，而是採用權益法進行核算。

In the earnings release we issued earlier today and the discussion on today's call, we also present non-GAAP financial measures to help investors better understand our operating performance. 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.

在我們今天稍早發布的獲利報告中以及今天的電話會議討論中，我們也提供了非GAAP財務指標，以幫助投資人更了解我們的經營績效。本公司認為，這些非GAAP財務指標可以為管理層和投資者提供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資訊。

These non-GAAP financial measures should not be considered as an alternative to 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 IR section of our website. Thank you.

這些非公認會計準則財務指標不應被視為根據美國公認會計準則得出的績效指標的替代指標，並且可能與其他公司使用的類似名稱的非公認會計準則指標有所不同。GAAP 與非 GAAP 指標的調整表可在我們網站的 IR 部分查閱新聞稿和收益簡報。謝謝。

And with that said, let me turn the call over to Executive Chairman, Dave Cote.

接下來，我將把電話交給執行主席戴夫·科特。

Well, what a wicked great day we have to celebrate today. We have good news busting out all over. So before I get into CompoSecure's third quarter, I want to begin with a few remarks about my excitement regarding the Husky transaction. When my family invested in CompoSecure over a year ago, a big part of the value-creation plan was to implement our operating system to catalyze organic growth, improve margins, and build a rigorous discipline around capital allocation to pursue accretive inorganic growth. While still early, we're delivering strong organic growth and improved profitability at CompoSecure.

今天真是個值得慶祝的美好日子！好消息鋪天蓋地而來。在深入探討 CompoSecure 第三季業績之前，我想先談談我對 Husky 交易的興奮之情。一年多前，我的家族投資 CompoSecure 時，價值創造計畫的一個重要部分是實施我們的營運系統，以促進內生成長、提高利潤率，並圍繞資本配置建立嚴格的紀律，以追求增值性的外延成長。雖然目前還處於早期階段，但 CompoSecure 實現了強勁的內生成長和獲利能力的提升。

The third-quarter results are terrific. Over the past year, we have been actively looking for another great business that could benefit from our operating system and shares the same foundational characteristics we look for at Honeywell, Vertiv, and CompoSecure. I am delighted to report that we have found all that and more in Husky. We view the combination of CompoSecure and Husky as the foundation for a best-in-class diversified compounder.

第三季業績非常出色。過去一年，我們一直在積極尋找另一家優秀的企業，這家企業可以從我們的作業系統中受益，並且與我們在霍尼韋爾、Vertiv 和 CompoSecure 所尋找的企業具有相同的基本特徵。我很高興地告訴大家，我們在哈士奇身上找到了所有這些，甚至更多。我們認為 CompoSecure 和 Husky 的合併是打造一流多元化複合型投資公司的基礎。

CompoSecure is the global leader in manufacturing premium metal payment cards and authentication solutions. Husky is the global leader in highly engineered injection molding equipment and aftermarket services. Collectively, they form a platform positioned to become the home for market-leading businesses that operate in attractive industries, generate recurring revenues, deliver high growth and profitability, achieve attractive returns on incremental invested capital, and offer significant opportunities for long-term value creation.

CompoSecure是全球領先的高階金屬支付卡和身分驗證解決方案製造商。赫斯基是全球領先的高精度射出成型設備和售後服務供應商。它們共同構成了一個平台，旨在成為在有吸引力的行業中運營、產生經常性收入、實現高增長和盈利能力、獲得可觀的增量投資回報並為長期價值創造提供重大機會的市場領先企業的家園。

Husky checks every box of our investment criteria. It has a great position in a good industry. It differentiates with technology, and it presents a substantial upside potential in both organic and inorganic growth, along with clear opportunities for margin expansion. Coupled with an ability to generate strong free cash flow and a healthy pro forma balance sheet that will delever quickly, we find this to be an incredibly compelling opportunity for CompoSecure investors as we expand the operating platform. Tom and I will provide further details on the transaction and the business after we cover CompoSecure's third-quarter results.

Husky完全符合我們的投資標準。它在一個前景廣闊的行業中佔據著非常有利的地位。它以技術為特色，在有機成長和無機成長方面都展現出巨大的上行潛力，同時也具有明顯的利潤率擴張機會。憑藉強勁的自由現金流和健康的備考資產負債表（能夠快速去槓桿化），我們認為，隨著我們擴展營運平台，這對 CompoSecure 的投資者來說是一個極具吸引力的機會。在介紹完 CompoSecure 第三季業績之後，我和 Tom 將提供更多有關此交易和業務的細節。

Turning to CompoSecure, a year after our investment, it is gratifying to see the progress we've made. We have accelerated organic growth, strengthened our operating discipline, and begun to realize the benefits of cultivating a high-performance culture. Our strategic initiatives, underpinned by the CompoSecure Operating System, or COS, are yielding results, and the business is consistently performing at a much higher level.

投資 CompoSecure 一年後，看到我們的進展，令人欣慰。我們加快了內生成長，加強了營運紀律，並開始體會到培養高績效文化的益處。在 CompoSecure 作業系統 (COS) 的支援下，我們的策略性舉措正在取得成效，業務表現也持續保持在更高的水平。

The nice thing about all this is that it is just the beginning, with tremendous opportunity ahead to further drive investor value creation. Significant opportunities remain for CompoSecure to unlock faster organic growth while continuing to drive meaningful operational efficiencies across the business. The combination with Husky diversifies CompoSecure's business and adds multiple levers of future value creation.

這一切的好處在於，這只是個開始，未來還有巨大的機會可以進一步創造投資價值。CompoSecure 仍有很大的機會實現更快的內生成長，同時繼續推動業務營運效率的顯著提升。與 Husky 的合併使 CompoSecure 的業務多元化，並增加了未來創造價值的多個槓桿。

Our focus will remain on disciplined execution, innovation, and maintaining the momentum that's driving our success. And we will continue making strategic investments necessary to fully capitalize on the opportunities to deliver long-term value for all our investors.

我們將繼續專注於嚴謹的執行、創新，並保持推動我們成功的良好勢頭。我們將繼續進行必要的策略性投資，以充分把握機遇，為所有投資者創造長期價值。

With that, I'll turn the call over to Jon.

接下來，我會把電話交給喬恩。

Thanks, Dave. Good morning, everyone, and thank you for joining us for our third-quarter conference call. Before we go through the Q3 results, I want to take a moment to publicly recognize Tim Fitzsimmons and his work as our CFO over the past 13 years. As announced in June, Tim is retiring, and I want to extend my deepest thanks for all his contributions and wish him well in his retirement. He has set a strong financial foundation for the company that we will benefit from for years to come.

謝謝你，戴夫。各位早安，感謝各位參加我們的第三季電話會議。在介紹第三季業績之前，我想藉此機會公開表彰蒂姆·菲茨西蒙斯及其在過去 13 年中擔任我們首席財務官的工作。正如六月所宣布的那樣，蒂姆即將退休，我謹向他致以最深切的感謝，感謝他所做的一切貢獻，並祝他退休生活一切順利。他為公司奠定了堅實的財務基礎，我們將在未來多年從中受益。

After an extensive search, I am thrilled to welcome Mary Holt, our incoming CFO, who joins us on the call today. Mary brings a wealth of experience and knowledge from world-class organizations such as Honeywell and Pfizer, and we are confident her background, financial acumen, proven leadership, and experience with lean management operating systems will be powerful additions to our business and will play a key role in helping us advance our strategic initiatives.

經過廣泛的搜尋，我很高興地歡迎瑪麗·霍爾特女士加入我們今天的電話會議，她將擔任我們即將上任的財務長。瑪麗曾在霍尼韋爾和輝瑞等世界級企業工作，累積了豐富的經驗和知識。我們相信，她的背景、財務才能、卓越的領導能力以及精益管理營運系統方面的經驗，將為我們的業務帶來強大的助力，並在幫助我們推進戰略舉措方面發揮關鍵作用。

Now moving to slide 3. As we mentioned last quarter, our results are being reported using equity method accounting following the completed spin-off of Resolute Holdings Management earlier this year. On this call, we will refer to non-GAAP measures for net sales, gross profit, and related operating measures.

現在進入第三張投影片。正如我們上個季度所提到的，由於今年稍早完成了對 Resolute Holdings Management 的分拆，我們的業績報告採用了權益法會計。在本次電話會議中，我們將參考非GAAP指標來衡量淨銷售額、毛利和相關營運指標。

With that, let's review the quarter. Net sales increased 13% year over year to $120.9 million, driven by disciplined execution, operational focus, and continued support from Dave and the Board for our strategic initiatives. Pro forma adjusted EBITDA increased 30% to $47.7 million, with an EBITDA margin of 39.5%. Implementation of the CompoSecure Operating System is clearly having a strong impact as we achieved gross margins of 59% for the quarter compared to 51.7% for the same quarter prior year.

接下來，我們來回顧一下本季的情況。淨銷售額年增 13% 至 1.209 億美元，這得益於嚴格的執行、專注的營運以及戴夫和董事會對我們戰略舉措的持續支持。經調整後的備考 EBITDA 成長 30% 至 4,770 萬美元，EBITDA 利潤率為 39.5%。CompoSecure 作業系統的實施顯然產生了顯著影響，本季我們的毛利率達到了 59%，而去年同期為 51.7%。

We also saw numerous customer program launches during the quarter, which I'll comment on momentarily. And Arculus delivered another strong net-positive quarter, supported by expanding commercial activity. We continue to see traction with banks, fintechs, and exchanges who are launching innovative card programs and seeking enhanced security features.

本季我們也看到了許多客戶計畫的推出，我稍後會對此進行評論。在不斷擴大的商業活動的支撐下，Arculus 又實現了強勁的淨利潤季度。我們持續看到銀行、金融科技公司和交易所推出創新信用卡專案並尋求增強安全功能。

With sales momentum building and operating efficiency improving, we are raising our 2025 outlook and introducing strong guidance for 2026. For fiscal-year 2025, we are raising our full-year guidance and now expect non-GAAP net sales of approximately $463 million and pro forma adjusted EBITDA of approximately $165 million to $170 million. We are also announcing financial guidance for 2026, where we expect non-GAAP net sales of approximately $510 million and non-GAAP pro forma adjusted EBITDA of approximately $190 million.

隨著銷售動能增強和營運效率提高，我們提高了 2025 年的業績預期，並對 2026 年給予了強勁的業績指引。對於 2025 財年，我們提高了全年業績預期，目前預計非 GAAP 淨銷售額約為 4.63 億美元，備考調整後 EBITDA 約為 1.65 億美元至 1.7 億美元。我們也公佈了 2026 年的財務預期，預計非 GAAP 淨銷售額約為 5.1 億美元，非 GAAP 備考調整後 EBITDA 約為 1.9 億美元。

Turning to slide 4. We shared a version of this slide last quarter, but it's worth a quick refresher for those new to the company since our reporting structure is rather nuanced. When evaluating CompoSecure's performance, we suggest focusing on core operating results after deducting the management fee paid to RHLD. In turn, RHLD's results primarily reflect the same management fee income, net of its own operating expenses.

翻到第4張投影片。我們在上個季度分享過這個投影片的版本，但對於公司新員工來說，由於我們的報告結構相當複雜，因此值得快速回顧一下。在評估 CompoSecure 的業績時，我們建議在扣除支付給 RHLD 的管理費後，重點關注其核心營運績效。反過來，RHLD 的業績主要反映了相同的管理費收入，扣除其自身的營運費用。

Demand for our metal card products remains strong and is supported by ongoing trends we see in the market as outlined on page 7. We also continue to make operational progress highlighted on the right side of the slide, and we are seeing sustained improvements in the business from the CompoSecure Operating System, including tangible benefits materializing on the top and bottom line as well as strong gross margin improvements.

市場對我們金屬卡產品的需求仍然強勁，並受到我們在第 7 頁概述的市場持續趨勢的支持。我們也繼續在營運方面取得進展（如幻燈片右側所示），我們看到 CompoSecure 作業系統為業務帶來了持續的改善，包括收入和利潤方面的切實收益以及強勁的毛利率提升。

Turning to slide 6. We continue to see strong activity from both existing customers and new entrants, with several new and expanded programs launching in the quarter, such as Citi Strata Elite, Chime, a Bank of America, America Airlines co-brand, Alaska Airlines co-brand, Bank of Montreal, and Gemini XRP. These programs reinforce the strength of our partnerships and the value we bring to issuers seeking to enhance their brand loyalty and deliver improved returns through higher customer acquisition, spending, and retention.

翻到第6張投影片。我們繼續看到現有客戶和新客戶的活躍度很高，本季推出了幾個新的和擴展的項目，例如 Citi Strata Elite、Chime（美國銀行、美國航空聯名卡、阿拉斯加航空聯名卡）、蒙特利爾銀行和 Gemini XRP。這些計劃鞏固了我們合作夥伴關係的實力，以及我們為尋求提高品牌忠誠度並透過提高客戶獲取率、消費額和客戶留存率來提升回報的發卡機構帶來的價值。

With that, I'll pass it to Tim for a few remarks.

接下來，我將把麥克風交給提姆，請他簡單說幾句。

Thank you, Jon. I want to say what an honor it's been to work alongside such a talented team and to help CompoSecure through its evolution into a strong public company it is today. I'm deeply grateful to our employees, our leadership team, our Board of Directors, and our investors for their trust and collaboration over the years. The company is well positioned, and I have no doubt CompoSecure is poised for continued growth and success under Dave and Jon's leadership.

謝謝你，喬恩。我非常榮幸能與如此才華橫溢的團隊共事，並幫助 CompoSecure 發展成為如今如此強大的上市公司。我衷心感謝我們的員工、領導團隊、董事會和投資者多年來的信任與合作。公司目前情況良好，我毫不懷疑在戴夫和喬恩的領導下，CompoSecure 將繼續成長並取得成功。

I also would like to wish Mary Holt the best in her new role. She brings tremendous experience, deep financial expertise, and a proven record of leadership. I'm confident she'll make an impact and continue to strengthen the finance organization as the company advances into its next phase of growth.

我也祝瑪麗·霍爾特在新崗位上一切順利。她擁有豐富的經驗、深厚的財務專業知識和卓越的領導能力。我相信，隨著公司進入下一個發展階段，她將發揮重要作用，並繼續加強財務部門的建設。

Now for some further financial details on the quarter. As Jon mentioned, following the February 28 spin-off of Resolute Holdings and the execution of the management agreement, Resolute Holdings now consolidates the financial results of CompoSecure operating under GAAP. The non-GAAP financials we are providing remain comparable to historical results with the only change being the deduction of the management fee paid to Resolute Holdings. For Resolute Holdings, the non-GAAP financials reflect the management fee revenue less salaries and operating expenses.

接下來是本季的一些財務細節。正如 Jon 所提到的，在 2 月 28 日 Resolute Holdings 分拆並執行管理協議之後，Resolute Holdings 現在將 CompoSecure 的財務業績按照 GAAP 進行合併。我們提供的非GAAP財務數據與歷史績效仍具有可比性，唯一的變化是扣除了支付給Resolute Holdings的管理費。對於 Resolute Holdings 而言，非 GAAP 財務數據反映了管理費收入減去工資和營運費用。

Now I'll walk through our Q3 2025 financial performance. Unless stated otherwise, all comparisons and variance commentary are on a year-over-year basis. In Q3, non-GAAP net sales increased 13% to $120.9 million compared to $107.1 million. Non-GAAP gross margin for the quarter was 59% of net sales compared to 51.7%.

接下來我將介紹我們 2025 年第三季的財務表現。除非另有說明，所有比較和差異評論均以同比為基礎。第三季度，非GAAP淨銷售額成長13%，達到1.209億美元，去年同期為1.071億美元。本季毛利率為淨銷售額的 59%，而上一季為 51.7%。

Non-GAAP pro forma adjusted EBITDA for the quarter increased 30% to $47.7 million, up from $36.6 million. At September 30, on a non-GAAP basis, CompoSecure had $224.6 million of cash and cash equivalents, $40.7 million of investment in US Treasury bills, and $190 million of total debt. This compares to September 30, 2024, when the company had $52.7 million of cash and cash equivalents and $330 million of total debt. The strong increase in cash for the quarter is primarily driven by proceeds from warrant exercises as well as free cash flow generation from operating activities.

本季非GAAP備考調整後EBITDA成長30%至4,770萬美元，高於上一季的3,660萬美元。截至 9 月 30 日，以非 GAAP 準則計算，CompoSecure 擁有 2.246 億美元的現金及現金等價物，4,070 萬美元的美國國債投資，以及 1.9 億美元的總債務。相比之下，截至 2024 年 9 月 30 日，該公司擁有 5,270 萬美元現金及現金等價物及 3.3 億美元總債務。本季現金大幅成長主要得益於認股權證行使所得款項以及經營活動產生的自由現金流。

On slide 13, you can see that domestic net sales grew 31% to $105.1 million, an increase of $25.1 million. International net sales declined 42% to $15.8 million, down $11.3 million due to timing of certain customer orders. As noted before, our international business can grow -- can show greater variability quarter to quarter due to a smaller scale. Turning to slide 14. Non-GAAP pro forma adjusted EBITDA was $47.7 million, up 30% year over year, and non-GAAP pro forma adjusted EBITDA margin was 39.5%, up 529 basis points year over year.

從第 13 張投影片可以看出，國內淨銷售額成長了 31%，達到 1.051 億美元，增加了 2,510 萬美元。國際淨銷售額下降 42% 至 1,580 萬美元，減少 1,130 萬美元，原因是某些客戶訂單的交付時間表。如前所述，我們的國際業務可能會成長—由於規模較小，季度之間的波動性可能會更大。翻到第14張投影片。非GAAP備考調整後EBITDA為4,770萬美元，較去年成長30%；非GAAP備考調整後EBITDA利潤率為39.5%，較去年成長529個基點。

Now let me turn it back to Jon.

現在讓我把話題轉回給喬恩。

Thanks, Tim. As mentioned earlier in the call, we raised our full-year guidance. We now expect non-GAAP net sales to be approximately $463 million and pro forma adjusted EBITDA to be approximately $165 million to $170 million, up from our previous guidance of $455 million and $158 million, respectively. Based on the disciplined execution of our strategic initiatives and the momentum we are seeing in the market, we have issued financial guidance for fiscal-year 2026.

謝謝你，提姆。正如先前在電話會議中提到的，我們提高了全年業績預期。我們現在預期非GAAP淨銷售額約為4.63億美元，備考調整後EBITDA約為1.65億美元至1.7億美元，分別高於我們先前給出的4.55億美元和1.58億美元的預期。基於我們策略舉措的嚴格執行以及我們在市場上看到的良好勢頭，我們發布了 2026 財年的財務指引。

As mentioned, we expect non-GAAP net sales of approximately $510 million and non-GAAP pro forma adjusted EBITDA of approximately $190 million. As a reminder, our raised guidance for 2025 and our guidance for 2026 includes the payment of Resolute Holdings management fee and does not include any impact from Husky.

如前所述，我們預期非GAAP淨銷售額約為5.1億美元，非GAAP備考調整後EBITDA約為1.9億美元。再次提醒，我們上調的 2025 年業績預期和 2026 年業績預期均包含支付給 Resolute Holdings 的管理費，但不包括 Husky 的任何影響。

I'd like to close with a few thoughts. The progress we have made over the past year is increasingly positive in our financial performance, in the way we operate and in the culture that is taking shape across the organization. The CompoSecure Operating System continues to deliver meaningful impact, helping us improve execution, enhance efficiency, and drive record results.

最後，我想分享幾點想法。過去一年，我們在財務表現、營運方式以及整個組織正在形成的文化方面都取得了越來越積極的進展。CompoSecure 作業系統持續發揮重要作用，幫助我們提高執行力、提升效率並取得創紀錄的表現。

We are operating from a position of strength, supported by expanding customer relationships, continued innovation, and strong market demand. The opportunity ahead is substantial, and we are focused on building upon this momentum to deliver sustained long-term value for our investors.

我們憑藉著不斷擴大的客戶關係、持續的創新和強勁的市場需求，在強大的市場環境下運作。未來的機會龐大，我們將專注於鞏固這一勢頭，為投資者創造持續的長期價值。

With that, I'd like to turn it back to Dave to discuss the transaction with Husky Technologies.

接下來，我想把話題交還給戴夫，讓他來討論與哈士奇科技公司的交易。

Switching to slide 3 of the business combination presentation. The combination with Husky creates a best-in-class diversified compounder. The combined platform brings together two global market leaders, each operating in fundamentally good industries with best-in-class financial profiles, approximately 70% recurring revenue, and significant long-term growth potential. Importantly, this transaction is highly accretive to CompoSecure's investors, supports long-term value creation and preserves balance sheet flexibility for future M&A.

切換到企業合併簡報的第 3 張投影片。與 Husky 的合併打造了一流的多元化複合型退休基金。合併後的平台匯集了兩家全球市場領導者，它們各自在基本面良好的行業中運營，擁有業內一流的財務狀況、約 70% 的經常性收入以及顯著的長期增長潛力。重要的是，此交易對 CompoSecure 的投資者來說極具增值意義，有助於長期價值創造，並為未來的併購保持資產負債表的靈活性。

Starting with the market, Husky operates in a fundamentally good industry that has been historically underappreciated. The industry has supported solid growth and attractive margins for years, and we believe the fundamentals are firmly in place for that to continue for a long time to come, especially with the growing awareness of PET's superior carbon footprint, the regulatory push for plastic circularity, and the growing adoption of recycled plastics in packaging.

從市場角度來看，哈士奇所處的產業本質上很好，但歷史上一直被低估。多年來，該行業一直保持著穩健的增長和可觀的利潤率，我們相信，隨著人們對PET優異的碳足跡的認識不斷提高、塑料循環利用的監管推動以及包裝中再生塑料的日益普及，這種增長勢頭將在未來很長一段時間內持續下去。

Growth in PET beverage demand, primarily bottled water, is the underlying secular trend driving the market for Husky's equipment, and it's hard to imagine a future without a lot more packaged beverage bottles as the world continues to urbanize. Overall, Husky is well positioned to capitalize on favorable long-term demand drivers across its key end markets.

PET飲料（主要是瓶裝水）需求的成長是推動Husky設備市場發展的根本長期趨勢，隨著世界城市化的不斷推進，很難想像未來包裝飲料瓶的數量會大幅減少。總體而言，Husky 已做好充分準備，能夠充分利用其主要終端市場中有利的長期需求驅動因素。

Turning to the company. Husky is a globally recognized brand with a long-standing reputation for manufacturing best-in-class systems. Platinum and the management team have established a great foundation, and their efforts have yielded solid organic growth in the last five years with identifying opportunities to accelerate growth in 2026 and beyond.

轉向公司。Husky 是一個全球知名的品牌，長期以來以生產一流的系統而享有盛譽。Platinum 及其管理團隊已經奠定了良好的基礎，在過去的五年裡，他們的努力帶來了穩健的內生成長，並發現了在 2026 年及以後加速成長的機會。

In many ways, Husky today is where both Honeywell and Vertiv were at the onset of my involvement. Husky is well positioned to benefit from the same operating system and process discipline that drove consistent outperformance at Honeywell, Vertiv, and now, CompoSecure.

從很多方面來看，如今的 Husky 就像我剛接觸 Honeywell 和 Vertiv 時它們所處的位置一樣。Husky 憑藉與 Honeywell、Vertiv 以及現在的 CompoSecure 相同的作業系統和流程規範，在業績持續優異方面取得了顯著成就，因此 Husky 完全有能力從中受益。

All of us see the logic and opportunity with Husky. Platinum is rolling about $1 billion of their equity. My family has $1 billion of equity, and the management team is also heavily invested in the deal. I would also add that we have raised and oversubscribed $2 billion private placement from some of the leading institutional investors in the world on the same deal terms we covered today. As you can probably tell, I'm pretty psyched about this opportunity, and I hope you are, too.

我們都看到了與哈士奇合作的邏輯和機會。Platinum公司正在滾動發行約10億美元的股權。我家擁有10億美元的股權，管理團隊也對這筆交易進行了大量投資。我還要補充一點，我們已經按照今天介紹的相同交易條款，從一些世界領先的機構投資者那裡籌集並超額認購了 20 億美元的私募資金。正如你可能已經看出來的，我對這個機會感到非常興奮，也希望你也是如此。

With that, let me turn the call over to Tom Knott, our Chief Investment Officer, who will take you through the transaction and business in more detail.

接下來，我將把電話交給我們的首席投資長湯姆·諾特，他將更詳細地向您介紹這筆交易和業務。

Thank you, Dave. Let me begin by reiterating how excited we are about the opportunity for CompoSecure to combine with Husky. The transaction establishes us as a highly differentiated and diversified compounder and the opportunities ahead are many. Stepping back, we began this journey in September 2024 with the acquisition of a majority interest in CompoSecure.

謝謝你，戴夫。首先，我想再次強調，我們對 CompoSecure 與 Husky 的合併機會感到無比興奮。此次交易使我們成為一家高度差異化和多元化的複合型企業，未來機會眾多。回顧過去，我們在 2024 年 9 月開始這段旅程，當時我們收購了 CompoSecure 的多數股權。

Since that time, the company's performance has accelerated materially, and we are beginning to see early gains from the systematic deployment of our operating system throughout the company. We have a proven approach to business operations, and we are confident that Husky exhibits all the same foundational qualities that will enable durable long-term value creation for our investors as we begin working with Brad and his team.

自那時以來，公司的業績有了顯著提升，我們開始看到在公司範圍內系統性地部署我們的作業系統所帶來的早期收益。我們擁有成熟的業務運作方法，我們相信，隨著我們與布拉德及其團隊的合作，哈士奇也具備所有相同的基本素質，能夠為我們的投資者創造持久的長期價值。

Turning to slide 4. We are acquiring Husky for approximately $5 billion or 11.2 times 2026 net adjusted EBITDA, applying an enterprise value of $7.4 billion or 11.6 times 2026 net adjusted EBITDA on a combined basis. The transaction is expected to be accretive to diluted EPS in the first full year post combination and will be funded through a $2 billion private placement, approximately $1 billion in rolled equity from Platinum and approximately $2 billion of debt, resulting in 3.5 times net LTM leverage. We expect the transaction to close in the first quarter of 2026, subject to customary regulatory approvals and closing conditions.

翻到第4張投影片。我們將以約 50 億美元（相當於 2026 年淨調整 EBITDA 的 11.2 倍）的價格收購 Husky，合併後的企業價值為 74 億美元（相當於 2026 年淨調整 EBITDA 的 11.6 倍）。預計該交易將在合併後的第一個完整年度增加稀釋後每股收益，資金來源包括 20 億美元的私募配售、Platinum 公司約 10 億美元的滾動股權以及約 20 億美元的債務，淨 LTM 槓桿率為 3.5 倍。我們預計該交易將於 2026 年第一季完成，但需獲得慣例監管批准並滿足成交條件。

Turning to slide 5. Husky checks every box of our investment criteria just as CompoSecure did. It is the number one player in both PET system sales as well as aftermarket. The company operates in a large, structurally growing industry characterized by acyclical customer demand. It has a long history of engineering-led innovation that drives strong technology differentiation.

翻到第5張投影片。Husky 和 ​​CompoSecure 一樣，完全符合我們的投資標準。它是PET系統銷售和售後市場的第一大企業。該公司所處的產業規模龐大，結構性成長迅速，其特點是客戶需求沒有週期性。它擁有悠久的工程技術創新歷史，從而實現了強大的技術差異化。

We are also excited about growth opportunities we see for the business, supported by 65% recurring revenue from aftermarket sales and a highly fragmented competitive landscape. Lastly, we have already started working with the Husky team on implementing our operating system to drive growth, further margin expansion, and continued strong free cash flow.

我們也對公司的發展機會感到興奮，這得益於售後市場銷售帶來的 65% 的經常性收入以及高度分散的競爭格局。最後，我們已經開始與 Husky 團隊合作，實施我們的營運系統，以推動成長、進一步擴大利潤率並持續保持強勁的自由現金流。

Turning to slide 6. The transaction provides significant structural and financial benefits to CompoSecure. It diversifies our revenue base and end market exposure, reduces customer concentration, increases scale, will be highly accretive to earnings, improves capital allocation flexibility, and offers substantial runway for further investor value creation.

翻到第6張投影片。此次交易為 CompoSecure 帶來了顯著的結構和財務優勢。它使我們的收入基礎和終端市場敞口多元化，降低客戶集中度，擴大規模，將大大增加收益，提高資本配置靈活性，並為進一步創造投資者價值提供充足的空間。

Turning to slide 7. Husky is the global leader in integrated engineered equipment and aftermarket services. Its business model operates much like a razor-razor blade model with an installed base of approximately 13,500 systems that result in approximately 65% recurring revenues from aftermarket parts, tooling, and services. Importantly, while Husky's equipment and services typically represent less than 5% of customers' annual operating costs, they are critical for the customers' operations with immense focus on productivity, uptime, and reliability. This focus on high criticality, high-value products aligns closely with how we think about CompoSecure's market leadership in metal cards.

翻到第7張投影片。赫斯基是全球領先的整合工程設備和售後服務供應商。其商業模式與刮鬍刀片模式非常相似，擁有約 13,500 套已安裝系統，其中約 65% 的經常性收入來自售後零件、工具和服務。值得注意的是，雖然 Husky 的設備和服務通常只佔客戶年度營運成本的不到 5%，但它們對於客戶的營運至關重要，因為客戶非常注重生產力、正常運行時間和可靠性。這種對高關鍵性、高價值產品的關注與我們對 CompoSecure 在金屬卡市場領導地位的看法非常吻合。

Turning to slides 8 and 9. These pages really summarize the pro forma platform. The combined businesses deliver immediate scale and are positioned to deliver mid- to high-single-digit organic growth, approximately 70% recurring revenue, approximately 12.5% EBITDA growth annually, 100 basis points of margin expansion opportunity per year, and approximately 7.5% free cash flow yield in year one. Taken together, the company has a best-in-class financial profile, durable growth drivers, all being offered at a significant discount to peers.

請看第 8 張和第 9 張投影片。這些頁面很好地概括了形式平台。合併後的業務可立即實現規模化成長，並有望在第一年實現中高個位數的內生成長、約 70% 的經常性收入、約 12.5% 的 EBITDA 年增長率、每年 100 個基點的利潤率擴張機會以及約 7.5% 的自由現金流收益率。綜合來看，該公司擁有業內一流的財務狀況、可持續的成長動力，而這一切都以遠低於同業的價格提供。

In summary, we are extremely excited about this transformative transaction and to partner with Husky. The transaction brings together two market leaders to create a best-in-class diversified compounder. While I'm excited about the momentum we've already seen at CompoSecure as we deliver above-market, top and bottom-line growth, I am even more excited about the opportunities I see ahead for the combined platform.

總而言之，我們對這項具有變革意義的交易以及與赫斯基的合作感到無比興奮。此交易將兩家市場領導者合併，打造一流的多元化複合型投資公司。雖然我對 CompoSecure 目前取得的強勁勢頭感到興奮，實現了高於市場平均水平的營收和利潤增長，但我更興奮的是我看到合併後的平台未來將迎來的機遇。

With that, I'll turn it back to Dave for some closing remarks.

接下來，我將把麥克風交還給戴夫，讓他做些總結發言。

Well, as I said at the beginning, I'm incredibly psyched about this opportunity. Husky has a great position in a good industry, and we see a clear path to deliver solid long-term growth with more than 500 basis points of identified margin upside for the combined company. The long-form investor presentation we shared during the private placement process was also filed today, and it has a lot more detail that should go a long way to helping you see why we're so excited about this combination and about both businesses.

正如我一開始所說，我對這個機會感到無比興奮。赫斯基在良好的行業中佔據著非常有利的地位，我們看到了一條清晰的道路，可以實現穩健的長期增長，合併後的公司還有超過 500 個基點的利潤率提升空間。我們在私募過程中分享的長篇投資者簡報也於今日提交，其中包含更多細節，應該能幫助您了解我們為什麼對此次合併以及這兩家公司都感到如此興奮。

On behalf of CompoSecure, we look forward to providing our investors with great returns for many years to come. We hope you'll join us.

CompoSecure公司期待在未來的許多年裡為我們的投資者帶來豐厚的回報。我們希望您能加入我們。

So with that, I'll open up the call for Q&A.

那麼，接下來我將開放問答環節。

(Operator Instructions)

（操作說明）

Moshe Orenbuch, TD Cowen.

Moshe Orenbuch，TD Cowen。

Great. Congrats on all the stuff that you have accomplished and disclosed today. Wondering, because I was able to kind of scroll quickly through the presentation, only saw it a few moments ago, but I don't think it includes like share count. Like how do we think about -- as we think about shares, the effective number that will be included in that for those purposes?

偉大的。恭喜你今天完成並公開了所有的事情。我很好奇，因為我剛剛快速瀏覽了一下演示文稿，但我覺得它不包含分享次數之類的資訊。例如，當我們考慮股份時，會如何考慮為這些目的而計入的有效股份數量？

Yeah, Moshe, this is Tom. The share count you should think about on a pro forma basis will be 291 million shares.

是的，莫舍，這是湯姆。以備考基準計算，您應該考慮的股份數量為 2.91 億股。

Got it. Okay. Good. And then maybe with respect to -- as you think about the margins, a very strong margin performance on CompoSecure and the improvement that you've seen, is there a way to kind of discuss how much of that improvement that you are hoping to see from the implementation of the operating system is kind of in place and how much of that is still coming? And maybe just if you could just kind of discuss with us where you think the CompoSecure piece of the business is in that journey.

知道了。好的。好的。那麼，關於利潤率——考慮到 CompoSecure 的利潤率表現非常強勁，以及您所看到的改進，有沒有辦法討論一下，您希望從作業系統實施中看到的改進有多少已經實現，還有多少仍在進行中？或許您能和我們討論一下，您認為 CompoSecure 在整個業務發展歷程中處於什麼階段？

So thanks, Moshe. When we think about where we are, there is still enormous potential ahead in the operating system work to continue to improve our efficiency. At the same time, and as we've said on prior calls, we will continue to invest in critical areas of growth, building out the sales team, building out the engineering and R&D capability of the company to help make sure we've got the things in place to deliver that sustained organic growth over time. So still tremendous opportunity ahead, some of which will flow through to margins, some of which will be reinvested to plant seeds for the future.

謝謝你，莫舍。當我們回顧我們所處的位置時，會發現作業系統領域仍有巨大的潛力可以繼續提高效率。同時，正如我們在先前的電話會議中所說，我們將繼續投資於關鍵成長領域，擴充銷售團隊，增強公司的工程和研發能力，以確保我們擁有必要的條件，從而隨著時間的推移實現持續的內生成長。因此，未來仍蘊藏著巨大的機遇，其中一些將轉化為利潤，有些將用於再投資，為未來播下種子。

Jacob Stephan, Lake Street Capital Markets.

Jacob Stephan，Lake Street Capital Markets。

I'd love to say congratulations for today. Just wanted to start off with a question on the acquisition. Maybe you could kind of help us think through some of the synergies you have within your core kind of metal card business, and what you see with Husky's kind of injection molding equipment.

我想對你說聲恭喜。我想先問一個關於收購的問題。或許您可以幫我們思考一下，在您核心的金屬卡片業務中存在哪些協同效應，以及您如何看待 Husky 的注塑成型設備。

Yeah. At the end of the day, we're not pointing to nor counting on any kind of synergies between the two businesses. You can expect there are some, but we didn't want to count on anything. Where the synergies come from in what can be considered unrelated businesses, it's the same thing that we used to point to at Honeywell, where we get asked how do aerospace, controls, chemicals, and turbochargers go together. And everybody is expecting some kind of made-up technology insight, which we didn't do. And we just said, at the end of the day, the same thing that matters there is what matters here.

是的。歸根究底，我們既不指望也不期望這兩家企業之間有任何協同效應。可以預見會有一些，但我們不想抱持任何僥倖心理。當協同效應出現在看似不相關的業務中時，這和我們過去在霍尼韋爾公司經常提到的情況一樣，那就是人們會問我們航空航天、控制、化學品和渦輪增壓器是如何結合在一起的。大家都期待我們能提供一些虛構的技術見解，但我們並沒有這麼做。我們剛才說，歸根結底，那裡重要的事情和這裡重要的事情是一樣的。

It's the consistent application of a management operating system that works quite well and being able to implement the operating system, it will be the Husky operating system, the CompoSecure Operating System, getting functional transformation implemented, making sure you have a very good people process in place, agreement on strategic priorities with the monthly growth days, which sounds like a simple meeting, but it's actually a lot more than that. It's the application and implementation of those management philosophies that make all the difference in the world.

關鍵在於持續應用一套行之有效的管理作業系統，並能夠實施該作業系統（例如 Husky 作業系統、CompoSecure 作業系統），實現功能轉型，確保建立完善的人員流程，就策略重點達成一致，並召開月度增長日會議。這聽起來像是一次簡單的會議，但實際上遠不止如此。正是這些管理理念的應用與實施，才真正產生了巨大的影響。

Getting that culture to the point where people want to perform at a high level because it's fun and they enjoy it matters greatly. It's a tough thing to measure. But when you get it, like we did at Honeywell, like we've got at Vertiv, like it's happening at CompoSecure, which is going to happen at Husky, that's where all the magic happens.

營造一種讓人們因為覺得有趣、享受而渴望高水準發揮的文化氛圍至關重要。這很難衡量。但是，當你掌握了它，就像我們在霍尼韋爾做到的，就像我們在Vertiv做到的，就像它在CompoSecure正在發生的那樣，就像它將要在Husky發生的那樣，那時所有的奇蹟就會發生。

Got it. And maybe you could kind of help us think through some of the more recurring natures of that business. I know you guys kind of talked about 70% recurring revenue mix. But in addition to the actual injection molding equipment, what about the business is recurring?

知道了。或許您能幫我們思考一下這項業務中一些比較常見的問題。我知道你們之前討論過70%的經常性收入佔比。除了射出成型設備本身，該業務還有哪些方面是持續存在的？

Yeah. So like we said on the call a little earlier, it's very much sort of the razor-razor blade where you've got a large installed base of machines, and we're selling aftermarket parts and services to those customers to support the installed base. So you've got a big installed base and you're selling parts and services to those customers to support the machines that are already in place.

是的。就像我們之前在電話會議上說的那樣，這很像剃刀和剃刀刀片的較量，我們擁有龐大的機器安裝基礎，我們向這些客戶銷售售後零件和服務來支援已安裝的機器。所以你們擁有龐大的客戶群，並且正在向這些客戶銷售零件和服務，以支援已經安裝的機器。

Hal Goetsch, B. Riley Securities.

Hal Goetsch，B. Riley Securities。

Thanks for all the detail on this transaction. I got two questions and one relates to Compo on margin expansion, and then on the guidance and maybe margin expansion potential of the combined company. We were thinking Compo was going to have about 50% gross margins for the long haul. And in less than a year, they're in the high-50s. And like you just said, you've guided to maybe 100 basis points of margin expansion in the combined business.

感謝您提供關於此交易的所有詳細資訊。我收到了兩個問題，一個是關於 Compo 的利潤率擴張，另一個是關於合併後公司的業績指引以及可能的利潤率擴張潛力。我們當時認為 Compo 的長期毛利率會在 50% 左右。不到一年時間，他們的數字就達到了50多。正如你剛才所說，你預計合併後的業務利潤率可能會提高 100 個基點。

And I'm just thinking that seems modest at this time. But before we -- but on the first part, can you just tell us what kind of has happened operationally to get the kind of efficiency you've got in the last three quarters?

我覺得在這個階段，這個數字似乎太保守了。但是，在我們開始討論之前——關於第一部分，您能否告訴我們，在過去的三個季度裡，為了達到這樣的效率，在營運方面發生了哪些變化？

So Hal, literally putting into practice exactly what Dave described, putting in place that operating system, the routines, the tenacity, the culture change that we have put in place, those are the things that are driving the improvements that we talk about. And it is, we believe, sustainable, and we believe there is still more opportunity ahead.

所以，Hal 實際上是將 Dave 所描述的一切付諸實踐，建立了我們建立的作業系統、流程、毅力和文化變革，這些正是推動我們所說的改進的因素。我們相信，這是可持續的，我們相信未來還有更多機會。

The comment that was made earlier is that we believe there is that kind of opportunity on an annual basis to continue to improve margins across the combined businesses. You also heard my answer to Moshe's question earlier, which was this idea that we still believe there's meaningful opportunity with Compo, some of which will accrete to margins, some that we will reinvest in planting seeds to help make sure that we've got the sustained organic growth, the sustained innovation pipeline, and the breakthrough R&D to help make sure that we can continue to deliver for our customers. And it is literally that -- those lessons from Honeywell, the lessons from Vertiv, now Compo that we believe we can implement at Husky as well.

先前的評論是，我們相信每年都有這樣的機會，可以繼續提高合併後各項業務的利潤率。你們之前也聽到了我對 Moshe 問題的回答，那就是我們仍然相信 Compo 蘊藏著巨大的發展機遇，其中一些機會將轉化為利潤，一些機遇我們將重新投資於未來，以確保我們擁有持續的內生增長、持續的創新渠道以及突破性的研發，從而確保我們能夠繼續為客戶提供服務。而正是這些經驗——從霍尼韋爾、Vertiv 以及現在的 Compo 那裡汲取的經驗——我們相信也能在 Husky 得到應用。

Yeah. So if I get one follow-up to kind of triangulate this. So if both companies at the spot where Honeywell was at and Vertiv was at when Mr. Cote got involved, where did margins go with those businesses over a 36-month period?

是的。所以如果我能得到一個後續消息來驗證這一點。那麼，如果霍尼韋爾和Vertiv這兩家公司在科特先生介入時都處於當時的境地，那麼在36個月的時間裡，這些公司的利潤率發生了怎樣的變化呢？

Well, I don't have those off the top of my head, but they're public record and they're good.

我一時想不起來具體內容，但它們都是公開記錄，而且很有價值。

Okay. Yeah, okay. Good. I'll take that out.

好的。好的。好的。我會把它拿出來。

Let's put it this way. I've learned that analysts can't handle anything above a commitment to improve basis points above 500. So I used to think at Vertiv that we could get 1,000 points. They couldn't handle it. So I said, okay, it's 500. And we're at 1,000, they say, oh, well, where can you go next? And we can't say 1,000 points more because they can't handle it. So that's why we're telling you 500.

這麼說吧。我發現，分析師無法處理任何超過 500 個基點以上的改進承諾。所以，我以前在Vertiv的時候覺得我們可以拿到1000分。他們無法承受。所以我說，好吧，是 500。他們說，我們已經達到 1000 了，哦，那接下來還能去哪裡呢？我們不能再增加 1000 分，因為他們承受不了。所以這就是我們告訴你500的原因。

Ladies and gentlemen, that's [concludes] today's call. Thank you all for joining. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝各位的參與。您現在可以斷開連線了。