CPI Card Group Inc (PMTS) 2024 Q2 法說會逐字稿

Welcome to CPI Card Group's Second Quarter 2024 Earnings Call.

歡迎參加 CPI 卡集團 2024 年第二季財報電話會議。

My name is Eric, and I will be your operator today.

我叫艾瑞克，今天我將成為您的接線生。

(Operator Instructions)

（操作員說明）

Now I would like to turn the call over to Mike Salop, CPI's Head of Investor Relations.

現在我想將電話轉給 CPI 投資者關係主管 Mike Salop。

Please go ahead.

請繼續。

Thanks, operator, and good afternoon, everyone.

謝謝接線員，大家下午好。

Welcome to the CPI Card Group's second quarter 2024 earnings webcast and conference call.

歡迎觀看 CPI 卡集團 2024 年第二季收益網路廣播和電話會議。

Today's date is August 5, 2024, and on the call today from CPI Card Group are John Lowe, President and Chief Executive Officer; and Jeff Hochstadt, Chief Financial Officer.

今天的日期是 2024 年 8 月 5 日，CPI 卡集團總裁兼執行長 John Lowe 今天接聽了電話；和財務長 Jeff Hochstadt。

Before we begin, I'd like to remind everyone this call may contain forward-looking statements as they are defined under the Private Securities Litigation Reform Act of 1995.

在開始之前，我想提醒大家，本次電話會議可能包含前瞻性陳述，這些陳述是根據 1995 年《私人證券訴訟改革法案》定義的。

These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements.

這些陳述受到某些風險和不確定性的影響，可能導致實際結果與前瞻性陳述中表達的結果有重大差異。

For a discussion of such risks and uncertainties, please see CPI Card Group's most recent filings with the SEC.

有關此類風險和不確定性的討論，請參閱 CPI 卡集團最近向 SEC 提交的文件。

All forward-looking statements made today reflect our current expectations only, and we undertake no obligation to update any statements to reflect the events that occur after this call.

今天所做的所有前瞻性陳述僅反映我們目前的預期，我們沒有義務更新任何陳述以反映本次電話會議後發生的事件。

Also, during the course of today's call, the company will be discussing one or more non-GAAP financial measures, including, but not limited to, EBITDA, adjusted EBITDA, adjusted EBITDA margin, net leverage ratio and free cash flow.

此外，在今天的電話會議期間，該公司將討論一項或多項非公認會計準則財務指標，包括但不限於 EBITDA、調整後 EBITDA、調整後 EBITDA 利潤率、淨槓桿率和自由現金流。

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included in the press release and slide presentation we issued this afternoon.

我們今天下午發布的新聞稿和幻燈片簡報中包含了這些非公認會計原則財務指標與最直接可比較的公認會計原則指標的調節表。

Copies of today's press release as well as the presentation that accompanies this conference call are accessible on CPI's Investor Relations website, investor.cpicardgroup.com. In addition, CPI's Form 10-Q for the quarter ended June 30, 2024, will be available on CPI's Investor Relations website.

今天的新聞稿以及本次電話會議附帶的簡報的副本可在 CPI 的投資者關係網站 Investor.cpicardgroup.com 上取得。此外，CPI 截至 2024 年 6 月 30 日的季度的 10-Q 表格將在 CPI 的投資者關係網站上發布。

On today's call, all growth rates are referred to comparisons with the prior year period, unless otherwise noted.

在今天的電話會議上，除非另有說明，所有成長率均指與去年同期的比較。

I'd now like to turn the call over to President and Chief Executive Officer, John Lowe.

我現在想將電話轉給總裁兼執行長約翰·洛 (John Lowe)。

Thanks, Mike, and good afternoon, everyone.

謝謝麥克，大家下午好。

On today's call, I will give a brief overview of the second quarter and our ongoing strategies.

在今天的電話會議上，我將簡要概述第二季度和我們正在進行的策略。

Jeff will go into more detail on the results and our financial outlook, and then we will open the call for questions.

傑夫將更詳細地介紹結果和我們的財務前景，然後我們將開始提問。

Let's start on Slide 4.

讓我們從幻燈片 4 開始。

As I wrap up my second quarter as President and CEO, I am very pleased with the performance of our company and our teams.

在我擔任總裁兼執行長的第二季即將結束時，我對我們公司和團隊的表現感到非常滿意。

We returned to positive sales growth in the quarter as continued growth in our prepaid segment and our instant issuance and card personalization businesses was complemented by improved trends in secure card sales, leading to growth in both our business segments.

由於預付費業務以及即時發行和卡片個人化業務的持續成長，加上安全卡銷售趨勢的改善，我們在本季度恢復了正銷售成長，從而導致我們兩個業務部門的成長。

Additionally, we made further progress on our diversification efforts in adjacencies and digital solutions.

此外，我們在鄰接和數位解決方案方面的多元化努力取得了進一步進展。

From a market perspective, while we believe channel card inventory is still being worked down, levels are improving, and we are winning business.

從市場角度來看，雖然我們認為通路卡庫存仍在減少，但水準正在改善，我們正在贏得業務。

Secure Card sales were down only slightly in the quarter and posted sequential growth compared to the first quarter, which represented the second straight quarter of sequential increases.

本季安全卡銷售額僅小幅下降，與第一季相比實現環比成長，這是連續第二季實現環比成長。

The issuance market also remained strong. with cards in circulation in the US posting another healthy growth quarter based on the latest data from the card networks.

發行市場也依然強勁。根據信用卡網路的最新數據，美國流通的銀行卡又迎來了一個健康成長的季度。

Our prepaid business benefited from higher value packaging solutions while our instant issuance business was aided by continued market penetration of our Software-as-a-Service-based digital solution as we are now in more than 16,000 branches across the United States.

我們的預付費業務受益於更高價值的打包解決方案，而我們的即時發行業務則得益於基於軟體即服務的數位解決方案的持續市場滲透，因為我們現在在美國擁有 16,000 多個分支機構。

Overall, we are confident in our business trends and continue to expect better growth rates in the second half of the year.

總體而言，我們對我們的業務趨勢充滿信心，並繼續預計下半年會有更好的成長率。

From a profitability standpoint, gross margins improved slightly in the quarter, while adjusted EBITDA margins declined primarily due to increases in SG&A, which reflect increased investments in people and in the business to drive future growth.

從獲利能力的角度來看，本季毛利率略有改善，而調整後的 EBITDA 利潤率下降主要是由於 SG&A 的增加，這反映出為推動未來成長而對人員和業務的投資增加。

For the second half of the year, we expect strong growth in sales and adjusted EBITDA compared to last year's second half.

今年下半年，我們預計與去年下半年相比，銷售額和調整後 EBITDA 將強勁成長。

Based on our first half performance and expectations for the rest of the year, we have updated our full year outlook for 2024, increasing our expected sales growth from a slight increase to mid-single-digit growth, while maintaining our adjusted EBITDA outlook at slight growth compared to 2023 as we continue to invest for long-term growth.

根據我們上半年的業績和對今年剩餘時間的預期，我們更新了 2024 年全年展望，將銷售成長預期從小幅成長上調至中個位數成長，同時維持調整後 EBITDA 前景為小幅成長。年相比，我們將繼續為長期成長進行投資。

The improvement in our sales outlook is being driven by strong prepaid performance and improvement in debit and credit sales trends, but Jeff will give you more detail on our full financial outlook in a few minutes.

我們銷售前景的改善是由強勁的預付業績以及借記卡和貸記銷售趨勢的改善推動的，但傑夫將在幾分鐘內向您提供有關我們完整財務前景的更多詳細信息。

In addition to our business performance, we've continued to execute against our capital allocation priorities and further enhance our capital structure.

除了我們的業務表現之外，我們還繼續執行我們的資本配置優先事項並進一步增強我們的資本結構。

In July, to further support our long-term growth, we refinanced our debt issuing $285 million of new senior secured notes and entering into a new $75 million asset-based revolving credit facility.

7 月，為了進一步支持我們的長期成長，我們發行了 2.85 億美元的新優先擔保票據，並簽訂了一項新的 7,500 萬美元的基於資產的循環信貸額度，為債務進行再融資。

The refinancing extends our debt maturities out to 2029 and removes market risk in replacing the previous notes, which would have matured in early 2026.

再融資將我們的債務期限延長至 2029 年，並消除了更換先前將於 2026 年初到期的票據的市場風險。

We chose to refinance this summer as the debt markets have been strong and investors have been very receptive to offerings, and we wanted to avoid any potential that the markets become less favorable as we go through the election cycle later this year.

我們選擇在今年夏天進行再融資，因為債務市場一直表現強勁，投資者也非常願意接受發行，我們希望避免在今年稍後的選舉週期中市場變得不那麼有利的可能性。

In addition, we have completed additional share repurchases, bringing our total since inception of the program to almost $9 million out of our $20 million authorization.

此外，我們還完成了額外的股票回購，使自該計劃啟動以來我們的總額達到近 900 萬美元，授權金額為 2000 萬美元。

Before turning the call over to Jeff, let me briefly review our strategies on Slide 5.

在將電話轉給 Jeff 之前，讓我先簡單回顧一下幻燈片 5 上我們的策略。

Our strategies continue to focus on growing and gaining share in our traditional businesses while enhancing growth by expanding into adjacent markets, including digital solutions over the long term.

我們的策略持續專注於傳統業務的成長和份額成長，同時透過擴展到鄰近市場（包括長期的數位解決方案）來促進成長。

Our goal is to continue to gain share in our current markets by being the leader in customer service, quality and innovation.

我們的目標是透過成為客戶服務、品質和創新的領導者，繼續在當前市場中獲得份額。

One example of following our strategy is to grow in our traditional businesses is our ongoing priority to listen to and meet the needs of our customers.

遵循我們策略的一個例子是在傳統業務中發展，這是我們持續關注和滿足客戶需求的首要任務。

In our prepaid business, our customers are currently very focused on preventing fraud and providing more tamper evident and fraud-resistant solutions to their customers.

在我們的預付費業務中，我們的客戶目前非常注重防止欺詐，並為其客戶提供更防篡改和防詐欺的解決方案。

Our prepaid team works closely with our customers to counter new mechanisms fraudsters are employing and to develop innovative packaging solutions that help our customers achieve their fraud reduction goals.

我們的預付費團隊與客戶密切合作，打擊詐欺者採用的新機制，並開發創新的包裝解決方案，幫助我們的客戶實現減少詐欺的目標。

These additional innovations not only create demand, but also require higher-value packaging solutions, benefiting our sales.

這些額外的創新不僅創造了需求，而且還需要更高價值的包裝解決方案，從而有利於我們的銷售。

This is just one example of how we gain share by focusing on our customers across our portfolio and providing leadership in customer service, quality and innovation.

這只是我們如何透過在整個產品組合中專注於客戶並在客戶服務、品質和創新方面提供領先地位來獲得份額的一個例子。

In addition to driving growth in the existing core business, we are advancing our efforts to capitalize on new opportunities by entering adjacent markets, including offering more products and solutions to existing customers and expanding to new customer verticals.

除了推動現有核心業務的成長外，我們還努力透過進入鄰近市場來利用新機遇，包括為現有客戶提供更多產品和解決方案以及擴展到新的垂直客戶領域。

Examples include our entry into healthcare payment cards and our ongoing development of digital push provisioning services for mobile wallets.

例子包括我們進入醫療保健支付卡領域以及我們持續開發的行動錢包數位推播配置服務。

We are making progress across both of these long-term drivers, and we expect these adjacent opportunities to supplement core growth over the coming years.

我們正在這兩個長期驅動力方面取得進展，我們預計這些相鄰的機會將在未來幾年補充核心成長。

Turning to Slide 6.

轉到投影片 6。

We continue to expect our core markets to provide solid long-term growth.

我們繼續期望我們的核心市場能夠提供穩健的長期成長。

On this slide, you can see the latest US cards in circulation trends from Visa and Mastercard.

在此投影片上，您可以看到 Visa 和 Mastercard 的最新美國卡流通趨勢。

For the three years ending March 31, cards in circulation in the US increased at a 10% CAGR.

截至 3 月 31 日的三年裡，美國流通的信用卡複合年增長率為 10%。

And Cards & Circulation were also up 10% compared to the prior year first quarter.

與去年第一季相比，信用卡和流通量也增加了 10%。

The issuance trends remain healthy.

發行趨勢保持健康。

We also expect US debit and credit market growth to be aided by ongoing preferences for cards and the recurring nature of the industry as well as trends towards higher value eco-friendly and other contactless cards.

我們也預計，美國金融卡和信用卡市場的成長將得益於對卡片的持續偏好、該行業的重複性以及更高價值的環保卡和其他非接觸式卡的趨勢。

To demonstrate the ongoing consumer adoption of contactless, Visa just reported in its recent earnings call, the tap to pay penetration has surpassed 50% of transactions in the US

為了證明消費者對非接觸式支付的持續採用，Visa 在最近的財報電話會議中報告稱，美國的交易中，觸碰支付的滲透率已超過 50%

I would now like to turn the call over to Jeff to discuss our second quarter financial results and 2024 outlook in more detail.

我現在想將電話轉給 Jeff，更詳細地討論我們第二季的財務表現和 2024 年的前景。

Jeff?

傑夫？

Thanks, John, and good afternoon, everyone.

謝謝約翰，大家下午好。

I will begin my overview on Slide 8.

我將從幻燈片 8 開始概述。

Overall, we are pleased with the second quarter results.

總體而言，我們對第二季的業績感到滿意。

As John mentioned, with sustained growth in our prepaid, instant issuance and card personalization businesses and card sales trends improved compared to recent quarters.

正如約翰所提到的，隨著我們的預付費、即時發卡和卡片個人化業務的持續成長，卡片銷售趨勢與最近幾季相比有所改善。

Compared to the prior year second quarter, net sales increased 3% and net income decreased 8% and adjusted EBITDA decreased 6%.

與去年同期相比，第二季淨銷售額成長 3%，淨利潤下降 8%，調整後 EBITDA 下降 6%。

Gross margins increased slightly while net income and adjusted EBITDA were negatively impacted by increased SG&A, including investments and some ongoing costs related to the CEO transition.

毛利率略有成長，而淨利潤和調整後的 EBITDA 受到 SG&A（包括投資和與執行長換屆相關的一些持續成本）增加的負面影響。

Year-to-date, our free cash flow is slightly less than prior year levels as expected, and our net leverage ratio at the end of the quarter was 3.3x.

年初至今，我們的自由現金流略低於預期的去年水平，季末的淨槓桿率為 3.3 倍。

Turning to the detailed second quarter results on Slide 9.

轉向幻燈片 9 上的詳細第二季業績。

The overall 3% sales increase reflected a 3% increase in our debit and credit segment and a 9% increase in our prepaid segment.

整體銷售額成長 3%，反映了我們的金融卡和貸記卡業務成長了 3%，以及預付費業務成長了 9%。

Within debit and credit, Card@Once instant issuance solutions and other card personalization services both delivered good growth.

在藉記卡和信用卡領域，Card@Once 即時發行解決方案和其他卡片個人化服務均實現了良好的成長。

The major trend change versus previous quarters, however, came from improvement in card sales, which only declined slightly in the quarter compared to prior year, an increase compared to the first quarter.

然而，與前幾季相比，主要趨勢變化來自卡片銷售的改善，該季度卡片銷售僅比去年同期略有下降，但與第一季相比有所增加。

The increase in prepaid sales reflects continued strong demand from existing customers for our fraud focused packaging solutions, as John mentioned earlier.

正如約翰之前提到的，預付費銷售額的成長反映了現有客戶對我們以詐欺為重點的包裝解決方案的持續強勁需求。

Gross profit in the quarter increased 4% from the prior year driven by the sales growth and a slight increase in margin from 35.5% to 35.7%.

由於銷售成長和利潤率從 35.5% 略有上升至 35.7%，本季毛利較上年同期成長 4%。

SG&A, including depreciation and amortization, increased $4.1 million from the prior year primarily due to increased compensation costs, including stock compensation from special grants issued in 2023 related to the CEO transition.

SG&A（包括折舊和攤提）較上年增加 410 萬美元，主要是由於薪酬成本增加，其中包括 2023 年與 CEO 過渡相關的特別補助金帶來的股票薪酬。

We also had unfavorable comparisons with low prepaid operating expenses in the prior year.

我們也與去年的低預付營運費用進行了不利的比較。

We had planned for SG&A to increase this year as we invest for the future, including in people after tightening spending significantly in 2023.

我們計劃今年增加 SG&A，因為我們對未來進行投資，包括在 2023 年大幅收緊支出後對人員的投資。

Our tax rate in the quarter was 27.7%, which compared to 38.9% in the second quarter of last year as last year's rate reflected limitations on deductibility of executive compensation due to the CEO retention award.

我們本季的稅率為 27.7%，而去年第二季的稅率為 38.9%，因為去年的稅率反映了執行長保留獎對高階主管薪酬扣除的限制。

Net income in the first quarter decreased 8% to $6 million, primarily due to the SG&A increase, partially offset by sales growth and the lower tax rate and adjusted EBITDA decreased 6% to $21.9 million.

第一季淨利潤下降 8%，至 600 萬美元，主要是由於 SG&A 增加，部分被銷售成長和較低稅率所抵消，調整後 EBITDA 下降 6%，至 2,190 萬美元。

Adjusted EBITDA margin of 18.4% was down from 20.3% in the prior year due to the higher SG&A expenses.

由於 SG&A 費用增加，調整後 EBITDA 利潤率為 18.4%，低於前一年的 20.3%。

Turning now to our first half results on Slide 10.

現在轉向投影片 10 上的上半部結果。

For the first half of the year, sales decreased 2% with the debit and credit segment declining 6% and prepaid increasing 17%.

今年上半年，銷售額下降 2%，其中藉記卡和貸記卡業務下降 ​​6%，預付費業務成長 17%。

Within debit and credit, declines in both contactless and contact card sales were partially offset by growth in eco-focused contactless cards as well as ongoing growth from instant issuance and other card personalization services.

在藉記卡和信用卡領域，非接觸式卡和接觸式卡銷量的下降被注重環保的非接觸式卡的增長以及即時發卡和其他卡個性化服務的持續增長所部分抵消。

Gross profit for the first half was flat as an improvement in margin from 35.6% to 36.4% offset the impact of the 2% sales decline.

上半年毛利持平，利潤率從 35.6% 提高至 36.4%，抵消了銷售額下降 2% 的影響。

The gross margin improvement was driven by comparisons with some higher expenses in the first quarter of 2023 when we transitioned our prepaid production facility workforce from temporary to permanent.

毛利率的改善是由於與 2023 年第一季的一些較高費用相比推動的，當時我們將預付生產設施的勞動力從臨時員工轉變為永久員工。

SG&A increased $9 million from the prior year period, primarily due to the same factors as the second quarter as well as the former CEO's retention award and other executive severance.

SG&A 比去年同期增加 900 萬美元，主要是由於與第二季度相同的因素以及前首席執行官的保留獎和其他高管遣散費。

The year-to-date tax rate of 28.2% was down slightly from last year's 28.6%.

年初至今的稅率為 28.2%，較去年的 28.6% 略有下降。

Net income in the first half decreased 34% to $11.5 million and adjusted EBITDA decreased 7% to $44.9 million.

上半年淨利潤下降 34% 至 1,150 萬美元，調整後 EBITDA 下降 7% 至 4,490 萬美元。

Adjusted EBITDA margins of 19.5% was down from 20.5% in the prior year as the impact of lower sales and higher operating expenses was partially offset by improved gross margins.

調整後 EBITDA 利潤率為 19.5%，低於上年的 20.5%，原因是銷售額下降和營運費用增加的影響被毛利率的提高部分抵消。

As mentioned, the net income decline also reflects the impact of the executive retention award accrual and other CEO transition-related costs, which are not included in adjusted EBITDA.

如前所述，淨利潤下降也反映了應計高階主管保留獎勵和其他執行長過渡相關成本的影響，這些成本不包含在調整後的 EBITDA 中。

Turning now to our segments on Slide 11.

現在轉向幻燈片 11 上的部分。

I discussed the segment sales drivers earlier, so I will highlight segment profitability on this slide.

我之前討論了細分市場的銷售驅動因素，因此我將在這張投影片上強調細分市場的獲利能力。

Income from operations for the Debit and Credit segment increased 1% to $25.4 million in the second quarter, driven by the sales increase and decreased 13% in the first half due to the sales decline and increased compensation expenses.

在銷售額成長的推動下，第二季簽帳卡和貸記卡部門的營運收入成長了 1%，達到 2,540 萬美元，而上半年因銷售額下降和薪酬支出增加而下降了 13%。

Prepaid Debit segment income from operations decreased 9% to $6.9 million in the second quarter, which was due to comparisons with lower operating expenses in the prior year quarter.

第二季預付借記業務業務收入下降 9% 至 690 萬美元，這是由於與去年同期營運費用較低相比。

On a year-to-date basis, prepaid income from operations increased 38%, driven by sales growth and gross margin improvement, including the impact of labor expenses related to the staffing transition in our prepaid production facility in the prior year first quarter.

年初至今，在銷售成長和毛利率改善的推動下，營運預付收入成長了 38%，其中包括去年第一季預付生產設施人員配置過渡相關的勞動力費用的影響。

Turning to the balance sheet, liquidity and cash flow on Slide 12.

轉向投影片 12 上的資產負債表、流動性和現金流。

For the first half of the year, we generated $4.1 million of cash from operating activities and invested $2.7 million in capital expenditures, which resulted in free cash flow of $1.4 million.

今年上半年，我們從營運活動中產生了 410 萬美元的現金，並投資了 270 萬美元的資本支出，產生了 140 萬美元的自由現金流。

This compared to operating cash flow of $10.3 million and free cash flow of $3.7 million in the prior year first half.

相較之下，去年上半年營運現金流為 1,030 萬美元，自由現金流為 370 萬美元。

The lower generation in this year's period was driven by the net income decline and increased working capital usage, partially offset by lower capital spending.

今年這段時期的一代減少是由於淨收入下降和營運資金使用增加造成的，但部分被資本支出減少所抵消。

Working capital usage included payment of the $5 million retention award for our former CEO and the initial incentive for the new customer contract we announced last quarter.

營運資金使用包括支付我們前任執行長 500 萬美元的保留獎以及我們上季度宣布的新客戶合約的初始激勵。

We expect capital spending to ramp in the second half of the year as we advance the buildout of our new secured card production facility in Indiana.

隨著我們推進印第安納州新的安全卡生產設施的建設，我們預計下半年資本支出將增加。

On the balance sheet, at quarter end, we had $7.5 million of cash, $4 million of borrowings on our ABL revolver, $268 million of senior secured notes outstanding and a net leverage ratio of 3.3x. Our capital structure and allocation priorities remain focused on maintaining ample liquidity, investing in the business, including possible strategic acquisitions, deleveraging the balance sheet and returning funds to stockholders.

在季度末的資產負債表上，我們有 750 萬美元的現金、400 萬美元的 ABL 左輪手槍借款、2.68 億美元的未償優先擔保票據，淨槓桿率為 3.3 倍。我們的資本結構和分配優先事項仍然集中在保持充足的流動性、投資業務（包括可能的策略性收購）、去槓桿化資產負債表以及向股東返還資金。

As mentioned earlier, in July, we completed the refinancing of our debt, issuing $285 million of 10% coupon senior secured notes due in 2029 at par.

如前所述，7 月，我們完成了債務再融資，以面額發行了 2.85 億美元、2029 年到期、年息 10% 的優先擔保票據。

Concurrently, we also entered into a new $75 million ABL revolving facility, replacing our existing facility.

同時，我們也簽訂了價值 7,500 萬美元的新 ABL 循環設施，以取代我們現有的設施。

We used the proceeds from the debt offering to redeem our existing senior notes due in 2026 including payment of the call premium.

我們利用發債所得款項贖回現有的 2026 年到期的優先票據，包括支付贖回溢價。

We expect our net debt and net leverage ratio to move up slightly in the third quarter due to the cash outflow associated with the refinance, reflecting payment of the call premium and deal costs on the new offering.

由於與再融資相關的現金流出，我們預計第三季的淨債務和淨槓桿率將小幅上升，反映出新發行的贖回溢價和交易成本的支付。

This refinancing gives us stability in our capital structure and removes market risk on refinancing our notes, which would have matured in early 2026.

此次再融資使我們的資本結構保持穩定，並消除了本應於 2026 年初到期的票據再融資的市場風險。

We also continue to execute our share repurchase program.

我們也繼續執行我們的股票回購計劃。

Through July, we have bought back approximately $9 million against our $20 million authorization since inception of the program in the fourth quarter of last year.

自去年第四季該計畫啟動以來，截至 7 月，我們已經回購了約 900 萬美元，授權金額為 2,000 萬美元。

We spent approximately $750,000 to repurchase 40,000 shares of our common stock in the open market in the second quarter.

第二季度，我們花了約 75 萬美元在公開市場上回購了 4 萬股普通股。

And in July, we completed the purchase of an additional 121,000 shares for $2.2 million from our majority shareholder pursuant to the second stock purchase agreement announced in March.

7 月份，根據 3 月宣布的第二份股票購買協議，我們以 220 萬美元的價格從大股東手中額外購買了 121,000 股股票。

Under that agreement, we committed to repurchase shares from our majority shareholder at a ratio of 3:1 to the number of shares we repurchased in the open market from April to June at a price of 98% of the average open market repurchase price over that period.

根據該協議，我們承諾以 4 月至 6 月在公開市場回購股份數量的 3:1 比例從大股東回購股份，價格為 4 月至 6 月公開市場平均回購價格的 98%。

In the second quarter, we also completed the purchase of 244,000 shares for $4.4 million from our majority shareholder pursuant to the stock purchase agreement announced in December.

第二季度，我們也根據 12 月宣布的股票購買協議，以 440 萬美元的價格完成了從大股東購買 244,000 股股票的交易。

That agreement called for us to purchase from our majority shareholder at a 3 is to 1 ratio to the number of shares we repurchased in the open market from December through March also at a price of 98% of the open market price.

該協議要求我們以 3 比 1 的比例從我們的大股東那裡購買我們從 12 月到 3 月在公開市場上回購的股票數量，價格也是公開市場價格的 98%。

At this time, we do not expect additional share repurchases for the remainder of the year.

目前，我們預計今年剩餘時間內不會進行額外的股票回購。

Turning to our 2024 financial outlook on Slide 13.

轉向幻燈片 13 上的 2024 年財務展望。

As John mentioned, we have updated our financial outlook for 2024, increasing our sales outlook to mid-single-digit growth from the previous expectation of slight growth.

正如約翰所提到的，我們更新了 2024 年的財務前景，將銷售前景從先前的小幅成長預期提高到中位數成長。

The increase is driven primarily by the strong performance of our prepaid business and the improved trends in debit and credit card sales and reflects both expected market recovery and anticipated share gains.

這一成長主要是由我們的預付費業務的強勁表現以及借記卡和信用卡銷售趨勢的改善所推動的，反映了預期的市場復甦和預期的份額成長。

We are maintaining our adjusted EBITDA outlook at slight growth compared to 2023, which still implies good growth in the second half of the year as adjusted EBITDA was down 7% in the first half.

我們維持調整後 EBITDA 展望為較 2023 年略有增長，這仍然意味著下半年將出現良好增長，因為上半年調整後 EBITDA 下降了 7%。

We expect sales to grow faster than adjusted EBITDA in the second half, primarily due to investments for future growth and higher performance-based compensation compared to low levels in 2023.

我們預計下半年銷售額成長將快於調整後的 EBITDA，這主要是由於對未來成長的投資以及與 2023 年較低水準相比更高的基於績效的薪酬。

Investments for future growth include investments in our digital business, the Indiana secured card production facility, technology and people.

對未來成長的投資包括對我們的數位業務、印第安納州安全卡生產設施、技術和人員的投資。

We have maintained our full year free cash flow outlook at approximately half the 2023 level and we continue to expect our year-end net leverage ratio to be between 3 times and 3.5 times.

我們將全年自由現金流前景維持在 2023 年水準的一半左右，並繼續預期年末淨槓桿比率將在 3 倍至 3.5 倍之間。

I will now pass the call back to John for some closing remarks on Slide 14.

現在，我將把電話轉給 John，請他就投影片 14 做一些總結發言。

John?

約翰？

Thanks, Jeff.

謝謝，傑夫。

To summarize, we are pleased to return to sales growth in the second quarter as continued growth in prepaid and our debit and credit services businesses was complemented by improvement in secure card sales trends.

總而言之，我們很高興第二季度恢復銷售成長，因為預付費以及我們的借記卡和信貸服務業務的持續成長得到了安全卡銷售趨勢改善的補充。

We've increased our outlook for sales and affirmed our outlook for adjusted EBITDA for the full year and remain confident we will see accelerated growth in the second half as we continue to invest for the long-term growth of CPI.

我們上調了銷售預期，並肯定了全年調整後 EBITDA 的預期，並仍然對下半年的加速成長充滿信心，因為我們將繼續投資於 CPI 的長期成長。

We also further executed against our capital strategies by refinancing our senior notes in July.

我們也透過 7 月的優先票據再融資進一步執行了我們的資本策略。

We continue to see healthy trends in US card issuance and remain focused on executing our strategies to gain share by leading in customer service, quality and innovation and increasing our addressable market through expansion into adjacencies, including digital solutions over time.

我們繼續看到美國發卡的健康趨勢，並繼續專注於執行我們的策略，透過領先的客戶服務、品質和創新來獲得份額，並透過擴展到鄰近地區（包括隨著時間的推移提供數位解決方案）來擴大我們的潛在市場。

Operator, we will now open the call up for questions.

接線員，我們現在開始提問。

(Operator Instructions)

（操作員說明）

Jaeson Schmidt, Lake Street Capital Markets.

Jaeson Schmidt，湖街資本市場。

Thank you.

謝謝。

John, you noted that it's still creating some headwinds.

約翰，你注意到它仍然帶來了一些阻力。

Obviously, it doesn't seem like significant just given what you guys reported.

顯然，根據你們的報告，這似乎並不重要。

But curious when you think that issue is going to be fully behind you.

但當你認為這個問題將完全被你拋在腦後時，你會感到好奇。

Do you think it will be over by the end of Q3?

您認為到第三季末就會結束嗎？

Jaeson, good to talk to you, and I apologize for the technical difficulties, little bit of challenges with our Polycom here in the room we're in.

Jaeson，很高興與您交談，對於技術困難以及我們所在房間中的 Polycom 遇到的一些挑戰，我深表歉意。

We feel like there's good momentum in the market.

我們感覺市場勢頭良好。

If you think about just card issuance trends, cards in circulation they are up 10% over the last few years, 10% quarter-over-quarter.

如果你只考慮發卡趨勢，那麼在過去幾年裡，信用卡的流通量增加了 10%，比去年同期成長了 10%。

That's actually an improvement from the last time Visa and Mastercard put information out.

這實際上比 Visa 和 Mastercard 上次發布資訊有所改善。

If you think about our internal card volumes, we saw sequential card volume growth Q2 to Q1.

如果您考慮我們的內部卡片數量，我們會看到第二季到第一季的卡片數量持續成長。

We also saw Q1 to Q4.

我們也看到了第一季到第四季。

And if you think about from a customer perspective, we've been talking to large customers down to the smallest of customers.

如果你從客戶的角度思考，我們一直在與大客戶一直到最小的客戶。

And what we are seeing is more normalization, I would say, in card inventory levels.

我想說的是，我們看到的是卡片庫存水準更加正常化。

No brainer, they're still higher than what they have been historically, but we're seeing us move closer to that normalization period.

不用想，它們仍然高於歷史水平，但我們看到我們正在接近正常化時期。

So we wouldn't say there's a bright line when things are over and perfectly back to normalcy, but we feel good about where we are, and it's part of the reason that we raised our guidance to mid-single digits growth for revenue and feel that the markets are healthy and the performance of the company is positive.

因此，當事情結束並完全恢復正常時，我們不會說有一條光明的界限，但我們對自己的處境感覺良好，這也是我們將收入成長指引提高到中個位數成長的部分原因，並且感覺市場健康且公司業績良好。

So we're happy with things.

所以我們對事情很滿意。

Okay.

好的。

That's really helpful.

這真的很有幫助。

And then looking at the new markets or new verticals, such as sort of the healthcare payment cards, digital push provisioning, I know it's early, but when do you think these opportunities can be a meaningful contributor?

然後看看新市場或新垂直領域，例如醫療保健支付卡、數位推播配置，我知道現在還為時過早，但您認為這些機會什麼時候可以成為有意義的貢獻者？

Is it a 2025 story, 2026 or early beyond that?

這是 2025 年、2026 年還是更早的故事？

Yes.

是的。

I mean, I think it's over years to come.

我的意思是，我認為這還需要幾年的時間。

If you think about adjacencies broadly, there's some healthcare, the gig economy, that we've been in for a while and have been growing those businesses.

如果你廣泛地考慮鄰接關係，你會發現一些醫療保健、零工經濟，我們已經涉足了一段時間，並且一直在發展這些業務。

They're not meaningful enough to give true revenue numbers, but they're positive, and we have momentum, and we're gaining share in those areas.

它們的意義不足以提供真實的收入數字，但它們是積極的，而且我們有動力，我們正在這些領域獲得份額。

That said, if you look at the digital side of our business, it's a long-term play.

也就是說，如果你看看我們業務的數位方面，你會發現這是一個長期的策略。

If you think about our first digital solution, if you will, the way we think about it, our Card@Once Software-as-a-Service solution, we've been in that market 19 years.

如果您想到我們的第一個數位解決方案，如果您願意的話，您會想到我們的 Card@Once 軟體即服務解決方案，我們已經進入該市場 19 年了。

We're a leader from a Software-as-a-Service perspective, and we just exceeded 16,000 branches across the US we're in.

從軟體即服務的角度來看，我們是領先者，而且我們在美國的分支機構剛剛超過 16,000 個。

So when you think about digital card issuance broadly, it's early days, but we feel like we're well positioned in the market.

因此，當您廣泛考慮數位卡發行時，現在還處於早期階段，但我們覺得我們在市場中處於有利地位。

We've had a great reception from our customer base.

我們受到了客戶群的熱烈歡迎。

But any dollars coming in, any growth right now is very small in relation to the broader business.

但與更廣泛的業務相比，目前的任何收入、任何成長都非常小。

But in years to come, we'll be ready to share a lot more and especially if you see those numbers on the digital side start to really materialize.

但在未來的幾年裡，我們將準備分享更多內容，特別是如果您看到數字方面的這些數字開始真正實現。

Got you.

明白你了。

And then just the last one for me, and I'll jump back in the queue, not so much looking at volume discounts, but just in general, what are you seeing from a pricing standpoint?

然後是我的最後一個，我會跳回到隊列中，不太關注批量折扣，但總的來說，從定價的角度來看，您看到了什麼？

Yes, pricing is an equilibrium.

是的，定價是一種均衡。

I mean I think the market is healthy.

我的意思是我認為市場是健康的。

There's nothing existential impact in our market that would cause pricing to be out of equilibrium.

我們的市場不存在任何會導致定價失衡的生存影響。

I mean, I know that if you're looking in the very near term, today was kind of a choppy time for the equity markets, right?

我的意思是，我知道如果你著眼於近期，今天對股市來說是一段動盪的時期，對吧？

But if you just look broadly in our markets that we operate in, pricing is all based upon value proposition.

但如果你廣泛觀察我們經營的市場，就會發現定價完全是基於價值主張。

And as long as we continue to execute our strategy focusing on the customer quality, innovation, we continue to have a great value proposition of our products, whether that's contactless or eco-focused or prepaid fraud prevention solutions or even what we do in our instant issuance side as well as our Software-as-a-Service solution.

只要我們繼續執行專注於客戶品質和創新的策略，我們的產品就會繼續擁有巨大的價值主張，無論是非接觸式、注重生態還是預付費詐欺預防解決方案，甚至是我們即時所做的事情發行方以及我們的軟體即服務解決方案。

So we feel pricing is competitive for what we provide, and we provide great value to our markets.

因此，我們認為定價對於我們提供的產品而言具有競爭力，並且我們為市場提供了巨大的價值。

Appreciate all the color.

欣賞所有的顏色。

Thanks, guys.

謝謝，夥計們。

Andrew Scutt, ROTH Capital Partners.

安德魯‧斯卡特，羅仕資本合夥人。

Hey, guys.

嘿，夥計們。

Good afternoon.

午安.

Congrats on the year-over-year growth and thanks for taking my questions.

恭喜您的年成長，並感謝您回答我的問題。

You guys kind of touched on this previously in the prepared remarks.

你們之前在準備好的發言中談到了這一點。

But can you kind of talk about the increase in SG&A?

但可以談談 SG&A 的成長嗎？

You talked about increasing headcount for growth.

您談到了增加員工數量以實現成長。

Growth there was a little bit stronger than the revenue growth.

那裡的成長比收入成長略強一些。

So kind of just if you could help kind of parse out the details there, that would be very helpful.

因此，如果您可以幫助解析那裡的詳細信息，那將非常有幫助。

Yes.

是的。

Let me step back just for a second before I'll let Jeff jump in too.

讓我退後一步，然後讓傑夫也加入進來。

But if you think about broadly the business, right, and you go back to 2022 we are growing significantly, both on the top and on the bottom.

但如果你從廣義上考慮業務，對吧，然後回到 2022 年，我們無論是在頂部還是底部都在顯著增長。

We came into '23. '23 we encountered a challenging market.

我們進入了23年。 '23我們遇到了一個充滿挑戰的市場。

We tightened our belt significantly.

我們顯著勒緊褲帶。

And so now we come into 2024.

現在我們進入了 2024 年。

And as we see healthy markets, we see the pendulum starting to swing from a card inventory perspective.

當我們看到健康的市場時，我們看到鐘擺開始從卡片庫存的角度擺動。

We see performance across our broader business continue to uptick.

我們看到更廣泛的業務業績持續上升。

We are investing in the business.

我們正在投資這項業務。

So we're bringing back a lot of those investments that maybe we dialed back in 2023 whether that's technology or digital solutions, or go-to-market strategies and people.

因此，我們正在收回許多可能在 2023 年取消的投資，無論是技術、數位解決方案，還是上市策略和人員。

So you do see some noise there.

所以你確實看到了一些噪音。

And you also see a lot of noise just through the CEO transition and everything around it year-over-year.

而且你還可以在執行長換屆以及與此相關的所有事情中看到很多噪音。

So while it may seem odd that EBITDA is not growing as fast as our revenue, we're happy about the revenue growth, and we're investing in the business to make sure that our EBITDA growth and revenue growth are there longer term.

因此，雖然 EBITDA 的成長速度不如我們的營收成長速度似乎很奇怪，但我們對營收成長感到高興，我們正在投資該業務，以確保我們的 EBITDA 成長和營收成長是長期存在的。

But Jeff, would you?

但是傑夫，你願意嗎？

Yes.

是的。

No, I'll just add on to that.

不，我只是補充一下。

Good to hear your voice, Andrew.

很高興聽到你的聲音，安德魯。

If you look at the $9 million, about $9 million increase in SG&A for the first half of the year.

如果你看一下 900 萬美元，上半年的 SG&A 大約增加了 900 萬美元。

A little bit more than half of that is actually added back for adjusted EBITDA.

其中一半多一點實際上被加回調整後的 EBITDA 中。

And that is really mostly related to the CEO transition.

這實際上主要與首席執行官的過渡有關。

And that includes some final payments to the -- or the final accruals for the former CEO for his retention plan.

這包括支付給前任執行長保留計劃的最終應計費用。

It also includes some equity that the company gave to some key employees around the company for performance and retention purposes.

它還包括公司出於績效和保留目的而給予公司一些關鍵員工的一些股權。

And then also some severance for some executives that left the company.

然後也為一些離開公司的高階主管提供了一些遣散費。

So that is really a little bit more than half of the $9 million relates to that CEO transition.

因此，這 900 萬美元中的一半多一點與 CEO 換屆有關。

The remaining part, a little less than half of it really relates to in 2022 one piece of it and in 2023, we had some operating profit favorability for an item in our prepaid business.

剩下的部分，不到一半，實際上與 2022 年的其中一部分有關，而在 2023 年，我們的預付費業務中的一項項目有一些營業利潤優惠。

And so we have a little bit of a growth of that in 2024.

因此，到 2024 年，這一數字將會有所增長。

And in addition to that, as John mentioned, we are investing in the business in different areas.

除此之外，正如約翰所提到的，我們正在不同領域的業務投資。

He mentioned that.

他提到了這一點。

And so that really accounts for the $9 million.

所以這確實是 900 萬美元。

And when we think about going forward for the rest of the year, we're going to continue, as John said, we feel good about where we are in terms of investing in the business, especially after tightening our belt quite a bit in 2023.

當我們考慮今年剩餘時間的發展時，我們將繼續，正如約翰所說，我們對業務投資的進展感到滿意，特別是在 2023 年勒緊褲腰帶之後。

But also in the second half, what you'll see is in 2023, we did not meet our performance expectations and our performance compensation was not -- our performance-based compensation was not where it normally lies, it was below that.

但同樣在下半年，你會看到在 2023 年，我們沒有達到我們的績效預期，我們的績效薪酬也沒有達到——我們基於績效的薪酬沒有達到正常水平，而是低於預期。

So when we get to 2024, where we're going to get to a more normal level of performance comp, you'll see a little bit of a growth of that in the second half as well.

因此，當我們到 2024 年時，我們將達到更正常的績效比較水平，您也會在下半年看到一些成長。

So hopefully, that, Andrew, that gives you some color.

希望安德魯能給你一些啟發。

No.

不。

Thank you.

謝謝。

That was great color there.

那裡的顏色很棒。

Second question for me.

我的第二個問題。

You guys kind of called it out in the slides and talked about on a previous question, Card@Once seemed like you guys had a strong quarter there now in 16,000 locations.

你們在幻燈片中提到了這一點，並談到了先前的問題，Card@Once 似乎你們現在在 16,000 個地點擁有強勁的季度表現。

Can you kind of talk about the appetite for that product and kind of the growth runway you see for Card@Once?

您能談談對該產品的興趣以及您認為 Card@Once 的成長軌跡嗎？

Yes, Andrew, I mean, it's a great solution that we've built.

是的，安德魯，我的意思是，這是我們建造的一個很棒的解決方案。

We are when we say we're the leading provider, we're one of the only providers out there that's developed a Software-as-a-Service solution with instant issuance in branch across financial institutions in the US And the reason that our solution is differentiated is because we are integrated within the Echo payment system, whether that's processors, cores, and the like and so it's a plug-and-play solution.

當我們說我們是領先的供應商時，我們是唯一開發了軟體即服務解決方案的供應商之一，該解決方案可以在美國各金融機構的分支機構即時發行，而我們的解決方案之所以如此之所以與眾不同，是因為我們整合在Echo 支付系統中，無論是處理器、核心還是類似的，所以它是一個即插即用的解決方案。

So we can be up and running very quickly.

這樣我們就可以很快啟動並運行。

It's a way for us to win new customers with exciting new solution for their customers, which ultimately leads to generally speaking, wins on our personalization side and wins on our secure card side as well.

這是我們透過為客戶提供令人興奮的新解決方案來贏得新客戶的一種方式，一般來說，這最終會導致我們在個人化方面取得勝利，並在我們的安全卡方面取得勝利。

So we don't believe the market is saturated by any means, we think there's ways to go to definitely grow.

因此，我們認為市場無論如何都不會飽和，我們認為有一定的方法可以實現成長。

And it will continue to help us not only win with our core solutions, but also help us to win with the exact same customers from a digital solution perspective.

它將繼續幫助我們不僅透過核心解決方案獲勝，而且從數位解決方案的角度幫助我們贏得完全相同的客戶。

So it's good solution for us, and we're excited to see it grow and excited to see what's to come.

所以這對我們來說是一個很好的解決方案，我們很高興看到它的發展，也很高興看到即將發生的事情。

Awesome.

驚人的。

And then last one for me, if I may.

如果可以的話，最後一篇是給我的。

I think you guys mentioned made the decision to turn the prepaid workforce from temporary to permanent.

我認為你們提到的決定將預付費勞動力從臨時轉變為永久。

Can you just kind of talk about what went through that decision there?

能談談這個決定的經過嗎？

Yes.

是的。

I mean, I think in all of our businesses, you're always looking at the variation in seasonality versus who is doing the work.

我的意思是，我認為在我們所有的業務中，你總是會關注季節性的變化與工作人員的變化。

And so as an example, across most of our businesses, there has been less seasonality other than the prepaid business.

舉例來說，在我們的大多數業務中，除了預付費業務之外，季節性較少。

But the prepaid business, if you go back three, four years, there was significant seasonality in the business.

但預付費業務，如果你回顧三、四年，你會發現該業務有明顯的季節性。

So we did have a variable workforce that would help us to bridge the gap when we hit that kind of high point from a seasonality perspective.

因此，我們確實擁有可變的勞動力，當我們從季節性角度達到這種高點時，這將有助於我們縮小差距。

Now we've been able to, what I would say is kind of even the flow of work across all four quarters, much more so than where we were two to three years ago.

現在我們已經能夠，我想說的是，所有四個季度的工作流程都變得均勻，比兩三年前的情況要好得多。

And because of that, we felt like it was the right time to move from a partially temporary workforce to full permanent workforce.

正因如此，我們覺得現在是從部分臨時勞動力轉變為全部永久勞動力的最佳時機。

And we have a lot of temporary workers who have been doing the same work for us year after year after year after year.

我們有很多臨時工，他們年復一年地為我們做著同樣的工作。

So to a certain extent, the conversion was easy.

所以在某種程度上，轉換是很容易的。

That actually occurred last year.

這實際上發生在去年。

And we feel like the efficiency gains that we've achieved through that and also great people that we have added to our team that performed really well that we're happy about.

我們覺得我們透過這樣做所實現的效率提升，以及我們為我們的團隊添加的優秀人才，他們表現得非常好，我們對此感到高興。

So as the prepaid business has normalized, we felt like it was the right decision.

因此，隨著預付費業務的正常化，我們認為這是正確的決定。

And looking back, we feel like we made a great decision.

回顧過去，我們覺得我們做了一個偉大的決定。

Great.

偉大的。

Thank you for the color.

謝謝你的顏色。

Congrats again on the strong results, and I'll hop back in the queue.

再次恭喜我們取得的優異成績，我將重新加入隊列。

Thanks, Andrew.

謝謝，安德魯。

Hal Goetsch, B. Riley Securities.

Hal Goetsch，B. 萊利證券。

I hope I didn't miss this, but have you given a figure from the total kind of onetime expenses for the CEO transition.

我希望我沒有錯過這一點，但是您是否給出了首席執行官過渡的一次性費用總額的數字？

Could you give us an aggregate number for the year?

您能給我們今年的總數嗎？

Yes.

是的。

So I mean, the ones we've really disclosed are the retention package that was for a former CEO and that took place the end of Q2 last year.

所以我的意思是，我們真正揭露的是去年第二季末針對前執行長的保留方案。

It was about $5 million in cash and about $4 million of equity and $9 million in total.

其中現金約 500 萬美元，股權約 400 萬美元，總計 900 萬美元。

And the cash was paid out in Q1 this year.

現金已於今年第一季支付。

So that was the retention package for the outgoing CEO.

這就是即將離任的執行長的保留方案。

Yes, that was accrued throughout the middle of last year into the first quarter of this year.

是的，這是從去年年中一直累積到今年第一季的。

So for this year, the impact of that was $2 million in the first quarter.

因此，今年第一季的影響為 200 萬美元。

Okay.

好的。

So that's kind of behind you then.

那麼這就有點落後於你了。

All right.

好的。

Yes.

是的。

Excellent.

出色的。

Okay.

好的。

And if I could ask a follow-up question it relates to Card@Once, that revenue source is embedded in your services revenue, is that right?

如果我可以問一個與 Card@Once 有關的後續問題，該收入來源已嵌入您的服務收入中，對嗎？

That is correct, but it shares between products and services depending on whether it's the hardware that enables the solution or the actual technology.

這是正確的，但它在產品和服務之間共享取決於是支援解決方案的硬體還是實際技術。

And I was just curious what the gross margins are maybe just at the service level for kind of recurring revenues?

我只是很好奇，在經常性收入的服務水準上，毛利率可能是多少？

Is it more in line with the SaaS business in the upper 70s or 80s or can you give us any color on that because if that becomes a faster growing nice fast-growing part of your business or faster part of your mix, that's generally less gross profit margin.

它是否更符合70 年代或80 年代的SaaS 業務，或者您能給我們任何顏色嗎？不會那麼糟利潤率。

So just kind of curious if that is possible there?

所以只是有點好奇這是否可能？

Yes, there are some benefits to the Card@Once, but we haven't given any specific color.

是的，Card@Once 有一些好處，但我們沒有給出任何特定的顏色。

But generally, as that business scales, it can help our margin profile.

但總的來說，隨著業務規模的擴大，它可以幫助我們提高利潤率。

It's a high-margin business for us.

這對我們來說是一項高利潤業務。

Okay, Great.

好的，太好了。

Okay.

好的。

Thanks very much.

非常感謝。

Thanks, Hal.

謝謝，哈爾。

As there are no further questions in the queue, I would now like to turn the call back over to John Lowe for closing remarks.

由於隊列中沒有其他問題，我現在想將電話轉回約翰·洛 (John Lowe) 進行結束語。

Thanks, operator.

謝謝，接線生。

As always, I want to acknowledge and thank all of our CPI employees for everything they do for our company and our customers as they execute on our vision, values and strategies every single day and continue to drive our business forward.

一如既往，我要感謝所有 CPI 員工為我們公司和客戶所做的一切，他們每天都在執行我們的願景、價值觀和策略，並繼續推動我們的業務向前發展。

Thank you all for joining our call this afternoon.

感謝大家今天下午參加我們的電話會議。

We hope you have a great day.

我們希望您度過愉快的一天。

Ladies and gentlemen, that concludes today's call and thank you all for joining.

女士們、先生們，今天的電話會議到此結束，感謝大家的加入。

You may now disconnect.

您現在可以斷開連線。