CPI Card Group Inc (PMTS) 2025 Q2 法說會逐字稿

Welcome to CPI Cards Group second quarter, 2025 earnings call. My name is Bailey and I will be your operator today. If you are viewing on the webcast, you may advance slides forward by pressing the arrow buttons. This call will be open for questions after the company's remarks. (Operator Instructions)

歡迎參加 CPI Cards Group 2025 年第二季財報電話會議。我叫貝利，今天我將擔任您的接線生。如果您正在觀看網路廣播，您可以按箭頭按鈕來向前播放幻燈片。公司發表講話後，電話會議將開放提問。（操作員指示）

Now I would like to turn the call over to Mike Sale, CPI, head of investor relations.

現在我想將電話轉給 CPI 投資者關係主管 Mike Sale。

Thanks, operator. Welcome to the CPI Card Group's second quarter 2025 earnings webcast and conference call. Today's date is August 8th, 2025, and on the call today from CPI Cart Group are John Lowe, President and Chief Executive Officer, and Jeff Hostadt, Chief Financial Officer.

謝謝，接線生。歡迎參加 CPI Card Group 2025 年第二季財報網路廣播與電話會議。今天是 2025 年 8 月 8 日，今天 CPI Cart Group 的電話會議參與者是總裁兼執行長 John Lowe 和財務長 Jeff Hostadt。

Before we begin, I'd like to remind everyone that this call may contain forward-looking statements as they are defined under the Private Securities Litigation Reform Act of 1,995. 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.

在我們開始之前，我想提醒大家，本次電話會議可能包含 1995 年《私人證券訴訟改革法案》所定義的前瞻性陳述。這些聲明受某些風險和不確定性的影響，可能導致實際結果與前瞻性聲明中表達的結果有重大差異。

For discussion of such risks and uncertainties, please see CPI Group's most recent filings with the SEC. 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. Also, during the course of today's call, the company will be discussing one or more non-gap financial measures, including but not limited to net sales growth excluding the impact of an accounting change. IBETA, adjusted IAA, adjusted IATA margin. Net leverage ratio and free cash flow. Reconciliations of these non-gap financial measures, the most directly comparable GAAP measures are included in the press release and slide presentation we issued this morning.

有關此類風險和不確定性的討論，請參閱 CPI Group 向美國證券交易委員會提交的最新文件。今天所做的所有前瞻性陳述僅反映我們目前的預期，我們不承擔更新任何陳述以反映本次電話會議後發生的事件的義務。此外，在今天的電話會議中，公司將討論一項或多項非差距財務指標，包括但不限於不包括會計變更影響的淨銷售額成長。IBETA、調整後的 IAA、調整後的 IATA 利潤率。淨槓桿率和自由現金流。我們今天早上發布的新聞稿和幻燈片簡報中包含了這些非差距財務指標的對賬，即最直接可比較的 GAAP 指標。

Copies of today's press release as well as the presentation that accompanies the conference call are accessible on CPI's investor relations website investor. CPIcardgroup.com. In addition, CPI's For 10Q for the 2nd quarter will be available on CPI's Investor Relations website. On today's call, our growth rates refer to comparisons with the prior year period unless otherwise noted.

今天的新聞稿以及電話會議附帶的簡報的副本可在 CPI 的投資者關係網站投資者上查閱。CPIcardgroup.com。此外，CPI 的 For 10Q 第二季報告將在 CPI 的投資者關係網站上公佈。在今天的電話會議上，除非另有說明，我們的成長率是指與去年同期的比較。

The agenda for today's call can be found on slide 3. John will give a brief overview of business performance and our strategy execution. Jeff will provide more details on the financial results in our 2025 outlook, and then we will open the call for questions. We can start on slide 4, and I'll turn the call over to John.

今天電話會議的議程可以在幻燈片 3 上找到。約翰將簡要概述我們的業務表現和策略執行。傑夫將在我們的 2025 年展望中提供有關財務結果的更多詳細信息，然後我們將開始提問。我們可以從第 4 張投影片開始，然後我會把電話轉給約翰。

Thanks, Mike, and good morning everyone.

謝謝，麥克，大家早安。

Well, we had a good first half of sales growth as our strategies and investments are reaping benefits. Our customers are excited about our solutions. Our business continues to grow when share, and our AOI acquisition is performing better than our expectations. Let me give you a few highlights from our first half sales performance.

嗯，由於我們的策略和投資正在獲得回報，我們的上半年銷售成長良好。我們的客戶對我們的解決方案感到非常興奮。我們的業務份額持續成長，我們的 AOI 收購表現優於我們的預期。讓我向您介紹我們上半年銷售業績的一些亮點。

Note that what I will cover excludes the impact of a one-time non-cash accounting change affecting revenue recognition timing, which Jeff will cover in a few minutes.

請注意，我將要介紹的內容不包括一次性非現金會計變更對收入確認時間的影響，Jeff 將在幾分鐘內介紹這一點。

Let's start with our secure card business, where we are a top payment card producer in the US. This business delivered volume and sales growth greater than 15% in the first half, and we have one new business, including metal card orders and realize strong performance from the key customer contracts signed early last year.

讓我們從安全卡業務開始吧，我們是美國頂級的支付卡生產商。該業務上半年銷售和銷售額增長超過15%，並且我們還有一項新業務，包括金屬卡訂單，並從去年年初簽署的關鍵客戶合約中實現了強勁表現。

Card at once. Our market leading software as a service instant issuance digital solution, grew more than 20% in the first half and expanded to more than 17,000 locations with two consecutive record sales quarters and ongoing momentum in a business that generates strong recurring revenue.

立刻卡。我們市場領先的軟體即服務即時發行數位解決方案，上半年成長超過 20%，擴展到超過 17,000 個地點，連續兩個季度創下銷售記錄，業務持續保持強勁增長勢頭，產生強勁的經常性收入。

Our market leading open loop pre-paid business has continued to grow, with sales up 17% this year, excluding the impact of the accounting change driven by greater value tamper evident packaging solutions and our diversification into healthcare payment operates.

我們市場領先的開環預付費業務持續成長，今年銷售額成長了 17%，這還不包括更高價值的防篡改包裝解決方案和我們向醫療保健支付業務多元化發展的會計變化的影響。

Our digital solutions, while still immaterial to overall sales, are growing and generated great customer interest, including customers outside of our typical debit. And credit space.

我們的數位解決方案雖然對整體銷售額來說仍然不重要，但正在成長並引起了客戶的極大興趣，包括我們典型借記卡以外的客戶。以及信用空間。

And the AOI acquisition, which was completed in early May, is off to a good start, with nearly $10 million of revenue contribution in less than two months, exceeding our expectations for sales and also beating our expectations for profitability.

而5月初完成的AOI收購開局良好，不到兩個月就貢獻了近1000萬美元的收入，超出了我們的銷售額預期，也超出了我們的盈利預期。

Before we further review the quarter and outlook, let me take a few minutes to share more on our strategy execution on slide 5.

在我們進一步回顧本季和展望之前，請容許我花幾分鐘時間在第 5 張投影片上分享更多關於我們的策略執行情況。

Our vision is to be the most trusted partner for innovative payment technology solutions.

我們的願景是成為創新支付技術解決方案最值得信賴的合作夥伴。

The strategic pillars that drive our actions are customer focused, quality and efficiency, innovation and diversification, and people and culture.

推動我們行動的策略支柱是客戶至上、品質和效率、創新和多樣化以及人才和文化。

We strive to provide market leading high quality payment solutions and best in class customer service and seek to enhance growth through innovation and diversification.

我們致力於提供市場領先的高品質支付解決方案和一流的客戶服務，並尋求透過創新和多樣化來促進成長。

This includes our focus on expanding our addressable markets by both increasing solution sets for existing customers and adapting existing solutions for new customer verticals. We have invested significantly over the last couple of years to drive market expansion opportunities and accelerated our investments in 2025.

這包括我們專注於擴大我們的潛在市場，既為現有客戶增加解決方案，也為新客戶垂直領域調整現有解決方案。過去幾年，我們投入了大量資金來推動市場擴張機會，並加快了 2025 年的投資。

So let's discuss our progress and expected benefits starting with the AOI acquisition on flight 6.

那麼讓我們從第 6 次飛行的 AOI 採集開始討論我們的進展和預期收益。

After 3 months of owning the airline business, I can say we are even more excited about the opportunity. Airline CPI businesses are very complimentary. While CPI's bread and butter has historically been debiting credit payment cards for financial institutions. AirI provides a digitally driven all in one delivery process that has penetrated a much more diverse set of payment card users, primarily in the pre-paid debit payment card market.

在擁有航空業務三個月後，我可以說我們對這個機會感到更加興奮。航空公司CPI業務非常互補。而 CPI 的主要收入來源一直是為金融機構借記信用卡支付卡。AirI 提供數位化驅動的一體化交付流程，已滲透到更多樣化的支付卡用戶群體，主要在預付借記卡支付卡市場。

AOI serves prepaid program managers, payroll related providers, healthcare related providers, fintechs of all types, as well as banks, credit unions, and others. They participate in a variety of segments including incentives, rebates, gift cards, prepaid, payroll, healthcare, government insurance, and fleet, among others, as well as debit and credit.

AOI 為預付費計畫經理、薪資相關提供者、醫療保健相關提供者、各類金融科技公司以及銀行、信用合作社等提供服務。他們參與各種領域，包括獎勵、回饋、禮品卡、預付、工資、醫療保健、政府保險和車隊等，以及金融卡和信用卡。

We have very little customer overlap and received positive feedback on the combination from both customer bases thus far.

我們的客戶重疊很小，到目前為止，我們收到了兩個客戶群對合併的正面回饋。

Airide becoming a part of CPI creates many opportunities that CPI now has access to a number of additional market segments. And CPI's financial backing allows Airwise existing customers to allocate more business to them with less risk.

Airide 成為 CPI 的一部分，為 CPI 創造了許多機會，使 CPI 現在可以進入許多其他細分市場。CPI 的財務支援使得 Airwise 現有客戶能夠以更低的風險分配更多業務。

This year is focused on bringing our companies together, but we are anticipating many potential sales synergies and expansion opportunities from the acquisition going forward.

今年的重點是整合我們的公司，但我們預計未來的收購將帶來許多潛在的銷售綜效和擴張機會。

In addition to Ali, we expect several other investments to aid long-term growth and profitability as highlighted on slide 7.

除了阿里之外，我們也預計其他幾項投資也將有助於長期成長和獲利，如幻燈片 7 所示。

As mentioned earlier, our part of one's instant issuance solution is in strong demand and is delivering great results. We have been investing to expand the solution beyond the financial institution space that are now successfully launched into a non-financial institution vertical, specifically in the government disbursement space.

如前所述，我們的即時發卡解決方案部分需求旺盛，且效果顯著。我們一直在投資將解決方案擴展到金融機構領域之外，目前已成功進入非金融機構垂直領域，特別是政府支付領域。

Providing the capability to issue on-site payment cards for social safety net programs. This market is very similar to many of our others, as it is sizable and recurring in nature, and we're continuing to invest in our go to market actions to grow in the government market and introduce into other customer verticals.

提供為社會安全網計劃發行現場支付卡的能力。這個市場與我們的許多其他市場非常相似，因為它規模龐大且具有重複性，我們將繼續投資於我們的市場行動，以在政府市場中發展並引入其他客戶垂直領域。

We've also invested to provide prepaid packages for the US closed loop market.

我們也投資為美國閉環市場提供預付費方案。

Which offers significant opportunity where we have little presence today.

這為我們目前尚未涉足的領域提供了重大機會。

As customer demand has developed for secure packaging solutions in this space, we are on track to deliver our first closed loop deliveries in the 4th quarter, already having secured customer commitments.

隨著客戶對該領域安全包裝解決方案的需求不斷增長，我們預計在第四季度交付首批閉環交付，並已獲得客戶承諾。

As we are just getting started in this large and expanding market, we believe this will be a long term contribution to growth and look forward to sharing more.

由於我們剛剛進入這個龐大且不斷擴張的市場，我們相信這將對成長產生長期貢獻，並期待分享更多。

And we've invested in expanding our healthcare payment card solutions with expanded offerings already driving incremental growth. This is also an area where AI performs well, and we believe between our combined solutions we can continue to grow in this attractive and recurring market.

我們已經投資擴大我們的醫療保健支付卡解決方案，擴大的產品範圍已經推動了增量成長。這也是人工智慧表現良好的領域，我們相信，透過結合我們的解決方案，我們可以在這個有吸引力且經常性的市場中繼續成長。

Our digital solutions continue to advance as we have discussed in the past. New solutions for small and medium sized financial institutions take long periods of time to adapt, and we are experiencing that. However, we continue to find new clients for our push provisioning digital issuance services and are seeing a growing pipeline of potential customers. The scale these higher margin solutions, we will continue to invest in resources, technology, and our go to market needs.

正如我們過去討論過的，我們的數位解決方案正在不斷進步。針對中小型金融機構的新解決方案需要很長時間才能適應，我們正在經歷這個過程。然而，我們繼續為我們的推播供應數位發行服務尋找新客戶，並且看到潛在客戶的數量不斷增長。為了擴大這些利潤率更高的解決方案，我們將繼續投資於資源、技術和市場需求。

Our investments in metal car capabilities over the years have shown results as well, as we have had a few sizable customer orders which contribute to 2nd quarter growth. With metal, we are providing solutions to meet demands for heavier cars that can be purchased at good value relative to other high-end metal offerings in the market.

我們多年來對金屬汽車能力的投資也取得了成果，因為我們獲得了一些相當大的客戶訂單，這有助於第二季的成長。利用金屬，我們提供解決方案來滿足重型汽車的需求，與市場上其他高端金屬產品相比，這些汽車可以以更優惠的價格購買。

In addition to these market expansion initiatives, we've also been making significant investments in automation in Colorado, innovating our production workflow at our personalization facility in Tennessee, and continuing to invest in our pre-paid business in Minnesota as well as opening the new secure card facility in Indiana.

除了這些市場擴張計劃之外，我們還在科羅拉多州的自動化方面進行了大量投資，在田納西州的個人化工廠創新了生產工作流程，並繼續在明尼蘇達州投資預付費業務，並在印第安納州開設了新的安全卡工廠。

As we have discussed in the past, the Indiana facility will bring efficiencies from automation and optimal processes while adding capacity and new capabilities.

正如我們過去所討論過的，印第安納州的工廠將透過自動化和優化流程提高效率，同時增加產能和新功能。

Our new facility is now starting to operate with the peak of our transition occurring in the second half.

我們的新工廠現已開始運營，轉型高峰將在下半年出現。

As we open our doors, our customers are excited about the possibilities, and we have already begun working on additional business opportunities that will be made possible as we complete our transition to the state of the art facility.

當我們敞開大門時，我們的客戶對各種可能性感到興奮，並且我們已經開始著手尋找更多的商業機會，這些機會將在我們完成向最先進設施的過渡後成為可能。

While we see a bright road ahead with our strategic investments, this year has had its challenges. At the highest level. Our goal is to grow and diversify.

雖然我們的策略投資前景光明，但今年也面臨挑戰。在最高層次。我們的目標是發展和多樣化。

And while we are accomplishing that goal, we are experiencing negative cost impacts this year, such as unexpected tariffs, which we now anticipate being approximately $5 million for 2025. We're also incurring one-time costs and inefficiencies in our secure card business as the team is focused on the new facility.

雖然我們正在實現這一目標，但今年我們正面臨負面的成本影響，例如意外關稅，我們預計 2025 年的關稅將約為 500 萬美元。由於團隊專注於新設施，我們的安全卡業務也產生了一次性成本和低效率。

As well as seeing margin pressures from sales mix. But with all that said, the performance we're delivering across many areas of our business, along with the AI investment has allowed us to continue delivering growth in 2025.

並且還面臨來自銷售組合的利潤壓力。但儘管如此，我們在業務的眾多領域所取得的成績以及人工智慧的投資使我們能夠在 2025 年繼續實現成長。

When netting the puts and takes, we've increased our sales outlook for the year, including airline, while maintaining our adjusted EDA outlook, even with the increased tariff impact.

在扣除看跌和看漲因素後，我們提高了今年的銷售預期，包括航空公司的銷售預期，同時維持了調整後的 EDA 預期，即使關稅影響有所增加。

As I'm sure you are aware, on Wednesday, the current administration announced proposed tariffs on ships. Our outlook does not reflect any potential impact, as specific details of implementation timing and possible exemptions have not been announced. As a reminder, we have managed through many unexpected developments over the years, and through these events we have managed to grow the business and increase share.

我相信你們已經知道，週三，現任政府宣布了對船舶徵收關稅的提議。我們的展望並未反映任何潛在影響，因為實施時間和可能的豁免的具體細節尚未公佈。提醒一下，這些年來我們已經經歷了許多意想不到的發展，並且透過這些事件我們成功地發展了業務並增加了份額。

We are confident in our strategy and the opportunities ahead of us, and we look forward to sharing our progress with you. I will now turn the call over to Jeff to cover the second quarter results in 2025 Outlook in more detail. Jeff.

我們對我們的策略和未來的機會充滿信心，並期待與您分享我們的進展。現在我將把電話交給傑夫，讓他更詳細地介紹 2025 年展望中的第二季業績。傑夫。

Thanks, John, and good morning everyone. Let's start on slide 9 with the 2nd quarter highlights.

謝謝，約翰，大家早安。讓我們從第 9 張投影片開始介紹第二季的精彩內容。

Our second quarter net sales reflect organic growth from our debit and credit business, the addition of ROI, and as noted in our press release, the one-time non-cash impact from an accounting change regarding revenue recognition timing for work and process orders.

我們第二季的淨銷售額反映了借記卡和貸記卡業務的有機增長、投資回報率的增加，以及如我們的新聞稿中所述，有關工作和流程訂單的收入確認時間的會計變更帶來的一次性非現金影響。

Reported net sales increased 9% in the quarter to $129.8 million or 15% excluding the impact of the accounting change, with organic growth led by increased sales of contactless debit and credit cards and strong growth from card at once instant issuance.

本季報告的淨銷售額增長 9%，達到 1.298 億美元，剔除會計變更的影響則增長 15%，其中有機增長主要得益於非接觸式借記卡和信用卡銷售額的增長以及即時發卡的強勁增長。

Aay also delivered strong performance, contributing approximately $10 million of revenue in less than two months since the May 6th acquisition.

Aay 也表現出色，自 5 月 6 日收購以來不到兩個月的時間就貢獻了約 1000 萬美元的收入。

Gross margins in the quarter were pressured by various factors, which I will discuss shortly, and net income was also impacted by various non-recurring items. Adjusted E dot increase as the ROI contribution and sales growth helped offset gross margin pressure.

本季的毛利率受到各種因素的壓力，我很快就會討論這些因素，淨收入也受到各種非經常性項目的影響。調整後的 E dot 增加，因為投資報酬率貢獻和銷售成長有助於抵消毛利率壓力。

The sales impacts of the accounting change on the 2nd quarter and year-to-date can be seen on slide 10.

會計變更對第二季和年初至今的銷售影響可以在幻燈片 10 中看到。

The accounting change essentially moves us away from recognizing revenue from certain work and process orders at the end of the quarter, as was done historically, to primarily recognizing revenue only at time of shipment.

會計變更實際上使我們不再像過去那樣在季度末確認某些工作和流程訂單的收入，而是主要在發貨時確認收入。

We made this change after a review of our current business practices with customers and align with airlines.

在審查了我們目前與客戶的業務實踐並與航空公司保持一致後，我們做出了這項變更。

Practically, this means the 2nd quarter does not reflect any revenue for work and process orders at the end of the quarter, or prior quarters would have included such revenue.

實際上，這意味著第二季度沒有反映季度末的任何工作和流程訂單收入，或者前幾季會包含此類收入。

This resulted in a one-time negative transition impact of approximately $8 million on sales in the second quarter.

這導致第二季的銷售額產生約 800 萬美元的一次性負面轉型影響。

Excluding the net impact of work and process orders in current and prior periods, net sales increased 15% in the second quarter.

不計當前和前期工作和流程訂單的淨影響，第二季淨銷售額成長了 15%。

The accounting change only affects the timing of revenue recognition and does not impact cash flow. Other than the 2nd quarter of next year, there will not be any significant quarterly comparison issues from this change going forward, as the net work and process impacts have typically been relatively small each quarter.

此會計變更僅影響收入確認的時間，並不影響現金流量。除明年第二季外，這項變更不會帶來任何重大的季度比較問題，因為每季的網路工作和流程影響通常相對較小。

There was approximately $3 million of gross profit associated with the $8 million sales impact. As a result, our net income in the quarter was affected by the accounting change, but there was no effect on adjusted EIA as the impact was treated as an adjustment item.

800 萬美元的銷售額帶來約 300 萬美元的毛利。因此，本季我們的淨收入受到了會計變更的影響，但由於該影響被視為調整項目，因此對調整後的 EIA 沒有影響。

We can review the detailed quarterly results on slide 11.

我們可以在第 11 張投影片上查看詳細的季度業績。

The overall 9% sales increase reflects a 16% increase in the debit and credit segment and the 19% decrease in the pre-paid segment.

整體銷售額成長 9%，其中藉記卡和信用卡部分成長 16%，預付費部分下降 19%。

The accounting change had the most significant impact on the pre-paid segment, which tends to have larger amounts of work and process due to the nature of the business.

會計變更對預付費部門的影響最為顯著，由於業務性質，該部門往往有大量的工作和流程。

Excluding the impact of the accounting change, pre-pay net sales increased 4%, while debit and credit sales increased 18%.

排除會計變更的影響，預付淨銷售額成長 4%，而藉記和貸記銷售額成長 18%。

As mentioned, debit and credit growth was led by the addition of ROI and increased sales of contactless cards, including metal cards and card at one's instant issuance partially offset by a decline in personalization services.

如上所述，金融卡和信用卡的成長是由投資回報率的增加和非接觸式卡（包括金屬卡和即時發卡）銷量的增加所推動的，但個人化服務的下降部分抵消了這一增長。

The gross profit margin in the quarter decreased from 35.7% in the prior year to 30.9%, driven by two main factors.

本季毛利率從去年同期的35.7%下降至30.9%，主要受兩個因素影響。

Sales mix, which has been weighted towards larger volume issuers this year, including a decline in our personalization business and increased production costs, which includes higher tariffs, depreciation, and incremental costs related to our Indiana production facility transition.

銷售組合今年主要集中在發行量較大的客戶，包括個人化業務的下滑和生產成本的增加，其中包括更高的關稅、折舊以及與印第安納州生產設施轉型相關的增量成本。

Tariffs which are expense when inventory is received, were slightly more than $1 million in the quarter.

收到庫存時產生的關稅費用在本季略高於 100 萬美元。

Based on the latest rates and projections, including EOI, we now expect tariffs of approximately $5 million in 2025, with a slightly lower profit impact as we are partnering with our customers to share in the impacts where possible.

根據最新的費率和預測（包括意向書 (EOI)），我們現在預計 2025 年的關稅約為 500 萬美元，利潤影響將略低，因為我們正在與客戶合作，盡可能分擔影響。

Depreciation expense and cost of sales was $1.3 million higher than last year, reflecting the addition of AOI and depreciation related to the new Indiana factory and other new capital equipment.

折舊費用和銷售成本比去年高出 130 萬美元，反映了 AOI 的增加以及與新印第安納工廠和其他新資本設備相關的折舊。

And we continue to have incremental costs associated with operating two production sites in Indiana while we transition to the new facility.

在向新工廠過渡期間，我們將繼續承擔與營運印第安納州兩個生產基地相關的增量成本。

We are working to alleviate margin pressures for 2026 through supplier negotiations for key components, synergies from the ROI acquisition, better contribution from our emerging digital solutions as those businesses scale, and expected efficiencies from our advanced machinery investments.

我們正在努力透過關鍵零件的供應商談判、ROI 收購帶來的協同效應、隨著這些業務的擴大，我們的新興數位解決方案做出更好的貢獻以及我們先進機械投資的預期效率來緩解 2026 年的利潤壓力。

We should also see improvement next year as our new Indiana production facility becomes fully operational and we move past the higher costs and other inefficiencies we are incurring this year operating duplicate facilities during the transition.

隨著我們新的印第安納生產設施全面投入運營，並且我們擺脫了今年在過渡期間運營重複設施所產生的較高成本和其他低效率問題，我們明年也應該會看到改善。

For this year, we expect incremental costs related to Indiana to affect adjusted EIA by approximately $3 million impacting both cost of sales and operating expense, and we expect that amount to decline by approximately 5% in 2026.

今年，我們預計與印第安納州相關的增量成本將對調整後的 EIA 產生約 300 萬美元的影響，從而影響銷售成本和營運費用，我們預計該金額到 2026 年將下降約 5%。

We should also benefit from incremental operating efficiencies from the new state of the art facility as the secure card business grows in coming years.

隨著未來幾年安全卡業務的成長，我們也將受益於新的先進設施帶來的營運效率的提高。

SGNA expenses in the second quarter, including depreciation and amortization, increased approximately $3 million from the prior year, primarily due to the inclusion of ROI operating expenses and acquisition and integration costs of $1.6 million.

第二季的 SGNA 費用（包括折舊和攤提）比前一年增加了約 300 萬美元，主要原因是計入了 ROI 營運費用以及 160 萬美元的收購和整合成本。

Our tax rate for the quarter was 61% on a relatively low pre-tax income amount, which brought our first half rate to 32%.

本季我們的稅率為 61%，稅前收入相對較低，這使得我們上半年的稅率達到 32%。

The increase in our current rate compared to prior year primarily reflects impacts from the EOI acquisition, including non-deductibility of certain ROI acquisition costs, and we now expect a full year rate of approximately 30%.

與前一年相比，我們目前的稅率有所增加，主要反映了意向書 (EOI) 收購的影響，包括某些投資回報率 (ROI) 收購成本的不可扣除性，我們現在預計全年稅率約為 30%。

We expect cash NOL benefits of around $5 million from the ROI acquisition in the coming years, which will benefit cash flow but will not impact our reported effective tax rate.

我們預計未來幾年 ROI 收購將帶來約 500 萬美元的現金 NOL 收益，這將有利於現金流，但不會影響我們報告的有效稅率。

We also expect approximately 3 to $5 million of cash benefits from the recently passed US reconciliation bill over the next 12 months.

我們也預計，未來 12 個月內，美國最近通過的和解法案將帶來約 300 萬至 500 萬美元的現金收益。

Net income decreased 91% in the quarter, which was also affected by AI acquisition costs, restructuring charges related to the cost saving activities, the impact of the accounting change, and higher interest expenses.

本季淨收入下降了 91%，這也受到人工智慧收購成本、與成本節約活動相關的重組費用、會計變更的影響以及更高的利息支出的影響。

Adjusted E dot increased 3% to $22.5 million as sales growth and the addition of ROI were partially offset by lower gross margins, including the impact of approximately $1 million of tariff expenses.

調整後的 E dot 成長 3% 至 2,250 萬美元，因為銷售額的成長和投資回報率的增加被較低的毛利率部分抵消，其中包括約 100 萬美元的關稅費用的影響。

Adjusted EBA margins declined from 18.4% to 17.3%, primarily due to sales mix and increased tariff expenses. The second quarter margin would have been slightly lower, excluding the accounting change impact on sales.

調整後的 EBA 利潤率從 18.4% 下降至 17.3%，主要原因是銷售組合和關稅費用增加。若不計入會計變更對銷售額的影響，第二季的利潤率會略低。

First half results and variant explanations can be found on slide 12.

上半年的結果和變體解釋可以在幻燈片 12 上找到。

The first half generally reflects the same factors as the 2nd quarter. Segment results can be found on slide 13.

上半年整體反映出與第二季相同的因素。片段結果可在第 13 張投影片上找到。

Income from operations for the debit and credit segment decreased 9% in the second quarter and 7% in the first half as sales growth, including the addition of airline, was offset by lower gross margins.

由於包括增加航空公司在內的銷售成長被較低的毛利率所抵消，金融卡和信用卡部門的營業收入在第二季度下降了 9%，在上半年下降了 7%。

Gross margins were impacted by the same factors discussed for the company as a whole, namely sales mix, increased depreciation expense, and higher production costs, including tariffs which primarily impact the debit and credit segment. Prepaid debit segment income from operations decreased 40% in the quarter and 22% year-to-date, which was a direct result of the revenue recognition accounting change.

毛利率受到與公司整體相同的因素的影響，即銷售組合、折舊費用增加以及生產成本上升，包括主要影響借記和貸記部分的關稅。預付借記卡部門的營業收入本季下降了 40%，年初至今下降了 22%，這是收入確認會計變更的直接結果。

Excluding work and process impacts, pre-paid income from operations increased slightly in the quarter with a stronger increase for the first half.

不計工作和流程的影響，本季預付營業收入略有增加，上半年增幅更大。

Turning to the balance sheet, liquidity and cash flow on slide 14.

轉到投影片 14 上的資產負債表、流動性和現金流。

We generated $9.9 billion of cash from operating activities in the first half, which was an increase from $4.1 million in the prior year, driven by lower working capital usage.

由於營運資金使用率下降，我們上半年的營運活動現金流為 99 億美元，較前一年的 410 萬美元增加。

We increased capital spending investment from $2.7 million in the prior year period to $9.1 million in this year's first half, which resulted in free cash flow of $800,000 this year, down slightly from $1.4 million in the prior year.

我們將資本支出從去年同期的 270 萬美元增加到今年上半年的 910 萬美元，導致今年的自由現金流為 80 萬美元，略低於去年同期的 140 萬美元。

The increased capital spending supported the build out of our new Indiana secure card production facility as well as additional advanced machinery for other facilities.

增加的資本支出支持了我們在印第安納州新建安全卡生產設施的建設以及為其他設施增加先進的機器。

In May we completed the ROI acquisition for $45.6 million. The final cash settlement dependent on working capital adjustments. The initial net cash outlay was $42.4 million which appears as an investment item in our cash flow and reflects ROI cash balances at the time of the acquisition and funds held in escrow.

五月份，我們以 4,560 萬美元完成了 ROI 的收購。最終現金結算取決於營運資本調整。初始淨現金支出為 4,240 萬美元，作為一項投資項目出現在我們的現金流中，反映了收購時的投資回報現金餘額和託管資金。

On the balance sheet at quarter end, we had $17.1 million of cash, $30 million of borrowing on our ABL revolver, and $285 million of senior notes outstanding.

在季度末的資產負債表上，我們擁有 1,710 萬美元的現金、3,000 萬美元的 ABL 循環信貸借款以及 2.85 億美元的未償優先票據。

Following the end of the quarter in July, we exercised an optional redemption feature on our 10% coupon senior notes and retired $20 million of notes at a redemption price of 103% of par value.

7 月季度結束後，我們對 10% 票面利率的優先票據行使了可選贖回功能，並以票面價值 103% 的贖回價格贖回了價值 2000 萬美元的票據。

We also increased the size of our asset-backed lending facility from $75 million to $100 million and we utilize short-term borrowings to retire the note.

我們還將資產支持貸款規模從 7,500 萬美元增加到 1 億美元，並利用短期借款來償還票據。

Our net leverage ratio at quarter end was 3.6 times, up from 3.1 times at the end of the first quarter due to the funding of the acquisition. We expect to utilize free cash flow to pay down our ABL borrowings and bring net leverage down over time, although ABL borrowings increased early in the third quarter to fund the senior notes redemption.

由於收購資金的緣故，本季末我們的淨槓桿率為 3.6 倍，高於第一季末的 3.1 倍。我們預計將利用自由現金流來償還 ABL 借款，並隨著時間的推移降低淨槓桿率，儘管 ABL 借款在第三季初有所增加，以資助優先票據贖回。

Before we move on to our 2025 outlet, we have provided the latest US cards and circulation trends from Visa, Mastercard on slide 15.

在我們討論 2025 年的銷售點之前，我們在第 15 張投影片上提供了 Visa、Mastercard 的最新美國卡和流通趨勢。

For the 30 years ended March 30th first, cards in circulation in the US increased at an 8% caer.

截至 3 月 30 日的 30 年間，美國流通的信用卡數量年增率為 8%。

The latest earnings reports from large issuers continue to indicate hard growth and marketing support despite ongoing economic uncertainty.

儘管經濟不確定性持續存在，但大型發行人的最新獲利報告仍顯示出強勁的成長和行銷支持。

I will now turn to our 2025 outlook on slide 16.

現在我將轉到第 16 張投影片，討論我們的 2025 年展望。

We have updated our 2025 outlook primarily to reflect the ROI acquisition, increased tariffs, and changes in sales mix.

我們更新了 2025 年的展望，主要是為了反映 ROI 收購、關稅增加以及銷售組合的變化。

Our current net sales outlook is low double digit to mid-teens growth, which compares to our previous outlook a mid to high single digit growth.

我們目前的淨銷售額預期是低兩位數至中等十幾位數的成長，而我們先前的預期是中高個位數的成長。

The increase from the previous outlook is a result of the addition of EOI sales partially offset by the impact of the accounting change for revenue recognition timing.

與先前的預期相比有所增加，這是由於增加了意向書 (EOI) 銷售額，但部分抵消了收入確認時間會計變更的影響。

Although there were puts and takes among our businesses, our overall organic growth outlook has not significantly changed. Our adjusted E dot outlook is unchanged from the prior outlook as we continue to project mid to high single digit growth.

儘管我們的業務之間存在著利弊，但我們的整體有機成長前景並未發生重大變化。我們調整後的 E dot 前景與先前的前景保持不變，因為我們繼續預測中高個位數成長。

Compared to the prior outlet, we have added contribution from airlines, but this is expected to be offset by increased tariffs and unfavorable sales mix.

與之前的門市相比，我們增加了來自航空公司的貢獻，但預計這將被提高的關稅和不利的銷售組合所抵消。

Our current outlook reflects existing tariff rates and does not reflect potential impacts from the proposed semiconductor chip tariffs announced by the administration on August 6th.

我們目前的展望反映了現有的關稅稅率，並未反映政府 8 月 6 日宣布的擬議半導體晶片關稅的潛在影響。

At this point, details on implementation timing and exemption criteria have not been announced.

目前，實施時間和豁免標準的細節尚未公佈。

You will recall that during and after COVID we gained significant share as we leveraged our strong chip supplier relationships, making significant investments to ensure we always had chips on hand for our customers.

您會記得，在 COVID 期間和之後，我們利用與晶片供應商的強大關係，進行了大量投資以確保我們始終有晶片可供客戶使用，從而獲得了顯著的份額。

We have continued that practice and while chip types vary, we have ample chip supply inventory currently, so we have some flexibility to manage supply chains in the near term.

我們一直延續這種做法，雖然晶片類型各不相同，但我們目前擁有充足的晶片供應庫存，因此我們在短期內可以靈活地管理供應鏈。

Additionally, any final implications from chips would be an industry-wide impact for which we would work not only with our chip providers but also with our customers on how to manage in the best possible manner.

此外，晶片的任何最終影響都將對整個行業產生影響，為此我們不僅會與晶片供應商合作，還會與客戶合作，共同研究如何以最佳方式進行管理。

Since this is real time news, we are not including any impact in our outlet this morning, and we'll share more when appropriate.

由於這是即時新聞，我們不會將任何影響納入今天早上的報道中，我們將在適當的時候分享更多資訊。

From a quarterly standpoint, we expect the 3rd quarter to face similar margin pressures as Q2, including costs related to further ramping up the Indiana plan before seeing accelerated sales growth and margin improvement in Q4.

從季度角度來看，我們預計第三季將面臨與第二季度類似的利潤壓力，包括與進一步擴大印第安納計劃相關的成本，然後在第四季度實現銷售成長加速和利潤率提高。

As we mentioned last quarter, we expect net leverage to be temporarily higher this year compared to 2024 due to cash flow being utilized for the ROI acquisition and increased capital spending.

正如我們上個季度提到的，我們預計今年的淨槓桿率將暫時高於 2024 年，因為現金流被用於 ROI 收購和增加資本支出。

I will now turn the call back to John for some closing remarks.

現在我將把電話轉回給約翰，請他發表一些結束語。

Thanks Jeff. Turning to slide 17 to summarize before we open the call for Q&A.

謝謝傑夫。在我們開始問答環節之前，請翻到第 17 張投影片進行總結。

Our core businesses are on track to deliver solid growth for the year, and we are pleased with the ROI contribution thus far, as well as its long-term potential. We are also excited about the potential long term benefits of our other investments, including further expansion in the new markets such as healthcare, close with prepaid, and digital solutions, and the increased capability and capacity from our new production facilities.

我們的核心業務預計在今年實現穩健成長，我們對迄今為止的投資回報率貢獻及其長期潛力感到滿意。我們也對其他投資帶來的潛在長期利益感到興奮，包括進一步拓展醫療保健、預付費和數位解決方案等新市場，以及新生產設施能力和產能的提升。

And we remain focused on executing and delivering results for the remainder of 2025, operator, we will now open the call up for any questions.

我們將繼續專注於在 2025 年剩餘時間內執行並交付成果，運營商，我們現在將開放電話以回答任何問題。

(Operator Instructions)

（操作員指示）

Andrew Scout with Roth capital.

羅斯資本的安德魯‧斯考特 (Andrew Scout)。

Hey, good morning guys. Thank you for taking my questions, and it's great to see the revenue guide raised this morning. So my first one for me is on the ROI acquisition. You guys touched on the fact that, some of their customers are now, putting in larger orders with the backing of of your balance sheet. It looks like, current, revenue from AOI is trending a little bit above your original expectations. Can you kind of talk about more you're seeing from these larger orders and maybe if you know the the backing of your balance sheet will allow you to win larger customer awards as well, new customers, I mean --

嘿，大家早安。感謝您回答我的問題，很高興看到今天早上提出了收入指南。所以我的第一個問題是投資報酬率的取得。你們提到了這樣一個事實，他們的一些客戶現在在你們的資產負債表的支持下下了更大的訂單。目前看來，AOI 的收入略高於您最初的預期。您能否進一步談談您從這些大訂單中看到的情況，也許如果您知道資產負債表的支持將使您能夠贏得更大的客戶獎勵，也就是新客戶，我的意思是--

Andrew, good morning and good question.

安德魯，早安，這個問題問得好。

So we're happy with the the ROI performance. We have spent the last 3 months getting even deeper with the business. We've got a great team in Las Vegas, and just in terms of how they performed, they did beat our expectation, nearly $10 million of revenue in less than 2 months that we own them through June 30, profitability better than our expectations, so.

所以我們對投資報酬率的表現很滿意。我們花了三個月的時間進一步深入這項業務。我們在拉斯維加斯擁有一支優秀的團隊，就他們的表現而言，他們確實超出了我們的預期，截至 6 月 30 日，我們擁有他們的不到 2 個月的時間裡收入接近 1000 萬美元，盈利能力好於我們的預期。

Performing well, but I would say the performance, not as much driven by immediate revenue synergies, things that you're describing. I think there's opportunity for that as we have been out and about talking to their customers, understanding their customers' needs, how our solutions can work for their customers, their customers' needs might.

表現良好，但我想說的是，這種表現並不是由您所描述的直接收入協同效應所驅動的。我認為這是一個機會，因為我們一直在與他們的客戶交談，了解他們的客戶的需求，我們的解決方案如何為他們的客戶服務，以及他們的客戶的需求。

Be leveraged by some of our digital solutions, things of that nature, but there's not exactly, I would say, large orders coming through because of the fact that we have a greater balance sheet immediately things of that nature, but there's opportunities for that prospectively. But overall, we're excited about the opportunity set, and the synergies that we see in front of us, especially as we get into 2026, we think we'll be positive and the performance to date has been better than our expectations.

利用我們的一些數位解決方案等性質的東西，但我想說，由於我們的資產負債表規模更大，所以不會立即出現大訂單，但未來還是有機會的。但總的來說，我們對眼前的機會和協同效應感到興奮，特別是當我們進入 2026 年時，我們認為我們會保持積極態度，而且迄今為止的表現已經超出了我們的預期。

Great. Well, it's exciting to hear more synergies are ahead. Second one for me before I hop back in the queue, Jeff kind of broke this down, but you guys did a good job previously, with your chips procurement, and kind of transitioning to ROI. We understand they use some of the same EMB chips that you guys may use. So are you guys able to, tap into your existing inventory, and maybe potentially free up some cash flows, in the future?

偉大的。嗯，聽到未來會有更多協同效應真是令人興奮。在我重新回到隊列之前，我先問第二個問題，Jeff 已經把這個問題分解了，但是你們之前在晶片購買和向 ROI 過渡方面做得很好。我們了解到他們使用了一些與你們相同的 EMB 晶片。那麼，你們是否能夠利用現有庫存，並可能在未來釋放一些現金流？

Yeah, hey, Andrew, yeah, I think when we think about chips, we definitely think that's part of the synergy business case with ROI and we obviously have buy a lot more chips than they have, so we have stronger purchasing power. So going forward, that that is the intention that that we can start leveraging some of the chips that that we can procure at cheaper rates in their in their EMB and GI cards.

是的，嘿，安德魯，是的，我認為當我們考慮晶片時，我們肯定認為這是與 ROI 協同業務案例的一部分，而且我們顯然購買了比他們更多的晶片，因此我們擁有更強大的購買力。因此，展望未來，我們的目標是開始利用我們可以在他們的 EMB 和 GI 卡中以更便宜的價格採購的一些晶片。

Perfect. Thanks for taking my questions and I will hop back in the queue.

完美的。感謝您回答我的問題，我會重新回到隊列中。

Jacob Stephen with Lake Street Capital Markets.

雅各·史蒂芬 (Jacob Stephen) 來自 Lake Street Capital Markets。

Hey guys, appreciate you taking the questions. I just wanted to ask a second question on on ROI here. Obviously you said $10 million of revenue in less than 2 months. The kind of on a non-gap basis excluding that accounting charge, how much of the upside was really driven from ROI, and maybe, you could kind of talk a little bit more on, how is it performed your expectations, as a percentage or maybe, as an absolute dollar amount. Thanks.

嘿夥計們，感謝你們回答這些問題。我只是想在這裡問有關投資報酬率的第二個問題。顯然，您說的是不到兩個月就實現 1000 萬美元的收入。在非差距基礎上，不包括會計費用，有多少上漲空間真正來自投資回報率，也許，您可以再多談一下，它是如何達到您的預期的，以百分比或絕對美元金額來表示。謝謝。

And Jacob, good morning. I mean, the airline contribution, it's still a very small part of the business, right? I mean, I think if you exclude the accounting change, we're in the mid 130s and revenue, you're talking about $10 million without AI, we would have grown year over year.

雅各布，早安。我的意思是，航空公司的貢獻仍然只佔業務的一小部分，對嗎？我的意思是，我認為如果不考慮會計變化，我們的收入在 130 億美元左右，如果沒有人工智慧，我們的收入將是 1000 萬美元，我們的收入將逐年增長。

Their profitability definitely was a was a help. They're performing well, especially in light of we had a million dollars in tariffs in Q2 that were hard to avoid. So. But again, the ROI contribution was fairly small in relation to everything else for the quarter.

他們的盈利能力無疑有所幫助。他們的表現很好，特別是考慮到我們第二季有一百萬美元的關稅難以避免。所以。但同樣，相對於本季的其他所有因素而言，投資報酬率的貢獻相當小。

Okay, got it. Maybe the second one, card at once, it sounds like you guys had a nice government program win here, if I understood that correctly, I guess what what's the opportunity here, it sounds like that's a relatively newer market for you, but, I'd love to get your thoughts on how you're looking at some of those, potentially larger programs with, better sell through.

好的，明白了。也許是第二個，卡一次，聽起來你們在這裡贏得了一個不錯的政府項目，如果我理解正確的話，我想這裡的機會是什麼，聽起來這對你來說是一個相對較新的市場，但是，我很想听聽你對其中一些潛在更大的項目的看法，這些項目的銷售情況更好。

We've been doing government work and just to be clear, we do that indirectly. We typically TRY not to contract directly given.

我們一直在做政府工作，需要明確的是，我們是間接地做這項工作。我們通常盡量不直接簽訂合約。

The The efforts you have to encounter with working directly with the government, but we do a lot of indirect work. We've been doing that in the debit and credit card space for a number of years.

你必須付出努力才能直接與政府合作，但我們也做了很多間接工作。我們已經在藉記卡和信用卡領域開展這項業務很多年了。

So this is an opportunity to take the solutions that we've already had in the debit and credit side and additionally provide them the ability to instantly issue on site in locations at at a specifically this is for a social safety net programs to think of.

因此，這是一個機會，可以採用我們在藉記和貸記方面已有的解決方案，並為他們提供在特定地點現場即時發行的能力，特別是對於社會安全網計劃。

Snap unemployment, varying needs of individuals where they need money quickly and they need it on site at their government location within their local jurisdiction. So we've started this in one state. There's a number of other locations that we believe we can penetrate into in the near term, which we're in discussions with. And this is just another area that we believe is a vertical, that's a strong recurring market similar to our other markets that we can continue to break into.

緊急失業，滿足個人的不同需求，他們需要快速獲得資金，並且需要在其當地管轄範圍內的政府機構現場獲得資金。我們已經在一個州開始了這項工作。我們相信，我們近期還可以進入許多其他地區，目前我們正在與這些地區進行洽談。我們認為這只是一個垂直領域，這是一個與我們的其他市場類似的強勁循環市場，我們可以繼續打入。

But keep in mind. This is just the first, I would say non-financial institution card at once vertical we're breaking into. There's a number of others that we were in discussions with as well, which we think will provide opportunities for us in the longer term. So we're excited about the Carter one's performance. That's a great business for us. I had two record quarters, Q1, Q2 of this year, and and the team that's doing a great job. So we're excited about the opportunities.

但請記住。我想說，這只是我們首次進軍非金融機構卡垂直領域。我們也與許多其他公司進行了討論，我們認為從長遠來看，這將為我們提供機會。所以我們對卡特的表現感到非常興奮。這對我們來說是一筆很棒的生意。我有兩個創紀錄的季度，今年第一季和第二季度，而且我的團隊也做得非常出色。因此，我們對這些機會感到非常興奮。

Yeah, it's great to see that traction there I I just have one follow up you talked a little bit more about metal cards on this call. What I guess what what's your kind of, thoughts? It sounds like you're providing a complimentary product to some of your customers that have, maybe maybe plastic card offerings or, is this kind of a growing part of your business at this point?

是的，很高興看到這種吸引力。我只是想跟進一下，您在這次通話中談到了更多關於金屬卡的問題。我猜你有什麼想法？聽起來您正在向一些擁有塑膠卡的客戶提供免費產品，或者這是否是您目前業務中不斷增長的一部分？

A number of years, what we produce, we have a couple different types of contactless metal cards.

多年來，我們生產了幾種不同類型的非接觸式金屬卡。

Our metal cards in competition with the broader metal market are more on a relative value basis and when we're trying to penetrate, the small to mediums are those who don't want to spend as much on the.

我們的金屬卡與更廣泛的金屬市場競爭更多的是基於相對價值，當我們試圖滲透時，中小型企業是那些不願意花太多錢的人。

Very costly metal cars that you might see from some of our competitors. We're positioned very well to kind of meet the needs of that market and as metal, metals a good market. It's still a very small market in relation to our broader markets, but it's an area where we can continue to sell that. You're correct as a complimentary product to our customers or if they want to provide something to their higher clientele or price appropriately and provide them.

您可能會從我們的一些競爭對手那裡看到非常昂貴的金屬汽車。我們的定位非常明確，可以滿足該市場的需求，而且就金屬而言，這是一個很好的市場。與我們更廣泛的市場相比，這仍然是一個非常小的市場，但我們可以在這個領域繼續銷售。您說得對，作為對我們的客戶的免費產品，或者他們想為他們的更高級的客戶提供一些東西，或者以適當的價格提供給他們。

Good value for what they're providing to their customers and it's it'll be a continued niche for us, but we'll continue to drive it from a go to market perspective.

他們為客戶提供的產品具有很高的價值，這對我們來說仍將是一個持續的利基市場，但我們將繼續從市場的角度推動它。

Okay, got it, thanks guys.

好的，明白了，謝謝大家。

Peter Heckman with DA Davidson.

Peter Heckman 和 DA Davidson。

Hey, good morning. Taking the question. You're on the subject, it's an evolving story and you know tariffs have been on again, off again. It's very difficult for American businesses to plan purchasing inventory when policy is so unpredictable, but I guess what ways could you see to mitigate potential tariffs on chips. In terms of sourcing and and and given current inventory on hand, I guess, how much, how many months of production would your current inventory cover?

嘿，早安。回答問題。你談到這個話題，這是一個不斷發展的故事，你知道關稅時而上調，時而下調。當政策如此難以預測時，美國企業很難制定採購庫存計劃，但我想您能想到哪些方法來減輕晶片的潛在關稅。就採購和現有庫存而言，我猜，您目前的庫存可以滿足多少個月的生產需求？

Yeah, Pete, good morning. Good question. So we do have ample chips on hand. Keep in mind though, there really haven't been any details on the chip tariffs. There's no timing. We don't know what exceptions will be there, the way I would, we're an American company for the most part, right? We operate in 5 states, we have. Nearly 2000 employees across those five states were investing in the US, building a large plant in Indiana, investing in every single one of our locations across the US. So, there, there's things we're trying to do to mitigate tariffs in general, but I think just like anything else that's occurred over the years, we've been able to manage through it and continue to grow the business and win share and and drive profitability to the bottom line, so. It's something we'll work through as we know more, but it's still caught up the presses, if you will.

是的，皮特，早安。好問題。所以我們手邊確實有充足的籌碼。但請記住，實際上還沒有任何關於晶片關稅的細節。沒有時間。我們不知道會有什麼例外，就像我一樣，我們基本上是一家美國公司，對嗎？我們的業務範圍已涵蓋 5 個州。這五個州的近 2000 名員工正在美國投資，在印第安納州建造了一座大型工廠，並在美國各地的每個地點進行投資。所以，我們正在嘗試做一些事情來總體上減輕關稅，但我認為，就像多年來發生的任何其他事情一樣，我們已經能夠應對它並繼續發展業務，贏得份額，並將盈利能力推向底線，所以。隨著我們了解更多信息，我們會努力解決這個問題，但如果你願意的話，它仍然困擾著媒體。

Yeah, okay. Do you think, I guess.

嗯，好的。你覺得呢，我猜。

Depending upon how this issue is resolved over the next month or so, would you consider doing an interim call or interim press release to discuss.

根據未來一個月左右該問題的解決情況，您是否考慮進行臨時電話會議或臨時新聞稿進行討論。

Any finalized plans?

有最終計劃嗎？

Pete, that's a good question. I doubt it. As I said, we do have a chips on hand. We've been holding a decent number of chips ever since, COVID hit, just to ensure no matter what happens in the market, we're always prepared to meet the needs of our customers. So I think the benefit for us is no matter what happens, we do have time to work through it. So there's there's no immediate risk, if you will. But again, we just like all the other tariffs, we would imagine this will evolve and as things evolve, we will share more as it makes sense.

皮特，這個問題問得好。我對此表示懷疑。正如我所說，我們手上確實有籌碼。自從新冠疫情爆發以來，我們一直持有大量晶片，只是為了確保無論市場發生什麼，我們都能隨時準備好滿足客戶的需求。所以我認為對我們來說的好處是無論發生什麼，我們都有時間去解決它。因此，如果你願意的話，不存在直接的風險。但同樣，就像所有其他關稅一樣，我們可以想像這會不斷發展，隨著事態的發展，我們將分享更多有意義的資訊。

And I just, this is going to be, I mean, if it does come to fruition, it's an industry phenomenon also, right, it will affect the whole industry, so.

我只是說，如果它真的實現了，它也會成為一個行業現象，對吧，它會影響整個行業，所以。

We'll just have to see, if if and when it does, we're across the supply chain, it it it's captured and from a competitive standpoint, we're all in the same boat here.

我們只需要看看，如果發生這種情況，我們就會跨越整個供應鏈，從競爭的角度來看，我們都處於同一條船上。

Right, that's a fair point. Okay, we'll stay tuned. Thank you.

好的，這是一個合理的觀點。好的，我們會繼續關注。謝謝。

Hal Gosh with B Riley Securities.

B Riley Securities 的 Hal Gosh。

Hey guys, thanks for that. I just want to go over some of the detail, make sure I got it. So it's about a 1 million tariff impact and you say it was a 2 to $3 million impact from, dual production facilities, and running two facilities in Indiana, is that right? So that's about $4 million. Is that the right.

嘿夥計們，謝謝你們。我只是想回顧一些細節，確保我理解了。因此，關稅影響約為 100 萬美元，而您說雙重生產設施和在印第安納州運營兩家設施的影響為 200 萬至 300 萬美元，對嗎？大約是 400 萬美元。是這樣的嗎？

You got almost right. A million dollars this quarter for the tariffs, $5 for the, we can, we're part, we're trying to partner with our customers to bring that down on the dot impact, but from a cost impact about $5 million on tariffs for the year and then for Indiana, that was about $3 million incremental this year for getting the facility up and running. So that's kind of spread mostly 224, yeah, and we, yeah, go ahead.

你幾乎答對了。本季的關稅費用為 100 萬美元，我們可以，我們是其中的一部分，我們正在嘗試與客戶合作，以降低對點的影響，但從成本影響來看，今年的關稅費用約為 500 萬美元，對於印第安納州來說，今年用於啟動和運行該設施的費用約為 300 萬美元。所以這基本上是 224 的分佈，是的，我們繼續。

Yeah, production, okay. The last time we had a supply chain disruption was like getting the supplies of chips, and it caused a lot of activity and I think.

是的，生產，好的。上次我們遇到的供應鏈中斷就像是晶片供應中斷，我認為這引起了很多活動。

2022 was a good year because of that, right? And is there any dynamic going on now where there's a pull forward of activity or is it, an ordering or is it, or more now it's just like everyone's just kind of waiting to see what happens. It's a very different maybe dynamic than it was in 2022. In terms of custom order patterns and activity.

因此，2022 年是一個好年頭，對吧？現在是否存在某種動態，即活動的提前進行，或者是一種排序，或者現在更像是每個人都在等著看會發生什麼。這與 2022 年的情況相比有很大不同。就客製訂單模式和活動而言。

Yeah, how, we have not seen any pull forward from any of the tariff impacts thus far, the ship news came out Wednesday night, so that's very.

是的，到目前為止，我們還沒有看到任何關稅影響的推動，船舶新聞是周三晚上發布的，所以這非常。

But again, we have, and we shared this with our customers, we have apple chips on hand. There's no, yeah. No need to immediately react as a customer and we'll continue to work through it the.

但再次強調，我們已經與客戶分享了這一點，我們手邊有蘋果片。是的，沒有。作為客戶，無需立即做出反應，我們會繼續努力解決。

Just for like a, kind of a what, what's kind of the chip value before tariffs, any tariff changes to like a a dollar value per per a card I kind of just roughly we kind of know like.

就像，有點像，關稅之前的晶片價值是多少，任何關稅都會變成每張卡一美元的價值，我只是大致知道。

The magnitude of Yeah.

是的，幅度很大。

I mean.

我是說。

We can't give you exact amounts, but when you think of the cost of the, I mean, it is the biggest cost component when you talk about material cost, significantly.

我們無法給出確切的金額，但是當您考慮成本時，我的意思是，當您談到材料成本時，它是最大的成本組成部分，非常重要。

So, we can't give you any for competitive reasons, we don't want to give you any more detail there, but I mean, it is a big component of the construction.

因此，由於競爭原因，我們無法向您提供任何信息，我們不想向您提供更多細節，但我的意思是，這是建築的重要組成部分。

All right, cool. All right, thank you very much. Thanks.

好的，很酷。好的，非常感謝。謝謝。

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

如果沒有其他問題，我現在想將電話轉回給約翰·洛 (John Lowe) 做最後發言。

Thanks, operator.I want to again acknowledge and thank all of our CPI employees for their contributions and dedications to the company and to our customers. Thank you all for joining and we hope you have a great day.

謝謝，接線生。我想再次感謝所有 CPI 員工對公司和客戶的貢獻和奉獻。感謝大家的加入，祝福大家有個愉快的一天。

Thank you so much. This concludes today's conference call. You may not disconnect.

太感謝了。今天的電話會議到此結束。您不能斷開連線。