CompoSecure, Inc.

Good day and thank you for standing by. Welcome to Compost Secure third quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Steve Fetter, General Counsel. Please go ahead.

Good morning. Thank you for joining us to review Composecure's third quarter 2024 financial results. With me on the call is Dave Cody, Executive Chairman of Composecure, John Wilk, Chief Executive Officer, and Tim Fitzsimmons, Chief Financial Officer. They will begin with prepared remarks, and then we will open the call for Q&A. During this call, we will make statements related to our business that may be considered forward-looking, including statements concerning our plans to execute on our growth strategy and our ability to maintain existing and acquire new customers, as well as other statements regarding our plans and prospects. Forward-looking statements may often be identified with words such as, we expect, we anticipate, or upcoming. These statements reflect our views only as of today and should not be considered our views as of any subsequent date. We undertake no obligation to update or revise these forward-looking statements. Forward-looking statements are not promises or guarantees of future performance and are subject to a variety of risks and uncertainties that could cause actual results to differ materially from our expectations. 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 available on our investor relations section of our website and the SEC's website at sec.gov. Please note that the discussion of today's call may include certain non-GAAP financial measures, including adjusted EBITDA, adjusted net income, adjusted EPS, and free cash flow. 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. These non-GAAP financial measures should not be considered as an alternative to net income or any other performance measures derived in accordance with U.S. GAAP and may be different from similarly titled non-GAAP measures used by other companies. A reconciliation of gap to non-gap is available in our press release and earnings presentation available in the investor relations section of our website. Thank you.

And with that said, let me turn the call over to Executive Chairman Dave Cody. Well, it's nice to address you for the first time as Executive Chairman of CompoSecure. We were attracted to the business because it hit the six hot buttons that we use to evaluate acquisitions at Honeywell. Great position, good industry, technology differentiation, organic sales growth, inorganic sales growth, and margin expansion. We do see good long-term opportunity. That being said, there's work we have to do to create a high-performance culture, build our operating capability, and reinvigorate organic sales growth. That work will require additional expenses. You can see it reflected in our fourth quarter estimate where we're okay on sales, and lowering our adjusted EBITDA range based on a combination of performance and expenses incurred to position for the future. In our early look at 2025, it appears sales growth could be lower than it was in 2024, and EBITDA growth about the same as this year, reflecting again a combination of performance and investment for the future. Naturally, we expect all the actions and investments to show results, but it does take time. It's the right thing to do as we establish a high-performing culture that delivers for our customers, investors, and employees. With that, I'll turn it over to John Wilkes.