COMPOSECURE INC Stock Price, News & Analysis

CompoSecure (NASDAQ: CMPO) has announced two major developments: a spin-off of its subsidiary Resolute Holdings and an expanded share repurchase program. The Board approved increasing the share buyback authorization from $40 million to $100 million.

The spin-off details include: a record date of February 20, 2025, distribution ratio of one Resolute Holdings share for every twelve CompoSecure shares, and expected trading of Resolute Holdings on Nasdaq under 'RHLD' starting February 28, 2025. The transaction will be taxable for both CompoSecure and its shareholders.

CompoSecure also released preliminary FY 2024 results with net sales of $420.6 million, aligned with previous guidance of $418-424 million. Net income is expected between $(89.2) to $(87.7) million, with adjusted EBITDA ranging from $149.4 to $151.4 million, meeting guidance of $148-151 million. Resolute Holdings anticipates profitability in FY 2025 as it establishes operations.

CompoSecure (NASDAQ: CMPO) has announced plans to spin off Resolute Holdings Management, a new subsidiary focused on alternative asset management. The spin-off will distribute shares proportionally to existing CompoSecure shareholders. Resolute Holdings will provide management services to CompoSecure for a quarterly fee of 2.5% of CompoSecure's Latest Twelve Months' Adjusted EBITDA.

The new entity will be led by David Cote as Executive Chairman and Tom Knott as CEO, while CompoSecure's current management team under CEO Jon Wilk will continue operating the core business. The transaction, expected to complete in Q1 2025, will be taxable for both CompoSecure and shareholders. Resolute Holdings will trade on Nasdaq under ticker 'RHLD' and expects profitability in FY2025 as it establishes operations.

CompoSecure (Nasdaq: CMPO), a leader in metal payment cards and security solutions, received significant recognition in 2024 with 9 awards and 11 finalist honors across various sectors. Notable achievements include three wins at the ICMA Élan Awards for the BMW i Precision Card, Rogers Bank metal credit card, and IndusInd Bank Avios Visa Infinite Credit Card.

The company secured three victories at The Digital Banker's Global Cards & Payments Innovation Awards, including awards for CEO Jon Wilk as Payment Professional of the Year, Best Security Initiative for Arculus, and Best Payments Solution for their Echo Mirror™ Card. Additional honors include NJBIZ Awards for CFO Tim Fitzsimmons and General Counsel Steve Feder, plus a Tech Leadership recognition for CEO Jon Wilk at the Banking Tech Awards USA.

CompoSecure and PYMNTS Intelligence released the industry's first tap-to-authenticate report, revealing critical security challenges in financial institutions (FIs). The study shows that 87% of FIs experienced an increase in stolen credentials amid rising fraud cases. 69% of FIs are prioritizing authentication system improvements, with 77% considering tap-to-authenticate metal cards.

The report, based on data from 200 financial institution executives, highlights that among FIs using metal cards, 96% expect improved customer experience and loyalty, 92% see ROI potential, and 84% anticipate higher profits and improved security with tap-to-authenticate technology. CompoSecure's Arculus Authenticate solution offers a dual-function card serving as both authentication passkey and payment card.

CompoSecure (NASDAQ: CMPO) reported strong Q3 2024 results with Net Sales up 11% to $107.1 million and Adjusted EBITDA up 13% to $40.0 million. Despite posting a GAAP Net Loss of $85.5 million due to stock price-related non-cash items, Adjusted Net Income increased 18% to $25.6 million. The company secured a two-year contract extension with Capital One and completed the Resolute Holdings transaction. CompoSecure revised its 2024 outlook, projecting Net Sales between $418-$424 million and Adjusted EBITDA between $148-$151 million to accommodate growth investments.

CompoSecure (Nasdaq: CMPO), a leader in metal payment cards and security solutions, has achieved ISO/IEC 27001 certification for its premium card manufacturing operations. This globally recognized information security management system standard validates the company's commitment to protecting sensitive information through comprehensive security practices.

The certification confirms CompoSecure's adherence to international best practices for information security, ensuring the confidentiality, integrity, and availability of data throughout the entire card manufacturing lifecycle. COO Greg Maes emphasized that security remains a top priority in the current digital landscape, highlighting the company's dedication to safeguarding client information and assets.

CompoSecure (Nasdaq: CMPO), a leader in metal payment cards, security, and authentication solutions, announced it will host a conference call on November 8, 2024, at 8:30 a.m. EST to discuss its third quarter 2024 financial results. The company will release its financial results before the call. Executive Chairman David Cote, President & CEO Jon Wilk, and CFO Tim Fitzsimmons will lead the call, followed by a Q&A session. Participants are advised to register 15 minutes before the start time.

CompoSecure (Nasdaq: CMPO), a leader in metal payment cards, security, and authentication solutions, has appointed Dr. Krishna Mikkilineni to its Board of Directors, effective immediately. Dr. Mikkilineni brings extensive experience in operations and technology, with a proven track record at global organizations like Honeywell. He currently serves as General Partner of a deep tech venture fund and startup accelerator, where he has helped fund and grow 30 technology-driven startups since 2019.

Previously, Dr. Mikkilineni held various senior roles at Honeywell International for over 33 years, including global Chief Technology Officer, Integrated Supply Chain Officer, and Chief Information Officer. He also established Honeywell's engineering operation in India, growing the global engineering force to over 11,000. Dr. Mikkilineni replaces Niloo Razi Howe, who recently resigned from the Board due to personal reasons.

CompoSecure, a leader in metal payment cards and security solutions, has been awarded a Silver Medal by EcoVadis for the second consecutive year, placing it in the top 15% of companies globally for sustainability practices. The company improved its score from 60 in 2023 to 67 in 2024, demonstrating significant progress in integrating ESG principles into its operations.

Key highlights contributing to the Silver Medal include:

• Expanded use of recycled materials in metal payment cards
• Fair labor practices and safe working conditions
• Alignment with global corporate responsibility standards
• High standards for sustainable sourcing and procurement

CompoSecure's COO, Greg Maes, expressed gratitude for the recognition and emphasized the company's commitment to environmental progress and enhancing ESG practices.