Good morning, and welcome to the Fourth Quarter and Full Year 2018 CPI Card Group's Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Jennifer Almquist, Investor Relations. Please go ahead.

Thanks, Carl and good morning everyone. Welcome to the CPI Card Group fourth quarter and full year 2018 earnings conference call. On the call today from CPI Card Group is Scott Scheirman, President and Chief Executive Officer; and John Lowe, Chief Financial Officer. Before we begin, I would like to remind everyone that this call may contain forward-looking statements as they are defined under the Private Securities Litigation Reform Act of 1995. 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. For a discussion of such risks and uncertainties, please see CPI Card Group’s most recent filings with the SEC and on SEDAR. 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-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income and loss, adjusted diluted earnings and loss per share, and free cash flow all reported on a continuing operations basis. Reconciliations of this non-GAAP financial measures to the most directly comparable GAAP measures are included in the press release we issued this morning Please be advised that the financial results discussed on the call today, reflect continuing operations and therefore exclude the results of CPI’s U.K. limited segment which has been accounted for as discontinued operations in accordance with U.S. GAAP. The pending sale of the CPI Canada subsidiary does not qualify as a discontinued operation in accordance with U.S. GAAP. Results for the Canada business as well as sales related cost incurred to date are reflected in the other segment. Copies of today’s press release as well as the presentation that accompany this conference call are accessible on CPI’s investor relations website, investor.cpicardgroup.com. Please note that this call will conclude after our prepared remarks. And now I'd like to turn the call over to Scott Scheirman, President and Chief Executive Officer of CPI.

Thanks Jen, and good morning everyone. Thank you for joining us today. I will begin my prepared remarks on Slide 4. We had a strong finish to the year with fourth quarter net sales up 19% year-over-year and adjusted EBITDA up more than 50%. For the full year, we delivered a 14% year-over-year increase in net sales and delivered a 17% percent increase in consolidated adjusted EBITDA. We posted record annual net sales in our prepaid debit segment. These results reflect solid execution against our plan and evidence our commitment to being the partner of choice by providing market leading quality products in customer service with a market competitive business model. Turning to Slide 5, 2018 was a transformational year for our business in many ways. During the year, our deep customer focus allowed us to strengthen our existing relationships and win new business. Our customer oriented and differentiated solutions as well as our capabilities in EMV and dual interface enabled us to win more business with existing clients and attract new customers in the marketplace. We renewed our contract with PSCU and expanded our Card@Once by broadening our installation base with existing and new customers. During 2018, Card@Once grew net sales more than 30% year-over-year. In prepaid, we were trusted by a large customer to support them as they executed on a key portfolio win, which helped contribute to annual net sales growth in our prepaid segment of 21% year-over-year. In addition, our market leading end-to-end solutions have enabled us to expand our presence in new verticals including Transit, FinTech, healthcare and buy online. As a result of our customer centric approach and crisp execution of our plan, we believe CPI gained or maintained market share across all of our U.S. businesses. Our focus on driving market leading quality…

Thanks Scott, and good morning everyone. On slide 10, you will see an overview of our fourth quarter and full year 2018 financial results. As a reminder, the financial results I'm sharing today are on a continuing operations basis as required by U.S. GAAP and exclude the U.K. business that was divested in 2018. Looking at the fourth quarter, total net sales increased 19% compared with the fourth quarter of 2017 inclusive of a 38% increase in product sales and a 5% increase in services revenue. The $11 million year-over-year increase in total revenue was primarily driven by increased revenue and volumes from CPI metals, dual interface, EMV cards, and Card@Once. These strong top line results in the final quarter of 2018 boosted [ph] full year net sales to $255.8 million, up 14% from the prior year. In addition to the factors driving the strong fourth quarter year-over-year increase, the full year also benefited from strong performance in our U.S. prepaid debit segment, which was up 21% year-over-year. Gross profit for the fourth quarter was $21 million, up 20% compared with the fourth quarter 2017. For the full year 2018, gross profit was up 15%. As a result of our year-over-year improvement in gross margins, and the success of our cost efficiency initiatives our SG&A cost declined 300 basis points as a percentage of revenue in 2018 compared to 2017. During the fourth quarter, we reported a loss from operations of $391,000 and a net loss of $7.2 million or $0.65 diluted share. For the full year 2018, we generated $4.6 million in operating income and a net loss of $14.8 million or $1.33 per diluted share. Now, let's review our non-GAAP metrics. Adjusted EBITDA for the fourth quarter of 2018 was $5.1 million, up 53% compared to last year.…

Thanks, John. Before we wrap up, I want to take a moment to thank our employees. Our successes in 2018 are a testament to the team's dedication to our customer centric culture and driving excellence throughout the organization. I'm encouraged by the team's commitment to achieving our vision and it underscores my confidence in our ability to deliver on our goals. Entering 2019, we remain focused on becoming the partner of choice for our customers by providing market leading quality products and customer service with a market competitive business model. We remain committed to our four strategic priorities, deep customer focus, market leading quality products and customer service, market competitive business model, and continuous innovation. Through continued execution on these priorities, we are confident, we can capitalize on the long term opportunities ahead of us. I look forward to updating you on our progress. Operator, you may now end the call.

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect. End of Q&A: