Good morning, and welcome to the CPI Card Group Third Quarter and Year-to-date 2019 Earnings Conference Call. All participants are in listen-only mode. [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.

Thank you, and good morning, everyone. Welcome to the CPI Card Group Third Quarter and Year-to-date 2019 Earnings Webcast and 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 statement 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, but not limited to, adjusted EBITDA, adjusted EBITDA margin, adjusted free cash flow, net sales growth excluding Canadian operations, income from operations, excluding litigation settlement gain, and operating margin, excluding litigation settlement gains, all reported on a continuing operations basis. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included in the press release and in the slide presentation we issued this morning. Please be advised that the financial results discussed on the call today reflect the continuing operations and therefore, exclude the results of CPI’s UK Limited segment, which was divested in August of 2018, and has been accounted for as discontinued operations in accordance with U.S. GAAP. The disposition of the CPI Canada business was closed on April 1, 2019, and does not qualify as a discontinued operation in accordance with U.S. GAAP. Results for the Canadian business through the date of disposition as well as disposition related costs are reflected in the other segment. 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 three and nine-months ended September 30, 2019 was filed with the SEC earlier today and is also available on CPI’s Investor Relations website. Please note that this call will conclude after our prepared remarks. And now, I would 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. Our third quarter and year-to-date results reflects solid execution against our plan. Our ongoing commitment to our strategic priorities allowed us to deliver net sales growth and significantly increased profitability and margins on a year-over-year basis. Net sales for the quarter were up 1% year-over-year or 3% when excluding Canada. U.S. Debit and Credit segment net sales were up 7% year-over-year driven by increased net sales from personalization, dual interface cards and card at once. Year-to-date net sales from the U.S. Debit and Credit segment were up 17%. Net sales for our Prepaid Debit segment were down 3% during the third quarter while year-to-date net sales of $53 million were up 2% over the same period last year. As a reminder, 2018 benefited from portfolio wins that as expected did not reoccur in 2019. Net loss for the quarter was $700,000 bringing our year-to-date net loss to $2.2 million, inclusive of a $6 million cash litigation settlement gain recorded in the second quarter. Adjusted EBITDA was $12.3 million in the third quarter an increase of 34% compared with the same quarter a year ago. Our year-to-date adjusted EBITDA was $28.8 million a 31% increase over the same period last year. We believe the strong performance for the third quarter and first nine-months has us on-track to achieve the goals we established for ourselves this year. Turning to Slide 5. Our success this year has come from strong execution against our four strategic priorities. First the customer focus, second market-leading quality products and customer service. Third market competitive business model and fourth continuous innovation. We believe continued commitment to these priorities is key to delivering on our vision. Part of…

Thanks, Scott and good morning everyone. I will begin my overview by results from the third quarter and first nine-months of 2019 on Slide 9. As a reminder, 2018 comparative results are on a continuing operations basis and exclude the UK business that was divested and reported as discontinued operation during 2018 as required by U.S. GAAP. That equal 2019 disposition of our Canadian business did not qualify as a discontinued operation under U.S. GAAP. And therefore the results from this business are included in the other segments. Third quarter net sales were up 1% or 3%, when excluding Canada on top of a strong comparable quarter in 2018. Looking year-to-date, net sales were up 10% year-over-year, but 13% when excluding Canada, led by 17% year-over-year increase in the U.S. Debit and Credit segment and a 2% year-over-year increase in the U.S. Prepaid Debit segment. Third quarter gross profit was $25.4 million up 9% year-over-year. Gross margin was 35.5% for the third quarter an increase a 270 basis points year-over-year, marking our fifth consecutive quarter of improved year-over-year gross margins. For the year-to-date, we generated gross profit of $69.3 million up $11.7 million, or 20%, compared to the same period in 2018. We also expanded gross margins by 290 basis points year-over-year from 30.8% in the year-to-date 2018 to 33.7% in the year-to-date 2019. This gross margin expansion was driven by higher net sales, leading to a more favorable cost absorption, a smaller geographic footprint, having consolidated our personalization facilities from three to two and divested our non-core business in Canada and a more favorable product mix in the 2019 periods. This growth was personally offset by higher card material costs, driven primarily by product mix. During the third quarter, we reported income from operations of $8 million up 70%…

Thanks John. In wrapping up we remain committed to our vision of being a partner of choice by providing market-leading quality products and customer service with the market competitive business model. Over the last two years, we have start to achieve this vision by executing on our four strategic priorities by first getting the Company fit for growth and then in 2019 driving top-line performance and profitability as we continue to focus on serving our customers well. Our third quarter and year-to-date results show that we are successfully executing on the path we have laid out. As we wrap up 2019 and look ahead to next year. We aim to capitalize on the successes we have had, scaling and growing through continued focus on our four strategic priorities and recent innovations. We believe we are well equipped to embark on the next stage of growth as we continue to build upon our position as the partner of choice. I look forward to updating you on our progress. Operator you may now end the call. End of Q&A: