CPI Card Group Q1 2023 Earnings Report
Key Takeaways
CPI Card Group Inc. reported an 8% increase in net sales to $120.9 million for the first quarter of 2023, driven by strong sales of contactless cards. Net income increased by 81% to $10.9 million, and Adjusted EBITDA increased by 11% to $25.1 million. The company affirmed its full-year outlook for 2023, projecting mid-single digit net sales growth and mid-to-high single digit Adjusted EBITDA growth.
Net sales increased by 8% year-over-year to $120.9 million, driven by strong sales of contactless cards.
Net income increased by 81% to $10.9 million, or $0.91 diluted earnings per share.
Adjusted EBITDA increased by 11% to $25.1 million, driven by sales growth and operating leverage.
The company affirmed its full-year outlook for 2023, projecting mid-single digit net sales growth and mid-to-high single digit Adjusted EBITDA growth.
CPI Card Group
CPI Card Group
CPI Card Group Revenue by Segment
Forward Guidance
The Company affirmed its full-year outlook for 2023, which projects mid-single digit net sales growth and mid-to-high single digit Adjusted EBITDA growth, Free Cash Flow to more than double and year-end Net Leverage Ratio improvement to between 2.5x and 3.0x.
Positive Outlook
- Mid-single digit net sales growth
- Mid-to-high single digit Adjusted EBITDA growth
- Free Cash Flow to more than double
- Year-end Net Leverage Ratio improvement to between 2.5x and 3.0x
Challenges Ahead
- The Company does not expect second quarter results to be as strong as the first quarter
- Softening demand in the Debit and Credit segment
- Recent turmoil in the banking industry impacting demand
- Increased banking industry and economic uncertainty
- Potential ongoing impacts requiring new initiatives
Revenue & Expenses
Visualization of income flow from segment revenue to net income