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Jun 30, 2020
CPI Card Group Q2 2020 Earnings Report
CPI Card Group's second quarter performance was marked by a sales increase, though net income experienced a significant decrease, while adjusted EBITDA showed substantial growth.
Key Takeaways
CPI Card Group Inc. reported a 7% increase in net sales for the second quarter of 2020, reaching $71.4 million. Net income decreased by 93% to $0.1 million, while adjusted EBITDA increased by 19% to $10.1 million. The company highlighted growth in debit and credit card sales and the launch of new sustainable payment card solutions.
Net sales increased by 7% year-over-year, reaching $71.4 million.
Net income decreased by 93% year-over-year, amounting to $0.1 million.
Adjusted EBITDA increased by 19% year-over-year, totaling $10.1 million.
Cash and cash equivalents at quarter end was $54 million.
Revenue by Segment
Forward Guidance
Despite the ongoing COVID-19 pandemic and economic uncertainty, solid execution led to 7% year-over-year top-line growth and another quarter of positive Adjusted Free Cash Flow. As we continue to navigate economic uncertainty, we remain committed to our customer-centric approach and executing our strategic plan.
Positive Outlook
- Customer-centric approach
- Executing strategic plan
- Strong demand for dual interface EMV cards
- Increased CPI On-Demand sales
- COVID-19 related wins of government disbursement work
Challenges Ahead
- COVID-19 pandemic
- Economic uncertainty
- Reduced volumes in card personalization
- Closure of certain bank branches
- Reduced hours of operation
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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