CPI Card Group Q2 2022 Earnings Report
Key Takeaways
CPI Card Group Inc. reported a 22% increase in net sales, reaching $113.3 million, marking another record sales quarter. Net income saw a slight decrease of 1% to $6.2 million, while Adjusted EBITDA rose by 2% to $19.7 million.
Net sales increased 22% year-over-year, reaching $113.3 million.
Debit and Credit segment net sales increased 29% to $94.2 million.
Net income decreased 1% to $6.2 million.
Adjusted EBITDA increased 2% to $19.7 million.
CPI Card Group
CPI Card Group
CPI Card Group Revenue by Segment
Forward Guidance
The Company now expects high teens net sales growth and low double-digit Adjusted EBITDA growth for the full year, an increase from the previous outlook of low double-digit growth for net sales and mid-to-high single-digit growth for Adjusted EBITDA. The full-year Adjusted EBITDA margin is still expected to be slightly below 20%.
Positive Outlook
- Expects high teens net sales growth for the full year.
- Anticipates low double-digit Adjusted EBITDA growth for the full year.
- Expects strong sales growth in its Debit and Credit segment for the year.
- Forecasts Prepaid Debit segment sales near the record level in 2021.
- Expects margin improvement relative to the second quarter.
Challenges Ahead
- The full-year Adjusted EBITDA margin is still expected to be slightly below 20%.
- Profitability was offset from increased materials costs.
- Profitability was offset from higher SG&A expenses, including higher compensation-related expenses.
- The year-over-year decrease in gross profit margin was primarily due to inflationary impacts on costs.
- Working capital usage in the 2022 first half was primarily driven by a $18 million increase in inventories to support customer demand and a $12 million increase in accounts receivable as a result of higher sales.
Revenue & Expenses
Visualization of income flow from segment revenue to net income