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Jun 30, 2022
CPI Card Group Q2 2022 Earnings Report
CPI Card Group's second quarter results were reported, revealing increased net sales and slightly decreased net income.
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
Revenue by Segment
Debit & Credit Revenue
CapyFin.comPrepaid Debit Revenue
CapyFin.com 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