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Jun 30, 2024
CPI Card Group Q2 2024 Earnings Report
CPI Card Group's Q2 2024 performance saw a 3% increase in net sales, a decrease of 8% in net income, and a 6% decrease in Adjusted EBITDA, driven by growth in Debit and Credit and Prepaid Debit segments.
Key Takeaways
CPI Card Group Inc. reported a 3% increase in net sales to $118.8 million for the second quarter of 2024. Net income decreased by 8% to $6.0 million, and Adjusted EBITDA decreased by 6% to $21.9 million. The company has updated its full year net sales outlook to mid-single digit growth.
Net sales increased 3% year-over-year to $118.8 million.
Debit and Credit segment net sales increased 3% to $95.6 million.
Prepaid Debit segment net sales increased 9% to $23.8 million.
The Company updated its net sales outlook for 2024 to a mid-single digit increase.
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 updated its net sales outlook for 2024 to a mid-single digit increase and maintained its Adjusted EBITDA outlook of a slight increase for the full year.
Positive Outlook
- Net sales outlook for 2024 increased to a mid-single digit increase.
- Increase in sales outlook was driven by strong Prepaid growth.
- Increase in sales outlook was driven by improved trends in debit and credit card sales.
- Maintained Adjusted EBITDA outlook of a slight increase for the full year.
- Company continues to expect its year-end 2024 Net Leverage Ratio to be between 3.0x and 3.5x.
Challenges Ahead
- Profit growth in the second half is expected to be lower than sales growth.
- Anticipated impacts to SG&A, including investments to grow the business.
- Increased performance-related compensation relative to 2023.
- Free Cash Flow outlook was maintained at approximately half of the 2023 level.
- Impact of a contract with one of the Company’s larger customers, which should benefit cash flow through 2029, but negatively impact Free Cash Flow in 2024 due to up-front incentives.
Revenue & Expenses
Visualization of income flow from segment revenue to net income