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Sep 30, 2021
CPI Card Group Q3 2021 Earnings Report
CPI Card Group reported strong third-quarter results driven by growth across the portfolio.
Key Takeaways
CPI Card Group Inc. reported a 20% increase in net sales, reaching $99.6 million, and a 14% increase in net income, totaling $6.6 million. Adjusted EBITDA also saw a significant rise of 23% to $21.5 million. The company's success reflects its focus on delivering high-quality products and services, and resilience in navigating ongoing supply-chain and labor shortage challenges.
Comprehensive end-to-end solutions contributed to earning new FinTech and traditional financial services customers.
Innovative tamper-evident packaging solutions contributed to strong growth in the Prepaid Debit segment.
Incremental net sales were generated from customer demand for higher-priced contactless cards.
The company sold over 40 million eco-focused cards since launch in 2019.
Revenue by Segment
Forward Guidance
CPI has delivered substantial growth in the first three quarters of 2021 with year-to-date increases in net sales of 24%, net income of 73%, and adjusted EBITDA of 57%. Customer demand for CPI’s products and services remains strong.
Positive Outlook
- Net sales growth in the first nine months benefitted from significant new customer onboarding and prepaid debit card retail inventory replenishment
- The Company is responding to the strong customer demand by hiring additional labor
- The Company is responding to the strong customer demand by investing in state-of-the-art equipment to increase future capacity
- The Company is responding to the strong customer demand by adding new capabilities
- The Company is also implementing selective price increases
Challenges Ahead
- The Company expects increased labor to begin to be more impactful in the fourth quarter
- The Company expects increased materials to begin to be more impactful in the fourth quarter
- The Company expects increased certain other costs to begin to be more impactful in the fourth quarter
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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