CPI Card Group Q3 2023 Earnings Report
Key Takeaways
CPI Card Group Inc. reported a decrease in third quarter sales and earnings compared to the previous year. Net sales decreased by 15% to $105.9 million, net income decreased by 68% to $3.9 million, and Adjusted EBITDA decreased by 25% to $21.2 million. The company updated its full year outlook for 2023, projecting mid-single digit declines for both net sales and Adjusted EBITDA.
Third quarter net sales decreased 15% year-over-year to $105.9 million.
Net income decreased 68% to $3.9 million, resulting in diluted earnings per share of $0.33.
Adjusted EBITDA decreased 25% to $21.2 million.
The Board of Directors approved a $20 million share repurchase authorization, expiring December 31, 2024.
CPI Card Group
CPI Card Group
CPI Card Group Revenue by Segment
Forward Guidance
The Company expects fourth quarter sales and Adjusted EBITDA to be similar to the third quarter levels as customer demand remains lower than anticipated and new sales initiatives are not expected to significantly impact the current year. As a result, the Company’s updated full year outlook for 2023 projects mid-single digit declines for both net sales and Adjusted EBITDA, with Free Cash Flow projected to be approximately double the 2022 level.
Revenue & Expenses
Visualization of income flow from segment revenue to net income