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Sep 30, 2024
CPI Card Group Q3 2024 Earnings Report
CPI Card Group reported strong growth in net sales and adjusted EBITDA, but net income decreased due to debt refinancing costs.
Key Takeaways
CPI Card Group Inc. reported an 18% increase in third-quarter net sales, reaching $124.8 million, driven by growth in both Debit and Credit and Prepaid segments. Net income decreased 66% to $1.3 million due to debt refinancing costs, while Adjusted EBITDA increased 18% to $25.1 million.
Net sales increased 18% year-over-year to $124.8 million.
Debit and Credit segment net sales increased 19% to $99.8 million.
Prepaid Debit segment net sales increased 13% to $25.2 million.
Net income decreased 66% to $1.3 million due to pre-tax debt refinancing costs.
Revenue by Segment
Forward Guidance
The Company updated its outlook for 2024 to mid-to-high single-digit net sales growth and low single-digit Adjusted EBITDA growth.
Positive Outlook
- Net sales growth expected to be in the mid-to-high single-digit range.
- Adjusted EBITDA growth expected to be in the low single-digit range.
- Free Cash Flow outlook updated to be slightly below the 2023 level.
- Working capital improvements expected.
- Lower expected capital spending anticipated.
Challenges Ahead
- Guidance is an estimate and subjected to change
- Unclear how the foreign conflicts will impact the company
- Future events that either cannot be controlled or cannot be reliably predicted because they are not part of the Company’s routine activities, any of which could be significant.
- Failure to maintain effective internal control over financial reporting
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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