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Dec 31, 2019
CPI Card Group Q4 2019 Earnings Report
CPI Card Group reported strong net sales growth and significantly improved bottom-line performance.
Key Takeaways
CPI Card Group's Q4 2019 net sales increased by 6% year-over-year, with U.S. Debit and Credit segment sales up 24%. The company's GAAP net loss improved to $2.1 million, and Adjusted EBITDA increased by 74%.
Net sales increased 6% to $72.6 million.
Net loss from continuing operations was $2.1 million, or $0.19 per share, an improvement of 71%.
Adjusted EBITDA improved 74% to $8.8 million.
U.S. Debit and Credit net sales increased 24% to $61.6 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 expects steady card manufacturing volume growth and strong growth in the number of small and medium sized financial institution locations offering instant issuance.
Positive Outlook
- Steady card manufacturing volume growth expected.
- Migration to dual interface cards will continue its strong growth.
- Strong growth expected in the number of small and medium sized financial institution locations offering instant issuance.
- Company believes it will continue to win new business and expand its addressable market.
- Enhanced capabilities and high level of customer service will enable it to win incremental business from its current customers and expand its customer base.
Challenges Ahead
- The Company expects the open loop prepaid card market to be directionally flat.
- Substantial indebtedness.
- Restrictive terms of credit facilities.
- Limited ability to raise capital in the future.
- System security risks, data protection breaches and cyber-attacks.
Revenue & Expenses
Visualization of income flow from segment revenue to net income