NASDAQ$PMTS

CPI Card Group Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

CPI Card Group's Q1 2023 performance was driven by strong sales of contactless cards and operating leverage, leading to increased net sales, net income, and adjusted EBITDA.

CPI Card Group Inc. reported an 8% increase in net sales to $120.9 million for the first quarter of 2023, driven by strong sales of contactless cards. Net income increased by 81% to $10.9 million, and Adjusted EBITDA increased by 11% to $25.1 million. The company affirmed its full-year outlook for 2023, projecting mid-single digit net sales growth and mid-to-high single digit Adjusted EBITDA growth.

  • Net sales increased by 8% year-over-year to $120.9 million, driven by strong sales of contactless cards.
  • Net income increased by 81% to $10.9 million, or $0.91 diluted earnings per share.
  • Adjusted EBITDA increased by 11% to $25.1 million, driven by sales growth and operating leverage.
  • The company affirmed its full-year outlook for 2023, projecting mid-single digit net sales growth and mid-to-high single digit Adjusted EBITDA growth.

Headline financials

Total Revenue

$121M

Previous: $111M+8.5%
EPS (adj)

$0.91

Previous: $0.51+78.4%
Gross Profit Margin

35.7%

Previous: 35.3%+1.1%
Capital Expenditures

-$4.15M

Previous: -$3.15M-31.4%
Free Cash Flow

$6.73M

Previous: $2.85M+136.2%
Net Income

$10.9M

Previous: $6M+81.2%
Operating Income

$20.6M

Previous: $18M+14.6%
Gross Profit

$43.1M

Previous: $39.3M+9.7%
Cash & Equivalents

$14.2M

Previous: $12.1M+16.7%
Total Assets

$298M

Previous: $286M+4.4%
Stock-Based Comp

$541K

Previous: $961K-43.7%

Revenue & EPS history

CPI Card Group · Revenue · Quarterly

$121M

Q1 2023+8.5%vs Q1 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

CPI Card Group · $121M total across 2 segments · Q1 2023

  • Debit and Credit
    $102M+10.9%
  • Prepaid Debit
    $19.1M-1.9%

Forward guidance

The Company affirmed its full-year outlook for 2023, which projects mid-single digit net sales growth and mid-to-high single digit Adjusted EBITDA growth, Free Cash Flow to more than double and year-end Net Leverage Ratio improvement to between 2.5x and 3.0x.

Tailwinds

  • Mid-single digit net sales growth
  • Mid-to-high single digit Adjusted EBITDA growth
  • Free Cash Flow to more than double
  • Year-end Net Leverage Ratio improvement to between 2.5x and 3.0x

Headwinds

  • The Company does not expect second quarter results to be as strong as the first quarter
  • Softening demand in the Debit and Credit segment
  • Recent turmoil in the banking industry impacting demand
  • Increased banking industry and economic uncertainty
  • Potential ongoing impacts requiring new initiatives

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-2.1%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+9.6%

Avg return

30 days after

47%

21 / 45 earnings

Positive

+41.3%

Q4 2025

Best reaction

-48.9%

Q1 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-6.5%-8.8%+3.7%
Q4 2025+41.3%+26.6%+23.4%
Q3 2025-20.3%-21.3%-18.5%
Q1 2025+4.5%-14.1%-4.0%
Q4 2024-6.7%-11.6%-16.8%
Q3 2024+18.9%+23.8%+45.3%
Q2 2024-10.8%-1.8%+1.2%
Q1 2024+16.1%+19.9%+52.3%
Q4 2023-18.8%+2.4%+0.8%
Q3 2023-15.4%-14.0%+8.8%
Q2 2023-3.8%-4.2%-15.0%
Q1 2023-34.1%-34.9%-43.0%
Q4 2022+20.7%+9.0%+28.5%
Q3 2022+21.8%+17.6%+11.6%
Q2 2022+7.0%+10.8%+4.3%
Q1 2022+31.8%+37.4%+54.3%
Q4 2021-5.7%-0.6%+17.2%
Q3 2021-28.0%-19.4%-34.6%
Q2 2021+0.3%+20.6%+76.0%
Q1 2021+1.7%+3.4%+7.2%
Q4 2020+40.1%+28.5%+102.3%
Q3 2020+38.9%+54.1%+45.6%
Q2 2020-23.6%-28.8%-43.0%
Q1 2020+29.2%+30.9%+192.4%
Q4 2019-1.9%+10.1%-19.0%
Q3 2019-1.9%-8.0%-40.1%
Q2 2019-3.7%-3.3%+21.7%
Q1 2019+6.3%+6.9%+15.1%
Q4 2018-1.9%-3.7%-12.7%
Q3 2018-5.0%-5.0%-3.0%
Q2 2018+18.0%+14.7%+61.6%
Q1 2018-11.8%-2.8%+10.2%
Q4 2017+1.6%+0.3%-19.8%
Q3 2017-8.0%-15.6%-25.9%
Q2 2017-42.9%-60.7%-65.7%
Q1 2017-25.0%-22.9%-40.0%
Q4 2016+4.4%+0.0%-6.7%
Q3 2016-21.3%-19.1%-25.5%
Q2 2016+3.6%+8.8%+25.0%
Q1 2015-47.4%
Q1 2016-48.9%
Q2 2015+2.7%
Q4 2015+1.4%
Q3 2014+0.2%
Q3 2015-11.3%
Q4 2014
Q2 2014
Q1 2014

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