NASDAQ$PMTS

CPI Card Group Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

CPI Card Group's Q2 2024 performance saw a 3% increase in net sales, a decrease of 8% in net income, and a 6% decrease in Adjusted EBITDA, driven by growth in Debit and Credit and Prepaid Debit segments.

CPI Card Group Inc. reported a 3% increase in net sales to $118.8 million for the second quarter of 2024. Net income decreased by 8% to $6.0 million, and Adjusted EBITDA decreased by 6% to $21.9 million. The company has updated its full year net sales outlook to mid-single digit growth.

  • Net sales increased 3% year-over-year to $118.8 million.
  • Debit and Credit segment net sales increased 3% to $95.6 million.
  • Prepaid Debit segment net sales increased 9% to $23.8 million.
  • The Company updated its net sales outlook for 2024 to a mid-single digit increase.

Headline financials

Total Revenue

$119M

Previous: $115M+3.4%
EPS

$0.51

Previous: $0.55-7.3%
Adjusted EBITDA

$21.9M

No prior period
Adjusted EBITDA Margin

18.4%

No prior period
Net Income Margin

5.1%

No prior period
Gross Profit Margin

35.7%

Previous: 35.5%+0.6%
Capital Expenditures

-$2.74M

Previous: -$6.59M+58.4%
Free Cash Flow

$3.26M

Previous: -$71K+4687.3%
Net Income

$6M

Previous: $6.52M-8.0%
Operating Income

$14.9M

Previous: $17.5M-14.8%
Gross Profit

$42.4M

Previous: $40.8M+3.8%
Cash & Equivalents

$7.48M

Previous: $11.2M-33.0%
Total Assets

$321M

Previous: $300M+7.1%
Stock-Based Comp

$2.09M

Previous: $1.29M+62.3%

Revenue & EPS history

CPI Card Group · Revenue · Quarterly

$119M

Q2 2024+3.4%vs Q2 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

CPI Card Group · $106M total across 2 segments · Q3 2023

  • Debit and Credit
    $83.8M-15.8%
  • Prepaid Debit
    $22.3M-12.0%

Forward guidance

The Company updated its net sales outlook for 2024 to a mid-single digit increase and maintained its Adjusted EBITDA outlook of a slight increase for the full year.

Tailwinds

  • Net sales outlook for 2024 increased to a mid-single digit increase.
  • Increase in sales outlook was driven by strong Prepaid growth.
  • Increase in sales outlook was driven by improved trends in debit and credit card sales.
  • Maintained Adjusted EBITDA outlook of a slight increase for the full year.
  • Company continues to expect its year-end 2024 Net Leverage Ratio to be between 3.0x and 3.5x.

Headwinds

  • Profit growth in the second half is expected to be lower than sales growth.
  • Anticipated impacts to SG&A, including investments to grow the business.
  • Increased performance-related compensation relative to 2023.
  • Free Cash Flow outlook was maintained at approximately half of the 2023 level.
  • Impact of a contract with one of the Company’s larger customers, which should benefit cash flow through 2029, but negatively impact Free Cash Flow in 2024 due to up-front incentives.

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 Q2 2024

Historical avgQ2 2024

-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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