NASDAQ$PMTS

CPI Card Group Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

CPI Card Group reported strong net sales growth and significantly improved bottom-line performance.

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.

Headline financials

Total Revenue

$72.6M

Previous: $68.5M+6.0%
EPS (adj)

-$0.19

Previous: -$0.48+60.4%
Adjusted EBITDA Margin

12.1%

No prior period
Capital Expenditures

$877K

No prior period
Free Cash Flow

$5.09M

No prior period
Net Income

-$2.13M

No prior period
Operating Income

$3.91M

No prior period
Gross Profit

$22M

No prior period
Cash & Equivalents

$18.7M

No prior period
Total Assets

$213M

No prior period
Stock-Based Comp

-$66K

No prior period

Revenue & EPS history

CPI Card Group · Revenue · Quarterly

$72.6M

Q4 2019+6%vs Q4 2018
Beat estimate in 7 of 12 quarters(58%)
ActualEstimate

Revenue by segment

CPI Card Group · $72.8M total across 2 segments · Q4 2019

  • Debit and Credit
    $61.6M+24.2%
  • Prepaid Debit
    $11.2M-34.6%

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.

Tailwinds

  • 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.

Headwinds

  • 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.

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 Q4 2019

Historical avgQ4 2019

-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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