NASDAQ$PMTS

CPI Card Group Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Sales were affected by cautious customer spending, net sales decreased by 19%, net income decreased by 78%, and Adjusted EBITDA decreased by 27%.

CPI Card Group's Q4 2023 results showed a decrease in net sales by 19% to $102.9 million, a 78% decrease in net income to $2.7 million, and a 27% decrease in Adjusted EBITDA to $19.9 million, reflecting cautious customer spending and inventory management.

  • Net sales decreased 19% year-over-year to $102.9 million.
  • Net income decreased 78% to $2.7 million.
  • Adjusted EBITDA decreased 27% to $19.9 million.
  • Company anticipates gradual market recovery in 2024.

Headline financials

Total Revenue

$103M

Previous: $126M-18.6%
EPS (adj)

$0.23

Previous: $1.06-78.3%
Capital Expenditures

-$329K

Previous: $3.43M-109.6%
Free Cash Flow

$11.4M

Previous: $16.2M-29.3%
Net Income

$2.7M

Previous: $12.5M-78.4%
Operating Income

$10.5M

Previous: $22.7M-53.6%
Gross Profit

$35.4M

Previous: $47.5M-25.4%
Stock-Based Comp

$3.08M

Previous: $551K+458.3%

Revenue & EPS history

CPI Card Group · Revenue · Quarterly

$103M

Q4 2023-18.6%vs Q4 2022
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 projects slight increases in both net sales and Adjusted EBITDA for the full year, with declines in the first half of the year offset by growth in the second half.

Tailwinds

  • Company projects slight increases in both net sales
  • Company projects slight increases in Adjusted EBITDA
  • Market gradually recovering over the course of the year
  • First quarter sales anticipated to be similar to the 2023 fourth quarter level.
  • Long-term growth trends for the U.S. card market remain strong

Headwinds

  • Cautious customer spending to continue into 2024
  • Free Cash Flow for 2024 is expected to be $5 million to $10 million lower than the 2023 level due to increased capital spending investment.
  • Increased capital spending includes investment in a new state-of-the-art secure card production facility in Indiana
  • Company expects its year-end 2024 Net Leverage Ratio to be between 3.0x and 3.5x.
  • Declines in the first half of the year

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 2023

Historical avgQ4 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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