Business
CPI Card Group Inc. Reports First Quarter 2023 Results
Net Sales Increased 8% to $121 Million; Net Income Increased 81% to $11 Million; Adjusted EBITDA Increased 11% to $25 Million Strong Sales of Contactless
About this update from Cpi Card Group Inc.
[{"type":"text","content":"\nNet Sales Increased 8% to $121 Million; Net Income Increased 81% to $11 Million; Adjusted EBITDA Increased 11% to $25 Million\n\n\nStrong Sales of Contactless Cards Drive First Quarter Growth\n\n\nCompany Affirms 2023 Outlook of Mid-Single Digit Net Sales Growth and Mid-to-High Single Digit Adjusted EBITDA Growth\n\n\nCompany Announces Appointment of Jeffrey A. Hochstadt as Chief Financial Officer\n\n\n LITTLETON, Colo.--(BUSINESS WIRE)--\nCPI Card Group Inc. (Nasdaq: PMTS) (“CPI” or the “Company”), a payment technology company and leading provider of credit, debit, and prepaid solutions, today reported financial results for the first quarter ended March 31, 2023 and affirmed its financial outlook for 2023.\n\n\nFirst quarter net sales increased 8% to $120.9 million, led by strong sales of contactless cards. Net income increased 81% to $10.9 million and Adjusted EBITDA increased 11% to $25.1 million, driven by sales growth and operating leverage.\n\n\nThe Company affirmed its full-year outlook for 2023, which projects mid-single digit net sales growth, 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. The Company does not expect second quarter results to be as strong as the first quarter due to softening demand in the Debit and Credit segment, which it believes is related to the recent turmoil in the banking industry. Given increased banking industry and economic uncertainty, the Company has implemented new initiatives to help mitigate potential ongoing impacts.\n\n\n“We are pleased with the first quarter performance, as we delivered growth across our Debit and Credit portfolio of end-to-end solutions,” said Scott Scheirman, President and Chief Executive Officer. “We are confident in the long-term growth of our market and believe our ongoing focus on providing innovative products, end-to-end solutions, and market-leading quality and customer service will continue to position us to gain share.”\n\n\nBased on figures released by the networks, Visa and Mastercard® U.S. debit and credit cards in circulation increased at a compound annual growth rate of 11% for the three-year period ending December 31, 2023.\n\n\nCPI is a top payment solutions provider in the U.S. serving thousands of banks, credit unions and fintechs. The Compan...