Business
CPI Card Group Inc. Reports Fourth Quarter and Full Year 2022 Results
Fifth Consecutive Year of Strong Sales Growth; Full Year Net Sales Increased 27% to $476 Million; Net Income Increased 129% to $37 Million; Adjusted EBITDA
About this update from Cpi Card Group Inc.
[{"type":"text","content":"\nFifth Consecutive Year of Strong Sales Growth; Full Year Net Sales Increased 27% to $476 Million; Net Income Increased 129% to $37 Million; Adjusted EBITDA Increased 28% to $98 Million\n\nFourth Quarter Net Sales Increased 36% to $126 Million; Net Income Increased 1,754% to $12 Million; Adjusted EBITDA Increased 100% to $27 Million\n\nCompany Anticipates Continued Share Gains in Expected Slower-Growth Market in 2023; Initial Outlook Projects Mid-Single Digit Net Sales Growth, Mid-to-High Single Digit Adjusted EBITDA Growth, and Strong Improvement in Cash Flow and Net Leverage\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 fourth quarter and full year ended December 31, 2022 and provided its initial financial outlook for 2023.\n\nFull-year net sales increased 27% to $475.7 million, a record level for the Company. Growth was driven by strong customer demand for contactless cards, including eco-focused cards, and Software-as-a-Service-based instant issuance solutions. Net income increased 129% to $36.5 million and Adjusted EBITDA increased 28% to $97.7 million, driven by the strong sales growth.\n\n“Our outstanding fourth quarter performance capped another strong growth year for CPI, and we believe the Company gained substantial market share,” said Scott Scheirman, President and Chief Executive Officer. “There was strong demand for cards in the U.S. market in 2022, and we won new business and share of wallet through our innovative products, end-to-end solutions, market-leading quality, and proactive inventory management while the industry was facing supply-chain challenges.”\n\nFor 2023, the Company expects to continue to gain market share overall, but anticipates market growth will not be as strong as 2022. The Company’s initial outlook for 2023 projects mid-single digit net sales growth, with higher growth for the Debit and Credit segment, which represented 82% of 2022 net sales, partially offset by expectations for Prepaid Debit segment sales to be similar to 2022 levels. The Company expects mid-to-high single digit Adjusted EBITDA growth for 2023, Free Cash Flow to more than double, and year-end Net Leverage Ratio improvement to between 2.5x ...