Business
CPI Card Group Inc. Reports Second Quarter 2023 Results
Second Quarter Net Sales Increased 1% to $115 Million; Net Income Increased 6% to $7 Million; Adjusted EBITDA Increased 18% to $23 Million First Half Net
About this update from Cpi Card Group Inc.
[{"type":"text","content":"\nSecond Quarter Net Sales Increased 1% to $115 Million; Net Income Increased 6% to $7 Million; Adjusted EBITDA Increased 18% to $23 Million\n\n\nFirst Half Net Sales Increased 5%; Net Income Increased 43%; Adjusted EBITDA Increased 15%\n\n\nCompany Updates 2023 Outlook\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 second quarter ended June 30, 2023 and updated its financial outlook for 2023.\n\n\nSecond quarter net sales increased 1% to $115 million, as strong growth from the Prepaid Debit segment was largely offset by a slight decline in the Debit and Credit segment. Net sales also benefited from the impact of price increases, which were primarily implemented in 2022. Net income increased 6% to $6.5 million and Adjusted EBITDA increased 18% to $23.3 million, driven by reduced operating expenses.\n\n\n“I am pleased with our team’s ability to offset customer demand softness in parts of the market and challenging comparisons with last year’s second quarter to generate a solid increase in profitability,” said Scott Scheirman, President and Chief Executive Officer. “Although we have adjusted our sales outlook to reflect the near-term challenges, we are continuing to drive various initiatives to help achieve our profitability and cash flow targets for the year.”\n\n\nThe Company updated its full-year net sales outlook for 2023 to a range of flat to low single-digit growth and affirmed its outlook for mid-to-high single-digit Adjusted EBITDA growth, as well as its projections for Free Cash Flow to more than double and the year-end Net Leverage Ratio to improve to between 2.5x and 3.0x. The previous outlook for net sales was mid-single digit growth.\n\n\nThe sales outlook change reflects softness in customer demand in the Debit and Credit segment. The Company believes Debit and Credit segment sales are being negatively impacted by cautious spending and utilization of existing inventory by certain customers in the banking industry. The Company currently expects third quarter sales and Adjusted EBITDA to decline and expects to return to growth in the fourth quarter, as the market starts to improve and the impact of new sales initiatives takes hold.\n...