Business
CPI Card Group Inc. Reports Third Quarter and Year-to-Date 2020 Results
Net Sales of $82.7 Million, Up 15% and 11% Year-over-Year in the Third Quarter and First Nine Months Net Income of $5.8 Million, Up 984% and 425%
About this update from Cpi Card Group Inc.
[{"type":"text","content":"\nNet Sales of $82.7 Million, Up 15% and 11% Year-over-Year in the Third Quarter and First Nine Months\n\nNet Income of $5.8 Million, Up 984% and 425% Year-over-Year in the Third Quarter and First Nine Months\n\nAdjusted EBITDA of $17.5 Million, Up 43% and 39% Year-over-Year in the Third Quarter and First Nine Months \n\nCash of $50 Million at Quarter End\n\n LITTLETON, Colo.--(BUSINESS WIRE)--\nCPI Card Group Inc. (OTCQX: PMTS; TSX: PMTS) (“CPI” or the “Company”) today reported financial results for the third quarter and nine months ended September 30, 2020.\n\n“As we continue to navigate these unprecedented times, we are pleased with our strong third quarter performance,” said Scott Scheirman, President and Chief Executive Officer of CPI. “Our 15% top-line growth underscores the resilience of the business, our ability to capitalize on the dual interface card demand in the U.S. and the strong market for our innovative and differentiated products, including our eco-focused solutions. Operating margins also expanded significantly in the quarter, driven by operating leverage and ongoing efficiency initiatives. We continue to win new business with our existing customers, add new customers and pursue opportunities.”\n\nScheirman continued, “We remain steadfast and intensely focused on our strategies of deep customer focus, providing market-leading quality products and customer service, delivering innovative solutions and a market-competitive business model.”\n\nThird Quarter and First Nine Months 2020 Financial Highlights \n\nNet sales increased 15% and 11% year-over-year to $82.7 million and $228.0 million in the third quarter and first nine months of 2020, respectively. Gross profit increased 21% and 15% year-over-year in the third quarter and first nine months of 2020, respectively. Gross profit margins increased to 37.0% in the third quarter of 2020, compared to 35.4% in the prior year period, primarily due to higher net sales and operating leverage in the Debit and Credit segment. Gross profit margins increased to 34.8% from 33.7% in the first nine months of 2020 compared to the prior year.\n\nIncome from operations was $13.5 million and $26.0 million in the third quarter and first nine months of 2020, respectively, compared with $7.7 million and $21.1 million in the third quarter and first nine months of 2019, respectively. In...