Financial Performance - Total net sales for Q2 2024 reached $118.818 million, a 3.8% increase from $114.960 million in Q2 2023[5] - Gross profit for Q2 2024 was $42.388 million, compared to $40.825 million in Q2 2023, reflecting a 3.8% increase[5] - Net income for Q2 2024 was $6.001 million, a decrease of 8.0% from $6.523 million in Q2 2023[5] - Basic earnings per share for Q2 2024 were $0.54, down from $0.57 in Q2 2023[5] - The company reported total net sales of $230,754 for the six months ended June 30, 2024, compared to $235,812 for the same period in 2023, reflecting a slight decrease[14] - For the six months ended June 30, 2024, net income was $11.456 million, a decrease of 34% compared to $17.396 million for the same period in 2023[34] - The company’s net income for the six months ended June 30, 2024, was $17.396 million, down from $21.475 million in the same period of 2023, indicating a decline of about 19.5%[42] Assets and Liabilities - Total assets increased to $321.446 million as of June 30, 2024, up from $293.683 million at December 31, 2023, representing a 9.4% growth[4] - Total liabilities rose to $366.003 million as of June 30, 2024, compared to $345.619 million at December 31, 2023, indicating a 5.9% increase[4] - Current liabilities increased to $68.949 million as of June 30, 2024, from $49.445 million at December 31, 2023, a 39.6% rise[4] - Long-term debt as of June 30, 2024, was $269.654 million, up from $264.997 million as of December 31, 2023, with the 2026 Senior Notes bearing an interest rate of 8.625%[24] - Total current assets increased to $179.745 million as of June 30, 2024, compared to $165.378 million at December 31, 2023[4] Cash Flow and Operating Activities - Cash and cash equivalents decreased to $7.479 million as of June 30, 2024, down from $12.413 million at December 31, 2023[4] - Cash provided by operating activities decreased to $4.1 million for the six months ended June 30, 2024, down from $10.3 million for the same period in 2023, primarily due to lower net income and changes in working capital[64] - Total cash provided by operating activities for the six months ended June 30, 2023, was $10,322, compared to $4,108 for the six months ended June 30, 2024[9] Segment Performance - The company’s reportable segments include Debit and Credit, Prepaid Debit, and Other, with a focus on integrated card services and financial payment cards[38][39] - The Debit and Credit segment generated $183,593 in total net sales for the six months ended June 30, 2024, compared to $195,179 for the same period in 2023[14] - The company’s prepaid debit segment generated $48,013,000 in net sales for the six months ended June 30, 2024, compared to $40,951,000 in the same period of 2023, marking an increase of 17%[14] Operating Expenses - Operating expenses for the three months ended June 30, 2024, totaled $27.479 million, compared to $23.333 million in the same period of 2023, marking an increase of about 17.0%[40][42] - The company’s operating expenses for the six months ended June 30, 2024, totaled $54.852 million, compared to $45.829 million in the same period of 2023, reflecting an increase of about 19.7%[41] Share Repurchase and Stock Compensation - The company repurchased 352,750 shares of common stock at an average price of $18.14 per share, totaling $6.4 million during the six months ended June 30, 2024[31] - As of June 30, 2024, the company had an authorized amount of $11.2 million remaining under the share repurchase plan[31] - Stock-based compensation expense increased to $5,154 for the six months ended June 30, 2024, from $1,831 for the same period in 2023[9] Economic and Market Conditions - CPI Card Group Inc. reported reduced demand from customers for certain products and services during 2023 through the first half of 2024, impacting financial and operating results[51] - The company has experienced concerns in the banking and financial services industry, leading to reduced overall spending on card programs[51] - Economic uncertainties, including negative liquidity events in certain banks, have led to caution in the financial services industry, affecting demand in the Debit and Credit segment[51] Tax and Compliance - The effective tax rate for the three months ended June 30, 2024, was 27.7%, a decrease from 38.9% in the same period of 2023, primarily due to changes in executive compensation deductibility[28] - The effective income tax rate for the six months ended June 30, 2024, was 28.2%, slightly lower than 28.6% for the same period in 2023[30] - The company is committed to compliance with PCI Security Standards Council requirements, ensuring the security of its products and services[48]

Financial Performance - Net sales increased 3% year-over-year to $118.8 million in Q2 2024, with Debit and Credit segment net sales up 3% to $95.6 million and Prepaid Debit segment net sales up 9% to $23.8 million[1][7]. - Net income decreased 8% to $6.0 million, and Adjusted EBITDA decreased 6% to $21.9 million in Q2 2024[1][7]. - The company updated its full-year net sales outlook to mid-single digit growth, up from slight growth, driven by strong Prepaid growth and improved trends in debit and credit card sales[3][13]. - Year-to-date net sales decreased 2% to $230.8 million, with Debit and Credit segment net sales down 6% to $183.6 million, while Prepaid Debit segment net sales increased 17% to $48.0 million[9][10]. - Total net sales for Q2 2024 reached $118.8 million, a 3.9% increase from $115.0 million in Q2 2023[28]. - Product sales were $63.8 million, slightly down from $63.9 million in the same quarter last year, while service sales increased to $55.0 million from $51.0 million, marking a 7.5% growth[28]. - For the first half of 2024, total net sales were $230.8 million, a decrease of 2.4% from $235.8 million in the first half of 2023[28]. - Net income for Q2 2024 was $6.0 million, down from $6.5 million in Q2 2023, leading to diluted earnings per share of $0.51 compared to $0.55 last year[28]. - The company reported a total comprehensive income of $6.0 million for Q2 2024, consistent with the net income figure[28]. Expenses and Profitability - Operating expenses increased to $27.5 million in Q2 2024 from $23.3 million in Q2 2023, primarily due to higher selling, general, and administrative expenses[28]. - Gross profit margin for Q2 2024 was 35.7%, slightly up from 35.5% in the prior year[7]. - Gross profit for Q2 2024 was $42.4 million, compared to $40.8 million in Q2 2023, resulting in a gross margin of 35.7%[28]. - The cost of sales for Q2 2024 was $76.4 million, up from $74.1 million in Q2 2023, reflecting increased costs in both products and services[28]. - The company reported a gross profit margin of 36.4% for the six months ended June 30, 2024, compared to 35.6% in the same period of 2023[35]. - The prepaid debit segment saw a significant increase in EBITDA, rising 37.9% to $17,418 for the six months ended June 30, 2024, from $12,634 in the same period of 2023[42]. - Total EBITDA for the six months ended June 30, 2024, was $36,976, a decrease of 19.2% from $45,763 in the same period of 2023[40]. Debt and Financing - The company completed a refinancing of its debt, issuing $285 million of Senior Secured Notes due 2029 and entering a new $75 million asset-based revolving credit facility[3][6]. - The company ended Q2 2024 with a Net Leverage Ratio of 3.3x, with expectations for year-end 2024 Net Leverage Ratio to be between 3.0x and 3.5x[5][14]. - Long-term debt increased to $269,654 thousand as of June 30, 2024, from $264,997 thousand at December 31, 2023, indicating a rise of 1.0%[30]. - Total current liabilities rose to $68,949 thousand as of June 30, 2024, compared to $49,445 thousand at December 31, 2023, an increase of 39.6%[30]. - Total net debt as of June 30, 2024, was $281,081, resulting in a net leverage ratio of 3.3, compared to 3.1 as of December 31, 2023[46]. Cash Flow - Free Cash Flow outlook for 2024 is expected to be approximately half of the 2023 level, impacted by increased capital spending and upfront incentives related to a contract with a larger customer[14][19]. - Cash provided by operating activities for the six months ended June 30, 2024, was $4,108 thousand, compared to $10,322 thousand in the same period of 2023, a decline of 60.3%[31]. - Free cash flow for the three months ended June 30, 2024, was $(5,995), compared to $(128) in the same period of 2023[44]. Market Position and Strategy - The company has sold over 100 million eco-focused cards since launch in late 2019, reinforcing its position as a leader in eco-focused payment card solutions[5]. - CPI Card Group Inc. is focused on enhancing its product offerings and expanding market reach to drive future growth[25]. - The company continues to face risks related to supply chain disruptions and inflationary pressures, which may impact future performance[23]. Segment Performance - The prepaid debit segment saw a 17.2% increase in net sales for the six months ended June 30, 2024, totaling $48,013 thousand, up from $40,951 thousand in 2023[33]. - The company experienced a loss from operations in the "Other" segment of $(34,743) thousand for the six months ended June 30, 2024, compared to $(28,322) thousand in the same period of 2023, reflecting a deterioration of 22.7%[36]. - The company experienced a $7,180 decrease in EBITDA from the debit and credit segment for the six months ended June 30, 2024, totaling $52,467 compared to $59,647 in the same period of 2023[41]. - EBITDA for the three months ended June 30, 2024, was $18,879, a decrease of 12.1% from $21,475 in the same period of 2023[37]. - The prepaid debit segment's EBITDA margin was 36.3% for the six months ended June 30, 2024, compared to 30.9% in the same period of 2023[42].

Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. -- that could keep the momentum in the stock going. However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's import ...

CPI Card Group Inc. (PMTS) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, PMTS's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross." Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and ...

CPI Card Group Inc. (NASDAQ:PMTS) Q1 2024 Earnings Conference Call May 7, 2024 9:00 AM ET Company Participants Mike Salop - Head, Investor Relations John Lowe - President and Chief Executive Officer Jeff Hochstadt - Chief Financial Officer Conference Call Participants Jaeson Schmidt - Lake Street Capital Markets Andrew Scutt - Ross Capital Operator Welcome to CPI Card Group's First Quarter 2024 Earnings Call. My name is Catherine, I will be your operator today. [Operator Instructions] And now I would like t ...

Cautionary Statements Certain statements and information in this presentation (as well as information included in other written or oral statements we make from time to time) may contain or constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The words "believe," "estimate," "project," "expect," "anticipa ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 For the Quarterly Period Ended March 31, 2024 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period from to Commission File Number: 001-37584 CPI Card Group Inc. (Exact name of the registrant as specified in its charter) Delaware 26-0344657 ...

Exhibit 99.1 CPI Card Group Inc. Reports First Quarter 2024 Results Date: May 7, 2024 Net Sales Decreased 7% to $112 Million; Net Income Decreased 50% to $5 Million; Adjusted EBITDA Decreased 8% to $23 Million Net Sales, Net Income, and Adjusted EBITDA Increased from Fourth Quarter Levels Company Continues to Anticipate Gradual Market Recovery in 2024; Affirms Full Year Net Sales and Adjusted EBITDA Outlook Littleton, CO. May 7, 2024 -- CPI Card Group Inc. (Nasdaq: PMTS) ("CPI" or the "Company"), a payments ...

CPI Card Group Inc. (NASDAQ:PMTS) Q4 2023 Earnings Conference Call March 7, 2024 9:00 AM ET Company Participants Mike Salop - Head, IR John Lowe - President and CEO Jeff Hochstadt - CFO Conference Call Participants Jaeson Schmidt - Lake Street Capital Markets Operator Welcome to CPI Card Group's Fourth Quarter 2023 Earnings Call. My name is Audra, and I will be your operator today. [Operator Instructions] Now I would like to turn the call over to Mike Salop, CPI's Head of Investor Relations. Please go ahead ...

Form 10-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2023 OR Table of Contents (Exact name of the registrant as specified in its charter) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission File Number 001-37584 CPI Card Group Inc. (Address of principal exec ...