CPI Card Group Inc. (PMTS) Bundle
A Brief History of CPI Card Group Inc.
CPI Card Group Inc. is a leading provider of financial payment card solutions, specializing in the production of secure payment cards and related services. Established in 2015, the company has evolved into a prominent player in the card production industry, serving various markets including banking, retail, and government sectors.
Financial Performance Overview
As of September 30, 2024, CPI Card Group reported significant changes in its financial performance compared to the previous year. The following financial highlights are notable:
Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
---|---|---|---|---|
Net Income | $1,293,000 | $3,857,000 | $(2,564,000) | (66.5)% |
Net Sales | $124,751,000 | $105,863,000 | $18,888,000 | 17.8% |
Gross Profit | $44,698,000 | $36,152,000 | $8,546,000 | 23.6% |
Operating Expenses | $26,900,000 | $23,191,000 | $3,709,000 | 16.0% |
Income from Operations | $17,798,000 | $12,961,000 | $4,837,000 | 37.3% |
Segment Performance
The company operates through several segments, including Debit and Credit, Prepaid Debit, and Other. The performance of these segments for the nine months ended September 30, 2024, is summarized below:
Segment | Net Sales ($) | Gross Profit ($) | Income from Operations ($) |
---|---|---|---|
Debit and Credit | $283,348,000 | $101,790,000 | $75,178,000 |
Prepaid Debit | $73,186,000 | $26,814,000 | $22,765,000 |
Other | $0 | $0 | $(51,091,000) |
Liquidity and Capital Resources
As of September 30, 2024, CPI Card Group reported cash and cash equivalents of $14.7 million. The company’s liquidity has primarily been supported by cash generated from operating activities, which amounted to $16.652 million for the nine months ended September 30, 2024, down from $22.266 million in the prior year.
Stockholder Activities
During the nine months ended September 30, 2024, the company repurchased 473,284 shares of its common stock at an average price of $18.16 per share, totaling approximately $8.6 million. As of September 30, 2024, $11.2 million remained authorized for additional share repurchases.
On September 30, 2024, a secondary offering by the majority stockholder group for 1,380,000 shares was announced, with total expenses for the offering approximating $0.5 million, which will be covered by the company.
Debt and Financing
As of September 30, 2024, CPI Card Group had outstanding borrowings of $285 million related to the 2029 Senior Notes, with an estimated fair value of $300.518 million. Interest expenses for the nine months ended September 30, 2024, totaled $26.413 million, reflecting a 30.5% increase from the previous year.
The company has also recorded a loss on debt extinguishment of $2.987 million during the same period.
A Who Owns CPI Card Group Inc. (PMTS)
Major Shareholders
As of 2024, CPI Card Group Inc. (PMTS) has a significant ownership structure dominated by institutional investors and a few key shareholders. The largest shareholders include:
- Tricor Pacific Capital Partners (Fund IV), LP
- Tricor Pacific Capital Partners (Fund IV) US, LP
- Various institutional investors such as mutual funds and pension funds
Ownership Breakdown
The ownership distribution of CPI Card Group as of September 30, 2024, is as follows:
Shareholder | Shares Owned | Percentage Ownership |
---|---|---|
Tricor Pacific Capital Partners (Fund IV), LP | 5,400,000 | 48.4% |
Tricor Pacific Capital Partners (Fund IV) US, LP | 1,200,000 | 10.7% |
Other Institutional Investors | 3,300,000 | 29.6% |
Retail Investors | 1,259,418 | 11.3% |
Recent Share Transactions
In the nine months ended September 30, 2024, CPI Card Group repurchased 473,284 shares at an average price of $18.16 per share, totaling approximately $8.6 million. This includes shares purchased from a stockholder that was part of the majority stockholder group.
Stock Performance
The stock performance of CPI Card Group, as of the end of September 2024, showed significant volatility, with a share price fluctuating between $15 and $25 throughout the year. The closing price on September 30, 2024, was $18.50.
Board of Directors
The Board of Directors consists of members with diverse backgrounds and experiences. Key members include:
- President and CEO: Scott B. Barlow
- Chairman: Robert M. DeWitt
- Independent Directors: Various members with expertise in finance, technology, and corporate governance
Financial Overview
For the nine months ended September 30, 2024, CPI Card Group reported the following financial highlights:
Financial Metric | Amount (in thousands) |
---|---|
Net Income | $12,749 |
Gross Profit | $128,604 |
Operating Income | $46,852 |
Total Revenue | $355,505 |
EBITDA | $55,406 |
Market Trends
The market for card production and payment solutions continues to grow, driven by increased demand for contactless payment options and secure card technologies. CPI Card Group is positioned to capitalize on these trends, with a focus on eco-friendly card solutions and enhanced personalization services.
CPI Card Group Inc. (PMTS) Mission Statement
Overview of Mission Statement
The mission of CPI Card Group Inc. is to provide innovative and secure card solutions that enhance customer experiences while maintaining a commitment to sustainability and social responsibility. The company aims to lead the market by leveraging advanced technology and superior service.
Financial Performance Indicators
As of September 30, 2024, CPI Card Group reported significant financial metrics that reflect its operational success:
Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
---|---|---|---|---|
Net Sales | $124.75 million | $105.86 million | $18.89 million | 17.9% |
Gross Profit | $36.15 million | $28.38 million | $7.77 million | 27.4% |
Net Income | $1.29 million | $3.86 million | ($2.57 million) | (66.7%) |
EBITDA | $18.43 million | $16.91 million | $1.52 million | 8.9% |
Segment Performance
CPI Card Group operates through several segments which contribute to its overall mission and financial performance:
Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Change ($) | Change (%) |
---|---|---|---|---|
Debit and Credit | $99.76 million | $83.78 million | $15.98 million | 19.1% |
Prepaid Debit | $25.17 million | $22.34 million | $2.84 million | 12.7% |
Operating Expenses
Operating expenses have also evolved, reflecting changes in compensation and operational efficiencies:
Period | Operating Expenses | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
---|---|---|---|---|---|
Three Months | $16.35 million | $14.46 million | $1.89 million | 13.1% | |
Nine Months | $51.09 million | $42.78 million | $8.31 million | 19.4% |
Liquidity and Capital Resources
As of September 30, 2024, CPI Card Group had:
- Cash and cash equivalents: $14.7 million
- Available borrowing under ABL Revolver: $72.7 million
- Long-term debt: $280.15 million
Shareholder Activities
During the nine months ended September 30, 2024, the company repurchased:
- 473,284 shares at an average price of $18.16 per share
- Total expenditure: $8.6 million
Conclusion on Financial Performance and Mission Alignment
The financial metrics and operational data indicate that CPI Card Group Inc. is effectively executing its mission to innovate and provide secure card solutions while managing its financial health. The company's focus on enhancing customer experiences is evident through its increasing net sales and operational improvements.
How CPI Card Group Inc. (PMTS) Works
Business Overview
CPI Card Group Inc. operates in the card manufacturing and payment solutions industry. The company focuses on producing and personalizing secure payment cards, including debit, credit, and prepaid cards. Its product offerings also extend to advanced personalization services, card production, and fulfillment services.
Financial Performance
As of September 30, 2024, CPI Card Group reported the following financial metrics:
Financial Metric | Value (in thousands) |
---|---|
Net Sales | $355,505 |
Cost of Sales | $226,901 |
Gross Profit | $128,604 |
Operating Expenses | $81,752 |
Income from Operations | $46,852 |
Net Income | $12,749 |
Basic Earnings per Share | $1.14 |
Diluted Earnings per Share | $1.08 |
Segment Performance
CPI Card Group's operations are segmented into three primary categories: Debit and Credit, Prepaid Debit, and Other. The financial performance for each segment for the nine months ended September 30, 2024, is summarized below:
Segment | Net Sales (in thousands) | Gross Profit (in thousands) | Income from Operations (in thousands) |
---|---|---|---|
Debit and Credit | $283,348 | $101,790 | $75,178 |
Prepaid Debit | $73,186 | $26,814 | $22,765 |
Other | $0 | $0 | $(51,091) |
Cash Flow and Liquidity
As of September 30, 2024, CPI Card Group reported cash and cash equivalents of $14.7 million. For the nine months ended September 30, 2024, cash provided by operating activities was $16.7 million, a decrease from $22.3 million for the same period in 2023.
Debt Obligations
The company's outstanding debt as of September 30, 2024, includes:
Debt Type | Amount (in thousands) |
---|---|
2029 Senior Notes | $285,000 |
2026 Senior Notes | $0 |
Total Long-term Debt | $280,152 |
Stockholder Information
As of September 30, 2024, CPI Card Group had 11,159,418 shares of common stock issued and outstanding. The company reported a total stockholders' deficit of $(42,791) thousand.
Recent Developments
In July 2024, CPI Card Group completed a private offering of $285 million in Senior Secured Notes due 2029. The proceeds were used to redeem the previous Senior Secured Notes due 2026 and pay related fees.
Market Trends
The company has experienced increased demand for contactless payment cards, which has positively impacted sales volumes in its Debit and Credit segment. The ongoing transition towards digital payments and secure card solutions continues to drive growth in the industry.
Operational Challenges
CPI Card Group faces challenges such as fluctuating inventory costs and increased competition in the card manufacturing sector. Additionally, compensation-related expenses have risen, impacting overall operating expenses.
How CPI Card Group Inc. (PMTS) Makes Money
Revenue Streams
CPI Card Group Inc. generates revenue primarily through two segments: Debit and Credit services and Prepaid Debit services.
Debit and Credit Segment
The Debit and Credit segment includes the production and personalization of financial payment cards. As of September 30, 2024, net sales in this segment were:
Period | Net Sales ($ in thousands) | Gross Profit ($ in thousands) | Income from Operations ($ in thousands) |
---|---|---|---|
Q3 2024 | 99,755 | 36,131 | 27,035 |
9 Months 2024 | 283,348 | 101,790 | 75,178 |
Net sales increased by 19.1% for Q3 2024 compared to Q3 2023, driven primarily by higher volumes of contactless cards, including eco-focused options.
Prepaid Debit Segment
The Prepaid Debit segment provides integrated prepaid card services. The financial performance for this segment as of September 30, 2024, is as follows:
Period | Net Sales ($ in thousands) | Gross Profit ($ in thousands) | Income from Operations ($ in thousands) |
---|---|---|---|
Q3 2024 | 25,173 | 8,567 | 7,111 |
9 Months 2024 | 73,186 | 26,814 | 22,765 |
Net sales increased by 12.7% for Q3 2024 compared to Q3 2023, primarily due to increased sales of higher-priced packaging solutions.
Overall Financial Performance
The total net sales for CPI Card Group Inc. were:
Period | Total Net Sales ($ in thousands) | Total Gross Profit ($ in thousands) | Total Operating Income ($ in thousands) |
---|---|---|---|
Q3 2024 | 124,751 | 44,698 | 17,798 |
9 Months 2024 | 355,505 | 128,604 | 46,852 |
Total operating expenses were $26,900 thousand for Q3 2024, an increase of 15.7% from the previous year.
Operating Expenses
Operating expenses for CPI Card Group Inc. have increased due to higher compensation-related expenses, including performance-based incentives and executive severance. The breakdown is as follows:
Period | Operating Expenses ($ in thousands) |
---|---|
Q3 2024 | 26,900 |
9 Months 2024 | 81,752 |
These increases are attributed to ongoing growth initiatives and inflationary pressures.
Net Income and Earnings Per Share
CPI Card Group Inc. reported a net income of:
Period | Net Income ($ in thousands) | Basic Earnings Per Share ($) | Diluted Earnings Per Share ($) |
---|---|---|---|
Q3 2024 | 1,293 | 0.12 | 0.11 |
9 Months 2024 | 12,749 | 1.14 | 1.08 |
This reflects a decrease in net income of 66.5% year-over-year for Q3 2024.
Debt Management
As of September 30, 2024, CPI Card Group Inc. had outstanding borrowings totaling:
Debt Type | Amount ($ in thousands) |
---|---|
2029 Senior Notes | 285,000 |
2026 Senior Notes | — |
Total Long-term Debt | 280,152 |
The company redeemed its 2026 Senior Secured Notes using proceeds from the issuance of the 2029 Senior Secured Notes.
Liquidity Position
As of September 30, 2024, CPI Card Group Inc. reported cash and cash equivalents of:
Liquidity Measure | Amount ($ in millions) |
---|---|
Cash and Cash Equivalents | 14.7 |
This liquidity is crucial for supporting ongoing operations and capital expenditures.
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Resources:
- CPI Card Group Inc. (PMTS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CPI Card Group Inc. (PMTS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CPI Card Group Inc. (PMTS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.