CPI Card Group Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, a provider of financial payment card solutions, experienced a notable increase in net sales, which reached $124.8 million for the three months ended September 30, 2024, up 17.8% from $105.9 million in the same period of 2023. For the nine months, net sales totaled $355.5 million, reflecting a 4.0% increase compared to $341.7 million in the prior year.
Gross profit also saw an increase, with $44.7 million reported for the third quarter, a 23.6% rise from $36.2 million in 2023. However, income from operations for the three months was $17.8 million, a 37.3% increase from $13.0 million in the previous year. In contrast, income from operations for the nine-month period decreased to $46.9 million, down 8.2% from $51.1 million in 2023.
Net income for the third quarter was $1.3 million, a significant decline of 66.5% from $3.9 million in the same quarter of 2023. For the nine months, net income was $12.7 million, down 40.0% from $21.3 million in the prior year. Basic earnings per share for the third quarter were $0.12, compared to $0.34 in 2023, while for the nine months, it was $1.14, down from $1.86.
The company’s operating expenses increased due to higher compensation-related costs, including performance-based incentives and executive severance. Interest expenses rose significantly due to an early redemption premium related to the redemption of $267.9 million in senior secured notes. Additionally, a loss of $3.0 million on debt extinguishment was recorded.
CPI Card Group's liquidity position improved, with cash and cash equivalents increasing to $14.7 million as of September 30, 2024, compared to $12.4 million at the end of 2023. The company completed a private offering of $285 million in senior secured notes due 2029, using the proceeds to redeem existing debt.
Strategically, the company has been navigating reduced demand for certain products attributed to economic conditions and supply chain issues. However, there was an increase in card volume sales in the Debit and Credit segment during the third quarter, indicating potential recovery. The company also repurchased 473,284 shares of its common stock for $8.6 million under its share repurchase plan, which has $11.2 million remaining for future repurchases.
About CPI Card Group Inc.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.