CPI Card Group Schedules Second Quarter 2018 Earnings Announcement and Conference Call Business Wire August 2, 2018
With some interest I will read the CC transcript. I may have missed the turnaround strategy news, but I don't think I did. It should be interesting if they reveal anything related to "how-does-PMTS-plan-to-grow".
I wonder if the PPS rise since 7-25 can be attributed to "Buy the Rumor and Sell the News". We'll see tomorrow if there are hopefuls out there who are rewarded or disappointed.
LITTLETON, Colo.--(BUSINESS WIRE)--
CPI Card Group Inc. (Nasdaq: PMTS, TSX: PMTS), a global leader in financial and EMV® chip card production and related services, today announced it will host a live conference call on Thursday, August 9, 2018 at 9:00 a.m. Eastern Time (ET) to discuss its second quarter 2018 financial results. Participating on the call will be CPI Card Group President and CEO Scott Scheirman and CFO John D. Lowe.
CPI Card Group’s financial results for the second quarter ended June 30, 2018 will be released before the markets open on August 9, 2018 and will be available on the CPI Card Group investor website: http://investor.cpicardgroup.com/.
The live conference call may be accessed via telephone or online:
Participants are advised to login for the live webcast 10 minutes prior to the scheduled start time.
Following the completion of the conference call, a replay of the conference call will be available until 8:00 p.m. ET on August 16, 2018. To access the replay, please dial (877) 344-7529 or (412) 317-0088; Conference ID: 10122210.
Also an archived replay of the webcast will be available on CPI Card Group’s investor relations webpage: http://investor.cpicardgroup.com/.
CPI Card Group Inc. Reports Second Quarter 2018 Results
Thu August 9, 2018 8:00 AM
Q2: 08-05-18 Earnings Summary
Continuing Operations - GAAP Net Loss of $0.8 million; Adjusted Net Income of $1.1 million
Adjusted EBITDA of $8.9 million
Q2 Ending Cash of $17.8 million, Available Revolver of $20.0 million, Available Liquidity of $37.8 million
Call scheduled for Thursday, August 9, 2018 at 9:00 a.m. Eastern Time
LITTLETON, Colo.--(BUSINESS WIRE)-- CPI Card Group Inc. (Nasdaq:PMTS; TSX:PMTS) (“CPI Card Group” or the “Company”) today reported financial results for the second quarter ended June 30, 2018.
Scott Scheirman, President and Chief Executive Officer of CPI, stated, “We are pleased with our second quarter results, which include 12% year-over-year revenue growth driven by strong performance in Prepaid and growth of our emerging products and solutions. We are tracking in line with our business plan through the first half of 2018. During the second quarter, we continued to expand relationships with new and existing customers by executing on our strategic priorities of deep customer focus, providing market-leading quality products and customer service, a market competitive business model and continuous innovation. At the same time, we made an important strategic move to sharpen our focus on our core customers, markets, products and solutions by selling our U.K. business.”
Second Quarter 2018 – Continuing Operations Consolidated Financial Highlights
Financial results included in this press release for all periods reflect continuing operations. The sale of CPI U.K., which had historically been reported as the U.K. Limited segment, has been accounted for as a discontinued operation, and comparative financial information has been restated in accordance with U.S. GAAP (“GAAP”) requirements.
Net sales were $61.5 million in the second quarter of 2018, representing an increase of 12% from the second quarter of 2017. Income from operations was $2.7 million in the second quarter of 2018, up from $0.7 million in the second quarter of 2017. GAAP net loss from continuing operations in the second quarter of 2018 was $0.8 million, or a loss from continuing operations of $0.07 per diluted share, compared to a net loss from continuing operations of $3.3 million, or a loss from continuing operations of $0.30 per diluted share, in the second quarter of 2017.
Adjusted EBITDA for the second quarter of 2018 was $8.9 million, compared with $7.2 million in the prior year period, primarily reflecting revenue growth from more profitable emerging products and solutions. Adjusted Net Income from continuing operations in the second quarter of 2018 was $1.1 million, or an adjusted income from continuing operations of $0.10 per diluted share, compared with Adjusted Net Loss from continuing operations of $1.1 million in the second quarter of 2017.
All earnings per share amounts reflect the one-for-five reverse stock split, which occurred in December 2017.
Second Quarter 2018 – Continuing Operations Segment Information
U.S. Debit and Credit:
Net sales were $43.8 million in the second quarter of 2018, representing an increase of 3.5% from the second quarter of 2017. The increase in U.S. Debit and Credit segment net sales was driven predominantly by an increase in revenue from our emerging products and solutions, including Card@Once® and metal cards, partially offset by decreases in Non-EMV and other sales, card personalization and fulfillment and EMV® card revenues due to lower EMV® card average selling prices. Sales volumes of EMV® cards increased in the second quarter of 2018 compared to first quarter of 2018 and the second quarter of 2017.
U.S. Prepaid Debit:
Net sales were $15.4 million in the second quarter of 2018, representing an increase of 25.9% from the second quarter of 2017. The year-over-year increase in U.S. Prepaid Debit segment net sales was driven primarily by additional sales volumes from a new portfolio win with an existing customer.
Balance Sheet, Cash Flow, Liquidity
Cash used in operating activities for the first half of 2018 was $1.4 million, and capital expenditures totaled $2.1 million. Free cash flow for the first half of 2018 was a use of $3.5 million, on a continuing operations basis.
At June 30, 2018, the Company had $17.8 million of cash and cash equivalents and a $40.0 million revolving credit facility, of which $20.0 million was available for borrowing.
Total debt principal outstanding, comprised of the Company’s First Lien Term Loan, was $312.5 million at June 30, 2018, unchanged from December 31, 2017. Net of debt issuance costs and discount, recorded debt was $304.8 million as of June 30, 2018. The Company’s First Lien Term Loan matures on August 17, 2022 and includes no financial covenants.
John Lowe, Chief Financial Officer, stated, “I am thrilled to be part of the CPI Card Group (PMTS) team. When deciding to join CPI, I was attracted to its strong position in our market space, its talented and dedicated team and history as an innovator in the industry. My past eight weeks with the Company have served to further solidify the reasons why I joined CPI, and I look forward to partnering with Scott and the entire CPI team to advance our long-term strategy for growth and profitability. Our second quarter financial and operating performance is reflective of the solid progress we are making against our key strategic priorities, and we believe we have adequate cash and liquidity to support our business plan moving forward.”
EMV® is a registered trademark or trademark of EMVCo LLC in the United States and other countries.
CPI Card Group Completes Sale of its U.K. Business to SEA Equity
Sure would have liked PMTS to have released their business plan/turnaround strategy, even now. They are executing, but we don't know their intentions. That's too bad since I am interested and they seem to be in the middle of turning the ship around.
Thu August 9, 2018 8:00 AM
Divestiture Enables Company to Sharpen its Focus on Executing Strategic Priorities
LITTLETON, Colo.--(BUSINESS WIRE)-- CPI Card Group Inc. (Nasdaq: PMTS; TSX: PMTS) (“CPI Card Group” or the “Company”), a global leader in financial and EMV® chip card production and related services, today announced the sale of its U.K. business to SEA Equity, a private investment firm focused on investments in companies across the United Kingdom and Europe.
“Divesting our U.K. business is a key strategic step toward optimizing CPI’s portfolio and focus,” said Scott Scheirman, President and CEO of CPI Card Group (PMTS). “With this transaction, we are becoming even better positioned to serve our customers by focusing on our core businesses including card manufacturing, personalization, instant issuance and prepaid. We are continuing to execute on our key strategic priorities and are moving forward with our vision to provide customers with unmatched solutions, innovation and world-class service.”
Mr. Scheirman continued, “We thank the employees of our U.K. business for their contributions to CPI and wish them all the best. We believe that they will continue to effectively serve their markets and customers in the future under SEA Equity’s ownership.”
Elliott Nicholson, partner at SEA Equity, said: “We are excited to add the U.K. business to our portfolio. With its best-in-class product offering, award winning service and high quality operations, we believe the business is well-positioned for the future. We look forward to working with the management team, led by Nick Cahn, to further strengthen its value proposition and market position.”
About CPI Card Group
CPI Card Group is a leading provider in payment card production and related services, offering a single source for credit, debit and prepaid debit cards, including EMV® chip, personalization, instant issuance, fulfillment and mobile payment services. With more than 20 years of experience in the payments market and as a trusted partner to financial institutions, CPI’s solid reputation of product consistency, quality and outstanding customer service supports our position as a leader in the market. Serving our customers from locations throughout the United States and Canada, we have a leading network of high security facilities in the United States and Canada, each of which is certified by one or more of the payment brands: Visa (V), MasterCard, American Express, Discover and Interac in Canada. Learn more at www.cpicardgroup.com.
EMV is a registered trademark or trademark of EMVCo LLC in the United States and other countries.
SEA Equity is a private investment firm backing small and medium sized companies across the UK and Europe. SEA Equity approaches investments with an entrepreneurial mindset and works alongside experienced management teams to promote transformational growth through geographic expansion, strategic acquisitions and operational improvements.
CPI Card Group Inc. Investor Relations William Maina (877) 369-9016 InvestorRelations@cpicardgroup.com or CPI Card Group Inc. Media Relations Media@cpicardgroup.com or SEA Equity Elliott Nicholson +44 (0) 203 675 7732 Elliott.Nicholson@seaequity.com or For more information, please refer to the SEA Equity website: www.seaequity.com
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