CPI Card Group(US:PMTS)2025-11-04 12:05Financial Performance - Total net sales for Q3 2025 reached $137.966 million, a 10.0% increase from $124.751 million in Q3 2024[8] - Product sales increased by 21.2% to $84.453 million in Q3 2025, compared to $69.648 million in Q3 2024[8] - Net income for Q3 2025 was $2.308 million, compared to $1.293 million in Q3 2024, representing an increase of 78.3%[8] - Basic earnings per share for Q3 2025 were $0.20, up from $0.12 in Q3 2024, indicating a growth of 66.7%[8] - Gross profit for the nine months ended September 30, 2025, was $121.809 million, down from $128.604 million in the same period of 2024, reflecting a decrease of 5.3%[8] - Net income for the nine months ended September 30, 2025, was $7,600,000, a decrease of 40.0% compared to $12,749,000 in 2024[11] - Total net sales for the three months ended September 30, 2025, were $137.966 million, with a gross profit of $40.993 million, resulting in a gross profit margin of 29.7%[69] - For the nine months ended September 30, 2025, total net sales reached $390.480 million, with a gross profit of $121.809 million, achieving a gross profit margin of 31.2%[69] - The EBITDA for the three months ended September 30, 2025, was $18.604 million, with an EBITDA margin of 13.5%[69] - The EBITDA for the nine months ended September 30, 2025, was $51.898 million, with an EBITDA margin of 13.3%[69] Assets and Liabilities - Total assets increased to $407.060 million as of September 30, 2025, compared to $349.657 million at the end of 2024, marking a growth of 16.4%[7] - Total liabilities increased to $432.719 million as of September 30, 2025, compared to $385.278 million at the end of 2024, reflecting a rise of 12.3%[7] - Long-term debt rose to $308.433 million as of September 30, 2025, up from $280.405 million at the end of 2024, an increase of 10.0%[7] - Current liabilities increased to $82.454 million as of September 30, 2025, from $75.587 million as of December 31, 2024[74] - The company reported a capital deficit of $103.067 million as of September 30, 2025, an improvement from $105.429 million at the end of 2024[9] Cash Flow and Capital Expenditures - Cash and cash equivalents decreased to $15.955 million as of September 30, 2025, down from $33.544 million at the end of 2024, a decline of 52.4%[7] - Cash provided by operating activities increased to $19,911,000 from $16,652,000, reflecting a growth of 13.5%[11] - Total capital expenditures for the nine months ended September 30, 2025, were $13.777 million, compared to $4.199 million for the same period in 2024[75] Acquisitions and Investments - The company acquired Arroweye for $45.8 million, funded through cash and available capacity under the ABL Revolver, with $1.5 million held in escrow[27] - Arroweye's acquisition incurred $4.1 million in integration costs during the nine months ended September 30, 2025[27] - The preliminary estimated fair value of identifiable intangible assets acquired from Arroweye was $12,400,000[29] - The goodwill recognized for Arroweye was $3,498,000, primarily attributable to the assembled workforce[28] - On October 7, 2025, the company acquired a 20% equity interest in Gift Card Co Pty Ltd for a total consideration of $10.0 million[76] Tax and Operating Losses - The effective tax rate for the three months ended September 30, 2025, was 38.3%, compared to (57.9)% for the same period in 2024, indicating a significant change in tax obligations[46] - For the nine months ended September 30, 2025, the effective tax rate was 34.0%, up from 24.0% in 2024, primarily due to limitations on deductibility of executive compensation and increased state tax expenses[47] - The company utilized $2.9 million of net operating loss carryforwards during the nine months ended September 30, 2025, with remaining unutilized deferred tax assets of $6.0 million expected to be used in future periods[49] Stock and Shareholder Information - The company approved a share repurchase plan for up to $20.0 million, with $11.2 million remaining unused as of December 31, 2024[50] - The Company granted 60,000 performance stock units (PSU) in January 2024, with a grant date fair value of $0.9 million[58] - As of September 30, 2025, there were 534,679 outstanding restricted stock units at a weighted average grant date fair value of $21.49[60] - The Company has a total of 3,200,000 shares reserved for issuance under the Omnibus Plan, with 727,878 shares available for grant as of September 30, 2025[57] Segment Performance - The Debit and Credit segment generated net sales of $115.272 million for the three months ended September 30, 2025, while the Prepaid Debit segment contributed $23.335 million[69] - The Company reported a loss from operations of $14.142 million in the Other segment for the three months ended September 30, 2025[69] - The Company’s reportable segments include Debit and Credit, Prepaid Debit, and Other, with a focus on secure card production and integrated prepaid card services[65][66]