CPI Card Group Inc. (PMTS) saw its loss widen to $4.01 million, or $0.07 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $2.29 million, or $0.04 a share. On an adjusted basis, net profit from continuing operations for the quarter was $0.12 million, when compared with $8.81 million in the last year period. Revenue during the quarter dropped 27.99 percent to $67.38 million from $93.57 million in the previous year period. Gross margin for the quarter contracted 326 basis points over the previous year period to 30.33 percent. Operating margin for the quarter stood at negative 1.35 percent as compared to a positive 10.64 percent for the previous year period.
Operating loss for the quarter was $0.91 million, compared with an operating income of $9.96 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $8.62 million compared with $21.81 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1052 basis points in the quarter to 12.79 percent from 23.31 percent in the last year period.
"While we faced a very challenging operating environment in 2016, CPI's market position remains strong in an industry which continues to have significant long-term growth opportunities," said Steve Montross, president and chief executive officer of CPI Card Group. "Looking forward, our strategic direction is clear. We are intensely focused on executing our growth strategy, providing industry-leading solutions to our customers, and increasing value to our shareholders."
For fiscal year 2017, CPI Card Group Inc. expects revenue to be in the range of $315 million to $340 million. It forecasts net income to be in the range of $12.30 million to $18.10 million. It projects adjusted net income to be in the range of $19.70 million to $25.50 million. It projects diluted earnings per share to be in the range of $0.22 to $0.32. It projects diluted earnings per share to be in the range of $0.35 to $0.46 on adjusted basis for the same period.
Operating cash flow improves significantly
CPI Card Group Inc. has generated cash of $59.96 million from operating activities during the year, up 36.51 percent or $16.04 million, when compared with the last year. The company has spent $14.29 million cash to meet investing activities during the year as against cash outgo of $13.67 million in the last year.
The company has spent $21.92 million cash to carry out financing activities during the year as against cash outgo of $29.40 million in the last year period.
Cash and cash equivalents stood at $36.96 million as on Dec. 31, 2016, up 171.61 percent or $23.35 million from $13.61 million on Dec. 31, 2015.
Debt comes down marginally
CPI Card Group Inc. has recorded a decline in total debt over the last one year. It stood at $301.92 million as on Dec. 31, 2016, down 2.29 percent or $7.08 million from $309 million on Dec. 31, 2015.
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