Cpi Card Group Inc. (PMTS) SEC Filing 10-Q Quarterly Report for the period ending Thursday, March 31, 2022

Exhibit 99.1

CPI Card Group Inc. Reports First Quarter 2022 Results

Date: May 5, 2022

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Net Sales Increased 25% to $111.4 Million; Net Income Increased 149% to $6.0 Million; Adjusted EBITDA Increased 2% to $22.5 Million

Innovative Eco-focused Card and SaaS-based Instant Issuance Solutions Drive First Quarter Sales Growth

Company Continues to Experience Strong Customer Demand; Updates 2022 Expectations to Reflect Higher Sales Outlook

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Littleton, CO. May 5, 2022 -- CPI Card Group Inc. (Nasdaq: PMTS) (“CPI” or the “Company”), a payment technology company and leading provider of credit, debit, and prepaid solutions, today reported financial results for the first quarter ended March 31, 2022 and updated its financial outlook for 2022.

First quarter net sales increased 25% to $111.4 million, a record sales quarter for the Company since it became public in 2015. Growth was led by the Debit and Credit segment, which benefitted from strong performance from sales of contactless cards and instant issuance solutions. Net income increased 149% to $6.0 million, primarily due to debt refinancing costs incurred in the prior year first quarter, and Adjusted EBITDA increased 2% to $22.5 million, driven by sales growth and operating leverage, with offsets from inflationary impacts on materials and labor and higher SG&A expenses.

“Our first quarter results reflect continued strong customer demand for our high-quality and innovative payment solutions,” said Scott Scheirman, President and Chief Executive Officer of CPI. “We generated particularly strong growth from differentiated products and services such as our eco-focused cards and Card@Once® instant issuance solutions.”

Scheirman added, “We are pleased with the first quarter sales performance and are confident in our full-year outlook, as we continue to navigate the challenging inflation and supply-chain environment and pursue initiatives to improve profitability.”

The Company now expects low double-digit net sales growth and mid-to-high single-digit Adjusted EBITDA growth for the 2022 full year. This represents an increase from the prior outlook of mid-single digit net sales and Adjusted EBITDA growth. The full-year Adjusted EBITDA margin is now expected to be slightly below 20%, reflecting inflationary pressures on materials and labor costs. The Company expects strong sales growth in its Debit and Credit segment for the year and Prepaid Debit segment sales slightly below the record level in 2021.

CPI is a top payment solutions provider in the U.S. serving thousands of banks, credit unions and FinTechs. The Company is a leader in the U.S. markets for eco-focused payment cards, personalization and Software-as-a-Service-based instant issuance solutions for small and medium U.S. financial institutions and retail prepaid debit card solutions, and maintains longstanding customer relationships.