CO-based CPI Card Group reported net sales were $93.6 million for the fourth quarter (4Q/15), an increase of 6.5% over the prior year period (YOY).
The company attributed most of the increase to the on-going EMV card conversion within the U.S. financial card market, as well as increasing demand for card personalization and other value-added services.
Adjusted net income was $8.8 million, or an increase of 7.6% YOY.
U.S. DEBIT AND CREDIT:
Net sales increased 11.2% to $67.5 million in 4Q/15 from $60.7 million in prior year period.
Gross profit increased 13.8% YOY to $23.6 million from $20.8 million in the prior year period, and gross profit margin expanded to 35.0% from 34.2% in the prior year period.
Income from operations increased to $16.9 million from $14.7 million in 4Q/14, while operating margins expanded to 25.0% from 24.2% in the prior year period.
The growth in the U.S. Debit and Credit segment was driven by the continued conversion of financial payment cards from magnetic stripe to EMV, with the number of EMV chip cards sold increasing by 21.3% as compared with the fourth quarter of 2014.
For full-year 2015, the U.S. Debit and Credit segment net sales increased 72.3% compared with the prior year.
U.S. PREPAID DEBIT:
Net sales for 4Q/15 grew 1.4% to $12.4 million from $12.2 million in 4Q/14.
Gross profit increased 4.0% to $4.1 million from $3.9 million in the prior year, and gross profit margin expanded to 33.1% from 32.3% in the prior year.
Income from operations increased 4.3% to $2.7 million from $2.6 million in 4Q/14, while operating margins increased to 21.9% from 21.3% in the prior year period.
The growth of U.S. Prepaid Debit segment revenues 4Q/15 reflects solid retail prepaid sales across the customer base, partially offset by the timing of product refreshes and program launches and strong replenishments by certain prepaid program managers in the prior year period.
For full-year 2015, U.S. Prepaid Debit segment net sales increased 11.1% compared with the prior year.
U.S. DEBIT AND CREDIT NET SALES
4Q/14: $60.7 million
4Q/15: $67.5 million
U.S. PREPAID DEBIT NET SALES
4Q/14: $12.2 million
4Q/15: $12.4 million
Source: CPI Card Group
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