Analyst Summary:
CPI Card Group, a payment technology company, has reported record net sales of $475.7 million for the fourth quarter of 2022 and anticipates mid-to-high single digit Adjusted EBITDA growth for 2023. The company expects to continue to gain market share overall but forecasts moderate industry growth in 2023. CPI is well positioned to execute its growth strategy due to its end-to-end solutions, quality, and proactive inventory management. In the coming year, the company plans to maintain ample liquidity, invest in the business, deleverage the balance sheet, and potentially return funds to stockholders. CPI's CFO will be resigning in 2023 for family-related personal reasons, but the company intends to conduct the search process for a replacement and ensure a smooth transition. The company's long-term market growth is expected to be driven by the transition to higher-priced contactless cards, including eco-focused cards, and continued financial payment card growth. It is important to note that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from anticipated results.