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CoreCard Corporation Reports First Quarter 2024 Results
Source: Nasdaq GlobeNewswire / 02 May 2024 06:35:00 America/Chicago
NORCROSS, Ga., May 02, 2024 (GLOBE NEWSWIRE) -- CoreCard Corporation (NYSE: CCRD) (“CoreCard” or the “Company”), the leading provider of innovative credit technology solutions and processing services to the financial technology and services market, announced today its financial results for the quarter ended March 31, 2024.
"Overall revenue of $13.1 million in the first quarter was in-line with our expectations, reflecting continued year-over-year growth in processing and maintenance of 13%, which was offset by lower professional services revenue, primarily driven by our largest customer,” said Leland Strange, CEO of CoreCard. "We continue to see encouraging results from the ongoing investment in our platform and processing capabilities, and we continue to onboard new customers that value the features and functionality offered by the CoreCard platform.”
Financial Highlights for the three months ended March 31, 2024
Total revenues in the three-month period ended March 31, 2024, was $13.1 million compared to $14.8 million in the comparable period in 2023.
In the following table, revenue is disaggregated by type of revenue for the three months ended March 31, 2024, and 2023:
Three Months Ended March 31, (in thousands) 2024 2023 License $ -- $ -- Professional services 5,826 8,341 Processing and maintenance 6,152 5,430 Third party 1,098 985 Total $ 13,076 $ 14,756 Income from operations was $0.5 million for the first quarter compared to income from operations of $1.8 million in the comparable prior year quarter.
Net income was $0.4 million for the first quarter compared to net income of $1.3 million in the comparable prior year quarter.
Earnings per diluted share was $0.05 for the first quarter compared to $0.15 in the comparable prior year quarter.
Adjusted earnings per diluted share was $0.07 for the first quarter compared to $0.15 in the comparable prior year quarter.
Adjusted EBITDA was $1.7 million for the first quarter compared to $3.5 million in the comparable prior year quarter.
Use of Non-GAAP Financial Measures
Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section of the tables titled "Information Regarding Non-GAAP Financial Measures".
Investor Conference Call
The company is holding an investor conference call today, May 2, 2024, at 11 A.M. Eastern Time. Interested investors are invited to attend the conference call by accessing the webcast at https://www.webcast-eqs.com/corecard050224/en or by dialing 1-877-407-0890. As part of the conference call CoreCard will be conducting a question-and-answer session where participants are invited to email their questions to questions@corecard.com prior to the call. A transcript of the call will be posted on the company’s website at investors.corecard.com as soon as available after the call.
The company will file its Form 10-Q for the period ended March 31, 2024, with the Securities and Exchange Commission today. For additional information about reported results, investors will be able to access the Form 10-Q on the company’s website at investors.corecard.com or on the SEC website, www.sec.gov.
About CoreCard
CoreCard Corporation (NYSE: CCRD) provides the gold standard card issuing platform built for the future of global transactions in an embedded digital world. Dedicated to continual technological innovation in the ever-evolving payments industry backed by decades of deep expertise in credit card offerings, CoreCard helps customers conceptualize, implement, and manage all aspects of their issuing card programs. Keenly focused on steady, sustainable growth, CoreCard has earned the trust of some of the largest companies and financial institutions in the world, providing truly real-time transactions via their proven, reliable platform operating on private on-premise and leading cloud technology infrastructure.
Forward-Looking Statements
The forward-looking statements in this press release are made under the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The Company’s actual results could differ materially from those indicated by the forward-looking statements because of various risks and uncertainties including those listed in Item 1A of the Company’s Annual Report on Form 10-K and in the Company’s other filings and reports with the Securities and Exchange Commission. All of the risks and uncertainties are beyond the ability of the Company to control, and in many cases, the Company cannot predict the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. When used in this press release, the words “believes,” “plans,” “expects,” “will,” “intends,” “continue,” “outlook,” “progressing,” and “anticipates” and similar expressions as they relate to the Company or its management are intended to identify forward-looking statements. Except as required by law, the Company is not obligated to publicly release any revisions to these forward-looking statements to reflect the events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
CoreCard Corporation
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except share and per share amounts)Three Months Ended March 31, 2024 2023 Revenue Services $13,076 $14,756 Products -- -- Total net revenue 13,076 14,756 Cost of revenue Services 9,500 9,804 Products -- -- Total cost of revenue 9,500 9,804 Expenses Marketing 114 69 General and administrative 1,427 1,549 Development 1,508 1,514 Income from operations 527 1,820 Investment income (loss) (204 ) (241 ) Other income, net 256 90 Income before income taxes 579 1,669 Income taxes 149 413 Net income $430 $1,256 Earnings per share: Basic $0.05 $0.15 Diluted $0.05 $0.15 Basic weighted average common shares outstanding 8,236,135 8,502,735 Diluted weighted average common shares outstanding 8,247,788 8,531,541 CoreCard Corporation
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)As of March 31, 2024 December 31, 2023 ASSETS (unaudited) (audited) Current assets: Cash $24,056 $26,918 Marketable securities 5,305 5,230 Accounts receivable, net 8,189 7,536 Other current assets 5,173 4,805 Total current assets 42,723 44,489 Investments 3,823 4,062 Property and equipment, at cost less accumulated depreciation 11,688 11,319 Other long-term assets 3,857 3,956 Total assets $62,091 $63,826 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $1,925 $1,557 Deferred revenue, current portion 1,635 2,310 Accrued payroll 1,556 2,172 Accrued expenses 1,167 971 Other current liabilities 2,778 2,530 Total current liabilities 9,061 9,540 Noncurrent liabilities: Deferred revenue, net of current portion 186 265 Long-term lease obligation 899 1,121 Other long-term liabilities 295 196 Total noncurrent liabilities 1,380 1,582 Stockholders’ equity: Common stock, $0.01 par value: Authorized shares - 20,000,000; Issued shares – 9,016,140 at March 31, 2024 and December 31, 2023 respectively; Outstanding shares – 8,160,758 and 8,295,408 at March 31, 2024 and December 31, 2023, respectively 90 90 Additional paid-in capital 16,781 16,621 Treasury stock, 855,382 and 720,732 shares at March 31, 2024 and December 31, 2023, respectively, at cost (22,006 ) (20,359 ) Accumulated other comprehensive income 35 32 Accumulated income 56,750 56,320 Total stockholders’ equity 51,650 52,704 Total liabilities and stockholders’ equity $62,091 $63,826 For further information, call
Matt White, 770-564-5504 or
email to matt@corecard.comReconciliation of GAAP to NON-GAAP Measures Information Regarding Non-GAAP Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), this press release contains certain non-GAAP financial measures. CoreCard considers Adjusted EBITDA and Adjusted earnings per diluted share (“Adjusted EPS”) as supplemental measures of the company’s performance that is not required by, nor presented in accordance with GAAP.
We define Adjusted EBITDA as net income (loss) adjusted to exclude depreciation and amortization; share-based compensation expense; income tax expense (benefit); investment income (loss); and other income (expense), net. We believe that Adjusted EBITDA is an important measure of operating performance because it allows management and our board of directors to evaluate and compare our core operating results from period to period.
We define Adjusted EPS as diluted earnings per share adjusted to exclude the impact of share-based compensation expenses. We believe that Adjusted EPS is an important measure of operating performance because it allows management and our board of directors to evaluate and compare our core operating results from period to period.
Adjusted EPS and Adjusted EBITDA should not be considered in isolation, or construed as an alternative to net income, or any other performance measures derived in accordance with GAAP, or as an alternative to cash flow from operating activities or as a measure of the company's liquidity. In addition, other companies may calculate Adjusted EPS and Adjusted EBITDA differently than CoreCard, which limits its usefulness in comparing CoreCard’s financial results with those of other companies.
The following table shows CoreCard’s GAAP results reconciled to non-GAAP results included in this release:
Three Months Ended March 31, (in thousands) 2024 2023 GAAP net income $ 430 $ 1,256 Share-based compensation 160 - Income tax benefit (40 ) - Adjusted net income $ 550 $ 1,256 Adjusted EPS $ 0.07 $ 0.15 Weighted-average shares 8,248 8,532 Three Months Ended March 31, (in thousands) 2024 2023 GAAP net income $ 430 $ 1,256 Depreciation and amortization 1,025 1,695 Share-based compensation 160 - Investment loss 204 241 Other income, net (256 ) (90 ) Income tax expense 149 413 Adjusted EBITDA $ 1,712 $ 3,515 
