• CoreCard Corporation Reports Third Quarter 2024 Results

    Source: Nasdaq GlobeNewswire / 31 Oct 2024 07:30:23   America/New_York

    NORCROSS, Ga., Oct. 31, 2024 (GLOBE NEWSWIRE) -- CoreCard Corporation [NYSE: CCRD], 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 September 30, 2024.

    "Overall revenue of $15.7 million in the third quarter, an increase of 17% compared to last year, exceeded our expectations, reflecting license revenue earlier than expected, continued growth in processing and maintenance revenue and higher professional services revenue. We continue to invest in our platform and processing capabilities, which are showing encouraging results. CoreCard provides a best-in-class credit platform that is extremely well positioned to capture the growing demand for next-generation card management platforms by large and complex modern card issuers,” said Leland Strange, CEO of CoreCard Corporation.

    “For the fourth quarter of 2024, we expect total revenue between $13.3 and $13.7 million and earnings per share between $0.07 and $0.09. For fiscal year 2025, we expect total revenue between $60 million and $64 million and earnings per share between $0.88 and $0.94. We expect full-year 2025 revenue growth, excluding our largest customer, to be 30-40%,” said Matt White, CFO of CoreCard Corporation.

    Financial Highlights for the three months ended September 30, 2024

    Total revenues in the three-month period ended September 30, 2024, was $15.7 million compared to $13.4 million in the comparable period in 2023.

    In the following table, revenue is disaggregated by type of revenue for the three months ended September 30, 2024 and 2023:

     Three Months Ended
     September 30,
    (in thousands) 20242023
    License$1,420 $ 
    Professional services 7,006  6,432 
    Processing and maintenance 6,067  5,814 
    Third party 1,210  1,153 
    Total$15,703 $13,399 
           

    Income from operations was $2.8 million for the third quarter compared to income from operations of $0.4 million in the comparable prior year quarter.

    Net income (loss) was net income of $2.2 million for the third quarter compared to a net loss of $0.2 million in the comparable prior year quarter.

    Earnings per diluted share was $0.27 for the third quarter compared to a loss per share of $0.03 in the comparable prior year quarter.

    Adjusted earnings per diluted share was $0.30 for the third quarter compared to $0.09 in the comparable prior year quarter.

    Adjusted EBITDA was $3.9 million for the third quarter compared to $1.9 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, October 31, 2024, at 11:00 A.M. Eastern Time. Interested investors are invited to attend the conference call by accessing the webcast at https://www.webcast-eqs.com/register/corecard103124/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 September 30, 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 Corporation

    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.

    For further information,
    email CoreCardIR@icrinc.com

           
    CoreCard Corporation

    CONSOLIDATED STATEMENTS OF OPERATIONS

    (unaudited, in thousands, except share and per share amounts)
           
     Three Months Ended
    September 30,
    Nine Months Ended
    September 30,
     20242023
    20242023
    Revenue        
    Services$14,283 $13,399 $41,156 $42,053 
    Products1,420 - 1,420 1,794 
    Total net revenue15,703 13,399 42,576 43,847 
    Cost of revenue        
    Services8,999 9,279 27,588 28,380 
    Products -  - 
    Total cost of revenue8,999 9,279 27,588 28,380 
    Expenses        
    Marketing79 63 309 237 
    General and administrative1,339 1,155 4,256 4,220 
    Development2,501 2,489 5,961 6,094 
    Income from operations2,785 413 4,462 4,916 
    Investment income (loss)(90)(1,015)(528)(1,701)
    Other income (loss), net233 308 758 653 
    Income (loss) before income taxes2,928 (294)4,692 3,868 
    Income tax expense (benefit)732 (72)1,170 959 
    Net income (loss)$2,196 $(222)$3,522 $2,909 
    Earnings (loss) per share:        
    Basic$0.28 $(0.03)$0.44 $0.34 
    Diluted$0.27 $(0.03)$0.43 $0.34 
    Basic weighted average common shares outstanding7,957,571 8,460,473 8,092,681 8,485,416 
    Diluted weighted average common shares outstanding8,017,870 8,460,473 8,142,972 8,509,825 
             


    CoreCard Corporation

    CONSOLIDATED BALANCE SHEETS

    (in thousands, except share and per share amounts)
           
    As of September 30,
    2024
    December 31,
    2023
    ASSETS(unaudited)(audited)
    Current assets:      
    Cash and cash equivalents$22,498 $26,918 
    Marketable securities 5,511  5,230 
    Accounts receivable, net 7,320  7,536 
    Other current assets 6,522  4,805 
    Total current assets 41,851  44,489 
    Investments 3,632  4,062 
    Property and equipment, at cost less accumulated depreciation 11,954  11,319 
    Other long-term assets 5,371  3,956 
    Total assets$62,808 $63,826 
           
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities:      
    Accounts payable$1,628 $1,557 
    Deferred revenue, current portion 1,264  2,310 
    Accrued payroll 2,459  2,172 
    Accrued expenses 1,050  971 
    Other current liabilities 2,143  2,530 
    Total current liabilities 8,544  9,540 
    Noncurrent liabilities:      
    Deferred revenue, net of current portion 161  265 
    Other long-term liabilities 372  196 
    Long-term lease obligation 2,044  1,121 
    Total noncurrent liabilities 2,577  1,582 
    Stockholders’ equity:      
    Common stock, $0.01 par value: Authorized shares - 20,000,000;      
    Issued shares – 9,026,940 and 9,016,140 at September 30, 2024 and December 31, 2023, respectively;      
    Outstanding shares – 7,901,148 and 8,295,408 at September 30, 2024 and December 31, 2023, respectively 91  90 
    Additional paid-in capital 17,479  16,621 
    Treasury stock, 1,125,792 and 720,732 shares at September 30, 2024 and December 31, 2023, respectively, at cost (25,825) (20,359)
    Accumulated other comprehensive income (loss) 100  32 
    Accumulated income 59,842  56,320 
    Total stockholders’ equity 51,687  52,704 
    Total liabilities and stockholders’ equity$62,808 $63,826 
           

    Reconciliation 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 expense and non-operating investment gains or losses. 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
    Nine Months Ended
     September 30,
    September 30,
    (in thousands)2024
    2023 2024 2023
    GAAP net income (loss)$2,196 $(222)$3,522 $2,909 
    Investment loss -  1,000  -  1,000 
    Share-based compensation 274  -  859  - 
    Income tax benefit (68) -  (215) - 
    Adjusted net income$2,402 $778 $4,166 $3,909 
    Adjusted EPS$0.30 $0.09 $0.51  0.46 
    Weighted-average shares 8,018  8,480  8,143  8,510 
                 


     Three Months EndedNine Months Ended
     September 30,September 30,
    (in thousands)2024202320242023
    GAAP net income (loss)$2,196 $(222)$3,522 $2,909 
    Depreciation and amortization 849  1,356  2,776  5,011 
    Share-based compensation 274  150  859  150 
    Investment loss 90  1,015  528  1,701 
    Other income, net (233) (308) (758) (653)
    Income tax expense (benefit) 732  (72) 1,170  959 
    Adjusted EBITDA$3,908 $1,919 $8,097 $10,077 
    Total Revenue$15,703 $13,399 $42,576 $43,847 
    Adjusted EBITDA Margin 24.9% 14.3% 19.0% 23.0%
                 

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