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Segment Reporting
 6 Months Ended
Jun. 30, 2024
Segment Reporting  
Segment Reporting

14. Segment Reporting

The Company has identified reportable segments that represent 10% or more of its net sales, EBITDA (as defined below) or total assets, or when the Company believes information about the segment would be useful to the readers of the financial statements. The Company’s chief operating decision maker is its Chief Executive Officer, who is charged with management of the Company and is responsible for the evaluation of operating performance and decision making about the allocation of resources to operating segments based on measures, such as net sales and EBITDA.

EBITDA is the primary measure used by the Company’s chief operating decision maker to evaluate segment operating performance. As the Company uses the term, “EBITDA” is defined as income before interest expense, income taxes, depreciation and amortization. The Company’s chief operating decision maker believes EBITDA is a meaningful measure and is useful as a supplement to GAAP measures as it represents a transparent view of the Company’s operating performance that is unaffected by fluctuations in property, equipment and leasehold improvement additions. The

Company’s chief operating decision maker uses EBITDA to perform periodic reviews and comparison of operating trends and to identify strategies to improve the allocation of resources amongst segments.

As of June 30, 2024, the Company’s reportable segments were as follows:

●    Debit and Credit

●    Prepaid Debit

●    Other

​

Debit and Credit Segment

The Debit and Credit segment primarily produces Financial Payment Cards and provides integrated card services, including digital services, for card-issuing financial institutions primarily in the United States. Products produced by this segment primarily include EMV and non-EMV Financial Payment Cards, including contact and contactless cards, and Eco-Focused Cards. The Company also sells Card@Once instant card issuance solutions, and private label credit cards that are not issued on the networks of the Payment Card Brands. The Company provides print-on-demand services, where images, personalized payment cards, and related collateral are produced on a one-by-one, on demand basis for customers. This segment also provides a variety of integrated card services, including card personalization and fulfillment services and instant issuance services. The Debit and Credit segment facilities and operations are audited for compliance with the standards of the PCI Security Standards Council by multiple Payment Card Brands.

Prepaid Debit Segment

The Prepaid Debit segment primarily provides integrated prepaid card services to Prepaid Debit Card providers primarily in the United States, including tamper-evident security packaging. This segment also produces Financial Payment Cards issued on the networks of the Payment Card Brands that are included in the tamper-evident security packages. The Prepaid Debit segment facilities and operations are audited for compliance with the standards of the PCI Security Standards Council by multiple Payment Card Brands.

Other

The Other segment includes corporate expenses.

Performance Measures of Reportable Segments

​

Net sales and EBITDA of the Company’s reportable segments, as well as a reconciliation of total segment EBITDA to income from operations and net income for the three and six months ended June 30, 2024 and 2023, were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30, 2024

​

Debit and Credit

​

Prepaid Debit

​

Other

​

Intersegment Eliminations

​

Total

Net sales

$

95,620

​

$

23,815

​

$

—

​

$

(617)

​

$

118,818

Cost of sales

​

61,456

​

​

15,591

​

​

—

​

​

(617)

​

​

76,430

Gross profit

​

34,164

​

​

8,224

​

​

—

​

​

—

​

​

42,388

Operating expenses

​

8,775

​

​

1,315

​

​

17,389

​

​

—

​

​

27,479

Income (loss) from operations

$

25,389

​

$

6,909

​

$

(17,389)

​

$

—

​

$

14,909

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

EBITDA by segment:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Income (loss) from operations

$

25,389

​

$

6,909

​

$

(17,389)

​

$

—

​

$

14,909

Depreciation and amortization

​

2,237

​

​

895

​

​

916

​

​

—

​

​

4,048

Other income (expense)

​

(1)

​

​

(1)

​

​

(76)

​

​

—

​

​

(78)

EBITDA

$

27,625

​

$

7,803

​

$

(16,549)

​

$

—

​

$

18,879

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six Months Ended June 30, 2024

​

Debit and Credit

​

Prepaid Debit

​

Other

​

Intersegment Eliminations

​

Total

Net sales

$

183,593

​

$

48,013

​

$

—

​

$

(852)

​

$

230,754

Cost of sales

​

117,934

​

​

29,766

​

​

—

​

​

(852)

​

​

146,848

Gross profit

​

65,659

​

​

18,247

​

​

—

​

​

—

​

​

83,906

Operating expenses

​

17,516

​

​

2,593

​

​

34,743

​

​

—

​

​

54,852

Income (loss) from operations

$

48,143

​

$

15,654

​

$

(34,743)

​

$

—

​

$

29,054

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

EBITDA by segment:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Income (loss) from operations

$

48,143

​

$

15,654

​

$

(34,743)

​

$

—

​

$

29,054

Depreciation and amortization

​

4,387

​

​

1,766

​

​

1,912

​

​

—

​

​

8,065

Other income (expense)

​

(63)

​

​

(2)

​

​

(78)

​

​

—

​

​

(143)

EBITDA

$

52,467

​

$

17,418

​

$

(32,909)

​

$

—

​

$

36,976

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30, 2023

​

Debit and Credit

​

Prepaid Debit

​

Other

​

Intersegment Eliminations

​

Total

Net sales

$

93,194

​

$

21,821

​

$

—

​

$

(55)

​

$

114,960

Cost of sales

​

60,156

​

​

14,034

​

​

—

​

​

(55)

​

​

74,135

Gross profit

​

33,038

​

​

7,787

​

​

—

​

​

—

​

​

40,825

Operating expenses

​

7,957

​

​

159

​

​

15,217

​

​

—

​

​

23,333

Income (loss) from operations

$

25,081

​

$

7,628

​

$

(15,217)

​

$

—

​

$

17,492

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

EBITDA by segment:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Income (loss) from operations

$

25,081

​

$

7,628

​

$

(15,217)

​

$

—

​

$

17,492

Depreciation and amortization

​

2,353

​

​

704

​

​

1,004

​

​

—

​

​

4,061

Other income (expense)

​

21

​

​

1

​

​

(100)

​

​

—

​

​

(78)

EBITDA

$

27,455

​

$

8,333

​

$

(14,313)

​

$

—

​

$

21,475

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six Months Ended June 30, 2023

​

Debit and Credit

​

Prepaid Debit

​

Other

​

Intersegment Eliminations

​

Total

Net sales

$

195,179

​

$

40,951

​

$

—

​

$

(318)

​

$

235,812

Cost of sales

​

123,957

​

​

28,254

​

​

—

​

​

(318)

​

​

151,893

Gross profit

​

71,222

​

​

12,697

​

​

—

​

​

—

​

​

83,919

Operating expenses

​

16,115

​

​

1,392

​

​

28,322

​

​

—

​

​

45,829

Income (loss) from operations

$

55,107

​

$

11,305

​

$

(28,322)

​

$

—

​

$

38,090

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

EBITDA by segment:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Income (loss) from operations

$

55,107

​

$

11,305

​

$

(28,322)

​

$

—

​

$

38,090

Depreciation and amortization

​

4,514

​

​

1,328

​

​

2,023

​

​

—

​

​

7,865

Other income (expense)

​

26

​

​

1

​

​

(219)

​

​

—

​

​

(192)

EBITDA

$

59,647

​

$

12,634

​

$

(26,518)

​

$

—

​

$

45,763

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30, 

​

Six Months Ended June 30, 

​

2024

    

2023

    

2024

    

2023

Net income

$

6,001

​

$

6,523

​

$

11,456

​

$

17,396

Interest, net

​

6,530

​

​

6,740

​

​

12,955

​

​

13,521

Income tax expense

 

2,300

​

 

4,151

​

 

4,500

​

 

6,981

Depreciation and amortization

 

4,048

​

 

4,061

​

 

8,065

​

 

7,865

EBITDA

$

18,879

​

$

21,475

​

$

36,976

​

$

45,763

​