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CoreCard Corporation Reports Second Quarter 2022 Results

CoreCard Corporation
CoreCard Corporation

NORCROSS, Ga., Aug. 03, 2022 (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 June 30, 2022.

"CoreCard’s strong performance continued in the second quarter and resulted in total revenue of $15.2 million in-line with our expectations,” said Leland Strange, CEO of CoreCard Corporation. "Our significant top-line growth was driven by 25% growth in professional services revenue and processing and maintenance revenue growth of 8%. Additionally, we achieved a new license tier as discussed on our last earnings call which resulted in $1.8 million of license revenue in the second quarter. 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."

Mr. Strange continued, "Due to solid performance during the first half of 2022, we are confident in top-line growth expectations of at least 30% for fiscal 2022, compared to our previously provided guidance of a range of 25% to 30%. The opportunity ahead of us is significant, and CoreCard remains a growth business focused on meeting the evolving needs of modern issuers while generating long-term value for our shareholders."

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Financial Highlights for the three months ended June 30, 2022

Total revenues in the three-month period ended June 30, 2022, was $15.2 million compared to $13.4 million in the comparable period in 2021.

In the following table, revenue is disaggregated by type of revenue for the three months ended June 30, 2022 and 2021:

 

Three Months Ended

 

June 30,

(in thousands)

2022

2021

License

$

1,794

$

2,300

Professional services

 

7,605

 

6,100

Processing and maintenance

 

4,510

 

4,193

Third party

 

1,297

 

762

Total

$

15,206

$

13,355

Income from operations was $3.5 million for the second quarter compared to income from operations of $3.9 million in the comparable prior year quarter.

Net income was $2.9 million for the second quarter compared to net income of $2.8 million in the comparable prior year quarter.

Earnings per diluted share was $0.33 for the second quarter compared to $0.32 in the comparable prior year quarter.

Investor Conference Call
The company is holding an investor conference call today, August 3, 2022, 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/corecardq22022_en/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 June 30, 2022, 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 a pioneering card management platform built for the future of global transactions in a 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 June 30,

Six Months Ended June 30,

 

 

2022

 

2021

 

 

2022

 

2021

 

Revenue

 

 

 

 

Services

$

13,412

$

11,055

 

$

25,207

$

19,967

 

Products

 

1,794

 

2,300

 

 

14,283

 

2,300

 

Total net revenue

 

15,206

 

13,355

 

 

39,490

 

22,267

 

Cost of revenue

 

 

 

 

Services

 

7,937

 

5,558

 

 

15,393

 

9,986

 

Products

 

 

 

Total cost of revenue

 

7,937

 

5,558

 

 

15,393

 

9,986

 

Expenses

 

 

 

 

Marketing

 

85

 

46

 

 

151

 

83

 

General and administrative

 

1,255

 

1,241

 

 

2,940

 

2,121

 

Research and development

 

2,463

 

2,652

 

 

5,787

 

4,754

 

Income from operations

 

3,466

 

3,858

 

 

15,219

 

5,323

 

Investment income (loss)

 

260

 

(134

)

 

157

 

(267

)

Other income

 

29

 

81

 

 

66

 

156

 

Income before income taxes

 

3,755

 

3,805

 

 

15,442

 

5,212

 

Income taxes

 

899

 

1,000

 

 

3,916

 

1,367

 

Net income

$

2,856

$

2,805

 

$

11,526

$

3,845

 

Earnings per share:

 

 

 

 

 

Basic

$

0.33

$

0.32

 

$

1.34

$

0.43

 

Diluted

$

0.33

$

0.32

 

$

1.33

$

0.43

 

Basic weighted average common shares outstanding

 

8,595,478

 

8,797,691

 

 

8,625,504

 

8,848,351

 

Diluted weighted average common shares outstanding

 

8,616,354

 

8,828,773

 

 

8,651,874

 

8,880,831

 



CoreCard Corporation
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)

As of

June 30, 2022

December 31, 2021

ASSETS

(unaudited)

(audited)

Current assets:

 

 

Cash

$

21,516

 

$

29,244

 

Accounts receivable, net

 

16,202

 

 

5,547

 

Other current assets

 

2,669

 

 

2,046

 

Total current assets

 

40,387

 

 

36,837

 

Investments

 

6,512

 

 

6,355

 

Property and equipment, at cost less accumulated depreciation

 

12,771

 

 

10,371

 

Other long-term assets

 

4,627

 

 

4,585

 

Total assets

$

64,297

 

$

58,148

 



LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

Current liabilities:

 

 

Accounts payable

$

2,281

 

$

2,763

 

Deferred revenue, current portion

 

1,262

 

 

2,263

 

Accrued payroll

 

1,951

 

 

2,145

 

Accrued expenses

 

564

 

 

404

 

Other current liabilities

 

2,476

 

 

3,278

 

Total current liabilities

 

8,534

 

 

10,853

 

Noncurrent liabilities:

 

 

Deferred revenue, net of current portion

 

418

 

 

164

 

Deferred tax liability

 

556

 

 

549

 

Long-term lease obligation

 

2,664

 

 

2,708

 

Total noncurrent liabilities

 

3,638

 

 

3,421

 

Stockholders’ equity:

 

 

Common stock, $0.01 par value: Authorized shares - 20,000,000;

 

 

Issued shares – 9,007,815 and 9,001,311 at June 30, 2022 and December 31, 2021, respectively;

 

 

Outstanding shares – 8,567,008 and 8,689,815 at June 30, 2022 and December 31, 2021, respectively

 

90

 

 

90

 

Additional paid-in capital

 

16,421

 

 

16,261

 

Treasury stock, 440,807 and 311,496 shares at June 30, 2022 and December 31, 2021, respectively, at cost

 

(15,006

)

 

(11,327

)

Accumulated other comprehensive income (loss)

 

50

 

 

(194

)

Accumulated income

 

50,570

 

 

39,044

 

Total stockholders’ equity

 

52,125

 

 

43,874

 

Total liabilities and stockholders’ equity

$

64,297

 

$

58,148