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CoreCard Corporation Reports Third Quarter 2022 Results

CoreCard Corporation
CoreCard Corporation

CoreCard Raises Topline Fiscal 2022 Growth Guidance to 40+%

NORCROSS, Ga., Nov. 02, 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 September 30, 2022.

"CoreCard’s strong performance continued in the third quarter and resulted in total revenue of $14.5 million, in-line with our expectations. Our significant top-line growth was driven by 52% growth in processing and maintenance revenue and professional services revenue growth of 13%,” said Leland Strange, CEO of CoreCard Corporation. "As a result of our solid performance during the first nine months of 2022, we are confident in topline growth expectations of at least 40% for fiscal 2022, compared to our previously provided guidance of at least 30%.”

“Our growth in processing is expected to continue and we will be steadily increasing investments in our infrastructure and people in anticipation for 2023. The opportunity ahead of us is significant. CoreCard provides a proven best-in-class credit platform and remains a growth business focused on meeting the evolving needs of modern issuers while generating long-term value for our shareholders," concluded Strange.

Financial Highlights for the three months ended September 30, 2022

Total revenues in the three-month period ended September 30, 2022, was $14.5 million compared to $12.9 million in the comparable period in 2021.

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

 

Three Months Ended

 

September 30,

(in thousands)

2022

2021

License

$

 

 

$

1,783

 

Professional services

 

7,776

 

 

 

6,893

 

Processing and maintenance

 

5,267

 

 

 

3,457

 

Third party

 

1,407

 

 

 

802

 

Total

$

14,450

 

 

$

12,935

 

Income from operations was $1.7 million for the third quarter compared to income from operations of $3.3 million in the comparable prior year quarter.

Net income was $1.4 million for the third quarter compared to net income of $2.5 million in the comparable prior year quarter.

Earnings per diluted share was $0.16 for the third quarter compared to $0.29 in the comparable prior year quarter.

Investor Conference Call

The company is holding an investor conference call today, November 2, 2022, 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/corecard11022022_q32022_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 September 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
September 30,

Nine Months Ended
September 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenue

 

 

 

 

Services

$

14,450

 

 

$

11,152

 

 

$

39,657

 

 

$

31,119

 

Products

 

 

 

 

1,783

 

 

 

14,283

 

 

 

4,083

 

Total net revenue

 

14,450

 

 

 

12,935

 

 

 

53,940

 

 

 

35,202

 

Cost of revenue

 

 

 

 

Services

 

8,431

 

 

 

6,104

 

 

 

23,824

 

 

 

16,091

 

Products

 

 

 

 

 

 

 

 

 

 

 

Total cost of revenue

 

8,431

 

 

 

6,104

 

 

 

23,824

 

 

 

16,091

 

Expenses

 

 

 

 

Marketing

 

80

 

 

 

97

 

 

 

231

 

 

 

179

 

General and administrative

 

1,107

 

 

 

1,069

 

 

 

4,048

 

 

 

3,190

 

Research and development

 

3,129

 

 

 

2,356

 

 

 

8,916

 

 

 

7,109

 

Income from operations

 

1,703

 

 

 

3,309

 

 

 

16,921

 

 

 

8,633

 

Investment income (loss)

 

39

 

 

 

53

 

 

 

196

 

 

 

(215

)

Other income

 

60

 

 

 

74

 

 

 

126

 

 

 

230

 

Income before income taxes

 

1,802

 

 

 

3,436

 

 

 

17,243

 

 

 

8,648

 

Income taxes

 

443

 

 

 

902

 

 

 

4,358

 

 

 

2,269

 

Net income

$

1,359

 

 

$

2,534

 

 

$

12,885

 

 

$

6,379

 

Earnings per share:

 

 

 

Basic

$

0.16

 

 

$

0.29

 

 

$

1.50

 

 

$

0.72

 

Diluted

$

0.16

 

 

$

0.29

 

 

$

1.49

 

 

$

0.72

 

Basic weighted average common shares outstanding

 

8,538,954

 

 

 

8,714,579

 

 

 

8,596,654

 

 

 

8,803,760

 

Diluted weighted average common shares outstanding

 

8,559,665

 

 

 

8,744,818

 

 

 

8,621,388

 

 

 

8,835,427

 

CoreCard Corporation

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

As of

September 30, 2022

December 31, 2021

ASSETS

 

(unaudited)

 

 

 

(audited)

 

Current assets:

 

 

Cash

$

27,068

 

 

$

29,244

 

Marketable securities

 

983

 

 

 

Accounts receivable, net

 

7,815

 

 

 

5,547

 

Other current assets

 

4,575

 

 

 

2,046

 

Total current assets

 

40,441

 

 

 

36,837

 

Investments

 

6,550

 

 

 

6,355

 

Property and equipment, at cost less accumulated depreciation

 

12,846

 

 

 

10,371

 

Other long-term assets

 

4,054

 

 

 

4,585

 

Total assets

$

63,891

 

 

$

58,148

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

Current liabilities:

 

 

Accounts payable

$

1,842

 

 

$

2,763

 

Deferred revenue, current portion

 

1,129

 

 

 

2,263

 

Accrued payroll

 

2,481

 

 

 

2,145

 

Accrued expenses

 

350

 

 

 

404

 

Income tax payable

 

 

 

1,004

 

Other current liabilities

 

2,248

 

 

 

2,274

 

Total current liabilities

 

8,050

 

 

 

10,853

 

Noncurrent liabilities:

 

 

Deferred revenue, net of current portion

 

474

 

 

 

164

 

Deferred tax liability

 

788

 

 

 

549

 

 Long-term lease obligation

 

2,344

 

 

 

2,708

 

Total noncurrent liabilities

 

3,606

 

 

 

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 September 30, 2022 and December 31, 2021, respectively;

 

 

Outstanding shares – 8,510,565 and 8,689,815 at September 30, 2022 and December 31, 2021, respectively

 

90

 

 

 

90

 

Additional paid-in capital

 

16,421

 

 

 

16,261

 

Treasury stock, 497,250 and 311,496 shares at September 30, 2022 and December 31, 2021, respectively, at cost

 

(16,369

)

 

 

(11,327

)

Accumulated other comprehensive income (loss)

 

164

 

 

 

(194

)

Accumulated income

 

51,929

 

 

 

39,044

 

Total stockholders’ equity

 

52,235

 

 

 

43,874

 

Total liabilities and stockholders’ equity

$

63,891

 

 

$

58,148