CoreCard Corporation Reports Third Quarter 2023 Results
"Overall revenue of
Financial Highlights for the three months ended
Total revenues in the three-month period ended
In the following table, revenue is disaggregated by type of revenue for the three months ended
| Three Months Ended | |||||||
| (in thousands) | 2023 | 2022 | |||||
| License | $ | − | $ | − | |||
| Professional services | 6,432 | 7,776 | |||||
| Processing and maintenance | 5,814 | 5,267 | |||||
| Third party | 1,153 | 1,407 | |||||
| Total | $ | 13,399 | $ | 14,450 | |||
Income from operations was
Net income (loss) was a loss of
Earnings per diluted share was a loss of
Adjusted earnings per diluted share was
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,
The company will file its Form 10-Q for the period ended
About
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
For further information,
email CoreCardIR@icrinc.com
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except share and per share amounts)
| Three Months Ended | Nine Months Ended | |||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||
| Revenue | ||||||||||
| Services | $ | 13,399 | $ | 14,450 | $ | 42,053 | $ | 39,657 | ||
| Products | - | − | 1,794 | 14,283 | ||||||
| Total net revenue | 13,399 | 14,450 | 43,847 | 53,940 | ||||||
| Cost of revenue | ||||||||||
| Services | 9,279 | 8,431 | 28,380 | 23,824 | ||||||
| Products | - | − | - | − | ||||||
| Total cost of revenue | 9,279 | 8,431 | 28,380 | 23,824 | ||||||
| Expenses | ||||||||||
| Marketing | 63 | 80 | 237 | 231 | ||||||
| General and administrative | 1,155 | 1,107 | 4,220 | 4,048 | ||||||
| Development | 2,489 | 3,129 | 6,094 | 8,916 | ||||||
| Income from operations | 413 | 1,703 | 4,916 | 16,921 | ||||||
| Investment income (loss) | (1,015 | ) | 39 | (1,701 | ) | 196 | ||||
| Other income (loss), net | 308 | 60 | 653 | 126 | ||||||
| (Loss) Income before income taxes | (294 | ) | 1,802 | 3,868 | 17,243 | |||||
| Income tax expense (benefit) | (72 | ) | 443 | 959 | 4,358 | |||||
| Net (loss) income | $ | (222 | ) | $ | 1,359 | $ | 2,909 | $ | 12,885 | |
| Earnings (loss) per share: | ||||||||||
| Basic | $ | (0.03 | ) | $ | 0.16 | $ | 0.34 | $ | 1.50 | |
| Diluted | $ | (0.03 | ) | $ | 0.16 | $ | 0.34 | $ | 1.49 | |
| Basic weighted average common shares outstanding | 8,460,473 | 8,538,954 | 8,485,416 | 8,596,654 | ||||||
| Diluted weighted average common shares outstanding | 8,460,473 | 8,559,665 | 8,509,825 | 8,621,388 | ||||||
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
| As of | 2023 | 2022 | ||||
| ASSETS | (unaudited) | (audited) | ||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 31,614 | $ | 20,399 | ||
| Marketable securities | 5,147 | 4,973 | ||||
| Accounts receivable, net | 5,875 | 13,220 | ||||
| Other current assets | 5,887 | 3,729 | ||||
| Total current assets | 48,523 | 42,321 | ||||
| Investments | 3,634 | 5,180 | ||||
| Property and equipment, at cost less accumulated depreciation | 11,681 | 12,006 | ||||
| Other long-term assets | 2,947 | 3,725 | ||||
| Total assets | $ | 66,785 | $ | 63,232 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 1,708 | $ | 2,011 | ||
| Deferred revenue, current portion | 3,743 | 1,094 | ||||
| Accrued payroll | 1,941 | 1,888 | ||||
| Accrued expenses | 806 | 525 | ||||
| Other current liabilities | 2,043 | 2,025 | ||||
| Total current liabilities | 10,241 | 7,543 | ||||
| Noncurrent liabilities: | ||||||
| Deferred revenue, net of current portion | 361 | 473 | ||||
| Deferred tax liability | 541 | 472 | ||||
| Long-term lease obligation | 1,367 | 1,981 | ||||
| Total noncurrent liabilities | 2,269 | 2,926 | ||||
| Stockholders’ equity: | ||||||
| Common stock, | ||||||
| Issued shares – 9,016,140 and 9,010,119 at | ||||||
| Outstanding shares – 8,440,356 and 8,502,735 at | 90 | 90 | ||||
| Additional paid-in capital | 16,621 | 16,471 | ||||
| (18,213 | ) | (16,662 | ) | |||
| Accumulated other comprehensive income (loss) | (57 | ) | (61 | ) | ||
| Accumulated income | 55,834 | 52,925 | ||||
| Total stockholders’ equity | 54,275 | 52,763 | ||||
| Total liabilities and stockholders’ equity | $ | 66,785 | $ | 63,232 | ||
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
We define Adjusted EPS as diluted earnings per share adjusted to exclude the impact of 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 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 differently than
The following table shows CoreCard’s GAAP results reconciled to non-GAAP results included in this release:
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| (in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
| GAAP net (loss) income | $ | (222 | ) | $ | 1,359 | $ | 2,909 | $ | 12,885 | |||||||||
| Investment loss | 1,000 | - | 1,000 | - | ||||||||||||||
| Income tax benefit | - | - | - | - | ||||||||||||||
| Adjusted net income | $ | 778 | $ | 1,359 | $ | 3,909 | $ | 12,885 | ||||||||||
| Adjusted EPS | $ | 0.09 | $ | 0.16 | $ | 0.46 | 1.49 | |||||||||||
| Weighted-average shares | 8,480 | 8,560 | 8,510 | 8,621 | ||||||||||||||
