CPI Card Group Inc. (NASDAQ:PMTS) Q1 2024 Earnings Call Transcript

Jeff Hochstadt: Yes, I mean, so we’re, another good agreement we’re excited about. MEA is a good provider of software solutions to financial institutions in the U.S. and what we’re specifically working with them on is them being a mobile app provider for our push provisioning services. They have about 300 financial institutions that they service that kind of creates our addressable market there, but just for context what we do on the push provisioning side is a little bit similar from a market — addressable market perspective, if you will, to what we’ve done in our Card@Once instant issuance side over the years. So, as a reminder, our Card@Once business, we’re in about 15,000 branches across the U.S. We have about 2 ,200 financial institutions that we’ve penetrated thus far, and that’s taken us 9 – 10 years to do that, so this is a slow growth kind of penetration, if you will, but it’s a strong value proposition for our customers and it’s a good margin business for us as well.

So it’s fairly early days, but we’re excited about the deal with MEA and excited about what we’re going to do on our broader digital solution side.

Andrew Scutt : Thanks. I appreciate the detail. And last for me, I know we’re kind of early days in the Indiana facility expansion, but it seems like you guys might have a little more visibility on CapEx here in the year. Are there just any updates you guys can give us on the new facility?

Jeff Hochstadt: Yes, we mentioned this in the last call. We expect about $5 million worth of CapEx related to Indiana this year, so that’s still the case. Well, in the back half of the year, we’ll probably have some OpEx also that hits the SG&A line, but that’s what we expected so far. Nothing different than what we expected at the beginning of the year.

Operator: As there are no further questions in the queue, I would not like to turn the call back over to John Lowe for closing remarks.

John Lowe: Thanks, operator. Before we sign off, I want to acknowledge and thank all of our CPI employees for everything they do for our company and our customers every single day. We have outstanding teams who are dedicated and passionate about our business and results. Thank you all for joining our call this morning, and we hope you have a great day.

Operator: Ladies and gentlemen, that concludes today’s call. Thank you all for joining. You may now disconnect.