CPI CARD GROUP INC., 10-K filed on 2/25/2021
Annual Report
v3.20.4
Document and Entity Information - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Feb. 15, 2021
Jun. 30, 2020
Cover Abstract      
Entity Registrant Name CPI Card Group Inc.    
Entity Central Index Key 0001641614    
Document Type 10-K    
Document Period End Date Dec. 31, 2020    
Amendment Flag false    
Current Fiscal Year End Date --12-31    
Entity Interactive Data Current Yes    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Well-known Seasoned Issuer No    
Entity Filer Category Non-accelerated Filer    
Entity Common Stock, Shares Outstanding   11,230,482  
Entity Public Float     $ 13.1
Entity Small Business true    
Entity Emerging Growth Company false    
Entity Shell Company false    
Document Fiscal Year Focus 2020    
Document Fiscal Period Focus FY    
v3.20.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Current assets:    
Cash and cash equivalents $ 57,603 $ 18,682
Accounts receivable, net of allowances of $289 and $395, respectively 54,592 42,832
Inventories 24,796 20,192
Prepaid expenses and other current assets 5,032 6,345
Income taxes receivable 10,511 4,164
Total current assets 152,534 92,215
Plant, equipment, leasehold improvements and operating lease right-of-use assets, net 39,403 41,612
Intangible assets, net 26,207 30,802
Goodwill 47,150 47,150
Other assets 857 1,232
Total assets 266,151 213,011
Current liabilities:    
Accounts payable 18,883 16,482
Accrued expenses 28,149 24,735
Current portion of Long-term debt 8,027  
Deferred revenue and customer deposits 1,868 468
Total current liabilities 56,927 41,685
Long-term debt 328,681 307,778
Deferred income taxes 7,409 6,366
Other long-term liabilities 11,171 11,478
Total liabilities 404,188 367,307
Commitments and contingencies (Note 15)
Series A Preferred Stock; $0.001 par value—100,000 shares authorized; 0 shares issued and outstanding at December 31, 2020 and 2019
Stockholders’ deficit:    
Common Stock; $0.001 par value—100,000,000 shares authorized; 11,230,482 and 11,224,191 shares issued and outstanding at December 31, 2020 and 2019, respectively 11 11
Capital deficiency (111,858) (111,988)
Accumulated loss (26,190) (42,319)
Total stockholders’ deficit (138,037) (154,296)
Total liabilities and stockholders’ deficit $ 266,151 $ 213,011
v3.20.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Consolidated Balance Sheets    
Allowance on accounts receivable $ 289 $ 395
Preferred shares, par value (in dollars per share) $ 0.001 $ 0.001
Preferred shares, authorized shares (in shares) 100,000 100,000
Preferred shares, issued shares (in shares) 0 0
Preferred shares, outstanding shares (in shares) 0 0
Common shares, par value (in dollars per share) $ 0.001 $ 0.001
Common shares, authorized shares (in shares) 100,000,000 100,000,000
Common shares, issued shares (in shares) 11,230,482 11,224,191
Common shares, outstanding shares (in shares) 11,230,482 11,224,191
v3.20.4
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Net sales:    
Net Sales $ 312,189 $ 278,073
Cost of sales:    
Depreciation and amortization 10,701 11,220
Total cost of sales 201,881 187,003
Gross profit 110,308 91,070
Operating expenses:    
Selling, general and administrative (exclusive of depreciation and amortization shown below) 65,791 66,328
Depreciation and amortization 6,126 6,031
Litigation settlement gain   (6,000)
Total operating expenses, net 71,917 66,359
Income from operations 38,391 24,711
Other expense, net:    
Interest, net (25,397) (24,891)
Foreign currency loss (7) (1,335)
Other expense, net (102) (4)
Total other expense, net (25,506) (26,230)
Income (loss) before income taxes 12,885 (1,519)
Income tax benefit (expense) 3,305 (3,474)
Net income (loss) from continuing operations 16,190 (4,993)
Net loss from discontinued operation, net of tax (Note 4) (61) (124)
Net income (loss) $ 16,129 $ (5,117)
Basic and Diluted net income (loss) per share from continuing operations (in dollar per share) $ 1.44 $ (0.45)
Basic and Diluted net income (loss) per share (in dollars per share) $ 1.44 $ (0.46)
Basic weighted-average shares outstanding (in shares) 11,228,707 11,196,710
Diluted weighted-average shares outstanding (in shares) 11,232,004 11,196,710
Comprehensive income (loss):    
Net income (loss) $ 16,129 $ (5,117)
Reclassification adjustment to foreign currency loss   1,329
Currency translation adjustment   31
Total comprehensive income (loss) 16,129 (3,757)
Products    
Net sales:    
Net Sales 171,968 143,941
Cost of sales:    
Products and Services (exclusive of depreciation and amortization shown below) 107,642 94,889
Services    
Net sales:    
Net Sales 140,221 134,132
Cost of sales:    
Products and Services (exclusive of depreciation and amortization shown below) $ 83,538 $ 80,894
v3.20.4
Consolidated Statements of Stockholders' Deficit - USD ($)
$ in Thousands
Common Stock
Capital deficiency
Accumulated earnings (loss)
Accumulated other comprehensive loss
Total
Beginning balance at Dec. 31, 2018 $ 11 $ (112,223) $ (37,202) $ (1,360) $ (150,774)
Beginning balance (in shares) at Dec. 31, 2018 11,160,377        
Shares issued under stock-based compensation plans (in shares) 63,814        
Stock-based compensation   235     235
Components of comprehensive (loss) income:          
Net income (loss)     (5,117)   (5,117)
Reclassification adjustment to foreign currency loss       1,329 1,329
Currency translation adjustment       $ 31 31
Ending balance at Dec. 31, 2019 $ 11 (111,988) (42,319)   $ (154,296)
Ending balance (in shares) at Dec. 31, 2019 11,224,191       11,224,191
Shares issued under stock-based compensation plans (in shares) 6,291        
Stock-based compensation   130     $ 130
Components of comprehensive (loss) income:          
Net income (loss)     16,129   16,129
Ending balance at Dec. 31, 2020 $ 11 $ (111,858) $ (26,190)   $ (138,037)
Ending balance (in shares) at Dec. 31, 2020 11,230,482       11,230,482
v3.20.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Operating activities    
Net income (loss) $ 16,129 $ (5,117)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:    
Loss from discontinued operations 61 124
Depreciation and amortization expense 16,827 17,251
Stock-based compensation expense 136 250
Amortization of debt issuance costs and debt discount 3,453 1,960
Deferred income tax 1,043 969
Reclassification adjustment to foreign currency loss   1,329
Other, net 1,834 153
Changes in operating assets and liabilities:    
Accounts receivable (11,662) (688)
Inventories (6,105) (10,410)
Prepaid expenses and other assets 494 (1,328)
Income taxes (6,346) 1,369
Accounts payable 1,657 1,127
Accrued expenses 2,958 (3,810)
Deferred revenue and customer deposits 1,404 (446)
Other liabilities 192 232
Cash provided by operating activities - continuing operations 22,075 2,965
Cash used in operating activities - discontinued operations (61) (124)
Investing activities    
Capital expenditures for plant, equipment and leasehold improvements (7,093) (4,175)
Cash received from sale of Canadian subsidiary   1,451
Other   150
Cash used in investing activities (7,093) (2,574)
Financing activities    
Proceeds from Senior Credit Facility, net of discount 29,100  
Debt issuance costs (2,507)  
Proceeds from revolving credit facility   11,500
Principal payment on revolving credit facility   (11,500)
Payments on financing leases (2,616) (1,926)
Cash provided by (used in) financing activities 23,977 (1,926)
Effect of exchange rates on cash 23 50
Net increase (decrease) in cash and cash equivalents 38,921 (1,609)
Cash and cash equivalents, beginning of period 18,682 20,291
Cash and cash equivalents, end of period 57,603 18,682
Supplemental disclosures of cash flow information    
Cash paid during the period for: Interest 22,750 23,036
Cash paid during the period for: Income tax payments, net 1,043 780
Right-of-use assets obtained in exchange for lease obligations- Operating leases 3,260 8,533
Right-of-use assets obtained in exchange for lease obligations- Financing leases 1,718 6,438
Accounts payable and accrued expenses for capital expenditures for plant, equipment and leasehold improvements $ 1,052 $ 308
v3.20.4
Business
 12 Months Ended
Dec. 31, 2020
Business  
Business

1. Business

CPI Card Group Inc. (which, together with its subsidiary companies, is referred to herein as “CPI” or the “Company”) is a payment technology company and leading provider of comprehensive Financial Payment Card solutions in the United States.  CPI is engaged in the design, production, data personalization, packaging and fulfillment of Financial Payment Cards, which the Company defines as credit, debit and Prepaid Debit Cards issued on the networks of the Payment Card Brands (Visa, Mastercard, American Express and Discover in the United States and Interac, in Canada).  CPI also offers an instant card issuance solution, which provides card issuing bank customers the ability to issue a personalized debit or credit card within the bank branch to individual cardholders. 

CPI serves its customers through a network of high-security production and card services facilities in the United States, each of which is audited for compliance with the standards of the PCI Security Standards Council by one or more of the Payment Card Brands.  CPI’s leading network of high-security production facilities allows the Company to optimize its solutions offerings and to serve its customers.

The Company’s business consists of the following reportable segments: Debit and Credit, Prepaid Debit and Other. The Debit and Credit segment primarily produces Financial Payment Cards and provides integrated card services to card-issuing banks primarily in the United States.  The Prepaid Debit segment primarily provides integrated card services to Prepaid Debit Card program managers primarily in the United States.  The Company’s “Other” segment includes corporate expenses.

In the fourth quarter of 2018, the Company entered into a definitive agreement to sell the Canadian subsidiary. The sale agreement did not include the portions of the business relating to Financial Payment Cards, as that business migrated to the Company’s operations in the U.S. or to other service providers in 2019. The transaction closed on April 1, 2019, and the Company received cash proceeds of $1,451.  After the payment of liabilities and transaction costs, including employee termination costs, the sale did not have a significant impact on cash, and no significant loss on sale.  In connection with the disposition of the foreign entity, the Company released the related cumulative translation adjustment from “Accumulated Other Comprehensive Loss” on the Balance Sheet into income from continuing operations during the year ended December 31, 2019. This adjustment was $1,329 and is included in “Foreign Currency Loss” on the Statement of Operations.  The Canadian subsidiary was not a significant operating segment and was part of the Other reportable segment.

COVID-19 Update

 

The ongoing adverse effects of the COVID-19 pandemic have continued to impact the locations where CPI, its customers and its suppliers conduct business. Overall, CPI believes that COVID-19 had a net negative impact relative to its full year expectations for 2020. The broader and long-term implications of COVID-19 on the Company’s results of operations and overall financial performance remain uncertain.  The health and safety of CPI employees remain paramount, and the Company continues to follow response protocols based on precautions and other appropriate measures recommended by the Centers for Disease Control and Prevention, as well as various state and local executive orders, health orders and guidelines.  All of CPI’s operations have remained open and continue to provide direct and essential support to the financial services industry.  CPI’s net sales in 2020 increased over the prior year; however, in certain areas of the business, the Company experienced lower customer demand than expected which it believes is primarily attributable to the COVID-19 pandemic.  CPI may experience constrained supply, curtailed customer demand, impacts on its workforce and other effects that could materially adversely impact the Company’s business, results of operations and overall financial condition in future periods. CPI’s strategies may not be successful in effectively managing its resources and mitigating the negative impact of the COVID-19 pandemic on its business, operating results and financial condition. See Item 1A, Risk Factors, in this Annual Report on Form 10-K for further discussion of the possible impact of the COVID-19 pandemic on the Company.

 

On March 27, 2020, the Coronavirus Aid Relief, and Economic Security (“CARES”) Act was signed into law. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer social security payments, changes in net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitation and technical corrections to tax depreciation methods for qualified improvement property. Refer to Note 12 “Income Taxes” for a discussion of the CARES Act income tax impacts on the Company.  In addition, CPI has deferred employer social security payments starting with the second quarter of 2020 in accordance with the CARES Act.  While the Company is participating in certain programs under the CARES Act, the Act and its guidance are subject to change.   

 

v3.20.4
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2020
Summary of Significant Accounting Policies  
Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying Consolidated Financial Statements include the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated.

Cash and Cash Equivalents

The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents and they are stated at cost, which approximates fair value.

Trade Accounts Receivable and Concentration of Credit Risk

Accounts receivable are stated at the amount management expects to collect from outstanding balances. The Company performs ongoing credit evaluations of its customers and generally requires no collateral to secure accounts receivable.

 

 

 

 

 

 

 

 

    

December 31, 2020

    

December 31, 2019

Trade accounts receivable

 

$

44,305

 

$

39,004

Unbilled accounts receivable

 

 

10,576

 

 

4,223

 

 

 

54,881

 

 

43,227

Less allowance for doubtful accounts

 

 

(289)

 

 

(395)

 

 

$

54,592

 

$

42,832

 

The Company maintains an allowance for potentially uncollectible accounts receivable based upon its assessment of the collectability of accounts receivable. Accounts are written off against the allowance when it is determined collection will not occur. The allowance for bad debt activity for the years ended December 31, 2020 and 2019 is summarized as follows:

 

 

 

 

 

 

Balance as of December 31, 2018

    

$

211

 

Bad debt expense

 

 

228

 

Write-off of uncollectible accounts

 

 

(37)

 

Currency translation adjustments

 

 

(7)

 

Balance as of December 31, 2019

 

$

395

 

Bad debt expense (benefit)

 

 

(89)

 

Write-off of uncollectible accounts

 

 

(2)

 

Currency translation adjustments

 

 

(15)

 

Balance as of December 31, 2020

 

$

289

 

 

During 2020, the Company recorded a bad debt benefit due to the reduction of allowances for potentially uncollectible accounts receivable from the prior year.  The increase in bad debt expense during 2019 primarily relates to reserves established for outstanding receivables from the Company’s Canadian operations that were disposed on April 1, 2019.

For the year ended December 31, 2020 the Company had two customers that represented more than 10% of the Company’s consolidated net sales.  Net sales for these customers were approximately 15% and 14% of the Company’s consolidated net sales. For the year ended December 31, 2019 one customer represented 18% of the Company’s consolidated net sales.

Inventories

Inventories consist of raw materials, and finished goods and are measured at the lower of cost or net realizable value (determined on the first-in, first-out, specific identification or weighted-average method basis). Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Finished goods inventory represents primarily stock cards and Card@Once printers.  The stock cards are not manufactured for a specific customer, but are ready to be personalized and sold as customer orders are received. The Company monitors inventory for events or circumstances that may indicate the net realizable value is less than the carrying value of inventory, such as negative margins, expiration of material usage, and other forms of obsolescence, and records adjustments to the valuation of inventory, as necessary.

Plant, Equipment and Leasehold Improvements

Plant, equipment and leasehold improvements are recorded at cost. Accumulated depreciation is computed using the straight-line method over the lesser of the estimated useful life of the related assets (generally 3 to 10 years for machinery and equipment, furniture, computer equipment, and leasehold improvements) or, when applicable, the lease term. Maintenance and repairs that do not extend the useful life of the respective assets are charged to expense as incurred.

Long-lived assets with finite lives are reviewed for impairment whenever events indicate that the carrying amount of the asset or the carrying amounts of the asset group containing the asset may not be recoverable. In such reviews, estimated undiscounted future cash flows associated with these assets or asset groups are compared with their carrying value to determine if a write-down to fair value is required. 

Goodwill and Intangible Assets

 Goodwill is not amortized, but instead is tested for impairment at least annually on October 1 or more frequently when an event occurs or circumstances change that indicates the carrying value may not be recoverable. For impairment evaluations, the Company may first make a qualitative assessment with respect to goodwill, if appropriate. In accordance with accounting standards,  the Company performs its goodwill impairment test by comparing the fair value of the reporting unit with its carrying amount, and recognizes an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its fair value.

All of the Company’s goodwill is included in the Debit and Credit segment.  The Company generally bases its measurement of the fair value of a reporting unit on a blended analysis of the present value of future discounted cash flows and the market valuation approach. The discounted cash flows model indicates the fair value of the reporting unit based on the present value of the cash flows that the Company expects the reporting unit to generate in the future. The Company's significant estimates in the discounted cash flows model include: its weighted average cost of capital; discrete and long-term rate of growth and profitability of the reporting unit's business; and working capital effects. The market valuation approach indicates the fair value of the business based on a comparison of the reporting unit to publicly traded companies in similar lines of business. Significant estimates in the market valuation approach model include identifying similar companies with comparable business factors such as size, growth, profitability, risk and return on investment, and assessing comparable revenue and operating income multiples in estimating the fair value of the reporting unit.

Acquired finite-lived intangible assets are amortized on a straight-line basis over the estimated useful lives of the assets, and are reviewed for impairment whenever events indicate that the carrying amount of the asset may not be recoverable. In such reviews, estimated undiscounted future cash flows associated with these assets are compared with their carrying value to determine if a write-down to fair value is required.    

Sales Tax

The Company records sales tax collected from its customers on a net basis, and therefore excludes it from net sales as defined in ASC 606, Revenue from Contracts with Customers. Cash collected from customers is recorded in accrued expenses on the Company’s consolidated Balance Sheet and then remitted to the proper taxing authority. In addition, refer to Note 15 “Commitments and Contingencies” for discussion regarding an estimated sales tax liability the Company recorded in relation to historical activity in certain states.

Income Taxes

The Company accounts for income taxes using an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.

The Company has deferred tax assets and liabilities and maintains valuation allowances where it is more likely than not that all or a portion of deferred tax assets will not be realized. To the extent the Company determines that it will not realize the benefit of some or all of its deferred tax assets, then these deferred tax assets will be adjusted through the Company’s income tax expense in the period in which this determination is made.

The Company establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due.  The reserves are established when the Company believes that certain positions are likely to be challenged and may not be fully sustained on review by tax authorities.  The Company adjusts uncertain tax position in light of changing facts and circumstances, such as the closing of a tax audit or refinement of an estimate.  The Company recognizes the tax benefits from uncertain tax positions only when it is more likely than not, based on the technical merits of the position, that the tax position will be sustained upon examination, including the resolution of any related appeals or litigation. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense.

Stock-Based Compensation

The Company accounts for stock-based compensation pursuant to ASC 718, Share-Based Payments. All stock-based compensation to employees is required to be measured at fair value and expensed over the requisite service period. The Company accounts for forfeitures as they occur and reverses previously recognized expense for the unvested portion of the forfeited shares.  The Company recognizes compensation expense on awards on a straight-line basis over the vesting period for each tranche of an award. Refer to Note 17 “Stock Based Compensation” for additional discussion regarding details of the Company's stock-based compensation plans.

Net Sales

Products Net Sales

“Products” net sales are recognized when obligations under the terms of a contract with a customer are satisfied. In most instances, this occurs over time as cards are manufactured for specific customers, have no alternative use and the Company has an enforceable right to payment for work performed. For work performed but not completed and unbilled, the Company estimates revenue by taking actual costs incurred and applying historical margins for similar types of contracts. Items included in “Products” net sales are the design and production of Financial Payment Cards, including contact-EMV, Dual-Interface EMV, Second Wave, metal, contactless and magnetic stripe cards, and private label credit cards and retail gift cards. Card@Once® printers and consumables are also included in “Products” net sales, and their associated revenues are recognized at the time of shipping. The Company includes gross shipping and handling revenue in net sales, and shipping and handling costs in cost of sales.

 

Services Net Sales

 

Net sales are recognized for “Services” as the services are performed. Items included in “Services” net sales include the personalization and fulfillment of Financial Payment Cards, providing tamper-evident secure packaging and fulfillment services to Prepaid Debit Card program managers, and software as a service personalization of instant issuance debit cards. The Company also generates “Service” revenue usage-fees from the Company’s patented card design software, known as MYCA, which provides customers and cardholders the ability to design cards on the internet and customize cards with individualized digital images. “Services” revenue was also generated from personalizing retail gift cards historically in Canada prior to disposition. As applicable, for work performed but not completed and unbilled, the Company estimates revenue by taking actual costs incurred and applying historical margins for similar types of contracts.

 

Customer Contracts

The Company often enters into MSAs with its customers. Generally, enforceable rights and obligations for goods and services occur only when a customer places a purchase order or statement of work to obtain goods or services under an MSA. The contract term as defined by ASC 606 is the length of time it takes to deliver the goods or services promised under the purchase order or statement of work. As such, the Company's contracts are generally considered short term in nature.

 

Use of Estimates

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These accounting principles require management to make assumptions and estimates relating to the reporting of assets and liabilities in its preparation of the consolidated financial statements. Significant items subject to such estimates and assumptions include the carrying amount of property and equipment, goodwill and intangible assets, leases, liability for sales tax, valuation allowances for inventories and deferred taxes, revenue recognized for work performed but not completed, and uncertain tax positions. Actual results could differ from those estimates.

Foreign Currency Translation

Financial statements of foreign subsidiaries that use local currencies as their functional currency are translated into U.S. dollars using the exchange rate at each balance sheet date for assets and liabilities and the weighted-average exchange rate for each reporting period for net sales, expenses, gains and losses. Translation adjustments are recorded as a component of Accumulated Other Comprehensive Loss in the accompanying consolidated financial statements. Subsequent to the sale of the Company’s UK Limited and Canada subsidiary, the Company has no significant foreign subsidiaries.

Foreign currency transaction gains and losses resulting from the process of re-measurement are recorded in “Foreign currency loss” in the accompanying Consolidated Statements of Operations and Comprehensive Loss. For the years ended December 31, 2020 and 2019 there were ($7) and ($1,335) of such foreign currency losses, respectively. The foreign currency loss for the year ended December 31, 2019, includes the release of the cumulative translation adjustment of $1,329 from “Accumulated Other Comprehensive Loss” on the Balance Sheet in connection with the sale of the Company’s Canada subsidiary.  

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In February 2016, the FASB issued ASC 842, Leases, which provides guidance for accounting for leases. The guidance required companies to recognize the assets and liabilities for the rights and obligations created by leased assets. The Company adopted the guidance on January 1, 2019 and used the adoption date as the date of initial application as allowed under ASC 842. ROU represents the right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The lease term includes options to extend the lease when it is reasonably certain that the Company will exercise that option. A lease is deemed to exist when the Company has the right to control the use of identified property, plant or equipment, as conveyed through a contract, for a certain period of time and consideration paid. The right to control is deemed to occur when the Company has the right to obtain substantially all of the economic benefits of the identified assets and the right to direct the use of such assets. Lease expense for operating leases recorded in the balance sheet is included in operating costs and expenses and is based on the future minimum lease payments recognized on a straight-line basis over the term of the lease plus any variable lease costs. The Company recorded lease liabilities and right-to-use assets as the present value of future minimum lease payments using a discount rate that is either implicit in the lease or our incremental borrowing rate. If not implicit in the lease, the Company estimates the incremental borrowing rate by using market data from similar companies, having publicly traded debt instruments and similar credit ratings. The estimated incremental borrowing rate utilizes judgements, including selection of comparable companies, credit risk, sensitivity analysis and certain other valuation estimates. The Company also uses judgement in determining whether a contract contains a lease.

Recently Issued Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. This ASU changes the model for the recognition of credit losses from an incurred loss model, which recognized credit losses only if it was probable that a loss had been incurred, to an expected loss model, which requires the Company to estimate the total credit losses expected on the portfolio of financial instruments. The effective date of ASU 2016-13 was amended by ASU 2019-10, Credit Losses Effective Dates. Since CPI is a smaller reporting company, adoption of this accounting standard is effective for the Company for fiscal years beginning after December 15, 2022, and interim periods therein, with early adoption permitted. The Company has elected not to early adopt this accounting standard in 2020. The Company is evaluating the impact of adoption of this standard, and does not anticipate the application of ASU 2016-13 will have a material impact on the Company’s consolidated financial position and results of operations. 

Adjustment of Prior Period Financial Statements for Immaterial Items

In accordance with Securities and Exchange Commission Staff Accounting Bulletin 99, Materiality, codified in ASC 250, Presentation of Financial Statements, the Company corrected two immaterial items relating to estimated sales tax expense and depreciation expense for all prior periods presented by revising the consolidated financial statements and other financial information included herein. The total impact on prior years for estimated sales tax expense was $1,907 and depreciation expense was $476. These adjustments represent the expenses pertaining to the period of 2017 to 2019, including an increase to estimated sales tax expense recorded in “Selling, General and Administrative expenses” (“SG&A”) of $584, and depreciation expense in “Cost of sales” of $249, for the year ended December 31, 2019. For the year ended December 31, 2020, the Company recorded estimated sales tax expense in SG&A of $926.  Refer to Note 15, “Commitments and Contingencies” for additional discussion of the estimated sales tax liability recorded in “Accrued expenses” on the consolidated balance sheet. 

v3.20.4
Net Sales
 12 Months Ended
Dec. 31, 2020
Net Sales.  
Net Sales

3. Net Sales

 

The Company disaggregates its net sales by major source as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended December 31, 2020

 

 

Products

 

Services

 

Total

Debit and Credit

 

$

173,765

 

$

76,662

 

$

250,427

Prepaid Debit

 

 

 —

 

 

63,596

 

 

63,596

Intersegment eliminations

 

 

(1,797)

 

 

(37)

 

 

(1,834)

Total

 

$

171,968

 

$

140,221

 

$

312,189

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended December 31, 2019

 

 

Products

 

Services

 

Total

Debit and Credit

 

$

144,541

 

$

68,600

 

$

213,141

Prepaid Debit

 

 

 —

 

 

64,330

 

 

64,330

Other

 

 

396

 

 

1,283

 

 

1,679

Intersegment eliminations

 

 

(996)

 

 

(81)

 

 

(1,077)

Total

 

$

143,941

 

$

134,132

 

$

278,073

 

v3.20.4
Discontinued Operation
 12 Months Ended
Dec. 31, 2020
Discontinued Operation  
Discontinued Operation

4. Discontinued Operation

On August 3, 2018, the Company completed the sale of its three facilities in the United Kingdom that produced retail cards, such as gift and loyalty cards, for customers in the United Kingdom and continental Europe, and provided personalization, packaging and fulfillment services. The facilities sold included Colchester, Liverpool and Derby locations. The Company reported the U.K. Limited reporting segment as discontinued operations in conformity with GAAP. Unless otherwise indicated, information in these notes to the consolidated financial statements relate to continuing operations. The Company did not retain significant continuing involvement with the discontinued operation subsequent to the disposal. The impact of the discontinued operations was insignificant to the Company’s consolidated statement of operations for the years ended December 31, 2020 and 2019.

v3.20.4
Inventories
 12 Months Ended
Dec. 31, 2020
Inventories  
Inventories

5. Inventories

 

Inventories are summarized below:

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

    

2020

    

2019

 

Raw materials

 

$

23,009

 

$

16,492

 

Finished goods

 

 

4,635

 

 

5,047

 

Inventory reserve

 

 

(2,848)

 

 

(1,347)

 

 

 

$

24,796

 

$

20,192

 

 

v3.20.4
Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets
 12 Months Ended
Dec. 31, 2020
Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets  
Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets

 

6. Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-use Assets

 

Plant, equipment, leasehold improvements and operating lease right-of-use assets consist of the following:

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

    

2020

    

2019

 

Machinery and equipment

 

$

55,459

 

$

52,212

 

Machinery and equipment under financing leases

 

 

9,974

 

 

8,256

 

Furniture, fixtures and computer equipment

 

 

4,410

 

 

4,749

 

Leasehold improvements

 

 

15,083

 

 

14,905

 

Construction in progress

 

 

2,386

 

 

455

 

 

 

 

87,312

 

 

80,577

 

Less accumulated depreciation and amortization

 

 

(55,092)

 

 

(45,277)

 

Operating lease right-of-use assets, net of accumulated amortization

 

 

7,183

 

 

6,312

 

 

 

$

39,403

 

$

41,612

 

 

Amounts recorded for the depreciation of plant, equipment and leasehold improvements were $12,232 and $12,616 for the years ended December 31, 2020 and 2019, respectively.

 

There were no impairments of the Company’s plant, equipment, and leasehold improvement assets for the years ended December 31, 2020 and 2019.

v3.20.4
Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2020
Goodwill and Other Intangible Assets  
Goodwill and Other Intangible Assets

7. Goodwill and Other Intangible Assets

 

All of the Company’s $47,150 of goodwill is included in the Debit and Credit segment at December 31, 2020 and 2019. The Company completed its goodwill impairment testing as of October 1, 2020 and the Company determined it is not more likely than not that the fair value of each reporting unit is less than its carrying amount.

 

CPI’s amortizable intangible assets consist of customer relationships, technology and software, and trademarks. Total intangible assets are being amortized over a weighted-average useful life of 15.7 years. Intangible amortization expense totaled $4,595 and $4,635 for the years ended December 31, 2020 and 2019, respectively.  During the years ended December 31, 2020 and 2019, there were no impairments of the Company’s amortizable intangible assets. 

Intangible assets consist of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2020

 

December 31, 2019

 

 

    

Weighted Average

    

 

    

Accumulated

    

Net Book

    

 

    

Accumulated

    

Net Book

 

 

 

Life (Years)

 

Cost

 

Amortization

 

Value

 

Cost

 

Amortization

 

Value

 

Customer relationships

 

17.2

 

$

55,454

 

 

(32,141)

 

$

23,313

 

$

55,454

 

$

(28,865)

 

$

26,589

 

Technology and software

 

 8

 

 

7,101

 

 

(5,881)

 

 

1,220

 

 

7,101

 

 

(4,952)

 

 

2,149

 

Trademarks

 

8.7

 

 

3,330

 

 

(1,656)

 

 

1,674

 

 

3,330

 

 

(1,266)

 

 

2,064

 

Intangible assets subject to amortization

 

 

 

$

65,885

 

$

(39,678)

 

$

26,207

 

$

65,885

 

$

(35,083)

 

$

30,802

 

 

The estimated future aggregate amortization expense for the identified amortizable intangibles noted above as of December 31, 2020 is as follows:

 

 

 

 

 

2021

 

$

4,352

2022

    

 

3,867

2023

 

 

3,867

2024

 

 

3,630

2025

 

 

3,440

Thereafter

 

 

7,051

 

 

$

26,207

 

v3.20.4
Fair Value of Financial Instruments
 12 Months Ended
Dec. 31, 2020
Fair Value of Financial Instruments  
Fair Value of Financial Instruments

 

8. Fair Value of Financial Instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). In determining fair value, the Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

·

Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.

·

Level 2—Inputs, other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.

·

Level 3—Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

The Company’s financial assets and liabilities that are not required to be remeasured at fair value in the Consolidated Balance Sheets are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carrying

 

 

 

Fair Value Measurement at

 

 

Value as of

 

Fair Value as of

 

December 31, 2020

 

 

December 31,

 

December 31,

 

(Using Fair Value Hierarchy)

 

    

2020

    

2020

    

Level 1

    

Level 2

    

Level 3

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Term Loan

 

$

312,500

 

$

287,500

 

$

—

 

$

287,500

 

$

—

Senior Credit Facility

 

$

30,000

 

$

30,000

 

$

—

 

$

 —

 

$

30,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carrying

 

 

 

Fair Value Measurement at

 

 

Value as of

 

Fair Value as of

 

December 31, 2019

 

 

December 31,

 

December 31,

 

(Using Fair Value Hierarchy)

 

    

2019

    

2019

    

Level 1

    

Level 2

    

Level 3

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Term Loan

 

$

312,500

 

$

234,375

 

$

—

 

$

234,375

 

$

—

 

The aggregate fair value of the Company’s First Lien Term Loan (as defined in Note 11 “Long-Term Debt”) was based on bank quotes. The fair value measurement associated with the Senior Credit Facility (as defined in Note 11 “Long-Term Debt”) is based on significant unobservable Level 3 inputs, which require management judgment and estimation. The Senior Credit Facility ranks senior in priority to the Company’s First Lien Term Loan, and was valued using market data from companies with similar credit ratings.

 

The carrying amounts for cash and cash equivalents, accounts receivable and accounts payable each approximate fair value due to their short-term nature.

v3.20.4
Accrued Liabilities
 12 Months Ended
Dec. 31, 2020
Accrued Liabilities  
Accrued Liabilities

9. Accrued Liabilities

 

Accrued liabilities consisted of the following:

 

 

 

 

 

 

 

 

 

    

December 31, 2020

    

December 31, 2019

 

 

 

 

 

 

    

Accrued payroll and related employee expenses

 

$

4,938

 

$

3,954

Accrued employee performance bonus

 

 

4,873

 

 

3,920

Employer payroll tax, including social security deferral

 

 

3,034

 

 

368

Accrued rebates

 

 

1,178

 

 

1,573

Sales tax liability

 

 

1,696

 

 

1,907

Accrued Interest

 

 

4,145

 

 

4,951

Operating and financing lease liability (current portion)

 

 

4,407

 

 

4,494

Other

 

 

3,878

 

 

3,568

Total accrued expenses

 

$

28,149

 

$

24,735

 

 

The estimated sales tax liability is further described in Note 15, Commitments and Contingencies and Note 2, Summary of Significant Accounting Policies.  Other accrued liabilities include miscellaneous accruals for invoices not yet received and other items such as self- insurance liability accruals and the current portion of uncertain tax position reserves.

v3.20.4
Financing and Operating Leases
 12 Months Ended
Dec. 31, 2020
Financing and Operating Leases  
Financing and Operating Leases

10. Financing and Operating Leases

 

CPI adopted ASC 842 effective January 1, 2019.  As a result of the adoption of ASC 842, the Company recorded $8,025 of operating ROU assets, and corresponding operating lease liabilities of $8,813 on January 1, 2019, relating to existing real estate operating leases.

 

The components of operating and finance lease costs were as follows:

 

 

 

 

 

 

 

 

 

 

Year Ended

 

Year Ended

 

 

 

December 31, 2020

 

December 31, 2019

 

 

 

 

 

 

Operating lease costs

 

$

2,649

 

2,625

Variable lease costs

 

 

667

 

719

Short-term operating lease costs

 

 

75

 

 -

Total expense from operating leases

 

$

3,391

 

3,344

 

 

 

 

 

 

Finance lease cost:

 

 

 

 

 

Right-of-use amortization expense

 

$

1,342

 

886

  Interest on lease liabilities

 

 

540

 

290

  Total financing lease costs

 

$

1,882

 

1,176

 

The following table reflects balances for operating and financing leases:

 

 

 

 

 

 

 

 

 

    

December 31, 2020

 

December 31, 2019

Operating leases

 

 

 

 

 

 

Operating lease right-of-use assets, net of amortization

 

$

7,183

 

$

6,312

 

 

 

 

 

 

 

Operating lease liability (current)

 

$

2,267

 

$

2,283

Long-term operating liability

 

 

5,491

 

 

5,067

  Total operating lease liabilities

 

$

7,758

 

$

7,350

 

 

 

 

 

 

 

Financing leases

 

 

 

 

 

 

Property, equipment and leasehold improvements

 

$

9,974

 

$

8,256

Accumulated depreciation

 

 

(2,422)

 

 

(1,094)

  Total financing leases in property, equipment and leasehold improvements, net

 

$

7,552

 

$

7,162

 

 

 

 

 

 

 

Financing lease liability (current)

 

$

2,140

 

$

2,211

Long-term financing liability

 

 

3,052

 

 

3,886

  Total financing lease liabilities

 

$

5,192

 

$

6,097

 

Finance and operating lease ROU assets are recorded in “Plant, equipment, leasehold improvements, and

operating lease right-of-use assets, net”. Financing and operating lease liabilities are recorded in “Accrued expenses” and “Other long-term liabilities.”

 

Components of lease expense were as follows:

 

 

 

 

 

 

 

 

December 31, 2020

Weighted Average Remaining Lease Term

 

 

 

  Operating Leases

 

 
4.93

  Financing Leases

 

 
2.52

 

 

 

 

Weighted Average Discount Rate

 

 

 

  Operating Leases

 

 
9.29%

  Financing Leases

 

 
8.71%

 

Future cash payment with respect to lease obligations as of December 31, 2020 were as follows:

 

 

 

 

 

 

 

 

 

 

 

Operating

 

 

Financing

 

 

 

Lease

 

 

Leases

Year Ending

 

 

 

 

 

 

2021

 

$

2,894

 

$

2,494

2022

 

 

1,782

 

 

2,007

2023

 

 

1,467

 

 

1,069

2024

 

 

1,250

 

 

261

2025

 

 

670

 

 

 2

2026

 

 

1,792

 

 

 —

  Total lease payments

 

 

9,855

 

 

5,833

Less imputed interest

 

 

(2,097)

 

 

(641)

  Total 

 

$

7,758

 

$

5,192

 

Cash paid on operating lease liabilities was $2,347 and $1,973 during the years ended December 31, 2020 and December 31, 2019, respectively.

v3.20.4
Long-Term Debt
 12 Months Ended
Dec. 31, 2020
Long-Term Debt.  
Long-Term Debt

11. Long-Term Debt

 

Long-term debt consists of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Interest

 

December 31,

 

December 31,

 

 

 

Rate (1)

    

2020

    

2019

    

First Lien Term Loan

 

 
5.50

%  

 

312,500

 

 

312,500

 

Senior Credit Facility

 

 
9.50

%  

 

30,000

 

 

 —

 

Unamortized discount

 

 

 

 

 

(1,988)

 

 

(1,770)

 

Unamortized deferred financing costs

 

 

 

 

 

(3,804)

 

 

(2,952)

 

Total long-term debt

 

 

 

 

 

336,708

 

 

307,778

 

Less current maturities

 

 

 

 

 

(8,027)

 

 

 —

 

Long-term debt, net of current maturities

 

 

 

 

 

328,681

 

 

307,778

 

(1)  The interest rate on the First Lien Term Loan was 5.5%, and 6.71% as of December 31, 2020, and December 31, 2019, respectively. The interest rate on the Senior Credit Facility, which was entered into on March 6, 2020, was 9.5% as of December 31, 2020.

On August 17, 2015, the Company entered into a first lien credit facility (the “First Lien Credit Facility”) with a syndicate of lenders providing for a $435,000 first lien term loan (the “First Lien Term Loan”) and a $40,000 revolving credit facility (the “Revolving Credit Facility”). The First Lien Term Loan matures on August 17, 2022 and the Revolving Credit Facility was terminated concurrently with the Company entering into a new senior credit facility on March 6, 2020.

 

On March 6, 2020, the Company and its wholly owned subsidiary, CPI Acquisition, Inc. (now known as CPI CG Inc.) (the “Borrower”), entered into a super senior credit agreement with Guggenheim Credit Services, LLC (“Guggenheim”), Vector Capital Credit Opportunity Master Fund, L.P., Guggenheim, as administrative agent and collateral agent, and certain other lenders from time to time party thereto (the “Senior Credit Agreement” and together with all ancillary documents thereto, the “Senior Credit Facility”). The Senior Credit Facility matures on May 17, 2022, and provides for the extension of credit to the Borrower in the form of super senior term loans in an aggregate principal amount of $30,000, and ranks senior in priority to the Company’s First Lien Term Loan.

 

The Senior Credit Facility and the First Lien Term Loan are secured by substantially all of the Company’s assets constituting equipment, inventory, receivables, cash and other tangible and intangible property.

 

The Senior Credit Facility and the First Lien Term Loan contain customary representations, covenants and events of default, including certain covenants that limit or restrict the Company’s and certain of its subsidiaries’ ability to incur indebtedness, grant certain types of security interests, incur certain types of liens, sell or transfer assets or enter into a merger or consolidate with another company, enter into sale and leaseback transactions, make certain types of investments, declare or make dividends or distributions, engage in certain affiliate transactions, or modify organizational documents, among other restrictions and subject to certain exceptions. In accordance with the terms of the Senior Credit Facility, the Company is also required to have adjusted EBITDA, as defined in the agreement, of $25,000 for the previous four consecutive fiscal quarters in total, at the end of each quarterly period ending on or after March 31, 2020.

 

The Senior Credit Facility and the First Lien Term Loan also require prepayment or offers to prepay certain amounts, in advance of the maturity date upon the occurrence of certain customary events, including based on an annual excess cash flow calculation, pursuant to the terms of the respective agreement, with any required payments to be made after the issuance of the Company’s annual financial statements. As of December 31, 2020, $8,027 of debt principal was classified as a current liability as a result of an excess free cash flow calculation for 2020 pursuant to the terms of the debt agreements, which amount the Company will offer to prepay pursuant to the terms of the Senior Credit Facility and the First Lien Term Loan, as applicable. The Company was not required to make any prepayments of the First Lien Term Loan with respect to the excess free cash flow calculation relating to the 2019 annual financial statements.

 

Interest rates under the Senior Credit Facility are based, at the Company's election, on a Eurodollar rate, subject to an interest rate floor of 1.0%, plus a margin of 8.5% or a base rate plus a margin of 7.5%. Certain prepayments made prior to February 15, 2022 are subject to a make-whole premium. Interest rates under the First Lien Term Loan are based, at the Company’s election, on a Eurodollar rate, subject to an interest rate floor of 1.0%, plus a margin of 4.5%, or a base rate plus a margin of 3.5%.

 

The term loans made under the Senior Credit Facility would be accelerated and become immediately due and payable if an event of default (as defined in the Senior Credit Agreement) were to occur. Tricor Pacific Capital Partners (Fund IV), Limited Partnership and Tricor Pacific Capital Partners (Fund IV) US, Limited Partnership (collectively, the “Tricor Funds”), own approximately 37% and 22% of the Company’s common stock, respectively, as of December 31, 2020. If the Tricor Funds were to sell or otherwise dispose of more than 25% of CPI’s outstanding common stock, or otherwise cease to own at least 30% of CPI’s outstanding common stock, other than by means of distributing CPI common stock to the participants in Tricor Funds, a “change of control” event of default would occur. Additionally, certain proposed changes to the Senior Credit Facility require the consent of lenders representing more than 50% of the outstanding term loans, and if a lender does not consent to such proposed changes, then, among other options, CPI may be required to pre-pay the non-consenting lender’s portion of the loan, including accrued interest, fees and other amounts payable, as well as a make-whole premium.

 

The Company is authorized to use the proceeds from the Senior Credit Facility to provide for the working capital and general corporate requirements of the Company and its subsidiaries, including to pay any fees and expenses in connection with the Senior Credit Facility and other related loan documents.

 

Deferred Financing Costs and Discount

 

Certain costs and discounts incurred with borrowings or the establishment or modification of credit facilities are reflected as a reduction to the long-term debt balance. These costs are amortized as an adjustment to interest expense over the life of the borrowing using the effective-interest rate method. The discount on the Senior Credit Facility was $1,400, and financing costs were $3,215, and both were recorded as a reduction to the long-term debt balance in the quarter ended March 31, 2020. The net discount and debt issuance costs on the Senior Credit Facility is included within financing activities on the consolidated statement of cash flows and relates to cash flows during the year ended December 31, 2020.

v3.20.4
Income Taxes
 12 Months Ended
Dec. 31, 2020
Income Taxes  
Income Taxes

12. Income Taxes

 

Income tax (benefit) expense from continuing operations and effective income tax rates consist of the following:

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

    

2020

    

2019

    

Current taxes:

 

 

 

 

 

 

 

Domestic

 

$

(4,364)

 

$

2,490

 

Foreign

 

 

16

 

 

15

 

 

 

 

(4,348)

 

 

2,505

 

Deferred taxes:

 

 

 

 

 

 

 

Domestic

 

 

1,043

 

 

969

 

Foreign

 

 

 —

 

 

 —

 

 

 

 

1,043

 

 

969

 

Income tax (benefit) expense

 

$

(3,305)

 

$

3,474

 

Income (loss) before income taxes

 

 

 

 

 

 

 

Domestic income (loss)

 

$

12,790

 

$

(40)

 

Foreign income (loss)

 

 

95

 

 

(1,479)

 

Total

 

$

12,885

 

$

(1,519)

 

Effective income tax rate

 

 

(25.6)

%

 

(228.7)

%

 

The effective income tax rate differs from the U.S. federal statutory income tax rate as follows:

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

2020

    

2019

    

Tax at federal statutory rate

 

21.0

%

21.0

%

State income taxes

 

5.3

 

(50.3)

 

Foreign taxes

 

 —

 

(23.3)

 

Tax benefit for U.K. sale

 

 —

 

154.8

 

Valuation allowance

 

(41.1)

 

(213.8)

 

Unrecognized tax benefits

 

5.6

 

(15.5)

 

Tax credits

 

(1.2)

 

(48.6)

 

Permanent items

 

4.0

 

(54.1)

 

Tax benefit CARES Act

 

(20.9)

 

 —

 

Other

 

1.7

 

1.1

 

Effective income tax rate

 

(25.6)

%

(228.7)

%

 

The components of the deferred tax assets and liabilities are as follows:

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

    

2020

 

2019

 

Deferred tax assets:

 

 

 

 

 

 

 

Accrued expense

 

$

2,519

 

$

2,854

 

Net operating loss carryforward

 

 

524

 

 

1,216

 

Deferred financing costs

 

 

260

 

 

400

 

Stock compensation

 

 

935

 

 

892

 

Tax credit carryforward

 

 

645

 

 

17

 

Interest limitation

 

 

1,418

 

 

8,773

 

Lease liability

 

 

1,899

 

 

1,728

 

Capital loss carryover

 

 

2,030

 

 

 —

 

Other

 

 

2,598

 

 

669

 

Total gross deferred tax assets

 

 

12,828

 

 

16,549

 

Valuation allowance

 

 

(2,615)

 

 

(5,659)

 

Net deferred tax assets

 

 

10,213

 

 

10,890

 

Deferred tax liabilities:

 

 

 

 

 

 

 

Plant, equipment and leasehold improvements

 

 

(4,939)

 

 

(5,382)

 

Intangible assets

 

 

(8,689)

 

 

(8,877)

 

Right-of-use assets

 

 

(1,758)

 

 

(1,486)

 

Prepaid expenses and other

 

 

(2,236)

 

 

(1,511)

 

Total gross deferred tax liabilities

 

 

(17,622)

 

 

(17,256)

 

Net deferred tax liabilities

 

$

(7,409)

 

$

(6,366)

 

 

The net change in the valuation allowance during the year ended December 31, 2020 was a decrease of $3,044. The change was comprised primarily of a decrease due to Company’s election to apply the 2018 proposed regulations relating to the interest deduction limitation in section 163(j) of the Internal Revenue Code.  This was partially offset by an increase related to the sale of certain foreign subsidiaries.  The valuation allowance as of December 31, 2020, is relating to a capital loss realized on the sale of a foreign subsidiary whereby the Company does not anticipate a capital gain in the foreseeable future that would allow for the recognition of the capital loss carryover. In addition, the Company has a full valuation allowance related to a state net operating loss and a partial valuation allowance on a state interest limitation, both of which the Company estimates may not be fully utilized.     

In March 2020, the CARES Act was signed into law. The CARES Act allows companies with net operating losses (“NOLs”) originating in 2018, 2019, or 2020 to carry back those losses for five years and temporarily eliminates the tax law provision that limits the use of NOLs to 80% of taxable income.  The CARES Act increases the Internal Revenue Code Section 163(j) interest deduction limit for 2019 and 2020, and allows for the acceleration of refunds of alternative minimum tax credits. For the year ended December 31, 2020, the Company recorded a tax benefit for certain provisions in the CARES Act resulting in a tax rate benefit of 20.9%.  In addition, the Company reduced the partial valuation allowance due to the limitation on the deductibility of interest expense, and recorded an income tax rate benefit during for the year ended December 31, 2020 of 41.1%.  Other items impacting the effective tax rate in 2020 include unrecognized tax benefits, permanent non-deductible items and tax credits. 

The Company no longer has any substantial potential tax benefits associated with gross foreign operating loss carryforwards due to the sale of its foreign subsidiaries.  The Company has various state and local operating loss carryforwards which will expire at various dates from 2033 to 2038. The Company does expect to be able to utilize a portion of these losses prior to expiration.  The Company’s income tax receivable on the consolidated balance sheet as of December 31, 2020, is primarily comprised of U.S. federal income tax refund claims attributable to the CARES Act provisions, including alternative minimum tax credits and allowance of NOL carrybacks.

The Company has potential tax benefits associated with federal research and development tax credit carryforwards as of December 31, 2020 of $645, which will expire in 2036. The Company expects to be able to recognize these credit carryforwards, and accordingly has not provided a valuation allowance for the tax benefit. Additionally, the Company does not have any potential tax benefits associated with state research and development tax credit carryforwards as of December 31, 2020.

At December 31, 2020, no provision has been made for U.S. federal and state taxes on cumulative foreign earnings as there are no current or cumulative earnings of foreign operations. The Company recorded no net current tax benefit in 2019 related to the sale of the Canadian operations.

Unrecognized Tax Benefits

Unrecognized tax benefits represent the aggregate tax effect of differences between the tax return positions and the amounts otherwise recognized in the Company’s consolidated financial statements, and are reflected in “Accrued expenses”, “Other long term liabilities” and “Deferred income taxes” in the Company’s consolidated balance sheets.  The Company accounts for uncertain tax positions by recognizing the financial statement effects of a tax provision only when based upon the technical merits, it is “more-likely-than-not” that the tax position will be sustained upon examination.

 

 

 

 

 

 

 

 

Balance as of December 31, 2019

 

$

2,172

Increase related to current year tax position

 

 

72

Increase related to prior year tax position

 

 

1,068

Balance as of December 31, 2020

 

$

3,312

 

The Company recognizes interest and penalties with respect to unrecognized tax benefits as a component of income tax expense. The amount of accrued interest and penalties related to unrecognized tax benefits for the year ended December 31, 2020 was $255, and was $238 for the year ended December 31, 2019.

The Company believes that it is reasonably possible that approximately $852 of its unrecognized tax benefits may be recognized by the end of 2021 as a result of settlement with the taxing authorities.  As such, this balance is reflected in “Accrued expenses” in the Company’s consolidated balance sheet as of December 31, 2020.  The Company is generally subject to potential federal and state examinations for the tax years on and after December 31, 2013 for federal purposes and December 31, 2016 for state purposes. The Company is subject to examinations for its U.K. subsidiaries for tax years ended on and after December 31, 2018. The Company's Canadian subsidiary which was sold April 1, 2019, is subject to examination for tax years ended on and after December 31, 2016.

v3.20.4
Stockholders' Deficit
 12 Months Ended
Dec. 31, 2020
Stockholders’ Deficit  
Stockholders’ Deficit

13. Stockholders’ Deficit

Common Stock

Common Stock has a par value of $0.001 per share. Holders of common stock are entitled to receive dividends and distributions subject to the participation rights of holders of all classes of stock at the time outstanding, as such holders have prior rights as to dividends pursuant to the rights of any series of Preferred Stock. Upon any liquidation, dissolution, or winding up of the Company, after required payments are made to holders of any series of Preferred Stock, any remaining assets of the Company will be distributed ratably to the holders of Common Stock. Holders of Common Stock are entitled to one vote per share.

v3.20.4
Income (Loss) per Share
 12 Months Ended
Dec. 31, 2020
Income (Loss) per Share  
Income (Loss) per Share

14. Income (Loss) per Share

Basic and diluted income (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. The following table sets forth the computation of basic and diluted income (loss) per share:

 

 

 

 

 

 

 

 

 

 

Year Ended

 

 

December 31, 

 

    

2020

 

2019

Numerator:

 

 

    

    

 

    

Net income (loss) from continuing operations

 

$

16,190

 

$

(4,993)

Net loss from discontinued operation

 

 

(61)

 

 

(124)

Net income (loss)

 

$

16,129

 

$

(5,117)

 

 

 

 

 

 

 

Denominator: 

 

 

 

 

 

 

Basic weighted-average common shares outstanding

 

 

11,228,707

 

 

11,196,710

Dilutive shares

 

 

3,297

 

 

 —

Diluted weighted-average common shares outstanding

 

 

11,232,004

 

 

11,196,710

 

 

 

 

 

 

 

Net income (loss) per share from continuing operations - Basic:

 

$

1.44

 

$

(0.45)

Net income (loss) per share from discontinued operations - Basic:

 

 

0.00

 

 

(0.01)

Net income (loss) per share - Basic:

 

$

1.44

 

$

(0.46)

 

 

 

 

 

 

 

Net income (loss) per share from continuing operations - Diluted:

 

$

1.44

 

$

(0.45)

Net income (loss) per share from discontinued operations - Diluted:

 

 

0.00

 

 

(0.01)

Net income (loss) per share - Diluted:

 

$

1.44

 

$

(0.46)

 

The Company reported a net loss for the year ended December 31, 2019. Accordingly, the potentially dilutive effect of 793,084 stock options and 7,347 restricted stock units were excluded from the computation of diluted earnings per share as of December 31, 2019, as their inclusion would be anti-dilutive. 

v3.20.4
Commitments and Contingencies: Litigation Settlement
 12 Months Ended
Dec. 31, 2020
Commitments and Contingencies: Litigation Settlement.  
Commitments and Contingencies: Litigation Settlement

15. Commitments and Contingencies; Litigation Settlement

Commitments

Refer to Note 10 “Financing and Operating Leases” for details on the Company’s future cash payments with respect to financing and operating leases. During the normal course of business, the Company enters into non-cancellable agreements to purchase goods and services, including production equipment and information technology systems. The Company leases real property for its facilities under non-cancellable operating lease agreements. Land and facility leases expire at various dates between 2021 and 2028 and contain various provisions for rental adjustments and renewals. The leases typically require the Company to pay property taxes, insurance and normal maintenance costs.

Contingencies

In accordance with applicable accounting guidance, the Company establishes an accrued liability when loss contingencies are both probable and estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. As a matter develops, the Company, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether such matter presents a loss contingency that is probable and estimable. Once the loss contingency is deemed to be both probable and estimable, the Company will establish an accrued liability and record a corresponding amount of expense. The Company expenses professional fees associated with litigation claims and assessments as incurred.

Heckermann v. Montross et al., Case No. 1:17-CV-01673 (D. Del.) (the “Derivative Suit”)

On November 20, 2017, a purported CPI stockholder filed a stockholder derivative complaint in the United States District Court for the District of Delaware (the “Court”) against certain of CPI’s former officers and current and former directors, along with the sponsors of CPI’s October 2015 initial public offering (“IPO”). CPI is also named as a nominal defendant. The derivative complaint asserts claims under §§10(b) and 20(a) of the Exchange Act and Securities and Exchange Commission Rule 10b-5 and seeks, among other things, injunctive relief, damages and costs. It alleges false or misleading statements and omissions in the Registration Statement filed by CPI in connection with its IPO and subsequent public filings and statements. The derivative complaint also asserts claims for purported breaches of fiduciary duties, unjust enrichment, mismanagement and waste of corporate assets.

 

On December 18, 2019, the parties filed a Stipulation and Agreement of Settlement to resolve and dismiss the Derivative Suit, and on April 1, 2020, the Court granted final approval of the settlement set forth therein and dismissed with prejudice all claims (the “Settlement”). Under the Settlement, (i) all claims that were or could have been asserted in the Derivative Suit were resolved and discharged, (ii) the Company agreed to implement certain corporate governance reforms, and (iii) the Company’s insurer agreed to pay fees and expenses awarded to the plaintiff’s counsel in the amount of $343 and a service award to the plaintiff of a nominal amount. No liability was recorded for the Settlement as of December 31, 2020 or December 31, 2019.

 

In addition to the matter described above, the Company may be subject to routine legal proceedings in the ordinary course of business. The Company believes that the ultimate resolution of any such matters will not have a material adverse effect on its business, financial condition or results of operations.

 

Estimated Sales Tax Liability

The Company is evaluating a state sales tax liability analysis for states in which it has economic nexus, and collecting exemption documentation from its customers. It is probable that the Company will be subject to sales tax liabilities plus interest and penalties relating to historical activity in certain states. The estimated liability for sales tax as of December 31, 2020 is $1,696, and is recorded in accrued expenses in the consolidated balance sheets. The liability changed from the original estimate recorded in prior periods primarily due to the Company remitting cash to the proper state tax authorities for historical sales tax and interest, partially offset by an increase of $633 in the contingency estimate during the fourth quarter of 2020. Due to the estimates involved in the analysis, the Company expects that the estimated liability will change in the future, and may exceed the current estimate. The Company also may be subject to examination by the relevant state tax authorities.  Sales tax recovered from customers reduces the estimated expense when it is probable of collection, and the Company recorded $596 of probable customer collections during the second half of 2020.  Future changes to the liability estimate that impact the consolidated statements of operations will be recorded within selling, general, and administrative expenses.

Litigation Settlement 

CPI Card Group Inc. v. Multi Packaging Solutions, Inc., et al. Second Case 

During the summer of 2017, the Company and its subsidiary, CPI Card Group – Minnesota, Inc. (together, the “Company Plaintiffs”), commenced a lawsuit in the United States District Court for the District of Minnesota against a former employee, Multi Packaging Solutions, Inc. (“MPS”), and two MPS employees as individuals (collectively, the “Defendants”). On June 12, 2019, the Company Plaintiffs and the Defendants reached a settlement pursuant to which the case was resolved and dismissed by mutual agreement on terms that provided for, among other things, a cash payment to the Company. The Company received a $6,000 cash settlement payment during the second quarter of 2019, and recorded the gain within income from operations, in the Other segment. The case was dismissed in its entirety, with prejudice, by court order on July 12, 2019. 

v3.20.4
Employee Benefit Plan
 12 Months Ended
Dec. 31, 2020
Employee Benefit Plan  
Employee Benefit Plan

16. Employee Benefit Plan

The Company maintains a qualified defined-contribution plan under the provisions of the Internal Revenue Code Section 401(k), which covers substantially all employees in the United States who meet certain eligibility requirements. Under the plan, participants may defer their salary subject to statutory limitations and may direct the contributions among various investment options. The Company matches 100% of the participant’s first 3% of deferrals and 50% matching on each of the 4th and 5th percent contributed by the participant. As the Company operates the plan as a safe harbor 401(k) plan, the Company’s match is 100% vested at the time of the match.

The aggregate amounts charged to expense in connection with the plan were $1,473 and $1,359 for the years ended December 31, 2020 and 2019, respectively.

v3.20.4
Stock Based Compensation
 12 Months Ended
Dec. 31, 2020
Stock Based Compensation  
Stock Based Compensation

17. Stock Based Compensation

CPI Card Group Inc. Omnibus Incentive Plan

During October 2015, the Company adopted the CPI Card Group Inc. Omnibus Incentive Plan (the “Omnibus Plan”) pursuant to which cash and equity based incentives may be granted to participating employees, advisors and directors. The Company had reserved 1,200,000 shares of common stock for issuance under the Omnibus Plan.  As of December 31, 2020, there were 185,113 shares available for grant under the Omnibus Plan.

The Company did not grant any awards of non-qualified stock options for the years ended December 31, 2020 and December 31, 2019.  All stock option grants have a 10-year term, and will generally vest ratably over a three-year period beginning on the first anniversary of the grant date. The following is a summary of the activity in outstanding stock options under the Omnibus Plan:

 

 

 

 

 

 

 

 

 

 

 

    

 

    

 

 

 

 

Weighted-

    

 

 

 

 

Weighted-

 

 

Average

 

 

 

 

 

Average

 

 

Remaining

 

 

 

 

 

Exercise

 

 

Contractual Term

 

 

 

Options

 

Price

 

 

(in Years)

 

 

 

 

 

 

 

 

 

 

 

Outstanding as of December 31, 2019

 

793,084

 

$
14.91

 

 

 

 

Forfeited

 

(86,712)

 

 
12.61

 

 

 

 

Outstanding as of December 31, 2020

 

706,372

 

$
15.20

 

 
6.44

 

Options vested and exercisable as of December 31, 2020

 

661,053

 

 
16.08

 

 
6.37

 

Options vested and expected to vest as of December 31, 2020

 

706,372

 

 
15.20

 

 
6.44

 

The following is a summary of the activity in unvested stock options under the Omnibus Plan:

 

 

 

 

 

 

 

 

 

 

Weighted-

 

 

 

 

Average

 

 

 

 

Grant-Date

 

 

Number

 

Fair Value

Unvested as of December 31, 2019

 

250,571

 

$

1.90

Forfeited

 

(16,028)

 

 

2.33

Vested

 

(189,224)

 

 

2.05

Unvested as of December 31, 2020

 

45,319

 

$

1.10

Unvested stock options as of December 31, 2020 of 45,319, will entirely vest in 2021. 

The following table summarizes the changes in the number of outstanding restricted stock units for the year ended December 31, 2020 under the Omnibus Plan:

 

 

 

 

 

 

 

    

 

    

  Weighted-

 

 

 

 

Average

 

 

 

 

Grant-Date

 

 

Shares 

 

Fair Value

Outstanding as of December 31, 2019

 

7,347

 

$

22.49

Granted

 

180,001

 

 

2.12

Vested

 

(7,144)

 

 

22.51

Forfeited

 

(203)

 

 

21.75

Outstanding as of December 31, 2020

 

180,001

 

$

2.12

 

The Company granted 180,001 awards of restricted stock units for the year ended December 31, 2020. The restricted stock unit awards contain conditions associated with continued employment or service, and vest two years from the date of grant.  On the vesting dates, shares of common stock are issued to the award recipients.  Unvested restricted stock units of 180,001 as of December 31, 2020 will vest entirely in 2022.

 

During the year ended December 31, 2017, the Company granted awards of 932,837 cash performance units with a grant-date fair value of $663.  These awards settled in cash in three annual payments on the first, second and third anniversaries of the date of grant.  The cash performance units were based on the performance of the Company’s stock, measured based on the Company’s stock price at each of the first, second, and third anniversaries of the grant date compared to the Company’s stock price on the date of grant.  The Company recognized compensation expense on a straight-line basis for each annual performance period. The cash performance units were accounted for as a liability and remeasured to fair value at the end of each reporting period.  During the twelve months ended December 31, 2020, the third tranche of the cash performance units vested and the Company made a cash payment of $68 to the award recipients. There are no outstanding cash performance units as of December 31, 2020.

Compensation expense for the Omnibus Plan for the years ended December 31, 2020 and 2019 was $136 and $250, respectively.  As of December 31, 2020, the total unrecognized compensation expense related to unvested options and restricted stock units, was $340, which the Company expects to recognize over an estimated weighted average period of 1.7 years.

CPI Holdings I, Inc. Amended and Restated 2007 Stock Option Plan

In 2007, the Company’s Board of Directors adopted the CPI Holdings I, Inc. Amended and Restated 2007 Stock Option Plan (the “Option Plan”). Under the provisions of the Option Plan, stock options may be granted to employees, directors, and consultants at an exercise price greater than or equal to (and not less than) the fair market value of a share on the date the option is granted. 

As a result of the Company’s adoption of its Omnibus Plan, as further described above, no further awards will be made under the Option Plan.  During the year ended December 31, 2019, the remaining 6,600 outstanding shares in the Option Plan were exercised. As such, there were no outstanding shares remaining as of December 31, 2020. There was no compensation expense related to options previously granted under the Option Plan, for years ended December 31, 2020 and 2019.

v3.20.4
Segment Reporting
 12 Months Ended
Dec. 31, 2020
Segment Reporting  
Segment Reporting

18. Segment Reporting

The Company has identified reportable segments as those consolidated subsidiaries 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 December 31, 2020, the Company’s reportable segments were as follows:

·

Debit and Credit,

·

Prepaid Debit, and

·

Other.

 

Debit and Credit Segment

The Debit and Credit segment primarily produces Financial Payment Cards and provides integrated card services to card-issuing banks primarily in the United States. Products manufactured by this segment primarily include EMV and non-EMV Financial Payment Cards, including contact and contactless dual-interface cards, and plastic and encased metal cards, and Second Wave payment cards featuring a core made with ROBP.  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 Cards Brands. The Company provides CPI 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 operations are each audited for compliance by multiple Payment Card Brands. Many of the Company’s customers require CPI to comply with the standards of the PCI Security Standards Council.

Prepaid Debit Segment

The Prepaid Debit segment primarily provides integrated card services to Prepaid Debit Card providers 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 operation is audited for compliance by multiple Payment Card Brands.  Many of the Company’s customers require CPI to comply with the standards of the PCI Security Standards Council.

Other

The Other segment includes corporate expenses and a less significant operation that generated sales from the production of Financial Payment Cards and retail gift cards, and card personalization and fulfillment services in Canada, prior to its sale. The sale agreement did not include the portions of the business relating to Financial Payment Cards, as those business customers of the Canadian subsidiary migrated to the Company’s operations in the U.S. or to other service providers in 2019.

Performance Measures of Reportable Segments

Net sales and EBITDA from continuing operations of the Company’s reportable segments for the years ended December 31, 2020 and 2019 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

EBITDA

 

 

December 31,

 

December 31,

 

    

2020

    

2019

    

2020

    

2019

Debit and Credit

 

$

250,427

 

$

213,141

 

$

64,522

 

$

45,635

Prepaid Debit

 

 

63,596

 

 

64,330

 

 

22,156

 

 

22,456

Other

 

 

 —

 

 

1,679

 

 

(31,569)

 

 

(27,468)

Intersegment eliminations(a)

 

 

(1,834)

 

 

(1,077)

 

 

 —

 

 

 —

Total:

 

$

312,189

 

$

278,073

 

$

55,109

 

$

40,623

(a)

Amounts include the elimination of sales between segments for consolidation.

 

The following table provides a reconciliation of total segment EBITDA from continuing operations to “Net loss from continuing operations” for the years ended December 31, 2020 and 2019:

 

 

 

 

 

 

 

 

 

December 31,

 

    

2020

    

2019

Total segment EBITDA from continuing operations

 

$

55,109

 

$

40,623

Interest, net

 

 

(25,397)

 

 

(24,891)

Income tax benefit (expense)

 

 

3,305

 

 

(3,474)

Depreciation and amortization

 

 

(16,827)

 

 

(17,251)

Net Income (loss) from continuing operations

 

$

16,190

 

$

(4,993)

 

Balance Sheet Data of Reportable Segments

 

Total assets of the Company’s reportable segments as of December 31, 2020 and 2019 were as follows:

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

    

2020

    

2019

 

Debit and Credit

 

$

215,846

 

$

176,020

 

Prepaid Debit

 

 

34,734

 

 

25,259

 

Other

 

 

15,571

 

 

11,732

 

Total assets

 

$

266,151

 

$

213,011

 

 

Net Sales to Geographic Location; Property, Equipment and Leasehold Improvements and Long-Lived assets by Geographic Segments

 

Subsequent to the sale of the Company’s Canada operations on April 1, 2019, the Company’s Net Sales, Property, Equipment and Leasehold Improvements, and Long-Lived assets relating to geographic locations outside of the United States is insignificant.

 

Net Sales to Major Customers

 

For the year ended December 31, 2020 the Company had two customers that represented more than 10% of the Company’s consolidated net sales.  Net sales for these customers were approximately 15% and 14% of the Company’s consolidated net sales. For the year ended December 31, 2019 one customer represented 18% of the Company’s consolidated net sales.

 

Net Sales by Product and Services

 

Net sales from products and services sold by the Company for the years ended December 31, 2020 and 2019 were as follows:

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

    

2020

    

2019

    

Product net sales(a)

 

$

171,968

 

$

143,941

 

Services net sales(b)

 

 

140,221

 

 

134,132

 

Total net sales:

 

$

312,189

 

$

278,073

 

(a)

 “Products” net sales include the design and production of Financial Payment Cards in contact-EMV, contactless dual-interface EMV, metal, contactless and magnetic stripe card formats. The Company also generates “Products” revenue from the sale of Card@Once printers and consumables, private label credit cards and retail gift cards.

 

(b)

“Services” net sales include revenue from the personalization and fulfillment of Financial Payment Cards, providing tamper-evident security packaging and fulfillment services to Prepaid Debit Card program managers and software as a service personalization of instant issuance cards.
v3.20.4
Quarterly Financial Information (Unaudited)
 12 Months Ended
Dec. 31, 2020
Quarterly Financial Information (Unaudited)  
Quarterly Financial Information (Unaudited)

19. Quarterly Financial Information (Unaudited)

 

Summarized quarterly results for the years ended December 31, 2020 and 2019 on a continuing operations basis, were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

 

 

 

 

 

 

Year Ended

 

 

 

 

 

 

 

 

 

 

 

 December 31, 

 

2020 by Quarter:

    

Q1

    

Q2

    

Q3

    

Q4

    

2020

 

Net sales

 

$

73,969

 

$

71,378

 

$

82,702

 

$

84,140

 

$

312,189

 

Gross profit

 

$

25,648

 

$

23,090

 

$

30,607

 

$

30,963

 

$

110,308

 

Net income from continuing operations

 

$

1,782

 

$

1,283

 

$

5,809

 

$

7,316

 

$

16,190

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings per share from continuing operations

 

$

0.16

 

$

0.11

 

$

0.52

 

$

0.65

 

$

1.44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

 

 

 

 

 

 

 

 

 

December 31,

2019 by Quarter:

    

Q1

    

Q2

    

Q3

    

Q4

    

2019

Net sales

 

$

66,866

 

$

66,901

 

$

71,681

 

$

72,625

 

$

278,073

Gross profit

 

$

21,459

 

$

22,318

 

$

25,357

 

$

21,936

 

$

91,070

Net income (loss) from continuing operations

 

$

(3,262)

 

$

1,185

 

$

(629)

 

$

(2,287)

 

$

(4,993)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings (loss) per share from continuing operations

 

$

(0.29)

 

$
0.11

 

$

(0.06)

 

$

(0.20)

 

$

(0.45)

 

v3.20.4
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2020
Summary of Significant Accounting Policies  
Basis of Presentation

Basis of Presentation

The accompanying Consolidated Financial Statements include the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated.

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents and they are stated at cost, which approximates fair value.

Trade Accounts Receivable and Concentration of Credit Risk

Trade Accounts Receivable and Concentration of Credit Risk

Accounts receivable are stated at the amount management expects to collect from outstanding balances. The Company performs ongoing credit evaluations of its customers and generally requires no collateral to secure accounts receivable.

 

 

 

 

 

 

 

 

    

December 31, 2020

    

December 31, 2019

Trade accounts receivable

 

$

44,305

 

$

39,004

Unbilled accounts receivable

 

 

10,576

 

 

4,223

 

 

 

54,881

 

 

43,227

Less allowance for doubtful accounts

 

 

(289)

 

 

(395)

 

 

$

54,592

 

$

42,832

 

The Company maintains an allowance for potentially uncollectible accounts receivable based upon its assessment of the collectability of accounts receivable. Accounts are written off against the allowance when it is determined collection will not occur. The allowance for bad debt activity for the years ended December 31, 2020 and 2019 is summarized as follows:

 

 

 

 

 

 

Balance as of December 31, 2018

    

$

211

 

Bad debt expense

 

 

228

 

Write-off of uncollectible accounts

 

 

(37)

 

Currency translation adjustments

 

 

(7)

 

Balance as of December 31, 2019

 

$

395

 

Bad debt expense (benefit)

 

 

(89)

 

Write-off of uncollectible accounts

 

 

(2)

 

Currency translation adjustments

 

 

(15)

 

Balance as of December 31, 2020

 

$

289

 

 

During 2020, the Company recorded a bad debt benefit due to the reduction of allowances for potentially uncollectible accounts receivable from the prior year.  The increase in bad debt expense during 2019 primarily relates to reserves established for outstanding receivables from the Company’s Canadian operations that were disposed on April 1, 2019.

For the year ended December 31, 2020 the Company had two customers that represented more than 10% of the Company’s consolidated net sales.  Net sales for these customers were approximately 15% and 14% of the Company’s consolidated net sales. For the year ended December 31, 2019 one customer represented 18% of the Company’s consolidated net sales.

Inventories

Inventories

Inventories consist of raw materials, and finished goods and are measured at the lower of cost or net realizable value (determined on the first-in, first-out, specific identification or weighted-average method basis). Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Finished goods inventory represents primarily stock cards and Card@Once printers.  The stock cards are not manufactured for a specific customer, but are ready to be personalized and sold as customer orders are received. The Company monitors inventory for events or circumstances that may indicate the net realizable value is less than the carrying value of inventory, such as negative margins, expiration of material usage, and other forms of obsolescence, and records adjustments to the valuation of inventory, as necessary.

Plant, Equipment and Leasehold Improvements

Plant, Equipment and Leasehold Improvements

Plant, equipment and leasehold improvements are recorded at cost. Accumulated depreciation is computed using the straight-line method over the lesser of the estimated useful life of the related assets (generally 3 to 10 years for machinery and equipment, furniture, computer equipment, and leasehold improvements) or, when applicable, the lease term. Maintenance and repairs that do not extend the useful life of the respective assets are charged to expense as incurred.

Long-lived assets with finite lives are reviewed for impairment whenever events indicate that the carrying amount of the asset or the carrying amounts of the asset group containing the asset may not be recoverable. In such reviews, estimated undiscounted future cash flows associated with these assets or asset groups are compared with their carrying value to determine if a write-down to fair value is required. 

Goodwill and Intangible Assets

Goodwill and Intangible Assets

 Goodwill is not amortized, but instead is tested for impairment at least annually on October 1 or more frequently when an event occurs or circumstances change that indicates the carrying value may not be recoverable. For impairment evaluations, the Company may first make a qualitative assessment with respect to goodwill, if appropriate. In accordance with accounting standards,  the Company performs its goodwill impairment test by comparing the fair value of the reporting unit with its carrying amount, and recognizes an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its fair value.

All of the Company’s goodwill is included in the Debit and Credit segment.  The Company generally bases its measurement of the fair value of a reporting unit on a blended analysis of the present value of future discounted cash flows and the market valuation approach. The discounted cash flows model indicates the fair value of the reporting unit based on the present value of the cash flows that the Company expects the reporting unit to generate in the future. The Company's significant estimates in the discounted cash flows model include: its weighted average cost of capital; discrete and long-term rate of growth and profitability of the reporting unit's business; and working capital effects. The market valuation approach indicates the fair value of the business based on a comparison of the reporting unit to publicly traded companies in similar lines of business. Significant estimates in the market valuation approach model include identifying similar companies with comparable business factors such as size, growth, profitability, risk and return on investment, and assessing comparable revenue and operating income multiples in estimating the fair value of the reporting unit.

Acquired finite-lived intangible assets are amortized on a straight-line basis over the estimated useful lives of the assets, and are reviewed for impairment whenever events indicate that the carrying amount of the asset may not be recoverable. In such reviews, estimated undiscounted future cash flows associated with these assets are compared with their carrying value to determine if a write-down to fair value is required.    

Sales Tax

Sales Tax

The Company records sales tax collected from its customers on a net basis, and therefore excludes it from net sales as defined in ASC 606, Revenue from Contracts with Customers. Cash collected from customers is recorded in accrued expenses on the Company’s consolidated Balance Sheet and then remitted to the proper taxing authority. In addition, refer to Note 15 “Commitments and Contingencies” for discussion regarding an estimated sales tax liability the Company recorded in relation to historical activity in certain states.

Income Taxes

Income Taxes

The Company accounts for income taxes using an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.

The Company has deferred tax assets and liabilities and maintains valuation allowances where it is more likely than not that all or a portion of deferred tax assets will not be realized. To the extent the Company determines that it will not realize the benefit of some or all of its deferred tax assets, then these deferred tax assets will be adjusted through the Company’s income tax expense in the period in which this determination is made.

The Company establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due.  The reserves are established when the Company believes that certain positions are likely to be challenged and may not be fully sustained on review by tax authorities.  The Company adjusts uncertain tax position in light of changing facts and circumstances, such as the closing of a tax audit or refinement of an estimate.  The Company recognizes the tax benefits from uncertain tax positions only when it is more likely than not, based on the technical merits of the position, that the tax position will be sustained upon examination, including the resolution of any related appeals or litigation. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense.

Stock-Based Compensation

Stock-Based Compensation

The Company accounts for stock-based compensation pursuant to ASC 718, Share-Based Payments. All stock-based compensation to employees is required to be measured at fair value and expensed over the requisite service period. The Company accounts for forfeitures as they occur and reverses previously recognized expense for the unvested portion of the forfeited shares.  The Company recognizes compensation expense on awards on a straight-line basis over the vesting period for each tranche of an award. Refer to Note 17 “Stock Based Compensation” for additional discussion regarding details of the Company's stock-based compensation plans.

Net Sales

Net Sales

Products Net Sales

“Products” net sales are recognized when obligations under the terms of a contract with a customer are satisfied. In most instances, this occurs over time as cards are manufactured for specific customers, have no alternative use and the Company has an enforceable right to payment for work performed. For work performed but not completed and unbilled, the Company estimates revenue by taking actual costs incurred and applying historical margins for similar types of contracts. Items included in “Products” net sales are the design and production of Financial Payment Cards, including contact-EMV, Dual-Interface EMV, Second Wave, metal, contactless and magnetic stripe cards, and private label credit cards and retail gift cards. Card@Once® printers and consumables are also included in “Products” net sales, and their associated revenues are recognized at the time of shipping. The Company includes gross shipping and handling revenue in net sales, and shipping and handling costs in cost of sales.

 

Services Net Sales

 

Net sales are recognized for “Services” as the services are performed. Items included in “Services” net sales include the personalization and fulfillment of Financial Payment Cards, providing tamper-evident secure packaging and fulfillment services to Prepaid Debit Card program managers, and software as a service personalization of instant issuance debit cards. The Company also generates “Service” revenue usage-fees from the Company’s patented card design software, known as MYCA, which provides customers and cardholders the ability to design cards on the internet and customize cards with individualized digital images. “Services” revenue was also generated from personalizing retail gift cards historically in Canada prior to disposition. As applicable, for work performed but not completed and unbilled, the Company estimates revenue by taking actual costs incurred and applying historical margins for similar types of contracts.

 

Customer Contracts

The Company often enters into MSAs with its customers. Generally, enforceable rights and obligations for goods and services occur only when a customer places a purchase order or statement of work to obtain goods or services under an MSA. The contract term as defined by ASC 606 is the length of time it takes to deliver the goods or services promised under the purchase order or statement of work. As such, the Company's contracts are generally considered short term in nature.

 

Use of Estimates

Use of Estimates

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These accounting principles require management to make assumptions and estimates relating to the reporting of assets and liabilities in its preparation of the consolidated financial statements. Significant items subject to such estimates and assumptions include the carrying amount of property and equipment, goodwill and intangible assets, leases, liability for sales tax, valuation allowances for inventories and deferred taxes, revenue recognized for work performed but not completed, and uncertain tax positions. Actual results could differ from those estimates.

Foreign Currency Translation

Foreign Currency Translation

Financial statements of foreign subsidiaries that use local currencies as their functional currency are translated into U.S. dollars using the exchange rate at each balance sheet date for assets and liabilities and the weighted-average exchange rate for each reporting period for net sales, expenses, gains and losses. Translation adjustments are recorded as a component of Accumulated Other Comprehensive Loss in the accompanying consolidated financial statements. Subsequent to the sale of the Company’s UK Limited and Canada subsidiary, the Company has no significant foreign subsidiaries.

Foreign currency transaction gains and losses resulting from the process of re-measurement are recorded in “Foreign currency loss” in the accompanying Consolidated Statements of Operations and Comprehensive Loss. For the years ended December 31, 2020 and 2019 there were ($7) and ($1,335) of such foreign currency losses, respectively. The foreign currency loss for the year ended December 31, 2019, includes the release of the cumulative translation adjustment of $1,329 from “Accumulated Other Comprehensive Loss” on the Balance Sheet in connection with the sale of the Company’s Canada subsidiary.  

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In February 2016, the FASB issued ASC 842, Leases, which provides guidance for accounting for leases. The guidance required companies to recognize the assets and liabilities for the rights and obligations created by leased assets. The Company adopted the guidance on January 1, 2019 and used the adoption date as the date of initial application as allowed under ASC 842. ROU represents the right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The lease term includes options to extend the lease when it is reasonably certain that the Company will exercise that option. A lease is deemed to exist when the Company has the right to control the use of identified property, plant or equipment, as conveyed through a contract, for a certain period of time and consideration paid. The right to control is deemed to occur when the Company has the right to obtain substantially all of the economic benefits of the identified assets and the right to direct the use of such assets. Lease expense for operating leases recorded in the balance sheet is included in operating costs and expenses and is based on the future minimum lease payments recognized on a straight-line basis over the term of the lease plus any variable lease costs. The Company recorded lease liabilities and right-to-use assets as the present value of future minimum lease payments using a discount rate that is either implicit in the lease or our incremental borrowing rate. If not implicit in the lease, the Company estimates the incremental borrowing rate by using market data from similar companies, having publicly traded debt instruments and similar credit ratings. The estimated incremental borrowing rate utilizes judgements, including selection of comparable companies, credit risk, sensitivity analysis and certain other valuation estimates. The Company also uses judgement in determining whether a contract contains a lease.

Recently Issued Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. This ASU changes the model for the recognition of credit losses from an incurred loss model, which recognized credit losses only if it was probable that a loss had been incurred, to an expected loss model, which requires the Company to estimate the total credit losses expected on the portfolio of financial instruments. The effective date of ASU 2016-13 was amended by ASU 2019-10, Credit Losses Effective Dates. Since CPI is a smaller reporting company, adoption of this accounting standard is effective for the Company for fiscal years beginning after December 15, 2022, and interim periods therein, with early adoption permitted. The Company has elected not to early adopt this accounting standard in 2020. The Company is evaluating the impact of adoption of this standard, and does not anticipate the application of ASU 2016-13 will have a material impact on the Company’s consolidated financial position and results of operations. 

Adjustment of Prior Period Financial Statements for Immaterial Items

Adjustment of Prior Period Financial Statements for Immaterial Items

In accordance with Securities and Exchange Commission Staff Accounting Bulletin 99, Materiality, codified in ASC 250, Presentation of Financial Statements, the Company corrected two immaterial items relating to estimated sales tax expense and depreciation expense for all prior periods presented by revising the consolidated financial statements and other financial information included herein. The total impact on prior years for estimated sales tax expense was $1,907 and depreciation expense was $476. These adjustments represent the expenses pertaining to the period of 2017 to 2019, including an increase to estimated sales tax expense recorded in “Selling, General and Administrative expenses” (“SG&A”) of $584, and depreciation expense in “Cost of sales” of $249, for the year ended December 31, 2019. For the year ended December 31, 2020, the Company recorded estimated sales tax expense in SG&A of $926.  Refer to Note 15, “Commitments and Contingencies” for additional discussion of the estimated sales tax liability recorded in “Accrued expenses” on the consolidated balance sheet.    

v3.20.4
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2020
Summary of Significant Accounting Policies  
Schedule of trade accounts receivable

 

 

 

 

 

 

 

 

    

December 31, 2020

    

December 31, 2019

Trade accounts receivable

 

$

44,305

 

$

39,004

Unbilled accounts receivable

 

 

10,576

 

 

4,223

 

 

 

54,881

 

 

43,227

Less allowance for doubtful accounts

 

 

(289)

 

 

(395)

 

 

$

54,592

 

$

42,832

 

Schedule of allowance for bad debt and credit activity

 

 

 

 

 

 

Balance as of December 31, 2018

    

$

211

 

Bad debt expense

 

 

228

 

Write-off of uncollectible accounts

 

 

(37)

 

Currency translation adjustments

 

 

(7)

 

Balance as of December 31, 2019

 

$

395

 

Bad debt expense (benefit)

 

 

(89)

 

Write-off of uncollectible accounts

 

 

(2)

 

Currency translation adjustments

 

 

(15)

 

Balance as of December 31, 2020

 

$

289

 

 

v3.20.4
Net Sales (Tables)
 12 Months Ended
Dec. 31, 2020
Net Sales.  
Schedule of disaggregation of net sales by major source

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended December 31, 2020

 

 

Products

 

Services

 

Total

Debit and Credit

 

$

173,765

 

$

76,662

 

$

250,427

Prepaid Debit

 

 

 —

 

 

63,596

 

 

63,596

Intersegment eliminations

 

 

(1,797)

 

 

(37)

 

 

(1,834)

Total

 

$

171,968

 

$

140,221

 

$

312,189

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended December 31, 2019

 

 

Products

 

Services

 

Total

Debit and Credit

 

$

144,541

 

$

68,600

 

$

213,141

Prepaid Debit

 

 

 —

 

 

64,330

 

 

64,330

Other

 

 

396

 

 

1,283

 

 

1,679

Intersegment eliminations

 

 

(996)

 

 

(81)

 

 

(1,077)

Total

 

$

143,941

 

$

134,132

 

$

278,073

 

v3.20.4
Inventories (Tables)
 12 Months Ended
Dec. 31, 2020
Inventories  
Schedule of inventories

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

    

2020

    

2019

 

Raw materials

 

$

23,009

 

$

16,492

 

Finished goods

 

 

4,635

 

 

5,047

 

Inventory reserve

 

 

(2,848)

 

 

(1,347)

 

 

 

$

24,796

 

$

20,192

 

 

v3.20.4
Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets (Tables)
 12 Months Ended
Dec. 31, 2020
Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets  
Schedule of plant, equipment, leasehold improvements and operating lease right-to-use assets

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

    

2020

    

2019

 

Machinery and equipment

 

$

55,459

 

$

52,212

 

Machinery and equipment under financing leases

 

 

9,974

 

 

8,256

 

Furniture, fixtures and computer equipment

 

 

4,410

 

 

4,749

 

Leasehold improvements

 

 

15,083

 

 

14,905

 

Construction in progress

 

 

2,386

 

 

455

 

 

 

 

87,312

 

 

80,577

 

Less accumulated depreciation and amortization

 

 

(55,092)

 

 

(45,277)

 

Operating lease right-of-use assets, net of accumulated amortization

 

 

7,183

 

 

6,312

 

 

 

$

39,403

 

$

41,612

 

 

v3.20.4
Goodwill and Other Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2020
Goodwill and Other Intangible Assets  
Schedule of intangible assets excluding goodwill

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2020

 

December 31, 2019

 

 

    

Weighted Average

    

 

    

Accumulated

    

Net Book

    

 

    

Accumulated

    

Net Book

 

 

 

Life (Years)

 

Cost

 

Amortization

 

Value

 

Cost

 

Amortization

 

Value

 

Customer relationships

 

17.2

 

$

55,454

 

 

(32,141)

 

$

23,313

 

$

55,454

 

$

(28,865)

 

$

26,589

 

Technology and software

 

 8

 

 

7,101

 

 

(5,881)

 

 

1,220

 

 

7,101

 

 

(4,952)

 

 

2,149

 

Trademarks

 

8.7

 

 

3,330

 

 

(1,656)

 

 

1,674

 

 

3,330

 

 

(1,266)

 

 

2,064

 

Intangible assets subject to amortization

 

 

 

$

65,885

 

$

(39,678)

 

$

26,207

 

$

65,885

 

$

(35,083)

 

$

30,802

 

 

Schedule of future aggregate amortization expense for identified amortizable intangibles

 

 

 

 

2021

 

$

4,352

2022

    

 

3,867

2023

 

 

3,867

2024

 

 

3,630

2025

 

 

3,440

Thereafter

 

 

7,051

 

 

$

26,207

 

v3.20.4
Fair Value of Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2020
Fair Value of Financial Instruments  
Schedule of financial assets and liabilities subject to fair value measurements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carrying

 

 

 

Fair Value Measurement at

 

 

Value as of

 

Fair Value as of

 

December 31, 2020

 

 

December 31,

 

December 31,

 

(Using Fair Value Hierarchy)

 

    

2020

    

2020

    

Level 1

    

Level 2

    

Level 3

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Term Loan

 

$

312,500

 

$

287,500

 

$

—

 

$

287,500

 

$

—

Senior Credit Facility

 

$

30,000

 

$

30,000

 

$

—

 

$

 —

 

$

30,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carrying

 

 

 

Fair Value Measurement at

 

 

Value as of

 

Fair Value as of

 

December 31, 2019

 

 

December 31,

 

December 31,

 

(Using Fair Value Hierarchy)

 

    

2019

    

2019

    

Level 1

    

Level 2

    

Level 3

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Term Loan

 

$

312,500

 

$

234,375

 

$

—

 

$

234,375

 

$

—

 

v3.20.4
Accrued Liabilities (Tables)
 12 Months Ended
Dec. 31, 2020
Accrued Liabilities  
Schedule of Accrued Liabilities

 

 

 

 

 

 

 

 

    

December 31, 2020

    

December 31, 2019

 

 

 

 

 

 

    

Accrued payroll and related employee expenses

 

$

4,938

 

$

3,954

Accrued employee performance bonus

 

 

4,873

 

 

3,920

Employer payroll tax, including social security deferral

 

 

3,034

 

 

368

Accrued rebates

 

 

1,178

 

 

1,573

Sales tax liability

 

 

1,696

 

 

1,907

Accrued Interest

 

 

4,145

 

 

4,951

Operating and financing lease liability (current portion)

 

 

4,407

 

 

4,494

Other

 

 

3,878

 

 

3,568

Total accrued expenses

 

$

28,149

 

$

24,735

 

v3.20.4
Financing and Operating Leases (Tables)
 12 Months Ended
Dec. 31, 2020
Financing and Operating Leases  
Schedule of operating and finance lease costs

 

 

 

 

 

 

 

 

 

Year Ended

 

Year Ended

 

 

 

December 31, 2020

 

December 31, 2019

 

 

 

 

 

 

Operating lease costs

 

$

2,649

 

2,625

Variable lease costs

 

 

667

 

719

Short-term operating lease costs

 

 

75

 

 -

Total expense from operating leases

 

$

3,391

 

3,344

 

 

 

 

 

 

Finance lease cost:

 

 

 

 

 

Right-of-use amortization expense

 

$

1,342

 

886

  Interest on lease liabilities

 

 

540

 

290

  Total financing lease costs

 

$

1,882

 

1,176

 

Schedule of balances for operating and financing leases

 

 

 

 

 

 

 

 

    

December 31, 2020

 

December 31, 2019

Operating leases

 

 

 

 

 

 

Operating lease right-of-use assets, net of amortization

 

$

7,183

 

$

6,312

 

 

 

 

 

 

 

Operating lease liability (current)

 

$

2,267

 

$

2,283

Long-term operating liability

 

 

5,491

 

 

5,067

  Total operating lease liabilities

 

$

7,758

 

$

7,350

 

 

 

 

 

 

 

Financing leases

 

 

 

 

 

 

Property, equipment and leasehold improvements

 

$

9,974

 

$

8,256

Accumulated depreciation

 

 

(2,422)

 

 

(1,094)

  Total financing leases in property, equipment and leasehold improvements, net

 

$

7,552

 

$

7,162

 

 

 

 

 

 

 

Financing lease liability (current)

 

$

2,140

 

$

2,211

Long-term financing liability

 

 

3,052

 

 

3,886

  Total financing lease liabilities

 

$

5,192

 

$

6,097

 

Schedule of components of lease expense

 

 

 

 

 

 

 

December 31, 2020

Weighted Average Remaining Lease Term

 

 

 

  Operating Leases

 

 
4.93

  Financing Leases

 

 
2.52

 

 

 

 

Weighted Average Discount Rate

 

 

 

  Operating Leases

 

 
9.29%

  Financing Leases

 

 
8.71%

 

Schedule of future cash payments with respect to lease obligations

 

 

 

 

 

 

 

 

 

 

Operating

 

 

Financing

 

 

 

Lease

 

 

Leases

Year Ending

 

 

 

 

 

 

2021

 

$

2,894

 

$

2,494

2022

 

 

1,782

 

 

2,007

2023

 

 

1,467

 

 

1,069

2024

 

 

1,250

 

 

261

2025

 

 

670

 

 

 2

2026

 

 

1,792

 

 

 —

  Total lease payments

 

 

9,855

 

 

5,833

Less imputed interest

 

 

(2,097)

 

 

(641)

  Total 

 

$

7,758

 

$

5,192

 

v3.20.4
Long-Term Debt (Tables)
 12 Months Ended
Dec. 31, 2020
Long-Term Debt.  
Schedule of long-term debt

Long-term debt consists of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Interest

 

December 31,

 

December 31,

 

 

 

Rate (1)

    

2020

    

2019

    

First Lien Term Loan

 

 
5.50

%  

 

312,500

 

 

312,500

 

Senior Credit Facility

 

 
9.50

%  

 

30,000

 

 

 —

 

Unamortized discount

 

 

 

 

 

(1,988)

 

 

(1,770)

 

Unamortized deferred financing costs

 

 

 

 

 

(3,804)

 

 

(2,952)

 

Total long-term debt

 

 

 

 

 

336,708

 

 

307,778

 

Less current maturities

 

 

 

 

 

(8,027)

 

 

 —

 

Long-term debt, net of current maturities

 

 

 

 

 

328,681

 

 

307,778

 

(1)  The interest rate on the First Lien Term Loan was 5.5%, and 6.71% as of December 31, 2020, and December 31, 2019, respectively. The interest rate on the Senior Credit Facility, which was entered into on March 6, 2020, was 9.5% as of December 31, 2020.

v3.20.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2020
Income Taxes  
Schedule of income tax (benefit) expense from continuing operations and effective income tax rates

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

    

2020

    

2019

    

Current taxes:

 

 

 

 

 

 

 

Domestic

 

$

(4,364)

 

$

2,490

 

Foreign

 

 

16

 

 

15

 

 

 

 

(4,348)

 

 

2,505

 

Deferred taxes:

 

 

 

 

 

 

 

Domestic

 

 

1,043

 

 

969

 

Foreign

 

 

 —

 

 

 —

 

 

 

 

1,043

 

 

969

 

Income tax (benefit) expense

 

$

(3,305)

 

$

3,474

 

Income (loss) before income taxes

 

 

 

 

 

 

 

Domestic income (loss)

 

$

12,790

 

$

(40)

 

Foreign income (loss)

 

 

95

 

 

(1,479)

 

Total

 

$

12,885

 

$

(1,519)

 

Effective income tax rate

 

 

(25.6)

%

 

(228.7)

%

 

Schedule of effective income tax rate reconciliation

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

2020

    

2019

    

Tax at federal statutory rate

 

21.0

%

21.0

%

State income taxes

 

5.3

 

(50.3)

 

Foreign taxes

 

 —

 

(23.3)

 

Tax benefit for U.K. sale

 

 —

 

154.8

 

Valuation allowance

 

(41.1)

 

(213.8)

 

Unrecognized tax benefits

 

5.6

 

(15.5)

 

Tax credits

 

(1.2)

 

(48.6)

 

Permanent items

 

4.0

 

(54.1)

 

Tax benefit CARES Act

 

(20.9)

 

 —

 

Other

 

1.7

 

1.1

 

Effective income tax rate

 

(25.6)

%

(228.7)

%

 

Schedule of components of deferred tax assets and liabilities

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

    

2020

 

2019

 

Deferred tax assets:

 

 

 

 

 

 

 

Accrued expense

 

$

2,519

 

$

2,854

 

Net operating loss carryforward

 

 

524

 

 

1,216

 

Deferred financing costs

 

 

260

 

 

400

 

Stock compensation

 

 

935

 

 

892

 

Tax credit carryforward

 

 

645

 

 

17

 

Interest limitation

 

 

1,418

 

 

8,773

 

Lease liability

 

 

1,899

 

 

1,728

 

Capital loss carryover

 

 

2,030

 

 

 —

 

Other

 

 

2,598

 

 

669

 

Total gross deferred tax assets

 

 

12,828

 

 

16,549

 

Valuation allowance

 

 

(2,615)

 

 

(5,659)

 

Net deferred tax assets

 

 

10,213

 

 

10,890

 

Deferred tax liabilities:

 

 

 

 

 

 

 

Plant, equipment and leasehold improvements

 

 

(4,939)

 

 

(5,382)

 

Intangible assets

 

 

(8,689)

 

 

(8,877)

 

Right-of-use assets

 

 

(1,758)

 

 

(1,486)

 

Prepaid expenses and other

 

 

(2,236)

 

 

(1,511)

 

Total gross deferred tax liabilities

 

 

(17,622)

 

 

(17,256)

 

Net deferred tax liabilities

 

$

(7,409)

 

$

(6,366)

 

 

Unrecognized Tax Benefits

 

 

 

 

 

 

 

 

Balance as of December 31, 2019

 

$

2,172

Increase related to current year tax position

 

 

72

Increase related to prior year tax position

 

 

1,068

Balance as of December 31, 2020

 

$

3,312

 

v3.20.4
Income (Loss) per Share (Tables)
 12 Months Ended
Dec. 31, 2020
Income (Loss) per Share  
Computation of basic and diluted loss per share

 

 

 

 

 

 

 

 

 

Year Ended

 

 

December 31, 

 

    

2020

 

2019

Numerator:

 

 

    

    

 

    

Net income (loss) from continuing operations

 

$

16,190

 

$

(4,993)

Net loss from discontinued operation

 

 

(61)

 

 

(124)

Net income (loss)

 

$

16,129

 

$

(5,117)

 

 

 

 

 

 

 

Denominator: 

 

 

 

 

 

 

Basic weighted-average common shares outstanding

 

 

11,228,707

 

 

11,196,710

Dilutive shares

 

 

3,297

 

 

 —

Diluted weighted-average common shares outstanding

 

 

11,232,004

 

 

11,196,710

 

 

 

 

 

 

 

Net income (loss) per share from continuing operations - Basic:

 

$

1.44

 

$

(0.45)

Net income (loss) per share from discontinued operations - Basic:

 

 

0.00

 

 

(0.01)

Net income (loss) per share - Basic:

 

$

1.44

 

$

(0.46)

 

 

 

 

 

 

 

Net income (loss) per share from continuing operations - Diluted:

 

$

1.44

 

$

(0.45)

Net income (loss) per share from discontinued operations - Diluted:

 

 

0.00

 

 

(0.01)

Net income (loss) per share - Diluted:

 

$

1.44

 

$

(0.46)

 

v3.20.4
Stock Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2020
Stock Based Compensation  
Summary of activity in non-vested stock options

 

 

 

 

 

 

 

 

 

 

 

    

 

    

 

 

 

 

Weighted-

    

 

 

 

 

Weighted-

 

 

Average

 

 

 

 

 

Average

 

 

Remaining

 

 

 

 

 

Exercise

 

 

Contractual Term

 

 

 

Options

 

Price

 

 

(in Years)

 

 

 

 

 

 

 

 

 

 

 

Outstanding as of December 31, 2019

 

793,084

 

$
14.91

 

 

 

 

Forfeited

 

(86,712)

 

 
12.61

 

 

 

 

Outstanding as of December 31, 2020

 

706,372

 

$
15.20

 

 
6.44

 

Options vested and exercisable as of December 31, 2020

 

661,053

 

 
16.08

 

 
6.37

 

Options vested and expected to vest as of December 31, 2020

 

706,372

 

 
15.20

 

 
6.44

 

 

Schedule of vesting for unvested options

 

 

 

 

 

 

 

 

 

 

Weighted-

 

 

 

 

Average

 

 

 

 

Grant-Date

 

 

Number

 

Fair Value

Unvested as of December 31, 2019

 

250,571

 

$

1.90

Forfeited

 

(16,028)

 

 

2.33

Vested

 

(189,224)

 

 

2.05

Unvested as of December 31, 2020

 

45,319

 

$

1.10

 

Summary of changes in outstanding restricted stock units

 

 

 

 

 

 

 

    

 

    

  Weighted-

 

 

 

 

Average

 

 

 

 

Grant-Date

 

 

Shares 

 

Fair Value

Outstanding as of December 31, 2019

 

7,347

 

$

22.49

Granted

 

180,001

 

 

2.12

Vested

 

(7,144)

 

 

22.51

Forfeited

 

(203)

 

 

21.75

Outstanding as of December 31, 2020

 

180,001

 

$

2.12

 

v3.20.4
Segment Reporting (Tables)
 12 Months Ended
Dec. 31, 2020
Segment Reporting  
Schedule of revenue and EBITDA of the company's reportable segments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

EBITDA

 

 

December 31,

 

December 31,

 

    

2020

    

2019

    

2020

    

2019

Debit and Credit

 

$

250,427

 

$

213,141

 

$

64,522

 

$

45,635

Prepaid Debit

 

 

63,596

 

 

64,330

 

 

22,156

 

 

22,456

Other

 

 

 —

 

 

1,679

 

 

(31,569)

 

 

(27,468)

Intersegment eliminations(a)

 

 

(1,834)

 

 

(1,077)

 

 

 —

 

 

 —

Total:

 

$

312,189

 

$

278,073

 

$

55,109

 

$

40,623

(a)

Amounts include the elimination of sales between segments for consolidation.
Schedule of reconciliation of total segment EBITDA to income before taxes

 

 

 

 

 

 

 

 

 

December 31,

 

    

2020

    

2019

Total segment EBITDA from continuing operations

 

$

55,109

 

$

40,623

Interest, net

 

 

(25,397)

 

 

(24,891)

Income tax benefit (expense)

 

 

3,305

 

 

(3,474)

Depreciation and amortization

 

 

(16,827)

 

 

(17,251)

Net Income (loss) from continuing operations

 

$

16,190

 

$

(4,993)

 

Schedule of total assets of the company's reportable segments

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

    

2020

    

2019

 

Debit and Credit

 

$

215,846

 

$

176,020

 

Prepaid Debit

 

 

34,734

 

 

25,259

 

Other

 

 

15,571

 

 

11,732

 

Total assets

 

$

266,151

 

$

213,011

 

 

Schedule of net sales from product and services sold by the company

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

    

2020

    

2019

    

Product net sales(a)

 

$

171,968

 

$

143,941

 

Services net sales(b)

 

 

140,221

 

 

134,132

 

Total net sales:

 

$

312,189

 

$

278,073

 

(a)

 “Products” net sales include the design and production of Financial Payment Cards in contact-EMV, contactless dual-interface EMV, metal, contactless and magnetic stripe card formats. The Company also generates “Products” revenue from the sale of Card@Once printers and consumables, private label credit cards and retail gift cards.

 

“Services” net sales include revenue from the personalization and fulfillment of Financial Payment Cards, providing tamper-evident security packaging and fulfillment services to Prepaid Debit Card program managers and software as a service personalization of instant issuance cards.

v3.20.4
Quarterly Financial Information (Unaudited) (Tables)
 12 Months Ended
Dec. 31, 2020
Quarterly Financial Information (Unaudited)  
Schedule of summarized quarterly results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

 

 

 

 

 

 

Year Ended

 

 

 

 

 

 

 

 

 

 

 

 December 31, 

 

2020 by Quarter:

    

Q1

    

Q2

    

Q3

    

Q4

    

2020

 

Net sales

 

$

73,969

 

$

71,378

 

$

82,702

 

$

84,140

 

$

312,189

 

Gross profit

 

$

25,648

 

$

23,090

 

$

30,607

 

$

30,963

 

$

110,308

 

Net income from continuing operations

 

$

1,782

 

$

1,283

 

$

5,809

 

$

7,316

 

$

16,190

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings per share from continuing operations

 

$

0.16

 

$

0.11

 

$

0.52

 

$

0.65

 

$

1.44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

 

 

 

 

 

 

 

 

 

December 31,

2019 by Quarter:

    

Q1

    

Q2

    

Q3

    

Q4

    

2019

Net sales

 

$

66,866

 

$

66,901

 

$

71,681

 

$

72,625

 

$

278,073

Gross profit

 

$

21,459

 

$

22,318

 

$

25,357

 

$

21,936

 

$

91,070

Net income (loss) from continuing operations

 

$

(3,262)

 

$

1,185

 

$

(629)

 

$

(2,287)

 

$

(4,993)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings (loss) per share from continuing operations

 

$

(0.29)

 

$
0.11

 

$

(0.06)

 

$

(0.20)

 

$

(0.45)

 

v3.20.4
Business - Business Overview and Basis of Presentation (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2019
USD ($)
Business  
Proceeds from Divestiture of Interest in Subsidiaries and Affiliates $ 1,451
Reclassification of cumulative translation adjustment from accumulated other comprehensive income $ 1,329
v3.20.4
Summary of Significant Accounting Policies - Trade Accounts Receivable (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Trade Accounts Receivable      
Trade accounts receivable $ 44,305 $ 39,004  
Unbilled accounts receivable 10,576 4,223  
Trade and unbilled accounts receivable 54,881 43,227  
Less allowance for doubtful accounts (289) (395) $ (211)
Accounts receivable, net $ 54,592 $ 42,832  
v3.20.4
Summary of Significant Accounting Policies - Bad debts and Concentration of Credit Risk (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
USD ($)
item
Dec. 31, 2019
USD ($)
item
Allowance for bad debt and credit activity    
Beginning balance $ 395 $ 211
Bad debt expense (benefit) (89) 228
Write-off of uncollectible accounts (2) (37)
Currency translation adjustment (15) (7)
Ending balance $ 289 $ 395
Customer Concentration Risk | Net sales    
Allowance for bad debt and credit activity    
Number of customers | item 2 1
Customer Concentration Risk | Net sales | Major Customer Number One    
Allowance for bad debt and credit activity    
Concentration risk (as a percent) 15.00% 18.00%
Customer Concentration Risk | Net sales | Major Customer Number Two    
Allowance for bad debt and credit activity    
Concentration risk (as a percent) 14.00%  
v3.20.4
Summary of Significant Accounting Policies - Plant, Equipment and Leasehold Improvements (Details)
 12 Months Ended
Dec. 31, 2020
Minimum  
Plant, Equipment and Leasehold Improvements  
Useful life (in years) 3 years
Maximum  
Plant, Equipment and Leasehold Improvements  
Useful life (in years) 10 years
v3.20.4
Summary of Significant Accounting Policies - Foreign Currency Translation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Foreign Currency Translation    
Foreign currency (losses) gains $ (7) $ (1,335)
Reclassification adjustment to foreign currency loss   $ (1,329)
v3.20.4
Summary of Significant Accounting Policies - Adjustment of Prior Financial Statements for Immaterial Items (Details)
$ in Thousands
 12 Months Ended 36 Months Ended
Dec. 31, 2020
USD ($)
item
Dec. 31, 2019
USD ($)
Dec. 31, 2019
USD ($)
Adjustment of Prior Period Financial Statements for Immaterial Items      
Selling, general and administrative $ 65,791 $ 66,328  
Cost of goods and services sold $ 10,701 11,220  
Revision of 2017 Through 2020 Immaterial Errors      
Adjustment of Prior Period Financial Statements for Immaterial Items      
Number of immaterial items corrected | item 2    
Revision of 2017 Through 2020 Immaterial Errors | Revision of Prior Period Error Correction Adjustment      
Adjustment of Prior Period Financial Statements for Immaterial Items      
Selling, general and administrative $ 926 584 $ 1,907
Cost of goods and services sold   $ 249 $ 476
v3.20.4
Net Sales (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Disaggregation of Revenue    
Net Sales $ 312,189 $ 278,073
Operating Segments | Debit and Credit    
Disaggregation of Revenue    
Net Sales 250,427 213,141
Operating Segments | Prepaid Debit    
Disaggregation of Revenue    
Net Sales 63,596 64,330
Operating Segments | Other    
Disaggregation of Revenue    
Net Sales   1,679
Intersegment eliminations    
Disaggregation of Revenue    
Net Sales (1,834) (1,077)
Products    
Disaggregation of Revenue    
Net Sales 171,968 143,941
Products | Operating Segments | Debit and Credit    
Disaggregation of Revenue    
Net Sales 173,765 144,541
Products | Operating Segments | Other    
Disaggregation of Revenue    
Net Sales   396
Products | Intersegment eliminations    
Disaggregation of Revenue    
Net Sales (1,797) (996)
Services    
Disaggregation of Revenue    
Net Sales 140,221 134,132
Services | Operating Segments | Debit and Credit    
Disaggregation of Revenue    
Net Sales 76,662 68,600
Services | Operating Segments | Prepaid Debit    
Disaggregation of Revenue    
Net Sales 63,596 64,330
Services | Operating Segments | Other    
Disaggregation of Revenue    
Net Sales   1,283
Services | Intersegment eliminations    
Disaggregation of Revenue    
Net Sales $ (37) $ (81)
v3.20.4
Discontinued Operation (Details)
Aug. 03, 2018
item
U.K. Limited | Sold  
Discontinued Operation and Disposition  
Number Of Facilities Sold 3
v3.20.4
Inventories (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Inventories    
Raw materials $ 23,009 $ 16,492
Finished goods 4,635 5,047
Inventory reserve (2,848) (1,347)
Inventory $ 24,796 $ 20,192
v3.20.4
Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Plant, Equipment and Leasehold Improvements    
Plant, equipment and leasehold improvements, gross $ 87,312 $ 80,577
Less accumulated depreciation an amortization (55,092) (45,277)
Operating lease right-of-use assets, net of accumulated amortization 7,183 6,312
Total property, equipment and leasehold improvements, net 39,403 41,612
Depreciation 12,232 12,616
Impairments of the Company's plant, equipment, and leasehold improvement assets 0 0
Machinery and equipment    
Plant, Equipment and Leasehold Improvements    
Plant, equipment and leasehold improvements, gross 55,459 52,212
Machinery and equipment under financing leases    
Plant, Equipment and Leasehold Improvements    
Plant, equipment and leasehold improvements, gross 9,974 8,256
Furniture, fixtures and computer equipment    
Plant, Equipment and Leasehold Improvements    
Plant, equipment and leasehold improvements, gross 4,410 4,749
Leasehold improvements    
Plant, Equipment and Leasehold Improvements    
Plant, equipment and leasehold improvements, gross 15,083 14,905
Construction in progress    
Plant, Equipment and Leasehold Improvements    
Plant, equipment and leasehold improvements, gross $ 2,386 $ 455
v3.20.4
Goodwill and Other Intangible Assets - Goodwill by Reporting Segment (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Goodwill $ 47,150 $ 47,150
Operating Segments | Debit and Credit    
Goodwill $ 47,150 $ 47,150
v3.20.4
Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Intangible Assets    
Intangible asset impairment charge $ 0 $ 0
Weighted Average Life 15 years 8 months 12 days  
Intangible amortization expense $ 4,595,000 4,635,000
Intangible assets subject to amortization, Gross Book Value 65,885,000 65,885,000
Intangible assets subject to amortization, Accumulated Amortization (39,678,000) (35,083,000)
Intangible assets subject to amortization, Net Book Value $ 26,207,000 30,802,000
Customer relationships    
Intangible Assets    
Weighted Average Life 17 years 2 months 12 days  
Intangible assets subject to amortization, Gross Book Value $ 55,454,000 55,454,000
Intangible assets subject to amortization, Accumulated Amortization (32,141,000) (28,865,000)
Intangible assets subject to amortization, Net Book Value $ 23,313,000 26,589,000
Technology and software    
Intangible Assets    
Weighted Average Life 8 years  
Intangible assets subject to amortization, Gross Book Value $ 7,101,000 7,101,000
Intangible assets subject to amortization, Accumulated Amortization (5,881,000) (4,952,000)
Intangible assets subject to amortization, Net Book Value $ 1,220,000 2,149,000
Trademarks    
Intangible Assets    
Weighted Average Life 8 years 8 months 12 days  
Intangible assets subject to amortization, Gross Book Value $ 3,330,000 3,330,000
Intangible assets subject to amortization, Accumulated Amortization (1,656,000) (1,266,000)
Intangible assets subject to amortization, Net Book Value $ 1,674,000 $ 2,064,000
v3.20.4
Goodwill and Other Intangible Assets - Future Aggregate Amortization Expense (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Estimated future aggregate amortization expense    
2021 $ 4,352  
2022 3,867  
2023 3,867  
2024 3,630  
2025 3,440  
Thereafter 7,051  
Intangible assets subject to amortization, Net Book Value $ 26,207 $ 30,802
v3.20.4
Fair Value of Financial Instruments (Details) - USD ($)
Dec. 31, 2020
Dec. 31, 2019
Aug. 17, 2015
First Lien Credit Facility      
Liabilities:      
Carrying amount $ 312,500,000 $ 312,500,000 $ 435,000
First Lien Credit Facility | Term Loan      
Liabilities:      
Carrying amount 312,500,000 312,500,000  
Long-term debt 287,500,000 234,375,000  
First Lien Credit Facility | Level 2 | Term Loan      
Liabilities:      
Long-term debt 287,500,000 $ 234,375,000  
Senior Credit Facility | Term Loan      
Liabilities:      
Carrying amount 30,000,000    
Long-term debt 30,000,000    
Senior Credit Facility | Level 3 | Term Loan      
Liabilities:      
Long-term debt 30,000,000    
Senior Term Loan      
Liabilities:      
Carrying amount $ 30,000,000    
v3.20.4
Accrued Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Accrued Liabilities    
Accrued payroll and related employee expenses $ 4,938 $ 3,954
Accrued employee performance bonus 4,873 3,920
Employer payroll tax, including social security deferral 3,034 368
Accrued rebates 1,178 1,573
Sales tax liability 1,696 1,907
Accrued interest 4,145 4,951
Operating and financing lease liability (current portion) 4,407 4,494
Other 3,878 3,568
Total accrued expenses $ 28,149 $ 24,735
v3.20.4
Financing and Operating Leases - Components of Operating and Finance Lease Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Operating lease cost:    
Operating lease costs $ 2,649 $ 2,625
Variable lease costs 667 719
Short-term operating lease costs 75  
Total expense from operating leases 3,391 3,344
Finance lease cost:    
Right-of-use amortization expense 1,342 886
Interest on lease liabilities 540 290
Total financing lease cost $ 1,882 $ 1,176
v3.20.4
Financing and Operating Leases - Operating and Financing Leases (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Jan. 01, 2019
Leases      
Operating lease right-of-use assets, net of amortization $ 7,183 $ 6,312  
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] us-gaap:PropertyPlantAndEquipmentOperatingLeaseRightOfUseAsset us-gaap:PropertyPlantAndEquipmentOperatingLeaseRightOfUseAsset  
Operating lease liability (current) $ 2,267 $ 2,283  
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Accrued Liabilities, Current Accrued Liabilities, Current  
Long-term operating liability $ 5,491 $ 5,067  
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] Other Liabilities, Noncurrent Other Liabilities, Noncurrent  
Total operating lease liabilities $ 7,758 $ 7,350  
Property, equipment and leasehold improvements 87,312 80,577  
Accumulated depreciation (55,092) (45,277)  
Total property, equipment and leasehold improvements, net 39,403 41,612  
Financing lease liability (current) $ 2,140 $ 2,211  
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] Accrued Liabilities, Current Accrued Liabilities, Current  
Long-term financing liability $ 3,052 $ 3,886  
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] Other Liabilities, Noncurrent Other Liabilities, Noncurrent  
Total financing lease liabilities $ 5,192 $ 6,097  
Adjustment | Accounting Standards Update 2016-02      
Leases      
Operating lease right-to-use assets     $ 8,025
Total operating lease liabilities     $ 8,813
Financing leases      
Leases      
Property, equipment and leasehold improvements 9,974 8,256  
Accumulated depreciation (2,422) (1,094)  
Total property, equipment and leasehold improvements, net $ 7,552 $ 7,162  
v3.20.4
Financing and Operating Leases - Components of Lease Expense (Details)
Dec. 31, 2020
Weighted Average Remaining Lease Term  
Weighted Average Remaining Lease Term - Operating Leases 4 years 11 months 5 days
Weighted Average Remaining Lease Term - Financing Leases 2 years 6 months 7 days
Weighted Average Discount Rate  
Weighted Average Discount Rate - Operating Leases 9.29%
Weighted Average Discount Rate - Financing Leases 8.71%
v3.20.4
Financing and Operating Leases - Lease Maturity (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Financing and Operating Leases    
Cash paid on operating lease liabilities $ 2,347 $ 1,973
Operating Leases    
2021 2,894  
2022 1,782  
2023 1,467  
2024 1,250  
2025 670  
2026 1,792  
Total operating lease payment 9,855  
Less imputed interest (2,097)  
Total operating lease liabilities 7,758 7,350
Financing Leases    
2021 2,494  
2022 2,007  
2023 1,069  
2024 261  
2025 2  
Total financing lease payment 5,833  
Less imputed interest (641)  
Total financing lease liabilities $ 5,192 $ 6,097
v3.20.4
Long-Term Debt - Long-Term Debt (Details) - USD ($)
Dec. 31, 2020
Dec. 31, 2019
Aug. 17, 2015
Long-term Debt      
Unamortized discount $ (1,988,000) $ (1,770,000)  
Unamortized deferred financing costs (3,804,000) (2,952,000)  
Total long-term debt 336,708,000 307,778,000  
Less current maturities of long-term debt (8,027,000)    
Long-term debt, net of current maturities $ 328,681,000 307,778,000  
Revolving Credit Facility      
Long-term Debt      
Long-term debt     $ 40,000
First Lien Credit Facility      
Long-term Debt      
Interest rate (as a percent) 5.50%    
Long-term debt $ 312,500,000 $ 312,500,000 $ 435,000
Senior Term Loan      
Long-term Debt      
Interest rate (as a percent) 9.50%    
Long-term debt $ 30,000,000    
v3.20.4
Long-Term Debt - First Lien Credit Facility (Details)
 3 Months Ended 12 Months Ended
Mar. 06, 2020
USD ($)
item
Mar. 31, 2020
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Aug. 17, 2015
USD ($)
Current maturities of long-term debt          
Long-term Debt          
Amount outstanding     $ 8,027,000    
Revolving Credit Facility          
Long-term Debt          
Long-term debt         $ 40,000
First Lien Credit Facility          
Long-term Debt          
Interest rate (as a percent)     5.50% 6.71%  
Long-term debt     $ 312,500,000 $ 312,500,000 $ 435,000
First Lien Credit Facility | Eurodollar rate          
Long-term Debt          
Applicable margin over reference rate (as a percent)     4.50%    
First Lien Credit Facility | Eurodollar rate | Minimum          
Long-term Debt          
Interest rate (as a percent)     1.00%    
First Lien Credit Facility | Base rate          
Long-term Debt          
Applicable margin over reference rate (as a percent)     3.50%    
First Lien Credit Facility | Term Loan          
Long-term Debt          
Long-term debt     $ 312,500,000 $ 312,500,000  
Senior Credit Facility          
Long-term Debt          
Interest rate (as a percent)     9.50%    
Aggregate principal amount $ 30,000        
Discount on financing costs   $ 1,400,000      
Financing costs   $ 3,215,000      
Senior Credit Facility | Term Loan          
Long-term Debt          
The number of consecutive fiscal quarters | item 4        
Senior Credit Facility | Term Loan | Minimum          
Long-term Debt          
Required EBITDA $ 25,000,000        
Ownership percentage required or loan becomes due 30.00%        
Percentage of lenders approval required for certain proposed changes to the Senior Credit Facility 50.00%        
Senior Credit Facility | Term Loan | Maximum          
Long-term Debt          
Ownership percentage sold or disposed of that would result in loan becoming due 25.00%        
Senior Credit Facility | Term Loan | Eurodollar rate          
Long-term Debt          
Applicable margin over reference rate (as a percent) 8.50%        
Senior Credit Facility | Term Loan | Base rate          
Long-term Debt          
Applicable margin over reference rate (as a percent) 7.50%        
Tricor Funds [Member] | Senior Credit Facility | Term Loan          
Long-term Debt          
Ownership percentage     37.00% 22.00%  
v3.20.4
Income Taxes - Continuing Operations - Other (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Current taxes:    
Domestic $ (4,364) $ 2,490
Foreign 16 15
Current income tax (benefit) expense (4,348) 2,505
Deferred taxes:    
Domestic 1,043 969
Deferred income tax (benefit) expense 1,043 969
Income tax (benefit) expense (3,305) 3,474
Income (loss) before income taxes    
Domestic income (loss) 12,790 (40)
Foreign income (loss) 95 (1,479)
Income (loss) before income taxes $ 12,885 $ (1,519)
Effective Income Tax Rate Reconciliation, Percent (25.60%) (228.70%)
Tax expense recorded related to valuation allowance $ (3,044)  
v3.20.4
Income Taxes – Continuing Operations - Effective Income Tax Rate Reconciliation (Details)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Effective Income Tax Rate Reconciliation    
Tax at federal statutory rate (as a percent) 21.00% 21.00%
State income taxes, net (as a percent) 5.30% (50.30%)
Foreign taxes (as a percent)   (23.30%)
Tax benefit for U.K. sale (as a percent)   154.80%
Valuation allowance (as a percent) (41.10%) (213.80%)
Unrecognized tax benefits (as a percent) 5.60% (15.50%)
Tax credits (as a percent) (1.20%) (48.60%)
Permanent items (as a percent) 4.00% (54.10%)
Tax benefit CARES Act (as a percent) (20.90%)  
Other (as a percent) 1.70% 1.10%
Effective income tax rate (as a percent) (25.60%) (228.70%)
v3.20.4
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Deferred tax assets:    
Accrued expense $ 2,519 $ 2,854
Net operating loss carryforward 524 1,216
Deferred financing costs 260 400
Stock compensation 935 892
Tax credit carryforward 645 17
Interest limitation 1,418 8,773
Lease liability 1,899 1,728
Capital loss carryforward 2,030  
Other 2,598 669
Total gross deferred tax asset 12,828 16,549
Valuation allowance (2,615) (5,659)
Net deferred tax assets 10,213 10,890
Deferred tax liabilities:    
Plant, property and leasehold improvements (4,939) (5,382)
Intangible assets (8,689) (8,877)
Right-to-use assets (1,758) (1,486)
Prepaid expense and other (2,236) (1,511)
Total gross deferred tax liabilities (17,622) (17,256)
Net deferred tax liabilities $ (7,409) $ (6,366)
v3.20.4
Income Taxes - Foreign Currency Exchange Rate Fluctuations, Changes in Net Operating Losses and Credit Carryforwards (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Operating Loss Carryforwards    
CARES act tax rate benefit (as a percent) 20.90%  
Valuation allowance (as a percent) 41.10%  
Deferred Tax Liability Not Recognized, Undistributed Earnings of Foreign Subsidiaries [Abstract]    
Provision for U.S. federal and state taxes on cumulative foreign earnings $ 0  
State    
Operating Loss Carryforwards    
Research and development tax credit carryforwards 0  
Foreign    
Deferred Tax Liability Not Recognized, Undistributed Earnings of Foreign Subsidiaries [Abstract]    
Provision for U.S. federal and state taxes on cumulative foreign earnings   $ 0
Federal    
Operating Loss Carryforwards    
Research and development tax credit carryforwards $ 645  
v3.20.4
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Unrecognized Tax Benefits    
Unrecognized Tax Benefits, Beginning Balance $ 2,172  
Increase related to current year tax position 72  
Increase related to prior year tax position 1,068  
Unrecognized Tax Benefits, Ending Balance 3,312  
Unrecognized tax benefits expected to be recognized in next twelve months 852  
Unrecognized tax benefits, accrued interest and penalties $ 255 $ 238
v3.20.4
Stockholders' Deficit (Details)
Dec. 31, 2020
Vote / shares
$ / shares
Dec. 31, 2019
$ / shares
Stockholders' Deficit    
Common shares, par value (in dollars per share) | $ / shares $ 0.001 $ 0.001
Common Stock    
Class of Stock    
Voting rights per share | Vote / shares 1  
v3.20.4
Income (Loss) per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Numerator:                    
Net income (loss) from continuing operations $ 7,316 $ 5,809 $ 1,283 $ 1,782 $ (2,287) $ (629) $ 1,185 $ (3,262) $ 16,190 $ (4,993)
Net (loss) income from discontinued operation                 (61) (124)
Net income (loss)                 $ 16,129 $ (5,117)
Denominator:                    
Basic weighted-average common shares outstanding (in shares)                 11,228,707 11,196,710
Dilutive shares                 3,297  
Diluted weighted-average shares outstanding (in shares)l                 11,232,004 11,196,710
Basic net income (loss) per share from continuing operations (in dollar per share)                 $ 1.44 $ (0.45)
Basic income (loss) per share - discontinued operations (in dollar per share)                 0.00 (0.01)
Basic income (loss) per share (in dollar per share)                 1.44 (0.46)
Diluted net income (loss) per share from continuing operations (in dollar per share)                 1.44 (0.45)
Dilutive income (loss) per share - discontinued operations (in dollar per share)                 0.00 (0.01)
Diluted income (loss) per share (in dollar per share)                 $ 1.44 $ (0.46)
Stock Options                    
Outstanding stock based awards                    
Potential dilutive effect of share-based compensation excluded (in shares)                 793,084 793,084
Restricted stock units                    
Outstanding stock based awards                    
Potential dilutive effect of share-based compensation excluded (in shares)                 7,347 7,347
v3.20.4
Commitments and Contingencies: Litigation Settlement - Contingencies (Details)
 3 Months Ended
Dec. 18, 2019
USD ($)
Jun. 30, 2015
plaintiff
Dec. 31, 2020
USD ($)
Jun. 30, 2019
USD ($)
Dec. 31, 2019
USD ($)
Commitments and Contingencies          
Sales tax liability     $ 1,696,000   $ 1,907,000
Pending Litigation          
Commitments and Contingencies          
Sales tax expense     633,000    
Sales tax expense reversed $ 596,000        
Sales tax liability     1,696,000    
Heckermann Montross Suit | Settled Litigation          
Commitments and Contingencies          
Loss contingency accrual     $ 0   $ 0
Settlement expense $ 343,000        
CPI Card Group Inc. v. Multi Packaging Solutions, Inc., et al. Second Case | Settled Litigation          
Commitments and Contingencies          
Number of purported shareholders that have filed lawsuits | plaintiff   2      
Proceeds from settlements       $ 6,000,000  
v3.20.4
Employee Benefit Plan (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Employee Benefits    
Employee benefit plan, Company's portion vested at time of match (as a percent) 100.00%  
Employee benefit plan expense $ 1,473 $ 1,359
Participant's first 3% of deferrals    
Employee Benefits    
Employee benefit plan, Company match (as a percent) 100.00%  
Participant's second 2% of deferrals    
Employee Benefits    
Employee benefit plan, Company match (as a percent) 50.00%  
v3.20.4
Stock Based Compensation - Omnibus Incentive Plan (Details) - $ / shares
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Oct. 31, 2015
Cash Performance      
Stock based compensation      
Vesting period 3 years    
Omnibus Plan | Stock Options      
Stock based compensation      
Number of shares authorized     1,200,000
Number of shares available for grant 185,113    
Stock options granted (in shares) 0 0  
Stock option life (in years) 10 years    
Number of shares      
Balance at beginning of year (in shares) 793,084    
Forfeited (in shares) (86,712)    
Balance at end of year (in shares) 706,372 793,084  
Options: Options vested and exercisable 661,053    
Options: Options vested and expected to vest 706,372    
Weighted-Average Exercise Price      
Balance at beginning of year (in dollars per share) $ 14.91    
Forfeited (in dollars per share) 12.61    
Balance at end of year (in dollars per share) 15.20 $ 14.91  
Weighted-Average Exercise Price: Options vested and exercisable 16.08    
Weighted-Average Exercise Price: Options vested and expected to vest $ 15.20    
Weighted- Average Remaining Contractual Term (in Years)      
Balance (in years) 6 years 5 months 9 days    
Weighted-Average Remaining Contractual Term (in Years): Options vested and exercisable 6 years 4 months 13 days    
Weighted-Average Remaining Contractual Term (in Years): Options vested and expected to vest 6 years 5 months 9 days    
Number of unvested options scheduled to vest      
Non-Vested Options as of beginning of period 250,571    
Granted (in shares) 0 0  
Forfeited (in shares) (16,028)    
Vested (in shares) (189,224)    
Non-Vested Options as of end of period 45,319 250,571  
Weighted-Average Grant Date Fair Value      
Non-Vested, beginning balance $ 1.90    
Forfeited: Weighted-Average Grant Date Fair Value 2.33    
Vested: Weighted-Average Grant Date Fair Value 2.05    
Non-Vested, ending balance $ 1.10 $ 1.90  
Awards vesting beginning the first anniversary of the grant date | Stock Options      
Stock based compensation      
Vesting period 3 years    
2021 | Omnibus Plan | Stock Options      
Number of unvested options scheduled to vest      
Non-Vested Options as of end of period 45,319    
v3.20.4
Stock Based Compensation - Restricted Stock Units (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Number of Restricted Stock Units    
Units outstanding at the end of the period (in shares) 0  
Restricted stock units    
Number of Restricted Stock Units    
Granted (in shares) 180,001  
Weighted Average Grant Date Fair Value    
Vesting period 2 years  
Omnibus Plan    
Weighted Average Grant Date Fair Value    
Unrecognized compensation expense $ 340  
Period over which compensation expense expected to recognize 1 year 8 months 12 days  
Omnibus Plan | Restricted stock units    
Number of Restricted Stock Units    
Units outstanding at the beginning of the period (in shares) 7,347  
Granted (in shares) 180,001  
Vested (in shares) (7,144)  
Forfeited (in shares) (203)  
Units outstanding at the end of the period (in shares) 180,001 7,347
Weighted Average Grant Date Fair Value    
Units outstanding at the beginning of the period (in dollars per shares) $ 22.49  
Granted (in dollars per share) 2.12  
Vested (in dollars per share) 22.51  
Forfeited (in dollars per share) 21.75  
Units outstanding at the end of the period (in dollars per shares) $ 2.12 $ 22.49
Compensation expense $ 136 $ 250
Omnibus Plan | Restricted stock units | 2022    
Number of Restricted Stock Units    
Units outstanding at the end of the period (in shares) 180,001  
v3.20.4
Stock Based Compensation - Cash Performance Units (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2017
Number of Cash Performance Units    
Outstanding units 0  
Cash payments made $ 68  
Cash Performance    
Number of Cash Performance Units    
Granted (in shares)   932,837
Fair value of units granted   $ 663
Vesting period 3 years  
v3.20.4
Stock Based Compensation - Option Plan (Details) - Stock Options - Option Plan - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Stock based compensation    
Compensation expense $ 0 $ 0
Number of shares    
Exercised (in shares)   6,600
Shares outstanding 0  
v3.20.4
Segment Reporting - Revenue and EBITDA from Continuing Operations (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Segment Reporting    
Revenue $ 312,189 $ 278,073
EBITDA 55,109 40,623
Debit and Credit    
Segment Reporting    
EBITDA 64,522 45,635
Prepaid Debit    
Segment Reporting    
EBITDA 22,156 22,456
Other    
Segment Reporting    
EBITDA (31,569) (27,468)
Operating Segments | Debit and Credit    
Segment Reporting    
Revenue 250,427 213,141
Operating Segments | Prepaid Debit    
Segment Reporting    
Revenue 63,596 64,330
Operating Segments | Other    
Segment Reporting    
Revenue   1,679
Intersegment eliminations    
Segment Reporting    
Revenue $ (1,834) $ (1,077)
v3.20.4
Segment Reporting - Reconciliation of EBITDA from Continuing Operations to "Net income (loss) from continuing operations" (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Reconciliation of total segment EBITDA to income before taxes                    
Total segment EBITDA from continuing operations                 $ 55,109 $ 40,623
Interest, net                 (25,397) (24,891)
Income tax benefit (expense)                 3,305 (3,474)
Depreciation and amortization                 (16,827) (17,251)
Net income (loss) from continuing operations $ 7,316 $ 5,809 $ 1,283 $ 1,782 $ (2,287) $ (629) $ 1,185 $ (3,262) $ 16,190 $ (4,993)
v3.20.4
Segment Reporting - Balance Sheet Data (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Segment Reporting    
Total assets $ 266,151 $ 213,011
Operating Segments    
Segment Reporting    
Total assets 266,151 213,011
Operating Segments | Debit and Credit    
Segment Reporting    
Total assets 215,846 176,020
Operating Segments | Prepaid Debit    
Segment Reporting    
Total assets 34,734 25,259
Operating Segments | Other    
Segment Reporting    
Total assets $ 15,571 $ 11,732
v3.20.4
Segment Reporting - Major Customer (Details) - Net sales - Customer Concentration Risk - item
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Major Customers    
Number of customers 2 1
Major Customer Number One    
Major Customers    
Concentration risk (as a percent) 15.00% 18.00%
Major Customer Number Two    
Major Customers    
Concentration risk (as a percent) 14.00%  
v3.20.4
Segment Reporting - Net Sales by Product and Services (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Segment Reporting    
Total net sales $ 312,189 $ 278,073
Products    
Segment Reporting    
Total net sales 171,968 143,941
Services    
Segment Reporting    
Total net sales $ 140,221 $ 134,132
v3.20.4
Quarterly Financial Information (Unaudited) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Quarterly Financial Information (Unaudited)                    
Total net sales $ 84,140 $ 82,702 $ 71,378 $ 73,969 $ 72,625 $ 71,681 $ 66,901 $ 66,866 $ 312,189 $ 278,073
Gross profit 30,963 30,607 23,090 25,648 21,936 25,357 22,318 21,459 110,308 91,070
Net income (loss) from continuing operations $ 7,316 $ 5,809 $ 1,283 $ 1,782 $ (2,287) $ (629) $ 1,185 $ (3,262) $ 16,190 $ (4,993)
Basic and diluted earnings (loss) per share:                    
Earnings (loss) per share from continuing operations (in dollars per share) $ 0.65 $ 0.52 $ 0.11 $ 0.16 $ (0.20) $ (0.06) $ 0.11 $ (0.29) $ 1.44 $ (0.45)