Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 20, 2017 | Jun. 30, 2016 | |
Document and Entity Information | |||
Entity Registrant Name | CPI Card Group Inc. | ||
Entity Central Index Key | 1,641,614 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 55,359,251 | ||
Entity Public Float | $ 97.2 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 36,955 | $ 13,606 |
Accounts receivable, net of allowances of $126 and $212, respectively | 31,492 | 52,538 |
Inventories | 19,369 | 25,640 |
Prepaid expenses and other current assets | 4,601 | 4,260 |
Income taxes receivable | 4,975 | |
Total current assets | 92,417 | 101,019 |
Plant, equipment and leasehold improvements, net | 53,419 | 52,113 |
Intangible assets, net | 46,348 | 53,988 |
Goodwill | 71,996 | 73,123 |
Other assets | 240 | 110 |
Total assets | 264,420 | 280,353 |
Current liabilities: | ||
Accounts payable | 10,996 | 17,832 |
Accrued expenses | 17,487 | 11,315 |
Deferred revenue and customer deposits | 6,729 | 3,874 |
Current maturities of long-term debt | 9,000 | |
Income taxes payable | 64 | |
Total current liabilities | 35,276 | 42,021 |
Long-term debt, net of current maturities | 301,922 | 300,000 |
Deferred income taxes | 21,261 | 24,073 |
Other long-term liabilities | 1,234 | 869 |
Total liabilities | 359,693 | 366,963 |
Commitments and contingencies (Note 15) | ||
Stockholders' deficit: | ||
Common Stock; $0.001 par value—100,000,000 shares authorized; 55,359,251 shares issued and outstanding and 56,542,116 shares issued and outstanding at December 31, 2016 and 2015, respectively | 55 | 56 |
Capital deficiency | (114,881) | (119,028) |
Accumulated earnings (deficit) | 25,968 | 36,661 |
Accumulated other comprehensive loss | (6,415) | (4,299) |
Total stockholders' deficit | (95,273) | (86,610) |
Total liabilities and stockholders' deficit | $ 264,420 | $ 280,353 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance on accounts receivable | $ 126 | $ 212 |
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) | 55,359,251 | 56,542,116 |
Common shares, outstanding shares (in shares) | 55,359,251 | 56,542,116 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net sales: | |||
Products | $ 168,510 | $ 241,609 | $ 159,220 |
Services | 140,190 | 132,501 | 101,786 |
Total net sales | 308,700 | 374,110 | 261,006 |
Cost of sales: | |||
Products (exclusive of depreciation and amortization shown below) | 111,627 | 155,516 | 113,399 |
Services (exclusive of depreciation and amortization shown below) | 84,453 | 73,111 | 57,233 |
Depreciation and amortization | 10,722 | 9,662 | 8,647 |
Total cost of sales | 206,802 | 238,289 | 179,279 |
Gross Profit | 101,898 | 135,821 | 81,727 |
Operating expenses: | |||
Selling, general and administrative (exclusive of depreciation and amortization shown below) | 66,711 | 61,116 | 42,650 |
Depreciation and amortization | 6,205 | 6,304 | 4,605 |
Restructuring charges (Note 1) | 681 | ||
Total operating expenses | 72,916 | 68,101 | 47,255 |
Income from operations | 28,982 | 67,720 | 34,472 |
Other income (expense): | |||
Interest, net | (20,044) | (18,328) | (7,508) |
Foreign currency gain (loss) | (417) | 59 | (124) |
Loss on debt modification and early extinguishment | (703) | (476) | |
Other income, net | 20 | 359 | (101) |
Total other expense, net | (20,441) | (18,613) | (8,209) |
Income before income taxes | 8,541 | 49,107 | 26,263 |
Income tax expense | (3,142) | (17,846) | (10,291) |
Net income from continuing operations | 5,399 | 31,261 | 15,972 |
Discontinued operations: | |||
Loss from a discontinued operation, net of taxes (Note 2) | (606) | (2,670) | |
Gain on sale of a discontinued operation, net of taxes (Note 2) | 208 | ||
Net Income | 5,399 | 30,863 | 13,302 |
Preferred stock dividends | (32,548) | (44,477) | |
Income attributable to common stockholders | $ 5,399 | $ (1,685) | $ (31,175) |
Basic and diluted earnings per share: | |||
Continuing operations | $ 0.10 | $ (0.03) | $ (0.69) |
Discontinued operation | (0.01) | (0.07) | |
Total basic and diluted earnings per share | 0.10 | $ (0.04) | $ (0.76) |
Dividends declared per common share | $ 0.18 | ||
Comprehensive Income | |||
Net income | $ 5,399 | $ 30,863 | $ 13,302 |
Currency translation adjustment | (2,116) | (1,715) | (1,064) |
Total comprehensive income | $ 3,283 | $ 29,148 | $ 12,238 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Deficit - USD ($) $ in Thousands | Common Stock | Capital deficiency | Accumulated earnings (deficit) | Accumulated other comprehensive loss | Employee notes receivable | Total |
Beginning balance at Dec. 31, 2013 | $ 41 | $ (27,786) | $ (7,504) | $ (1,520) | $ (127) | $ (36,896) |
Beginning balance (in shares) at Dec. 31, 2013 | 41,113,952 | |||||
Issuance of common stock, net of issuance costs | 2,945 | 2,945 | ||||
Issuance of common stock, net of issuance costs (in shares) | 257,268 | |||||
Repayment of employee note | 19 | 19 | ||||
Components of comprehensive income: | ||||||
Net income | 13,302 | 13,302 | ||||
Currency translation adjustment | (1,064) | (1,064) | ||||
Ending balance at Dec. 31, 2014 | $ 41 | (24,841) | 5,798 | (2,584) | (108) | (21,694) |
Ending balance (in shares) at Dec. 31, 2014 | 41,371,220 | |||||
Issuance of common stock, net of issuance costs | $ 15 | 135,289 | 135,304 | |||
Issuance of common stock, net of issuance costs (in shares) | 15,000,000 | |||||
Shares issued under stock-based compensation plans (in shares) | 257,664 | |||||
Stock-based compensation | 885 | 885 | ||||
Redemption of common stock | (46) | (46) | ||||
Redemption of common stock (in shares) | (86,768) | |||||
Dividend distribution on Series A Preferred Stock | (230,315) | (230,315) | ||||
Repayment of employee note | $ 108 | 108 | ||||
Components of comprehensive income: | ||||||
Net income | 30,863 | 30,863 | ||||
Currency translation adjustment | (1,715) | (1,715) | ||||
Ending balance at Dec. 31, 2015 | $ 56 | (119,028) | 36,661 | (4,299) | $ (86,610) | |
Ending balance (in shares) at Dec. 31, 2015 | 56,542,116 | 56,542,116 | ||||
Common stock dividends | (10,049) | $ (10,049) | ||||
Common stock repurchased | $ (1) | (6,007) | $ (6,008) | |||
Common stock repurchased, shares | (1,439,422) | (1,439,422) | ||||
Shares issued under stock-based compensation plans | (36) | $ (36) | ||||
Shares issued under stock-based compensation plans (in shares) | 256,557 | |||||
Stock-based compensation | 3,579 | 3,579 | ||||
Tax benefit attributable to stock-based compensation and other | 568 | 568 | ||||
Components of comprehensive income: | ||||||
Net income | 5,399 | 5,399 | ||||
Currency translation adjustment | (2,116) | (2,116) | ||||
Ending balance at Dec. 31, 2016 | $ 55 | $ (114,881) | $ 25,968 | $ (6,415) | $ (95,273) | |
Ending balance (in shares) at Dec. 31, 2016 | 55,359,251 | 55,359,251 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities | |||
Net income | $ 5,399 | $ 30,863 | $ 13,302 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization expense | 16,927 | 15,995 | 14,198 |
Stock-based compensation expense | 3,579 | 9,633 | 4,534 |
Impairment of intangible asset | 2,700 | 0 | 0 |
Amortization of debt issuance costs and debt discount | 1,922 | 5,648 | 591 |
Loss on debt modification and extinguishment | 703 | 476 | |
Loss on sale of a discontinued operation | 1,039 | ||
Excess tax benefits from stock-based compensation | (611) | ||
Deferred income taxes | (1,829) | 10,914 | (1,433) |
Other, net | 448 | (45) | (124) |
Changes in operating assets and liabilities: | |||
Accounts receivable | 19,847 | (9,556) | (7,003) |
Inventories | 5,793 | (4,416) | (5,763) |
Prepaid expenses and other assets | (527) | (714) | (8,473) |
Income taxes | 5,429 | (4,975) | 3,061 |
Accounts payable | (6,394) | 1,663 | 1,466 |
Accrued expenses | 3,841 | 915 | 12,665 |
Deferred revenue and customer deposits | 3,037 | 699 | (772) |
Other liabilities | 397 | (14,444) | (98) |
Cash provided by operating activities | 59,958 | 43,922 | 26,627 |
Investing activities | |||
Acquisitions of plant, equipment and leasehold improvements | (14,294) | (18,670) | (16,956) |
Proceeds from sale of a discontinued operation | 5,000 | ||
Acquisition of EFT Source, Inc, net of cash | (54,859) | ||
Cash used in investing activities | (14,294) | (13,670) | (71,815) |
Financing activities | |||
Payments of Sellers Note | (9,000) | ||
Dividends paid on common stock | (7,519) | ||
Common stock repurchased | (6,008) | ||
Proceeds from sale of Company stock, net of issuance costs | 135,304 | ||
Proceeds from First Lien Term Loan | 435,000 | ||
Payment on First Lien Term Loan | (122,500) | ||
Proceeds from long-term debt | 60,000 | ||
Payment on long-term debt | (170,929) | (11,045) | |
Loan issuance costs | (17,773) | (440) | |
Dividend distribution on Series A Preferred Stock | (230,315) | ||
Redemption of preferred and common stock | (58,296) | ||
Proceeds from employee note receivable | 108 | 19 | |
Excess tax benefits from stock-based compensation | 611 | ||
Cash used in financing activities | (21,916) | (29,401) | 48,534 |
Effect of exchange rates on cash | (399) | (186) | (107) |
Net increase in cash and cash equivalents: | 23,349 | 665 | 3,239 |
Cash and cash equivalents, beginning of period | 13,606 | 12,941 | 9,702 |
Cash and cash equivalents, end of period | 36,955 | 13,606 | 12,941 |
Supplemental disclosures of cash flow information | |||
Interest | 15,071 | 11,986 | 6,793 |
Income taxes paid, net of refunds | $ (468) | $ 10,136 | $ 3,219 |
Business
Business | 12 Months Ended |
Dec. 31, 2016 | |
Business | |
Business | 1. Business CPI Card Group Inc., formerly known as CPI Holdings I, Inc. (which, together with its subsidiary companies, is referred to herein as “CPI” or the “Company”) is engaged in the design, production, data personalization, packaging and fulfillment of Financial Payment Cards which the Company defines as credit cards, debit cards and prepaid debit cards issued on the networks of the Payment Card Brands (Visa, MasterCard, American Express, Discover and Interac (in Canada)) in the United States and Canada. The Company also is engaged in the design, production, data personalization, packaging and fulfillment of retail gift and loyalty cards (primarily in Europe and Canada). As a producer and provider of services for Financial Payment Cards, each of the Company’s secure facilities must be certified by one or more of the Payment Card Brands and is therefore subject to specific requirements and conditions. Noncompliance with these requirements would prohibit the individual facilities of the Company from producing Financial Payment Cards for these entities’ payment card issuers. The Company’s business consists of the following reportable segments: U.S. Debit and Credit, U.S. Prepaid Debit and U.K. Limited. · U.S. Debit and Credit Segment. The U.S. Debit and Credit segment primarily produces Financial Payment Cards and provides integrated card services to card-issuing banks in the United States. Products manufactured by this segment primarily include EMV and non-EMV credit cards, debit cards and prepaid debit cards issued on the networks of the Payment Card Brands, Private Label Credit Cards, defined as credit cards that an individual merchant issues for exclusive use in its own stores, and that are not issued on the networks of the Payment Cards Brands, and instant issuance systems. This segment also provides a variety of integrated card services, including card personalization and fulfillment services and instant issuance services. The U.S. Debit and Credit segment operations are each certified by multiple global Payment Card Brands, and where required by the Company’s customers, certified to be in compliance with the standards of the PCI Security Standards Council. · U.S. Prepaid Debit Segment. The U.S. Prepaid Debit segment primarily provides integrated card services to prepaid debit card issuers in the United States. Services provided include tamper-evident security packaging services and card personalization and fulfillment services. 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 mentioned above. The U.S. Prepaid Debit segment operation is certified by multiple global Payment Card Brands, and is certified to be in compliance with the standards of the PCI Security Standards Council. · U.K. Limited Segment. The U.K. Limited segment primarily produces retail cards, such as gift and loyalty cards for customers in the United Kingdom and continental Europe. This segment also provides card personalization, packaging and fulfillment services. Neither of the Company’s operations in this segment is certified by any of the Payment Card Brands or to be in compliance with the standards of the PCI Security Standards Council, but are certified to be in compliance with International Organization for Standardization (“ISO”) 27001 standards. The Company also has an operation in Ontario, Canada that provides EMV and Prepaid Debit Cards and card services in Canada, which is reflected in “Other” . See Note 18 “Segment Reporting”. The Company sold its non-secure operation located in Nevada on January 12, 2015 (the “Nevada Sale”) under an asset purchase agreement for $5,000 in cash. The Nevada operation primarily produced retail gift cards that are not issued on the networks of the Payment Card Brands. Accordingly, the Company’s Consolidated Balance Sheet as of December 31, 2015, and Statements of Operations and Comprehensive Income for the years ended December 31, 2015 and 2014 have been reclassified to present the Nevada operation as a discontinued operation. See Note 4 “Discontinued Operation and Disposition”. In August 2015, the Company completed the shut-down and closure of its operation in Petersfield, United Kingdom. Petersfield primarily produced retail gift cards that are not issued on networks of the Payment Card Brands. In connection with the shut-down and closure of the Petersfield, United Kingdom operation, the Company accrued facility contract termination costs of $681 during the year ended December 31, 2015. On August 17, 2015, the Company entered into a first lien credit agreement ("First Lien Credit Facility") with a syndicate of lenders providing for a $435,000 first lien term loan facility ("First Lien Term Loan") and a $40,000 revolving credit facility ("Revolving Credit Facility"). The Company used proceeds from the First Lien Credit Facility to pay off the outstanding balance on our previous credit facility of $158,420, and to redeem 62,140 shares of Series A Preferred Stock for an aggregate price of $276,688. See Note 10 “Long-Term Debt and Credit Facility” and Note 12 “Series A Preferred Stock”. On October 15, 2015, the Company completed its initial public offering (“IPO”) issuing 15,000,000 shares of common stock at a price of $10.00 per share. The net proceeds from the IPO, after issuance costs, were utilized to (i) redeem all of our remaining Series A Preferred Stock for a total redemption price of $11,877, (ii) repay $112,500 of the amount outstanding under the First Lien Term Loan (as defined herein), and (iii) terminate and settle all outstanding obligations due under the Phantom Stock Plan (as defined herein) of $13, 268 . The proceeds of the IPO were net of deferred offering expenses of $7,196 and are reflected in “Capital deficiency” in the Company’s Consolidated Balance Sheet and Consolidated Statement of Stockholders’ Deficit. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
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. Revenue Recognition Generally, the Company recognizes revenue related to sales of its products upon shipment, when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the fee is fixed or determinable and collectability is reasonably assured. In certain cases, at the customer’s request, the Company enters into bill-and-hold transactions whereby title transfers to the customer, but the product does not ship until a specified later date. The Company recognizes revenue associated with bill-and-hold arrangements when the product is complete and ready to ship, hold criteria have been met, the amount due from the customer is fixed and collectability of the related receivable is reasonably assured. Freight revenue totaling $4,651, $3,882, $4,249 is included in net sales during the years ended December 31, 2016, 2015, and 2014, respectively. The related freight costs are included in cost of sales. Multiple-Element Arrangements The Company enters into warehouse, fulfillment and distribution service agreements where customers engage the Company to store and handle completed cards and packages on their behalf. For the sales arrangements that contain multiple deliverables, the arrangement is split into separate units of accounting, and individually delivered elements have value to the customer on a standalone basis. When separate units of accounting exist, revenue is allocated to each element based on the Company’s best estimate of competitive market prices. At the point in which completed cards and packages are shipped to the Company’s warehouses or secure vaults, the product is billed and the revenue is recognized in accordance with the Company’s revenue recognition policy. Warehousing services revenue is recognized monthly based on volume and handling requirements; fulfillment services revenue is recognized when the product is handled in the manner specified by the customer for a unit or handling fee. 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. 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 becomes probable collection will not occur. The allowance for bad debt and credit activity for the years ended December 31, 2016 and 2015 is summarized as follows: Balance as of December 31, 2014 $ Bad debt expense Write-off of uncollectible accounts Currency translation adjustments Balance as of December 31, 2015 $ Bad debt expense Write-off of uncollectible accounts Currency translation adjustments Balance as of December 31, 2016 $ For the years ended December 31, 2016 and 2015, the Company did not have sales to a single customer that exceeded 10% of consolidated net sales. For the year ended December 31, 2014, the Company had sales to a single customer of $29,523 (11.3% of consolidated net sales). Inventories Inventories consist of raw materials, work-in-process and finished goods and are valued at the lower-of-cost (determined on the first-in, first-out or specific identification basis) or market. 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. For the Company’s continuing operations, amounts charged to expense for the depreciation of plant, equipment and leasehold improvements were $12,295, $11,389, and $10,359 for the years ended December 31, 2016, 2015 and 2014, respectively. 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. Based upon the Company’s analysis, it concluded that there was no impairment of its long-lived assets for the years ended December 31, 2016, 2015, and 2014. Goodwill and Intangible Assets Goodwill and other indefinite-lived intangible assets are not amortized, but instead are tested for impairment at least annually on October 1. Testing is done in accordance with ASC 350, Intangibles—Goodwill and Other and ASC 820, Fair Value Measurements and Disclosures . For impairment evaluations, the Company first makes a qualitative assessment with respect to both goodwill and other indefinite-lived intangibles. In the case of goodwill, if it is more likely than not that a reporting unit’s fair value is less than its carrying value, the fair value of the reporting unit is compared to its respective carrying amount. If the carrying value of a reporting unit were to exceed its fair value, any excess of the carrying amount over the fair value would be charged to operations as an impairment loss. For the years ended December 31, 2016, 2015 and 2014 the Company determined there were no impairments to goodwill. As of December 31, 2016 and 2015, $5,450 and $6,352 of goodwill was tax-deductible, respectively. With respect to indefinite-lived intangible assets, if it is more-likely-than-not that the fair value of an indefinite-lived intangible asset is less than its carrying value, any excess of the carrying value over the fair value of the indefinite-lived intangible asset is charged to operations as an impairment loss. 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. Based upon the Company’s analysis, it concluded that there was no impairment of its acquired finite-lived intangible assets for the years ended December 31, 2016, 2015, and 2014. 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 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 tax benefits recognized in the consolidated financial statements from such a position are measured as the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. 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, net of forfeitures, over the requisite service period. 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. Advertising Costs Advertising costs are expensed as incurred. Advertising costs during the years ended December 31, 2016, 2015 and 2014 were $ 801, $764, and $392, respectively. Use of Estimates Management uses estimates and assumptions 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, valuation allowances for inventories and deferred taxes, debt and stock-based compensation expense. 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 revenue, expenses, gains and losses. Translation adjustments are recorded as a component of Accumulated Other Comprehensive Loss in the accompanying financial statements. Foreign currency transaction gains and losses resulting from the process of re-measurement are recorded in “Foreign currency gain (loss)” in the accompanying Consolidated Statements of Operations and Comprehensive Income. For the years ended December 31, 2016, 2015 and 2014 there were $(417), $59, and $(124) of such foreign currency gains (losses), respectively. Recently Issued Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers , in May 2014, as amended by ASU 2016-12 Narrow-scope Improvements and Practical Expedients, in May 2016. ASU 2014-09, as amended, requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity should also disclose sufficient quantitative and qualitative information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In July 2015, the FASB deferred the effective date to annual reporting periods beginning after December 15, 2017, and interim reporting periods within those periods. The Company plans to implement the provisions of ASU 2014-09 as of January 1, 2018, but has not determined what transition method it will use. The Company is in the process of assessing the impact of ASU 2014-09 on its consolidated financial statements. The Company is currently analyzing its customer contracts and the nature of these arrangements, has documented its draft accounting policies in accordance with the new guidance, and assessing associated implementation considerations. This assessment includes an evaluation of whether certain performance obligations will be recognized over time as opposed to a point in time. As the Company finalizes its conclusions, it may need to make changes to its business and accounting processes, systems and controls to support recognition and disclosures under the new standard. The FASB issued ASU 2015-11, Inventory— Simplifying the Measurement of Inventory , in July 2015. ASU 2015-11 requires that inventory be measured at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new standard is effective for public entities’ annual reporting periods beginning after December 15, 2016. The Company plans to implement the provisions of ASU 2015-11 as of January 1, 2017. The Company does not expect ASU 2015-11 to have a material effect on its financial statements. In February 2016, the FASB issued ASU 2016-02, Leases , which provides guidance for accounting for leases. The new guidance requires companies to recognize the assets and liabilities for the rights and obligations created by leased assets. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018 with early adoption permitted. The new standard is required to be adopted using a modified retrospective approach. The Company is in the process of assessing the impact of ASU 2016-02 on its results of operations, financial position and consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation–Stock Compensation: Improvements to Employee Share-Based Payment Accounting , which simplifies several aspects of the accounting for employee share based payment transactions, including the accounting for forfeitures, statutory withholding requirements, and classification in the statement of cash flows. In addition, excess tax benefits recorded to equity under existing accounting guidance will be recognized in income tax expense under the new standard. ASU 2016-09 is effective for annual and interim periods beginning after December 15, 2016 (the Company’s fiscal year 2017), with early adoption permitted. The Company is in the process of assessing the impact of ASU 2016-09 on its consolidated financial statements, including the determination of the method of adoption and an accounting policy election regarding forfeitures. |
EFT Source Acquisition
EFT Source Acquisition | 12 Months Ended |
Dec. 31, 2016 | |
EFT Source Acquisition | |
EFT Source Acquisition | 3. EFT Source Acquisition On September 2, 2014, CPI Card Group Inc., through its wholly-owned subsidiary, CPI Acquisition, Inc., purchased EFT Source, Inc. (“EFT Source”) headquartered in Nashville, Tennessee for $68,859, of which $54,859 was paid in cash, $9,000 was paid in the form of a note payable to the previous owners of EFT Source, and $5,000 was paid through the issuance of CPI Card Group Inc. preferred and common stock. The note payable was fully repaid on September 2, 2016 in accordance with the terms of the purchase agreement. EFT Source, subsequently renamed CPI Card Group Tennessee, is a provider of Financial Payment Card services such as data personalization and fulfillment in the U.S. market. The results of EFT Source operations were included in the Company’s Consolidated Financial Statements as of September 2, 2014. Pro Forma Information The following unaudited pro forma consolidated operating results give effect to the EFT Source acquisition as if it had been completed on January 1, 2014. These pro forma amounts are not necessarily indicative of the operating results that would have occurred if these transactions had occurred on such date. The pro forma adjustments are based on certain assumptions that the Company considers to be reasonable. December 31, 2014 Revenue—Continuing Operations $ Net Income—Continuing Operations Basic and Diluted Loss Per Share from Continuing Operations $ The Company’s Consolidated Statement of Operations and Comprehensive Income for the year ended December 31, 2014 includes revenue and net income from operations of $21,999 and $4,446 respectively, attributable to EFT Source. |
Discontinued Operation and Disp
Discontinued Operation and Disposition | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operation and Disposition | |
Discontinued Operation and Disposition | 4. Discontinued Operation and Disposition On January 12, 2015, the Company sold its Nevada non-secure operation under an asset purchase agreement for $5,000 in cash. The Nevada operation was primarily engaged in the design, production, data personalization, packaging and daily fulfillment of retail gift and loyalty cards for customers in the United States and was not certified by any of the Payment Card Brands. At the date of sale, the net carrying values of the assets classified as a discontinued operation included inventory and plant, equipment and leasehold improvements of $3,129 and $2,910, respectively. For the year ended December 31, 2015, the Company recognized a gain on the sale of the discontinued operation of $208, which is included in “Gain on sale of a discontinued operation”, net of an income tax benefit of $1,247, in the Company’s Consolidated Statement of Operations and Comprehensive Income. During the years ended December 31, 2015, and 2014, the Nevada operation recognized losses of $606, and $2,670, respectively, as included in “Loss from a discontinued operation, net of taxes” in the Company’s Consolidated Statements of Operations and Comprehensive Income. These amounts are net of income tax benefits of $404, and $1,421, for the years ended December 31, 2015, and 2014, respectively. There was no financial impact related to Nevada for the year ended December 31, 2016. After the Nevada Sale, CPI retained no continuing involvement in the Nevada operations other than a 180 day transition of services agreement, which expired on July 11, 2015. As a result of the Nevada Sale, the Company made a tax deduction of $32,128 related to the tax deductible goodwill and intangible assets of the Nevada operations, of which $4,190 of the tax deductible goodwill resulted in the recognition of an income tax benefit of $1,510 during the year ended December 31, 2015. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventories | |
Inventories | 5. Inventories Inventories are summarized below: December 31, 2016 2015 Raw materials $ $ Work-in-process Finished goods $ $ |
Plant, Equipment and Leasehold
Plant, Equipment and Leasehold Improvements | 12 Months Ended |
Dec. 31, 2016 | |
Plant, Equipment and Leasehold Improvements | |
Plant, Equipment and Leasehold Improvements | 6. Plant, Equipment and Leasehold Improvements Plant, equipment and leasehold improvements consist of the following: December 31, 2016 2015 Buildings $ $ Machinery and equipment Furniture, fixtures and computer equipment Leasehold improvements Construction in progress Less accumulated depreciation and amortization $ $ |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Other Intangible Assets | |
Goodwill and Other Intangible Assets | 7. Goodwill and Other Intangible Assets The Company’s goodwill by reportable segment at December 31, 2016 and 2015 is as follows: December 31, 2016 2015 U.S. Debit and Credit $ $ U.K. Limited Other $ $ Goodwill activity is summarized as follows: Balance as of January 1, 2015 $ Currency translation Balance as of December 31, 2015 $ Currency translation Balance as of December 31, 2016 $ The Company completed its evaluation of the carrying value of goodwill as of October 1, 2016 and 2015 and determined there was no impairment to goodwill. In order to identify potential impairments, CPI compared the fair value of its reporting units with their carrying amounts, including goodwill. As the fair value of the reporting units exceeded their carrying amounts, the Company was not required to complete the second step of the process which would measure the amount of any impairment. The Company completed its evaluation of the carrying values of its indefinite lived intangible assets as of October 1, 2016 and identified a $2,700 impairment related to a trademark acquired in the EFT Source acquisition. The impairment was a result of the Company’s plans to discontinue its use of the trademark in its sales, marketing and other business practices. Accordingly, the trademark was written down to its fair value of zero. Refer to Note 8 “Fair Value of Financial Instruments” for further definition of valuation inputs. The impaired asset is included in the U.S. Debit and Credit reportable segment, and the impairment charge is recorded in “Selling, general and administrative” expenses within the Consolidated Statements of Operations and Comprehensive Income for the year ended December 31, 2016. There was no impairment of indefinite-lived intangible assets for the years ended December 31, 2015, and 2014. During 2016, the Company evaluated the future utilization of its trademarks and updated its estimate to amortize these assets over lives ranging from 7.5 to 10 years. CPI’s other amortizable intangible assets consist of customer relationships, technology and software, non-compete agreements, and favorable leases. Total intangible assets are being amortized over a weighted-average useful life of 15.6 years. Intangible amortization expense totaled $4,632, $4,577 and $2,893, for the years ended December 31, 2016, 2015 and 2014, respectively. Intangible assets consist of the following: December 31, 2016 December 31, 2015 Average Accumulated Net Book Accumulated Net Book Life (Years) Cost Amortization Value Cost Amortization Value Customer relationships 12 to 20 $ $ $ $ $ $ Technology and software 7 to 10 Noncompete agreements 5 to 8 Favorable leases 9.5 — Trademarks 7.5 to 10 — Intangible assets subject to amortization $ $ $ $ $ $ The estimated future aggregate amortization expense for the identified amortizable intangibles noted above as of December 31, 2016 is as follows: 2017 $ 2018 2019 2020 2021 Thereafter $ |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 December 31, December 31, (Using Fair Value Hierarchy) 2016 2016 Level 1 Level 2 Level 3 Liabilities: First Lien Term Loan $ $ $ — $ $ — Carrying Fair Value Measurement at Value as of Fair Value as of December 31, 2015 December 31, December 31, (Using Fair Value Hierarchy) 2015 2015 Level 1 Level 2 Level 3 Liabilities: First Lien Term Loan $ $ $ — $ $ — Sellers' Note $ $ $ — $ — $ The aggregate fair value of the Company's First Lien Term Loan was based on bank quotes. The carrying amounts for cash and cash equivalents approximate fair value due to their short maturities. Nonrecurring fair value measurements include the trademark intangible asset impairment assessment completed as of October 1, 2016 as determined based on unobservable Level 3 inputs. Refer to Note 7, “Goodwill and Other Intangible Assets”. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related-Party Transactions | |
Related-Party Transactions | 9. Related-Party Transactions In conjunction with certain officer and non-officer Company employees acquiring Series A Preferred and Common Stock during 2013 and 2012, the Company obtained notes receivable from the employees that were paid in full on August 17, 2015 and were no longer outstanding as of December 31, 2015. |
Long-Term Debt and Credit Facil
Long-Term Debt and Credit Facility | 12 Months Ended |
Dec. 31, 2016 | |
Long-Term Debt and Credit Facility | |
Long-Term Debt and Credit Facility | 10. Long-Term Debt and Credit Facility Long-term debt consists of the following: Interest December 31, December 31, Rate 2016 2015 First Lien Term Loan (a) $ $ Sellers' Note (b) — Unamortized discount Unamortized deferred financing costs Total long-term debt Less current maturities - Long-term debt, net of current maturities $ $ (a) Interest rate on December 31, 2016 (b) Interest rate on December 31, 2015 First Lien Credit Facility On August 17, 2015, the Company entered into the First Lien Credit Facility with a syndicate of lenders providing for the $435,000 First Lien Term Loan and the $40,000 Revolving Credit Facility. The First Lien Term Loan and the Revolving Credit Facility have maturity dates of August 17, 2022 and August 17, 2020, respectively. The First Lien Credit Facility is secured by a first-priority security interest in substantially all of the Company's assets constituting equipment, inventory, receivables, cash and other tangible and intangible property. Interest rates under the First Lien 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 4.50% or a base rate plus a margin of 3.50%. The First Lien Credit Facility contains customary nonfinancial covenants, including among other things, restrictions on indebtedness, issuance of liens, investments, dividends, redemptions and other distributions to equity holders, asset sales, certain mergers or consolidations, sales, transfers, leases or dispositions of substantially all of the Company's assets and affiliate transactions. The First Lien Credit Facility also contains a requirement that, as of the last day of any fiscal quarter, if the amount the Company has drawn under the Revolving Credit Facility is greater than 50% of the aggregate principal amount of all commitments of the lenders thereunder, the Company maintain a first lien net leverage not in excess of 7.0 times Adjusted EBITDA, as defined in the agreement. As of December 31, 2016, the Company was in compliance with all covenants under the First Lien Credit Facility. The First Lien Credit Facility also requires prepayment in advance of the maturity date upon the occurrence of certain customary events, including the completion of a qualified initial public offering, and based on an annual Excess Cash Flow calculation, pursuant to the terms of the agreement, beginning as of the year ended December 31, 2016. In accordance with the terms of the First Lien Credit Facility, the Company repaid $112,500 of the First Lien Term Loan on October 15, 2015 in conjunction with the completion of its initial public offering, and an additional $10,000 during the fourth quarter of 2015. See Note 1 “Business”. The Company recognized additional interest expense of $4,687 during the year ended December 31, 2015 related to accelerated amortization of deferred financing costs and discount in connection with these repayments. As of December 31, 2016, the Company did not have any outstanding amounts under the Revolving Credit Facility, and has $39,950 of borrowing capacity under the Revolving Credit Facility. The Company has one outstanding letter of credit for $50 relating to the security deposit on a real property lease agreement. The Company pays a fee on outstanding letters of credit at the applicable margin, which was 4.50% as of December 31, 2016 and 2015, in addition to a fronting fee of 0.125% per annum. In addition, the Company is required to pay an unused commitment fee ranging from 0.375% per annum to 0.50% per annum of the average unused portion of the revolving commitments. The unused commitment fee is determined on the basis of a grid that results in a lower unused commitment fee as the Company's total net leverage ratio declines. Senior Term Loan dated September 2, 2014 At December 31, 2015, there were no amounts outstanding on the Senior Term Loan dated November 8, 2012, and amended September 2, 2014, and the related revolver that had a maturity of September 30, 2016. The outstanding balance of $158,420 on the Senior Term Loan was repaid in full on August 17, 2015 using a portion of the proceeds from the new $435,000 First Lien Term Loan. In conjunction with the repayment of the Senior Term Loan, the Company recognized a $703 loss on early extinguishment related to the unamortized deferred financing costs and discount on the Senior Term Loan in “Loss on debt modification and early extinguishment” in the Consolidated Statement of Operations and Comprehensive Income for the year ended December 31, 2015. The Company accounted for the debt refinancing in accordance with ASC 470-50-40-6, Modifications and Exchanges. In conjunction with the Company’s initial refinancing of Senior Term Loan on September 2, 2014, the Company recognized a $476 loss on extinguishment reflected in “Loss on debt modification and early extinguishment” in the Consolidated Statement of Operations and Comprehensive Income for the year ended December 31, 2014. The primary purpose of this refinancing was to finance the cash portion of the acquisition consideration of EFT Source. Refer to Note 3 “EFT Source Acquisition” for additional information. Sellers Note The Company entered into a subordinated, unsecured promissory note for $9,000 with certain sellers of EFT Source as part of the EFT Source acquisition, which was fully repaid on September 2, 2016. Interest on the Sellers Note accrued at 5.0% per annum and was paid quarterly. The Sellers Note is included in “Current maturities of long-term debt” at December 31, 2015. Deferred Financing Costs Certain costs 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. As of December 31, 2016, long-term debt of $312,500 matures in 2022. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes Income tax expense from continuing operations and effective income tax rates consist of the following: December 31, 2016 2015 2014 Current taxes: Domestic $ $ $ Foreign — Deferred taxes: Domestic Foreign Income tax expense $ $ $ Income before income taxes Domestic $ $ $ Foreign Total $ $ $ Effective income tax rate % % % The effective income tax rate differs from the U.S. federal statutory income tax rate as follows: December 31, 2016 2015 2014 Tax at federal statutory rate % % % Permanent differences State income taxes Foreign taxes Other Effective income tax rate % % % The components of the deferred tax assets and liabilities are as follows: December 31, 2016 2015 Deferred tax assets: Accrued expense Unrealized foreign exchange loss Net operating loss carryforward Deferred financing costs Stock compensation Other Total gross deferred tax assets Valuation allowance Net deferred tax assets Deferred tax liabilities: Plant, equipment and leasehold improvements Intangible assets Prepaid expenses Total gross deferred tax liabilities Net deferred tax liabilities $ $ The net deferred tax liabilities are reflected in the consolidated balance sheets as follows: December 31, 2016 2015 Long-term deferred tax liabilities $ $ The net change in the valuation allowance was an increase of $1,213 and a decrease $403 for the years ended December 31, 2016 and 2015, respectively. The change in the year ended December 31, 2016 related to foreign currency exchange rate fluctuations and changes in net operating losses of foreign locations. The Company has potential tax benefits associated with $3,066 of foreign operating loss carryforwards, which expire at various dates from 2024 through 2032. Due to the uncertainty of being able to recognize these loss carryforwards, the Company has provided a valuation allowance of 100% of the tax benefit. At December 31, 2016, no provision has been made for U.S. federal and state taxes on cumulative foreign earnings from CPI Card Group-Europe Limited operations of approximately $3,810, which are expected to be indefinitely reinvested outside of the U.S. The U.S. deferred tax liability associated with indefinitely reinvested earnings and profits is not material. The Company has analyzed its filing positions in all of the jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions, and based upon its review, determined there are no uncertain tax positions as of December 31, 2016 and 2015. The Company is generally subject to potential federal and state examinations for the tax years after December 31, 2013 for federal purposes and December 31, 2012 for state purposes. |
Series A Preferred Stock
Series A Preferred Stock | 12 Months Ended |
Dec. 31, 2016 | |
Series A Preferred Stock. | |
Series A Preferred Stock | 12. Series A Preferred Stock There were no outstanding shares of Series A Preferred Stock as of December 31, 2016 or December 31, 2015. During the year ended December 31, 2015, the Company redeemed a total of 64,809 shares of Series A Preferred Stock at prices ranging between $3,950.33 and $4,610.68 per share, including the redemption of 62,140 shares of the Series A Preferred Stock for $276,688, or $4,446.70 per share, on August 17, 2015 with proceeds from the Company’s First Lien Credit Facility (see Note 10 “Long-Term Debt and Credit Facility”), and the redemption of 2,576 shares of the Series A Preferred Stock for $11,877, or $4,610.68 per share, using proceeds from the Company’s IPO (see Note 1 “Business”). Of the $288,565 redemption amount during the year ended December 31, 2015, $58,250 was treated as a return of capital and $230,315 was treated as a dividend. During the year ended December 31, 2014, the Company issued 549 shares of Series A Preferred Stock at an estimated value of $3,733.88 per share as part of the payment consideration for the EFT Acquisition. The Company did not redeem any shares of Series A Preferred Stock during the year ended December 31, 2014. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders’ Equity | |
Stockholders’ Equity | 13. Stockholders’ Equity 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. During the year ended December 31, 2016, the Company paid dividends of $7,519, representing $0.135 per share. Additionally, on November 9, 2016, the Board of Directors approved a dividend of $0.045 per share, payable on January 12, 2017 to stockholders of record as of the close of business on December 16, 2016. The accrued dividend of $2,491 is reflected in “Accrued expenses” in the Consolidated Balance Sheet as of December 31, 2016. For the year ended December 31, 2016, the Company declared aggregate dividends of $0.18 per share. On May 11, 2016, the Board of Directors approved a stock repurchase program that authorizes repurchases of the Company’s common stock up to $20,000, limited to a maximum of 2,827,105 shares, prior to May 11, 2017. Repurchases may be executed using open market purchases, privately negotiated transactions, accelerated share repurchase programs or other transactions. During the year ended December 31, 2016, there were 1,439,422 common shares repurchased for $6,008, at an average cost of $4.17 per share. The repurchases have been accounted for as a share retirement. At December 31, 2016, up to $13,992 remained available under the share repurchase authorization, limited to 1,387,683 shares. On September 3, 2015, the Company's Board of Directors approved a 22-for-1 stock split of its common stock and increased the number of authorized shares of common stock to 100,000,000. Upon the effective date of the stock split, each outstanding share of common stock and restricted common stock was divided into 22 shares of common stock or restricted common stock, as applicable. Shares of common stock available for issuance under the Option Plan (as hereinafter defined) were increased accordingly. All of the share numbers, share prices and exercise prices have been retroactively adjusted to reflect the stock split in this Annual Report on Form 10-K, including the accompanying Consolidated Financial Statements and these notes. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings per Share | |
Earnings per Share | 14. Earnings per Share Basic or diluted earnings (loss) per share is computed by dividing net earnings or loss by the weighted-average number of ordinary shares outstanding during the period. The following table sets forth the computation of basic and diluted earnings per share attributable to continuing and discontinued operations: December 31, 2016 2015 2014 Numerator: Net income from continuing operations $ $ $ Preferred stock dividends — Income (loss) from continuing operations attributable to common stockholders Loss from a discontinued operation, net of taxes — Net income (loss) attributable to common stockholders $ $ $ Denominator: Basic EPS—weighted average common shares outstanding Diluted EPS—weighted average common shares outstanding Basic and Diluted EPS: Earnings (loss) per share from continuing operations $ $ $ Loss from a discontinued operation, net of taxes — Earnings (loss) per share $ $ $ The potentially dilutive effect of 1,327,818, 1,257,450, and 627,000 stock options as of December 31, 2016, 2015, and 2014, respectively, have been excluded from the computation of diluted earnings per share as their inclusion would be anti-dilutive. The cumulative dividends in arrears related to Series A Preferred Stock were paid in conjunction with the Company’s IPO. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. Commitments and Contingencies Commitments The Company leases real property for its facilities under non-cancellable operating lease agreements. Land and facility leases expire at various dates between 2017 and 2024 and contain various provisions for rental adjustments and renewals. All of these leases require the Company to pay property taxes, insurance and normal maintenance costs. During the normal course of business, the Company also enters into non-cancellable agreements to purchase goods and services, including production equipment and information technology systems. Future cash payments with respect to operating leases and purchase obligations as of December 31, 2016 are as follows: Operating Purchase Leases Obligations 2017 $ $ 2018 — 2019 — 2020 — 2021 — Thereafter — Total $ $ The Company incurred rent expense under non-cancellable operating leases during the years ended December 31, 2016, 2015 and 2014, totaling $3,467, $3,518 and $3,320, respectively. Asset retirement obligations relate to legal obligations associated with the removal of all leasehold improvements at the end of the lease term. The Company records all asset retirement obligations, which primarily relate to “make-good” clauses in operating leases, for its leased property containing leasehold improvements. The liability is accreted through charges to operating expenses. If the asset retirement obligation is settled for an amount other than the carrying amount of the liability, the Company recognizes a gain or loss on settlement. The Company’s accretion expense incurred during the years ended December 31, 2016, 2015 and 2014 was immaterial. As of December 31, 2016 and 2015, the Company’s asset retirement obligations included in “Other long-term liabilities” in the Consolidated Balance Sheets were $602 and $613, respectively. Contingencies CPI Card Group Inc. Securities Litigation, Case No. 1:16-CV-04531 (S.D.N.Y.) On June 15, 2016, two purported CPI shareholders filed putative class action lawsuits captioned Vance, et al. v.CPI Card Group Inc., et al. and Chipman, et al. v. CPI Card Group Inc., in the United States District Court for the Southern District of New York against CPI and certain of its officers and directors, along with the sponsors of and the financial institutions who served as underwriters for CPI’s October 2015 IPO. The complaints, purportedly brought on behalf of all purchasers of CPI common stock pursuant to the October 8, 2015 Registration Statement filed in connection with the IPO, assert claims under §§11 and 15 of the Securities Act of 1933 (the “Securities Act”) and seek, among other things, damages and costs. In particular, the complaints allege that the Registration Statement contained false or misleading statements or omissions regarding CPI’s customers’ (i) purchases of Europay, MasterCard, and VISA chip cards (collectively, “EMV cards”) during the first half of fiscal year 2015 and resulting EMV card inventory levels, and (ii) capacity to purchase additional EMV cards in the fourth quarter of fiscal year 2015, and the remainder of the fiscal year ending December 31, 2015. The complaints allege that these actions artificially inflated the price of CPI common stock issued pursuant to the IPO. On August 30, 2016, the Court consolidated the Vance and Chipman actions and appointed lead plaintiff and lead counsel pursuant to the Private Securities Litigation Reform Act (“PSLRA”). On October 17, 2016, lead plaintiff filed a consolidated amended complaint, asserting the same claims for violations of §§11 and 15 of the Securities Act. The amended complaint is based principally on the same theories as the original complaints, but adds allegations that the Registration Statement contained inadequate risk disclosures and failed to disclose (i) small and mid-size issuers’ slower-than-anticipated conversion to EMV technology and (ii) increased pricing pressure and competition CPI faced in the EMV market. On November 16, 2016, the Company filed a motion to dismiss the amended complaint. All discovery and other proceedings in the action are stayed under the PSLRA pending the resolution of that motion. The Company believes these claims are without merit and intends to defend the actions vigorously. Given the current stage of these matters, the range of any potential loss is not probable or estimable and no accrual has been recognized as of December 31, 2016. Gemalto S.A. v. CPI Card Group Inc. (2 cases) First case. This suit was initially filed by Gemalto S.A. (“Gemalto”) against the Company in the United States District Court for the Western District of Texas in October 2015. The now-stayed complaint alleges that the Company infringes a Gemalto patent by incorporating into the Company’s products microchips that allegedly practice the EMV standard. Gemalto’s patent will expire in March 2017. The Company successfully moved to transfer the lawsuit to the District of Colorado. On January 28, 2016, the Company answered the complaint and filed counterclaims that the asserted patent is invalid and unenforceable, and that Gemalto’s lawsuit is a “sham” intended to interfere with the Company’s IPO and business relationships. Gemalto answered the Company’s counterclaims on February 5, 2016. On March 8, 2016, Gemalto provided specific infringement contentions, which—contrary to the complaint’s claim that all EMV-compliant products infringed upon Gemalto’s patent—only named CPI products that incorporate microchips supplied by two specific vendors. On May 31, 2016, the Company filed an Inter Partes Review petition with the United States Patent & Trademark Office’s Patent Trial & Appeal Board (“PTAB”), seeking re-examination of Gemalto’s asserted patent. In light of the Company’s petition, on July 11, 2016, the United States District Court for the District of Colorado granted the Company’s motion to stay the litigation pending the PTAB’s consideration of the Company’s challenge to the patentability of asserted claims. The PTAB granted the Company’s petition as to all of the independent claims of Gemalto’s patent on November 9, 2016. The PTAB also granted the Company’s petition as to certain dependent claims, which are claims that rely upon and incorporate an independent claim. The Company has asked the PTAB to institute reexamination on the remaining dependent claims by way of a reconsideration petition. The district court litigation remains stayed. Second case. On May 3, 2016, Gemalto filed a second patent infringement action against CPI in the United States District Court for the District of Colorado. The complaint alleges that the Company infringes a Gemalto patent on networked smartcard printing by way of the Company’s Card Once offering. Gemalto’s patent will expire in 2018. On May 25, 2016, the Company moved to dismiss Gemalto's case because the patent's claims are not patentable under 35 U.S.C. section 101. The Company’s motion to stay the litigation in light of its pending motion to dismiss was denied on September 2, 2016. The Company’s motion to dismiss remains pending. Gemalto provided initial infringement contentions to the Company on July 29, 2016, and amended its contentions on October 13, 2016. The parties are presently engaged in claim construction activities and are attempting to schedule the deposition of the patent-in-suit’s named inventor. With respect to both cases, the Company believes Gemalto’s claims are without merit and that the Company has strong legal and equitable defenses, plus meritorious counterclaims and indemnity rights. The Company intends to defend these suits vigorously. While a risk of loss is reasonably possible, given the current stage of these matters, as well as the aforementioned defenses, counterclaims and indemnity rights, the range of potential loss is not estimable and no accrual has been recognized as of December 31, 2016 and 2015. In addition to the matters described above, the Company is subject to routine legal proceedings in the ordinary course of business. The Company believes that the ultimate resolution of such matters will not have a material adverse effect on our business, financial condition or results of operations. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2016 | |
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 accounts. The Company matches 100% of the participant’s first 3% of deferrals and 50% of the next 2% deferral percentage. The Company’s portion is 100% vested at the time of the match. The aggregate amounts charged to expense in connection with the plan were $1,382, $1,049 and $824 for the years ended December 31, 2016, 2015 and 2014, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Stock-Based Compensation | |
Stock Option Plan | 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 has reserved 4,000,000 shares of common stock for issuance under the Omnibus Plan. As of December 31, 2016, there were 2,281,135 shares available for grant under the Omnibus Plan. During the year ended December 31, 2016, the Company granted awards of non-qualified stock options under the Omnibus Plan for 785,058 shares of common stock. The options have a 10 year term and will generally vest ratably over either a three year period beginning on the first anniversary of the grant date, or a four year period beginning on the second anniversary of the grant date. Outstanding and exercisable stock options under the Omnibus Plan are as follows: Weighted- Weighted- Average Average Remaining Exercise Contractual Term Options Price (in Years) Outstanding as of December 31, 2014 — $ — Granted Outstanding as of December 31, 2015 $ Granted Forfeited Outstanding as of December 31, 2016 $ Unvested options as of December 31, 2016, vest as follows: 2017 2018 2019 2020 Total unvested options as of December 31, 2016 Stock options were granted under the Omnibus Plan at various times during the year ended December 31, 2016. The fair value of stock option awards was determined at the date of grant using either a Monte Carlo simulation, or a Black-Scholes option-pricing model with the following average assumptions: Year ended December 31, 2016 Expected term in years Volatility % Risk-free interest rate % Dividend yield % Expected term – For option grants valued using a Black-Scholes option-pricing model, the Company estimated the expected term based on the average of the weighted-average vesting period and the contractual term of the stock option awards by utilizing the “simplified method”, as the Company does not have sufficient available historical data to estimate the expected term of these stock option awards. Certain other stock options were granted with an exercise price of $10 per share, and were valued using a Monte Carlo simulation. The Monte Carlo model simulates many future stock price paths, and assumes the exercise of vested options will occur uniformly once the options are projected to be in-the money. Volatility – The expected volatility percentage was based on a peer group average historical volatility over the expected option term. The peer group was based on financial technology companies that completed an initial public offering of common stock within the last 10 years. Risk-free interest rate – The risk-free interest rate was determined by using the United States Treasury rate for the period that coincided with the expected option term. Dividend yield – The estimated dividend yield is based on the Company’s recent historical dividend practice and the market value of its common stock. During the year ended December 31, 2016, the Company granted awards of restricted stock units for 305,234 shares of common stock. The restricted stock unit awards contain conditions associated with continued employment or service, and generally vest one year from the date of grant. On the vesting dates, shares of common stock will be issued to the award recipients. The following table summarizes the changes in the number of outstanding restricted stock units for the year ended December 31, 2016: Weighted- Average Grant Date Shares Fair Value Outstanding as of December 31, 2015 — $ — Granted Vested Forfeited Outstanding as of December 31, 2016 $ Compensation expense for the Omnibus Plan for the years ended December 31, 2016 and December 31, 2015 was $2,770 and $239, respectively. As of December 31, 2016, the total unrecognized compensation expense related to unvested options and restricted stock units under the Omnibus Plan was $2,467, which the Company expects to recognize over an estimated weighted average period of 1.6 years. There was no aggregate intrinsic value of stock option awards outstanding under the Omnibus Plan as of December 31, 2016. 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. The outstanding stock options have a 10-year life and vest as noted in each respective grant letter. All stock options are nonqualified. No stock options were granted during the years ended December 31, 2016, 2015 and 2014. Outstanding and exercisable stock options under the Option Plan are as follows: Weighted- Weighted- Average Average Remaining Exercise Contractual Term Options Price (in Years) Outstanding as of January 1, 2014 $ Forfeited Outstanding as of December 31, 2014 $ Exercised Forfeited Outstanding as of December 31, 2015 $ Exercised Outstanding as of December 31, 2016 $ Exercisable as of December 31, 2016 $ Compensation expense and unrecorded compensation expense related to options previously granted under the Option Plan, for the years ended December 31, 2016, 2015 and 2014, were de minimis. The aggregate intrinsic value of stock option awards outstanding and exercisable under the Option Plan as of December 31, 2016 was $898. Other Stock-Based Compensation Awards During June 2015, the Company issued 191,664 restricted shares of common stock to executives of the Company. The awards contain conditions associated with continued employment or service. The terms of the unvested restricted shares of common stock provide voting and regular dividend rights to the holders of the restricted shares of common stock, and accordingly are included in weighted-average shares outstanding in the Company’s basic earnings per share calculation. See Note 14 “Earnings per Share”. The remaining unvested restricted shares vest over a three year period from the original grant date. The following table summarizes the changes in the number of outstanding restricted shares of common stock: Weighted- Average Grant Date Shares Fair Value Outstanding as of December 31, 2014 — $ — Granted Outstanding as of December 31, 2015 $ Vested Outstanding as of December 31, 2016 $ Total compensation expense related to the restricted shares of common stock awards was $809 and $646 for the years ended December 31, 2016 and December 31, 2015, respectively. As of December 31, 2016, there was $326 of total remaining unrecognized compensation expense related to the unvested restricted shares of common stock that will be recognized over a weighted average period of 1.15 years. Phantom Stock Plan Effective January 1, 2012, the Company’s Board of Directors adopted the CPI Acquisition, Inc. Phantom Stock Plan (“Phantom Stock Plan”) to provide incentive compensation to certain key employees. In conjunction with the Company’s IPO, the Phantom Stock Plan was terminated and all outstanding liabilities under the plan were settled. During the year ended December 31, 2015, payments of $13,892 were made under the plan, and no liability existed as of December 31, 2015. Under the terms of the Phantom Stock Plan, holders of an award were entitled to a cash payment equal to the difference between the fair market value of the award, as defined in the agreement, at the time of exercise and the award’s exercise price. The Company measured the liability at intrinsic value, with changes in the intrinsic value of the liability recognized as expense each year in the Consolidated Statements of Operations and Comprehensive Income. During the years ended December 31, 2015 and 2014, the Company recognized compensation expense of $8,748 and $4,534 respectively, related to this plan. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting | |
Segment Reporting | 18. Segment Reporting The Company has identified reportable segments as those consolidated subsidiaries that represent 10% or more of its revenue, EBITDA (as defined below), or total assets or subsidiaries which the Company believes information about the segment would be useful to the readers of the financial statements from a qualitative perspective. 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 revenue 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 from continuing operations before interest expense, income taxes, depreciation and amortization. The Company’s chief operating decision maker believes EBITDA is a meaningful measure 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 identify strategies to improve the allocation of resources amongst segments. As of December 31, 2016, the Company’s reportable segments are as follows: · U.S. Debit and Credit · U.S. Prepaid Debit · U.K. Limited The U.S. Debit and Credit segment primarily produces Financial Payment Cards and provides integrated card services to card-issuing banks in the United States. Products manufactured by this segment primarily include EMV and non-EMV credit cards, debit cards and prepaid debit cards issued on the networks of the Payment Card Brands, private label credit cards that are not issued on the networks of the Payment Cards Brands (including general purpose reloadable, gift, payroll and employee benefit, government disbursement, incentive, and transit cards), and instant issuance systems. This segment also provides a variety of integrated card services, including card personalization and fulfillment services and instant issuance services. The U.S. Debit and Credit segment operations are each certified by multiple global Payment Card Brands and, where required by the Company’s customers, certified to be in compliance with the standards of the PCI Security Standards Council. These operating segments have been aggregated into a single reportable segment due to similarities in the nature of the products and services sold by these subsidiaries, a common customer base, the substantial degree of integration and redundancy across the segments, and utilization of centrally shared sales, marketing, quality and planning departments. Separate information about these segments would not be useful to the readers of the financial statements. The U.S. Prepaid Debit segment primarily provides integrated card services to prepaid debit card issuers in the United States. Services provided include tamper-evident security packaging services and card personalization and fulfillment services. 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 mentioned above. The U.S. Prepaid Debit segment operation is certified by multiple global Payment Card Brands, and is certified to be in compliance with the standards of the PCI Security Standards Council. The U.K. Limited segment primarily produces retail cards, such as gift and loyalty cards for customers in the United Kingdom and continental Europe. This segment also provides card personalization, packaging and fulfillment services. The U.K. Limited segment operations are not certified by the Payment Card Brands, nor are they PCI certified, but are certified to be in compliance with ISO 27001 standards. The “Other” category includes the Company’s corporate activities and less significant operating segments that derive their revenue from the production of Financial Payment Cards and retail gift cards in Canada (CPI—Canada) and the U.K. (CPI—Petersfield). For additional information regarding the Company’s decision to shut-down the CPI—Petersfield facility during the third quarter of 2015, see Note 1 “Business”. Performance Measures of Reportable Segments Revenue and EBITDA of the Company’s reportable segments for the years ended December 31, 2016, 2015 and 2014 were as follows: Revenue EBITDA December 31, December 31, 2016 2015 2014 2016 2015 2014 U.S. Debit and Credit (a) $ $ $ $ $ $ U.S. Prepaid Debit U.K Limited Other Intersegment eliminations (b) — — — Total: $ $ $ $ $ $ (a) Amounts for 2014 include the post-acquisition revenue and EBITDA of EFT Source from September 2, 2014 through December 31, 2014. (b) Amounts include the revenue from sales between segments and are eliminated upon consolidation. The following table provides a reconciliation of total segment EBITDA to “Net income from continuing operations” for the years ended December 31, 2016, 2015 and 2014: December 31, 2016 2015 2014 Total segment EBITDA from continuing operations $ $ $ Interest, net Income tax expense Depreciation and amortization Net Income from continuing operations $ $ $ Balance Sheet Data of Reportable Segments Total assets of the Company’s reportable segments as of December 31, 2016 and 2015 were as follows: December 31, 2016 2015 U.S. Debit and Credit $ $ U.S. Prepaid Debit U.K. Limited Other Total assets: $ $ Plant, Equipment and Leasehold Improvement Additions of Geographic Locations Plant, equipment and leasehold improvement additions of the Company’s geographical locations for the years ended December 31, 2016, 2015 and 2014 were as follows: December 31, 2016 2015 2014 U.S. $ $ $ Canada Total North America U.K. Total plant, equipment and leasehold improvement additions $ $ $ Net Sales of Geographic Locations Net sales of the Company’s geographic locations for the years ended December 31, 2016, 2015 and 2014 were as follows: December 31, 2016 2015 2014 U.S. (a) $ $ $ Canada Total North America U.K. Other (b) Total revenue $ $ $ (a) Amounts for 2014 include the post-acquisition net sales of EFT Source from September 2, 2014 through December 31, 2014. (b) Amounts in other include sales to various countries that individually are not material. Long-Lived Assets of Geographic Segments Long-lived assets of the Company’s geographic segments as of December 31, 2016 and 2015 were as follows: December 31, 2016 2015 U.S. $ $ Canada Total North America: U.K. Total long-lived assets $ $ Net Sales by Product and Services Net sales from products and services sold by the Company for the years ended December 31, 2016, 2015 and 2014 were as follows: December 31, 2016 2015 2014 Product net sales (a) $ $ $ Services net sales (b) Total net sales: $ $ $ (a) Product net sales include the design and production of Financial Payment Cards, in contact EMV, dual-interface EMV, contactless and magnetic stripe formats. The Company also generates product revenue from the sale of Card Once ® instant issuance systems, Private Label Credit Cards, and retail gift cards. It is impracticable to split the products described into dollar amounts in the table above. (b) Services net sales include revenue from the personalization and fulfillment of Financial Payment Cards, the provision of tamper-evident security packaging, providing fulfillment services to Prepaid Debit Card program managers and software as a service personalization of instant issuance debit cards. The Company also generates services revenue from personalizing retail gift cards (primarily in Canada and the United Kingdom) and from click-fees generated 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. It is impracticable to split the services described into dollar amounts in the table above. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information (Unaudited) | |
Quarterly Financial Information (Unaudited) | 19. Quarterly Financial Information (Unaudited) Summarized quarterly results for the years ended December 31, 2016 and 2015 were as follows: Year Ended December 31, 2016 by Quarter: Q1 Q2 Q3 Q4 2016 Net sales $ $ $ $ $ Gross profit Income (loss) from continuing operations Net income (loss) Net income (loss) attributable to common stockholders $ $ $ $ $ Basic and diluted earnings (loss) per share: Continuing operations $ $ $ $ $ $ $ $ $ $ Year Ended December 31, 2015 by Quarter: Q1 Q2 Q3 Q4 2015 Net sales $ $ $ $ $ Gross profit Income (loss) from continuing operations Income (Loss) from discontinued operation, net of taxes — — Net income (loss) Preferred stock dividends Net (loss) income attributable to common stockholders $ $ $ $ $ Basic and diluted (loss) earnings per share: Continuing operations $ $ $ $ $ Discontinued operation — — $ $ $ $ $ |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Event | |
Subsequent Event | 20. Subsequent Events On March 1, 2017, the Board of Directors approved a dividend of $0.045 per share. This dividend is payable on April 7, 2017, to stockholders of record as of the close of business on March 17, 2017. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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. |
Revenue Recognition | Revenue Recognition Generally, the Company recognizes revenue related to sales of its products upon shipment, when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the fee is fixed or determinable and collectability is reasonably assured. In certain cases, at the customer’s request, the Company enters into bill-and-hold transactions whereby title transfers to the customer, but the product does not ship until a specified later date. The Company recognizes revenue associated with bill-and-hold arrangements when the product is complete and ready to ship, hold criteria have been met, the amount due from the customer is fixed and collectability of the related receivable is reasonably assured. Freight revenue totaling $4,651, $3,882, $4,249 is included in net sales during the years ended December 31, 2016, 2015, and 2014, respectively. The related freight costs are included in cost of sales. Multiple-Element Arrangements The Company enters into warehouse, fulfillment and distribution service agreements where customers engage the Company to store and handle completed cards and packages on their behalf. For the sales arrangements that contain multiple deliverables, the arrangement is split into separate units of accounting, and individually delivered elements have value to the customer on a standalone basis. When separate units of accounting exist, revenue is allocated to each element based on the Company’s best estimate of competitive market prices. At the point in which completed cards and packages are shipped to the Company’s warehouses or secure vaults, the product is billed and the revenue is recognized in accordance with the Company’s revenue recognition policy. Warehousing services revenue is recognized monthly based on volume and handling requirements; fulfillment services revenue is recognized when the product is handled in the manner specified by the customer for a unit or handling fee. |
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. 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 becomes probable collection will not occur. The allowance for bad debt and credit activity for the years ended December 31, 2016 and 2015 is summarized as follows: Balance as of December 31, 2014 $ Bad debt expense Write-off of uncollectible accounts Currency translation adjustments Balance as of December 31, 2015 $ Bad debt expense Write-off of uncollectible accounts Currency translation adjustments Balance as of December 31, 2016 $ For the years ended December 31, 2016 and 2015, the Company did not have sales to a single customer that exceeded 10% of consolidated net sales. For the year ended December 31, 2014, the Company had sales to a single customer of $29,523 (11.3% of consolidated net sales). |
Inventories | Inventories Inventories consist of raw materials, work-in-process and finished goods and are valued at the lower-of-cost (determined on the first-in, first-out or specific identification basis) or market. |
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. For the Company’s continuing operations, amounts charged to expense for the depreciation of plant, equipment and leasehold improvements were $12,295, $11,389, and $10,359 for the years ended December 31, 2016, 2015 and 2014, respectively. 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. Based upon the Company’s analysis, it concluded that there was no impairment of its long-lived assets for the years ended December 31, 2016, 2015, and 2014. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill and other indefinite-lived intangible assets are not amortized, but instead are tested for impairment at least annually on October 1. Testing is done in accordance with ASC 350, Intangibles—Goodwill and Other and ASC 820, Fair Value Measurements and Disclosures . For impairment evaluations, the Company first makes a qualitative assessment with respect to both goodwill and other indefinite-lived intangibles. In the case of goodwill, if it is more likely than not that a reporting unit’s fair value is less than its carrying value, the fair value of the reporting unit is compared to its respective carrying amount. If the carrying value of a reporting unit were to exceed its fair value, any excess of the carrying amount over the fair value would be charged to operations as an impairment loss. For the years ended December 31, 2016, 2015 and 2014 the Company determined there were no impairments to goodwill. As of December 31, 2016 and 2015, $5,450 and $6,352 of goodwill was tax-deductible, respectively. With respect to indefinite-lived intangible assets, if it is more-likely-than-not that the fair value of an indefinite-lived intangible asset is less than its carrying value, any excess of the carrying value over the fair value of the indefinite-lived intangible asset is charged to operations as an impairment loss. 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. Based upon the Company’s analysis, it concluded that there was no impairment of its acquired finite-lived intangible assets for the years ended December 31, 2016, 2015, and 2014. |
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 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 tax benefits recognized in the consolidated financial statements from such a position are measured as the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. 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, net of forfeitures, over the requisite service period. 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. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. Advertising costs during the years ended December 31, 2016, 2015 and 2014 were $ 801, $764, and $392, respectively. |
Use of Estimates | Use of Estimates Management uses estimates and assumptions 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, valuation allowances for inventories and deferred taxes, debt and stock-based compensation expense. 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 revenue, expenses, gains and losses. Translation adjustments are recorded as a component of Accumulated Other Comprehensive Loss in the accompanying financial statements. Foreign currency transaction gains and losses resulting from the process of re-measurement are recorded in “Foreign currency gain (loss)” in the accompanying Consolidated Statements of Operations and Comprehensive Income. For the years ended December 31, 2016, 2015 and 2014 there were $(417), $59, and $(124) of such foreign currency gains (losses), respectively. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers , in May 2014, as amended by ASU 2016-12 Narrow-scope Improvements and Practical Expedients, in May 2016. ASU 2014-09, as amended, requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity should also disclose sufficient quantitative and qualitative information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In July 2015, the FASB deferred the effective date to annual reporting periods beginning after December 15, 2017, and interim reporting periods within those periods. The Company plans to implement the provisions of ASU 2014-09 as of January 1, 2018, but has not determined what transition method it will use. The Company is in the process of assessing the impact of ASU 2014-09 on its consolidated financial statements. The Company is currently analyzing its customer contracts and the nature of these arrangements, has documented its draft accounting policies in accordance with the new guidance, and assessing associated implementation considerations. This assessment includes an evaluation of whether certain performance obligations will be recognized over time as opposed to a point in time. As the Company finalizes its conclusions, it may need to make changes to its business and accounting processes, systems and controls to support recognition and disclosures under the new standard. The FASB issued ASU 2015-11, Inventory— Simplifying the Measurement of Inventory , in July 2015. ASU 2015-11 requires that inventory be measured at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new standard is effective for public entities’ annual reporting periods beginning after December 15, 2016. The Company plans to implement the provisions of ASU 2015-11 as of January 1, 2017. The Company does not expect ASU 2015-11 to have a material effect on its financial statements. In February 2016, the FASB issued ASU 2016-02, Leases , which provides guidance for accounting for leases. The new guidance requires companies to recognize the assets and liabilities for the rights and obligations created by leased assets. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018 with early adoption permitted. The new standard is required to be adopted using a modified retrospective approach. The Company is in the process of assessing the impact of ASU 2016-02 on its results of operations, financial position and consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation–Stock Compensation: Improvements to Employee Share-Based Payment Accounting , which simplifies several aspects of the accounting for employee share based payment transactions, including the accounting for forfeitures, statutory withholding requirements, and classification in the statement of cash flows. In addition, excess tax benefits recorded to equity under existing accounting guidance will be recognized in income tax expense under the new standard. ASU 2016-09 is effective for annual and interim periods beginning after December 15, 2016 (the Company’s fiscal year 2017), with early adoption permitted. The Company is in the process of assessing the impact of ASU 2016-09 on its consolidated financial statements, including the determination of the method of adoption and an accounting policy election regarding forfeitures. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies | |
Schedule of allowance for bad debt and credit activity | Balance as of December 31, 2014 $ Bad debt expense Write-off of uncollectible accounts Currency translation adjustments Balance as of December 31, 2015 $ Bad debt expense Write-off of uncollectible accounts Currency translation adjustments Balance as of December 31, 2016 $ |
EFT Source Acquisition (Tables)
EFT Source Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
EFT Source Acquisition | |
Schedule of pro forma consolidated operating results | December 31, 2014 Revenue—Continuing Operations $ Net Income—Continuing Operations Basic and Diluted Loss Per Share from Continuing Operations $ |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventories | |
Schedule of inventories | December 31, 2016 2015 Raw materials $ $ Work-in-process Finished goods $ $ |
Plant, Equipment and Leasehol31
Plant, Equipment and Leasehold Improvements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Plant, Equipment and Leasehold Improvements | |
Schedule of plant, equipment and leasehold improvements | December 31, 2016 2015 Buildings $ $ Machinery and equipment Furniture, fixtures and computer equipment Leasehold improvements Construction in progress Less accumulated depreciation and amortization $ $ |
Goodwill and Other Intangible32
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Other Intangible Assets | |
Schedule of goodwill | The Company’s goodwill by reportable segment at December 31, 2016 and 2015 is as follows: December 31, 2016 2015 U.S. Debit and Credit $ $ U.K. Limited Other $ $ Goodwill activity is summarized as follows: Balance as of January 1, 2015 $ Currency translation Balance as of December 31, 2015 $ Currency translation Balance as of December 31, 2016 $ |
Schedule of intangible assets excluding goodwill | December 31, 2016 December 31, 2015 Average Accumulated Net Book Accumulated Net Book Life (Years) Cost Amortization Value Cost Amortization Value Customer relationships 12 to 20 $ $ $ $ $ $ Technology and software 7 to 10 Noncompete agreements 5 to 8 Favorable leases 9.5 — Trademarks 7.5 to 10 — Intangible assets subject to amortization $ $ $ $ $ $ |
Schedule of future aggregate amortization expense for identified amortizable intangibles | 2017 $ 2018 2019 2020 2021 Thereafter $ |
Fair Value of Financial Instr33
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 December 31, December 31, (Using Fair Value Hierarchy) 2016 2016 Level 1 Level 2 Level 3 Liabilities: First Lien Term Loan $ $ $ — $ $ — Carrying Fair Value Measurement at Value as of Fair Value as of December 31, 2015 December 31, December 31, (Using Fair Value Hierarchy) 2015 2015 Level 1 Level 2 Level 3 Liabilities: First Lien Term Loan $ $ $ — $ $ — Sellers' Note $ $ $ — $ — $ |
Long-Term Debt and Credit Fac34
Long-Term Debt and Credit Facility (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Long-Term Debt and Credit Facility | |
Schedule of long-term debt | Interest December 31, December 31, Rate 2016 2015 First Lien Term Loan (a) $ $ Sellers' Note (b) — Unamortized discount Unamortized deferred financing costs Total long-term debt Less current maturities - Long-term debt, net of current maturities $ $ (a) Interest rate on December 31, 2016 (b) Interest rate on December 31, 2015 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense | December 31, 2016 2015 2014 Current taxes: Domestic $ $ $ Foreign — Deferred taxes: Domestic Foreign Income tax expense $ $ $ Income before income taxes Domestic $ $ $ Foreign Total $ $ $ Effective income tax rate % % % |
Schedule of Income before Income Tax, Domestic and Foreign | December 31, 2016 2015 2014 Current taxes: Domestic $ $ $ Foreign — Deferred taxes: Domestic Foreign Income tax expense $ $ $ Income before income taxes Domestic $ $ $ Foreign Total $ $ $ Effective income tax rate % % % |
Schedule of effective income tax rate reconciliation | December 31, 2016 2015 2014 Tax at federal statutory rate % % % Permanent differences State income taxes Foreign taxes Other Effective income tax rate % % % |
Schedule of components of deferred tax assets and liabilities | December 31, 2016 2015 Deferred tax assets: Accrued expense Unrealized foreign exchange loss Net operating loss carryforward Deferred financing costs Stock compensation Other Total gross deferred tax assets Valuation allowance Net deferred tax assets Deferred tax liabilities: Plant, equipment and leasehold improvements Intangible assets Prepaid expenses Total gross deferred tax liabilities Net deferred tax liabilities $ $ |
Schedule of net deferred tax assets and liabilities as reflected in the consolidated balance sheets | December 31, 2016 2015 Long-term deferred tax liabilities $ $ |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings per Share | |
Computation of basic and diluted EPS | December 31, 2016 2015 2014 Numerator: Net income from continuing operations $ $ $ Preferred stock dividends — Income (loss) from continuing operations attributable to common stockholders Loss from a discontinued operation, net of taxes — Net income (loss) attributable to common stockholders $ $ $ Denominator: Basic EPS—weighted average common shares outstanding Diluted EPS—weighted average common shares outstanding Basic and Diluted EPS: Earnings (loss) per share from continuing operations $ $ $ Loss from a discontinued operation, net of taxes — Earnings (loss) per share $ $ $ |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future cash payments for non-cancellable capital leases, operating leases and purchase obligations | Operating Purchase Leases Obligations 2017 $ $ 2018 — 2019 — 2020 — 2021 — Thereafter — Total $ $ |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of changes in outstanding restricted stock units | Weighted- Average Grant Date Shares Fair Value Outstanding as of December 31, 2015 — $ — Granted Vested Forfeited Outstanding as of December 31, 2016 $ |
Summary of changes in number of outstanding restricted shares of common stock | Weighted- Average Grant Date Shares Fair Value Outstanding as of December 31, 2014 — $ — Granted Outstanding as of December 31, 2015 $ Vested Outstanding as of December 31, 2016 $ |
Omnibus Plan | |
Summary of outstanding and exercisable stock options | Weighted- Weighted- Average Average Remaining Exercise Contractual Term Options Price (in Years) Outstanding as of December 31, 2014 — $ — Granted Outstanding as of December 31, 2015 $ Granted Forfeited Outstanding as of December 31, 2016 $ |
Schedule of vesting for unvested options | 2017 2018 2019 2020 Total unvested options as of December 31, 2016 |
Schedule of valuation assumptions | Year ended December 31, 2016 Expected term in years Volatility % Risk-free interest rate % Dividend yield % |
Option Plan | |
Summary of outstanding and exercisable stock options | Weighted- Weighted- Average Average Remaining Exercise Contractual Term Options Price (in Years) Outstanding as of January 1, 2014 $ Forfeited Outstanding as of December 31, 2014 $ Exercised Forfeited Outstanding as of December 31, 2015 $ Exercised Outstanding as of December 31, 2016 $ Exercisable as of December 31, 2016 $ |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting | |
Schedule of revenue and EBITDA of the company's reportable segments | Revenue EBITDA December 31, December 31, 2016 2015 2014 2016 2015 2014 U.S. Debit and Credit (a) $ $ $ $ $ $ U.S. Prepaid Debit U.K Limited Other Intersegment eliminations (b) — — — Total: $ $ $ $ $ $ (a) Amounts for 2014 include the post-acquisition revenue and EBITDA of EFT Source from September 2, 2014 through December 31, 2014. (b) Amounts include the revenue from sales between segments and are eliminated upon consolidation. |
Schedule of reconciliation of total segment EBITDA to income before taxes | December 31, 2016 2015 2014 Total segment EBITDA from continuing operations $ $ $ Interest, net Income tax expense Depreciation and amortization Net Income from continuing operations $ $ $ |
Schedule of total assets of the company's reportable segments | December 31, 2016 2015 U.S. Debit and Credit $ $ U.S. Prepaid Debit U.K. Limited Other Total assets: $ $ |
Schedule of plant, equipment and leasehold improvement additions of geographic locations | December 31, 2016 2015 2014 U.S. $ $ $ Canada Total North America U.K. Total plant, equipment and leasehold improvement additions $ $ $ |
Schedule of net sales of company's geographic locations | December 31, 2016 2015 2014 U.S. (a) $ $ $ Canada Total North America U.K. Other (b) Total revenue $ $ $ (a) Amounts for 2014 include the post-acquisition net sales of EFT Source from September 2, 2014 through December 31, 2014. (b) Amounts in other include sales to various countries that individually are not material. |
Schedule of Long lived assets of the company's geographic segments | December 31, 2016 2015 U.S. $ $ Canada Total North America: U.K. Total long-lived assets $ $ |
Schedule of net sales from product and services sold by the company | December 31, 2016 2015 2014 Product net sales (a) $ $ $ Services net sales (b) Total net sales: $ $ $ (a) Product net sales include the design and production of Financial Payment Cards, in contact EMV, dual-interface EMV, contactless and magnetic stripe formats. The Company also generates product revenue from the sale of Card Once ® instant issuance systems, Private Label Credit Cards, and retail gift cards. It is impracticable to split the products described into dollar amounts in the table above. (b) Services net sales include revenue from the personalization and fulfillment of Financial Payment Cards, the provision of tamper-evident security packaging, providing fulfillment services to Prepaid Debit Card program managers and software as a service personalization of instant issuance debit cards. The Company also generates services revenue from personalizing retail gift cards (primarily in Canada and the United Kingdom) and from click-fees generated 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. It is impracticable to split the services described into dollar amounts in the table above. |
Quarterly Financial Informati40
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information (Unaudited) | |
Schedule of summarized quarterly results | Year Ended December 31, 2016 by Quarter: Q1 Q2 Q3 Q4 2016 Net sales $ $ $ $ $ Gross profit Income (loss) from continuing operations Net income (loss) Net income (loss) attributable to common stockholders $ $ $ $ $ Basic and diluted earnings (loss) per share: Continuing operations $ $ $ $ $ $ $ $ $ $ Year Ended December 31, 2015 by Quarter: Q1 Q2 Q3 Q4 2015 Net sales $ $ $ $ $ Gross profit Income (loss) from continuing operations Income (Loss) from discontinued operation, net of taxes — — Net income (loss) Preferred stock dividends Net (loss) income attributable to common stockholders $ $ $ $ $ Basic and diluted (loss) earnings per share: Continuing operations $ $ $ $ $ Discontinued operation — — $ $ $ $ $ |
Business (Details)
Business (Details) $ / shares in Units, $ in Thousands | Oct. 15, 2015USD ($)$ / sharesshares | Aug. 17, 2015USD ($)shares | Jan. 12, 2015USD ($) | Dec. 31, 2015USD ($)shares | Dec. 31, 2016itemshares | Dec. 31, 2015USD ($)shares | Sep. 03, 2015shares |
Proceeds from sale of asset | $ 5,000 | ||||||
Facility contract termination costs | $ 681 | ||||||
Common stock authorized | shares | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | |||
Minimum Number of Payment Card Brands Providing Certification | item | 1 | ||||||
Phantom Stock Plan | |||||||
Liability settled for outstanding obligation under Phantom Stock Plan | $ 13,892 | ||||||
First Lien Credit Facility | Term Loan | |||||||
Maximum borrowing capacity | $ 435,000 | ||||||
Repayment of outstanding term loan | $ 112,500 | $ 10,000 | |||||
First Lien Credit Facility | Revolving Credit Facility | |||||||
Maximum borrowing capacity | 40,000 | ||||||
Senior Term Loan | |||||||
Repayment of outstanding term loan | $ 158,420 | ||||||
Series A Preferred Stock | |||||||
Shares redeemed | shares | 2,576 | 62,140 | 64,809 | ||||
Total redemption value | $ 11,877 | $ 276,688 | $ 288,565 | ||||
IPO | |||||||
Shares issued (in shares) | shares | 15,000,000 | ||||||
IPO price per share | $ / shares | $ 10 | ||||||
Deferred Offering expenses | $ 7,196 | ||||||
IPO | Phantom Stock Plan | |||||||
Liability settled for outstanding obligation under Phantom Stock Plan | 13,268 | ||||||
IPO | First Lien Credit Facility | Term Loan | |||||||
Repayment of outstanding term loan | 112,500 | ||||||
IPO | Series A Preferred Stock | |||||||
Total redemption value | $ 11,877 | ||||||
Nevada | Sold | |||||||
Proceeds from sale of asset | $ 5,000 | ||||||
Petersfield, United Kingdom | |||||||
Facility contract termination costs | $ 681 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Revenue Recognition, Trade Accounts Receivable and Concentration of Credit Risk (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cost of Sales from services | $ 84,453 | $ 73,111 | $ 57,233 | ||||||||
Cost of Sales from products | 111,627 | 155,516 | 113,399 | ||||||||
Allowance for bad debt and credit activity | |||||||||||
Beginning balance | $ 212 | $ 272 | 212 | 272 | |||||||
Bad debt expense | 12 | 28 | |||||||||
Write-off of uncollectible accounts | (90) | (81) | |||||||||
Currency translation adjustment | (8) | (7) | |||||||||
Ending balance | $ 126 | $ 212 | 126 | 212 | 272 | ||||||
Net sales | $ 67,380 | $ 81,202 | $ 73,725 | $ 86,393 | $ 93,567 | $ 107,697 | $ 95,536 | $ 77,310 | 308,700 | 374,110 | 261,006 |
Net sales | |||||||||||
Revenue | |||||||||||
Freight revenue | 4,651 | 3,882 | 4,249 | ||||||||
Customer Concentration Risk | |||||||||||
Allowance for bad debt and credit activity | |||||||||||
Net sales | $ 29,523 | ||||||||||
Customer Concentration Risk | Net sales | |||||||||||
Allowance for bad debt and credit activity | |||||||||||
Net sales | $ 0 | $ 0 | |||||||||
Concentration risk (as a percent) | 11.30% |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Plant, Equipment and Leasehold Improvements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Plant, Equipment and Leasehold Improvements | |||
Depreciation | $ 12,295 | $ 11,389 | $ 10,359 |
Impairment of long-lived assets | $ 0 | $ 0 | $ 0 |
Minimum | |||
Plant, Equipment and Leasehold Improvements | |||
Useful life (in years) | 3 years | ||
Maximum | |||
Plant, Equipment and Leasehold Improvements | |||
Useful life (in years) | 10 years |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Goodwill and Intangible Assets, Income Taxes, and Stock-Based Compensation (Details) - USD ($) $ in Thousands | Oct. 01, 2016 | Oct. 01, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Asset Impairment [Abstract] | |||||
Impairment of goodwill | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Tax-deductible goodwill | 5,450 | 6,352 | |||
Impairment of acquired finite-lived intangible assets | 0 | 0 | $ 0 | ||
Income Taxes | |||||
Unrecognized tax liabilities | $ 0 | $ 0 | |||
Stock Options | |||||
Stock-Based Compensation | |||||
Stock option life (in years) | 10 years |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Advertising Costs and Foreign Currency Translation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Advertising Costs | |||
Advertising costs | $ 801 | $ 764 | $ 392 |
Foreign Currency Translation | |||
Foreign currency gains (losses) | $ (417) | $ 59 | $ (124) |
EFT Source Acquisition (Details
EFT Source Acquisition (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 02, 2014 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Acquisition | ||||||||||||
Goodwill | $ 71,996 | $ 73,123 | $ 71,996 | $ 73,123 | $ 73,801 | |||||||
Included in consolidated statement of operations: | ||||||||||||
Revenues | $ 67,380 | $ 81,202 | $ 73,725 | $ 86,393 | $ 93,567 | $ 107,697 | $ 95,536 | $ 77,310 | 308,700 | 374,110 | 261,006 | |
Net income from operations | $ 28,982 | $ 67,720 | 34,472 | |||||||||
EFT Source | ||||||||||||
Acquisition | ||||||||||||
Total consideration | $ 68,859 | |||||||||||
Consideration paid in cash | 54,859 | |||||||||||
Non-cash consideration, Sellers Note | 9,000 | |||||||||||
Non-cash consideration, issuance of preferred and common stock | $ 5,000 | |||||||||||
Pro Forma Information | ||||||||||||
Revenue - Continuing Operations | 291,302 | |||||||||||
Net Income - Continuing Operations | $ 16,916 | |||||||||||
Basic loss per share from Continuing Operations | $ (0.67) | |||||||||||
Included in consolidated statement of operations: | ||||||||||||
Revenues | $ 21,999 | |||||||||||
Net income from operations | $ 4,446 |
Discontinued Operation and Di47
Discontinued Operation and Disposition (Details) - USD ($) $ in Thousands | Jan. 12, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Discontinued Operation and Disposition | |||
Proceeds from sale of asset | $ 5,000 | ||
Gain on sale of a discontinued operation | 208 | ||
Loss from a discontinued operation, net of taxes | 606 | $ 2,670 | |
Nevada | Sold | |||
Discontinued Operation and Disposition | |||
Proceeds from sale of asset | $ 5,000 | ||
Gain on sale of a discontinued operation | 208 | ||
Income tax benefit from gain on discontinued operation | 1,247 | ||
Loss from a discontinued operation, net of taxes | 606 | ||
Income tax benefit from discontinued operations | 404 | ||
Term of transition service agreement | 180 days | ||
Tax deductible goodwill and intangible assets | 32,128 | ||
Tax deductible goodwill resulting in income tax benefit during the period | 4,190 | ||
Income tax benefit recognized on tax deductible goodwill | 1,510 | ||
Nevada | Held-for-sale | |||
Discontinued Operation and Disposition | |||
Carrying value of inventory | 3,129 | ||
Carrying value of plant, equipment and leasehold improvements | $ 2,910 | ||
Loss from a discontinued operation, net of taxes | 2,670 | ||
Income tax benefit from discontinued operations | $ 1,421 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Inventories | ||
Raw materials | $ 8,206 | $ 10,549 |
Work-in-process | 6,340 | 11,460 |
Finished goods | 4,823 | 3,631 |
Inventory | $ 19,369 | $ 25,640 |
Plant, Equipment and Leasehol49
Plant, Equipment and Leasehold Improvements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Plant, Equipment and Leasehold Improvements | |||
Plant, equipment and leasehold improvements, gross | $ 87,966 | $ 82,716 | |
Less accumulated depreciation and amortization | (34,547) | (30,603) | |
Plant, equipment and leasehold improvements, net | 53,419 | 52,113 | |
Depreciation | 12,295 | 11,389 | $ 10,359 |
Buildings | |||
Plant, Equipment and Leasehold Improvements | |||
Plant, equipment and leasehold improvements, gross | 2,077 | 2,565 | |
Machinery and equipment | |||
Plant, Equipment and Leasehold Improvements | |||
Plant, equipment and leasehold improvements, gross | 59,464 | 57,482 | |
Furniture, fixtures and computer equipment | |||
Plant, Equipment and Leasehold Improvements | |||
Plant, equipment and leasehold improvements, gross | 6,634 | 4,440 | |
Leasehold improvements | |||
Plant, Equipment and Leasehold Improvements | |||
Plant, equipment and leasehold improvements, gross | 18,655 | 15,856 | |
Construction in progress | |||
Plant, Equipment and Leasehold Improvements | |||
Plant, equipment and leasehold improvements, gross | $ 1,136 | $ 2,373 |
Goodwill and Other Intangible50
Goodwill and Other Intangible Assets - Goodwill by Reporting Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill | $ 71,996 | $ 73,123 | $ 73,801 |
Operating Segments | U.S. Debit and Credit | |||
Goodwill | 64,330 | 64,330 | |
Operating Segments | U.K. Limited | |||
Goodwill | 5,908 | 7,089 | |
Operating Segments | Other | |||
Goodwill | $ 1,758 | $ 1,704 |
Goodwill and Other Intangible51
Goodwill and Other Intangible Assets - Goodwill Activity (Details) - USD ($) $ in Thousands | Oct. 01, 2016 | Oct. 01, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill Activity | |||||
Beginning balance | $ 73,123 | $ 73,801 | |||
Currency translation | (1,127) | (678) | |||
Ending balance | 71,996 | 73,123 | $ 73,801 | ||
Impairment of goodwill | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill and Other Intangible52
Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Oct. 01, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Intangible Assets [Line Items] | ||||
Impairment of indefinite lived intangible assets | $ 2,700 | $ 0 | $ 0 | |
Weighted-average useful life | 15 years 7 months 6 days | |||
Intangible amortization expense | $ 4,632 | 4,577 | $ 2,893 | |
Intangible assets subject to amortization, Cost | 70,027 | 73,344 | ||
Intangible assets subject to amortization, Accumulated Amortization | (23,679) | (19,356) | ||
Intangible assets subject to amortization, Net Book Value | 46,348 | 53,988 | ||
Trademarks | ||||
Intangible Assets [Line Items] | ||||
Implied fair value of indefinite lived intangibles | 0 | |||
Customer relationships | ||||
Intangible Assets [Line Items] | ||||
Intangible assets subject to amortization, Cost | 58,994 | 59,612 | ||
Intangible assets subject to amortization, Accumulated Amortization | (20,972) | (17,747) | ||
Intangible assets subject to amortization, Net Book Value | $ 38,022 | 41,865 | ||
Customer relationships | Minimum | ||||
Intangible Assets [Line Items] | ||||
Weighted-average useful life | 12 years | |||
Customer relationships | Maximum | ||||
Intangible Assets [Line Items] | ||||
Weighted-average useful life | 20 years | |||
Technology and software | ||||
Intangible Assets [Line Items] | ||||
Intangible assets subject to amortization, Cost | $ 7,101 | 7,101 | ||
Intangible assets subject to amortization, Accumulated Amortization | (2,167) | (1,238) | ||
Intangible assets subject to amortization, Net Book Value | $ 4,934 | 5,863 | ||
Technology and software | Minimum | ||||
Intangible Assets [Line Items] | ||||
Weighted-average useful life | 7 years | |||
Technology and software | Maximum | ||||
Intangible Assets [Line Items] | ||||
Weighted-average useful life | 10 years | |||
Non-compete agreements | ||||
Intangible Assets [Line Items] | ||||
Intangible assets subject to amortization, Cost | $ 491 | 491 | ||
Intangible assets subject to amortization, Accumulated Amortization | (331) | (270) | ||
Intangible assets subject to amortization, Net Book Value | $ 160 | 221 | ||
Non-compete agreements | Minimum | ||||
Intangible Assets [Line Items] | ||||
Weighted-average useful life | 5 years | |||
Non-compete agreements | Maximum | ||||
Intangible Assets [Line Items] | ||||
Weighted-average useful life | 8 years | |||
Favorable leases | ||||
Intangible Assets [Line Items] | ||||
Weighted-average useful life | 9 years 6 months | |||
Intangible assets subject to amortization, Cost | $ 111 | 111 | ||
Intangible assets subject to amortization, Accumulated Amortization | (111) | (101) | ||
Intangible assets subject to amortization, Net Book Value | 10 | |||
Trademarks | ||||
Intangible Assets [Line Items] | ||||
Intangible assets subject to amortization, Cost | 3,330 | 6,029 | ||
Intangible assets subject to amortization, Accumulated Amortization | (98) | |||
Intangible assets subject to amortization, Net Book Value | $ 3,232 | $ 6,029 | ||
Trademarks | Minimum | ||||
Intangible Assets [Line Items] | ||||
Weighted-average useful life | 7 years 6 months | |||
Trademarks | Maximum | ||||
Intangible Assets [Line Items] | ||||
Weighted-average useful life | 10 years | |||
EFT Source | Trademarks | ||||
Intangible Assets [Line Items] | ||||
Impairment of indefinite lived intangible assets | $ 2,700 |
Goodwill and Other Intangible53
Goodwill and Other Intangible Assets - Future Aggregate Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Estimated future aggregate amortization expense | ||
2,017 | $ 4,893 | |
2,018 | 4,893 | |
2,019 | 4,873 | |
2,020 | 4,833 | |
2,021 | 4,579 | |
Thereafter | 22,277 | |
Intangible assets subject to amortization, Net Book Value | $ 46,348 | $ 53,988 |
Fair Value of Financial Instr54
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Sellers Note | ||
Liabilities: | ||
Carrying amount | $ 9,000 | |
First Lien Credit Facility | ||
Liabilities: | ||
Carrying amount | $ 312,500 | 312,500 |
First Lien Credit Facility | Term Loan | ||
Liabilities: | ||
Carrying amount | 312,500 | |
Long-term debt | 290,625 | |
First Lien Credit Facility | Level 2 | Term Loan | ||
Liabilities: | ||
Long-term debt | $ 290,625 | |
Senior Term Loan | Term Loan | ||
Liabilities: | ||
Carrying amount | 312,500 | |
Long-term debt | 309,375 | |
Senior Term Loan | Sellers Note | ||
Liabilities: | ||
Carrying amount | 9,000 | |
Long-term debt | 9,000 | |
Senior Term Loan | Level 2 | Term Loan | ||
Liabilities: | ||
Long-term debt | 307,375 | |
Senior Term Loan | Level 3 | Sellers Note | ||
Liabilities: | ||
Long-term debt | $ 9,000 |
Related-Party Transactions (Det
Related-Party Transactions (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Related-Party Transactions | |
Notes receivable from employees | $ 0 |
Long-Term Debt and Credit Fac56
Long-Term Debt and Credit Facility - Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 02, 2014 |
Debt Instrument [Line Items] | |||
Unamortized discount | $ (3,795) | $ (4,459) | |
Unamortized deferred financing costs | (6,783) | (8,041) | |
Total long-term debt | 301,922 | 309,000 | |
Less current maturities of long-term debt | (9,000) | ||
Long-term debt, excluding current maturities | $ 301,922 | 300,000 | |
Sellers Note | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 5.00% | 5.00% | |
Long-term debt | 9,000 | ||
First Lien Credit Facility | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 5.50% | ||
Long-term debt | $ 312,500 | 312,500 | |
First Lien Credit Facility | Term Loan | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 312,500 | ||
Senior Term Loan | Term Loan | |||
Debt Instrument [Line Items] | |||
Long-term debt | 312,500 | ||
Senior Term Loan | Sellers Note | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 9,000 |
Long-Term Debt and Credit Fac57
Long-Term Debt and Credit Facility - First Lien Credit Facility (Details) $ in Thousands | Oct. 15, 2015USD ($) | Aug. 17, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2016USD ($)item | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Long-term Debt | ||||||
Interest expense related to amortization of deferred financing costs and discount | $ 1,922 | $ 5,648 | $ 591 | |||
First Lien Credit Facility | ||||||
Long-term Debt | ||||||
Maximum net leverage ratio | 7 | |||||
Eurodollar rate | First Lien Credit Facility | ||||||
Long-term Debt | ||||||
Applicable margin over reference rate (as a percent) | 4.50% | |||||
Eurodollar rate | First Lien Credit Facility | Minimum | ||||||
Long-term Debt | ||||||
Interest rate (as a percent) | 1.00% | |||||
Base rate | First Lien Credit Facility | ||||||
Long-term Debt | ||||||
Applicable margin over reference rate (as a percent) | 3.50% | |||||
Term Loan | First Lien Credit Facility | ||||||
Long-term Debt | ||||||
Maximum borrowing capacity | $ 435,000 | |||||
Amount repaid | $ 112,500 | $ 10,000 | ||||
Interest expense related to amortization of deferred financing costs and discount | $ 4,687 | |||||
Revolving Credit Facility | First Lien Credit Facility | ||||||
Long-term Debt | ||||||
Maximum borrowing capacity | $ 40,000 | |||||
Fee on outstanding letters of credit (as a percent) | 4.50% | 4.50% | ||||
Fronting fee for letters of credit (as a percent) | 0.125% | 0.125% | ||||
Amount drawn to trigger net leverage requirement (as a percent) | 50.00% | |||||
Number of outstanding letters of credit | item | 1 | |||||
Letters of credit outstanding | $ 50 | |||||
Amount outstanding | 0 | |||||
Current borrowing capacity | $ 39,950 | |||||
Revolving Credit Facility | First Lien Credit Facility | Minimum | ||||||
Long-term Debt | ||||||
Unused commitment fee (as a percent) | 0.375% | |||||
Revolving Credit Facility | First Lien Credit Facility | Maximum | ||||||
Long-term Debt | ||||||
Unused commitment fee (as a percent) | 0.50% |
Long-Term Debt and Credit Fac58
Long-Term Debt and Credit Facility - Senior Term Loan (Details) - USD ($) $ in Thousands | Aug. 17, 2015 | Sep. 02, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Long-term Debt | ||||
Loss on early extinguishment of debt | $ (703) | $ (476) | ||
Senior Term Loan | ||||
Long-term Debt | ||||
Amount outstanding | $ 0 | |||
Amount repaid | $ 158,420 | |||
Loss on early extinguishment of debt | $ (703) | $ (476) |
Long-Term Debt and Credit Fac59
Long-Term Debt and Credit Facility - Sellers Note (Details) - Sellers Note - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 02, 2014 |
Long-term Debt | ||
Promissory note | $ 9,000 | |
Interest rate (as a percent) | 5.00% | 5.00% |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current taxes: | |||
Domestic | $ 4,944 | $ 16,036 | $ 8,424 |
Foreign | 27 | 254 | |
Current income tax expense | 4,971 | 16,290 | 8,424 |
Deferred taxes: | |||
Domestic | (1,830) | 1,656 | 2,238 |
Foreign | 1 | (100) | (371) |
Deferred income tax expense | (1,829) | 1,556 | 1,867 |
Provision for income taxes | 3,142 | 17,846 | 10,291 |
Income before income taxes | |||
Domestic | 7,437 | 50,692 | 27,984 |
Foreign | 1,104 | (1,585) | (1,721) |
Income before income taxes | $ 8,541 | $ 49,107 | $ 26,263 |
Effective income tax rate (as a percent) | 36.80% | 36.30% | 39.10% |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Effective Income Tax Rate Reconciliation | |||
Tax at federal statutory rate (as a percent) | 35.00% | 35.00% | 35.00% |
Permanent differences (as a percent) | (2.90%) | (1.60%) | (2.90%) |
State income taxes (as a percent) | 6.30% | 2.00% | 3.10% |
Foreign taxes (as a percent) | (1.90%) | 0.30% | 2.50% |
Other (as a percent) | 0.30% | 0.60% | 1.40% |
Effective income tax rate (as a percent) | 36.80% | 36.30% | 39.10% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Accrued expense | $ 1,089 | $ 927 |
Unrealized foreign exchange loss | 1,426 | 652 |
Net operating loss carryforward | 3,066 | 1,999 |
Deferred financing costs | 1,355 | 1,564 |
Stock compensation | 1,166 | 322 |
Other | 555 | 486 |
Total gross deferred tax asset | 8,657 | 5,950 |
Valuation allowance | (4,930) | (3,717) |
Net deferred tax assets | 3,727 | 2,233 |
Deferred tax liabilities: | ||
Plant, property and leasehold improvements | (6,393) | (5,881) |
Intangibles | (17,159) | (18,962) |
Prepaid expense | (1,436) | (1,463) |
Total gross deferred tax liabilities | (24,988) | (26,306) |
Net deferred tax liabilities | $ (21,261) | $ (24,073) |
Income Taxes - Balance Sheet In
Income Taxes - Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Long-term deferred tax liabilities | $ (21,261) | $ (24,073) |
Net deferred tax liabilities | $ (21,261) | $ (24,073) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation allowance | ||
Valuation allowance (decrease) increase | $ 1,213 | $ (403) |
Deferred Tax Liability Not Recognized, Undistributed Earnings of Foreign Subsidiaries [Abstract] | ||
Provision for U.S. federal and state taxes on cumulative foreign earnings | 0 | |
Foreign earnings intended to be reinvested outside of the U.S. | 3,810 | |
Foreign | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | $ 3,066 | |
Valuation allowance (as a percent) | 100.00% |
Series A Preferred Stock - Addi
Series A Preferred Stock - Additional Share Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 15, 2015 | Aug. 17, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 |
Temporary Equity [Line Items] | |||||
Redemption value treated as return of capital | $ 46 | ||||
Redemption value treated as dividend | $ 230,315 | ||||
Series A Preferred Stock | |||||
Temporary Equity [Line Items] | |||||
Shares outstanding | 0 | 0 | |||
Shares redeemed | 2,576 | 62,140 | 64,809 | ||
Redemption Price (per share) | $ 4,610.68 | $ 4,446.70 | |||
Total redemption value | $ 11,877 | $ 276,688 | $ 288,565 | ||
Redemption value treated as return of capital | 58,250 | ||||
Redemption value treated as dividend | $ 230,315 | ||||
Series A Preferred Stock | Minimum | |||||
Temporary Equity [Line Items] | |||||
Redemption Price (per share) | $ 3,950.33 | ||||
Series A Preferred Stock | Maximum | |||||
Temporary Equity [Line Items] | |||||
Redemption Price (per share) | $ 4,610.68 | ||||
EFT Source | Series A Preferred Stock | |||||
Temporary Equity [Line Items] | |||||
Shares issued for acquisition (in shares) | 549 | ||||
Shares issued, value per share | $ 3,733.88 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock (Details) $ / shares in Units, $ in Thousands | Nov. 09, 2016$ / shares | Oct. 15, 2015USD ($)$ / sharesshares | Sep. 03, 2015shares | Aug. 17, 2015USD ($) | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2016USD ($)Vote / shares$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014shares | May 11, 2016USD ($)shares |
Class of Stock [Line Items] | |||||||||
Common shares, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Dividends, Common Stock [Abstract] | |||||||||
Dividends paid on common stock | $ 7,519 | ||||||||
Cash dividend paid per common share | $ / shares | $ 0.135 | ||||||||
Cash dividends declared per common share | $ / shares | $ 0.045 | $ 0.18 | |||||||
Repurchase Program | |||||||||
Maximum value of shares authorized for repurchase under repurchase plan | $ 20,000 | ||||||||
Maximum number of shares authorized for repurchase under repurchase program | shares | 2,827,105 | ||||||||
Shares repurchased and retired (in shares) | shares | 1,439,422 | ||||||||
Value of shares repurchased and retired | $ 6,008 | ||||||||
Average cost of shares repurchased (in dollars per share) | $ / shares | $ 4.17 | ||||||||
Value of remaining shares available under repurchase authorization | $ 13,992 | ||||||||
Maximum remaining number of shares available under repurchase authorization | shares | 1,387,683 | ||||||||
Common shares, authorized shares (in shares) | shares | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | |||||
Phantom Stock Plan | |||||||||
Repurchase Program | |||||||||
Liability settled for outstanding obligation under Phantom Stock Plan | $ 13,892 | ||||||||
Series A Preferred Stock | |||||||||
Repurchase Program | |||||||||
Total redemption value | $ 11,877 | $ 276,688 | $ 288,565 | ||||||
Common Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Voting rights per share | Vote / shares | 1 | ||||||||
Repurchase Program | |||||||||
Shares repurchased and retired (in shares) | shares | 1,439,422 | ||||||||
Value of shares repurchased and retired | $ 1 | ||||||||
Stock split | 0.0455 | ||||||||
Shares issued (in shares) | shares | 15,000,000 | 257,268 | |||||||
IPO | |||||||||
Repurchase Program | |||||||||
Shares issued (in shares) | shares | 15,000,000 | ||||||||
Shares issued, value per share | $ / shares | $ 10 | ||||||||
Deferred Offering expenses | $ 7,196 | ||||||||
IPO | Phantom Stock Plan | |||||||||
Repurchase Program | |||||||||
Liability settled for outstanding obligation under Phantom Stock Plan | 13,268 | ||||||||
IPO | Series A Preferred Stock | |||||||||
Repurchase Program | |||||||||
Total redemption value | 11,877 | ||||||||
Term Loan | First Lien Credit Facility | |||||||||
Repurchase Program | |||||||||
Repayment of outstanding term loan | 112,500 | $ 10,000 | |||||||
Term Loan | First Lien Credit Facility | IPO | |||||||||
Repurchase Program | |||||||||
Repayment of outstanding term loan | $ 112,500 | ||||||||
Accrued expenses | |||||||||
Dividends, Common Stock [Abstract] | |||||||||
Accrued dividend | $ 2,491 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator: | |||||||||||
Net income from continuing operations | $ (4,013) | $ 4,026 | $ (328) | $ 5,714 | $ (1,615) | $ 14,760 | $ 12,155 | $ 5,960 | $ 5,399 | $ 31,261 | $ 15,972 |
Preferred stock dividends | (94) | (7,096) | (12,747) | (12,611) | (32,548) | (44,477) | |||||
Income (loss) from continuing operations attributable to common stockholders | 5,399 | (1,287) | (28,505) | ||||||||
Income income from a discontinued operation, net of taxes | (398) | (2,670) | |||||||||
Income attributable to common stockholders | $ (4,013) | $ 4,026 | $ (328) | $ 5,714 | $ (2,388) | $ 7,664 | $ (592) | $ (6,370) | $ 5,399 | $ (1,685) | $ (31,175) |
Denominator: | |||||||||||
Basic EPS - weighted average common shares outstanding | 55,827,409 | 44,816,263 | 41,199,246 | ||||||||
Dilutive EPS - weighted average common shares outstanding | 56,203,789 | 44,816,263 | 41,199,246 | ||||||||
Basic and Diluted EPS: | |||||||||||
Earnings from continuing operations | $ (0.07) | $ 0.07 | $ (0.01) | $ 0.10 | $ (0.03) | $ 0.19 | $ (0.02) | $ (0.16) | $ 0.10 | $ (0.03) | $ (0.69) |
Earnings from a discontinued operation, net of taxes | (0.01) | 0.01 | (0.01) | (0.07) | |||||||
Total basic and diluted earnings per share | $ (0.07) | $ 0.07 | $ (0.01) | $ 0.10 | $ (0.04) | $ 0.19 | $ (0.02) | $ (0.15) | $ 0.10 | $ (0.04) | $ (0.76) |
Potentially dilutive effect of outstanding stock options | |||||||||||
Potential dilutive effect of share-based compensation excluded (in shares) | 1,327,818 | 1,257,450 | 627,000 |
Commitments and Contingencies -
Commitments and Contingencies - Rental Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Future Cash Payments, Operating Leases: | |||
2,017 | $ 4,350 | ||
2,018 | 3,352 | ||
2,019 | 2,450 | ||
2,020 | 2,074 | ||
2,021 | 1,769 | ||
Thereafter | 2,110 | ||
Total | 16,105 | ||
Future Cash Payments, Purchase Obligations: | |||
2,017 | 7,042 | ||
Total | 7,042 | ||
Operating leases, rent expense | $ 3,467 | $ 3,518 | $ 3,320 |
Commitments and Contingencies69
Commitments and Contingencies - Asset Retirement Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other Long Term Liabilities | ||
Loss Contingencies [Line Items] | ||
Asset retirement obligation | $ 602 | $ 613 |
Commitments and Contingencies70
Commitments and Contingencies - Contingencies (Details) | Jun. 15, 2016plaintiff |
Pending Litigation [Member] | |
Loss Contingencies [Line Items] | |
Number of purported shareholders that have filed lawsuits | 2 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Employee benefit plan, Company's portion vested at time of match (as a percent) | 100.00% | ||
Employee benefit plan expense | $ 1,382 | $ 1,049 | $ 824 |
Participant's first 3% of deferrals | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employee benefit plan, Company match (as a percent) | 100.00% | ||
Participant's second 2% of deferrals | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employee benefit plan, Company match (as a percent) | 50.00% |
Stock-Based Compensation - Omni
Stock-Based Compensation - Omnibus Incentive Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Oct. 31, 2015 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option life (in years) | 10 years | ||
Omnibus Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted (in shares) | 785,058 | ||
Number of shares | |||
Granted (in shares) | 785,058 | ||
Number of unvested options scheduled to vest | |||
Unvested options (in shares) | 1,437,508 | ||
Unrecognized compensation expense | $ 2,467 | ||
Period over which compensation expense expected to recognize | 1 year 7 months 6 days | ||
Omnibus Plan | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 4,000,000 | ||
Number of shares available for grant | 2,281,135 | ||
Stock options granted (in shares) | 785,058 | 795,450 | |
Exercise price of options granted (in dollars per share) | $ 7.38 | $ 10 | |
Valuation Assumptions: | |||
Volatility | 35.40% | ||
Risk-free interest rate | 1.50% | ||
Dividend yield | 3.30% | ||
Expected term in years | 6 years 3 months 18 days | ||
Number of shares | |||
Balance at beginning of year (in shares) | 795,450 | ||
Granted (in shares) | 785,058 | 795,450 | |
Forfeited (in shares) | (143,000) | ||
Balance at end of year (in shares) | 1,437,508 | 795,450 | |
Weighted-Average Exercise Price | |||
Balance at beginning of year (in dollars per share) | $ 10 | ||
Granted (in dollars per share) | 7.38 | $ 10 | |
Forfeited (in dollars per share) | 10 | ||
Balance at end of year (in dollars per share) | $ 8.62 | $ 10 | |
Weighted- Average Remaining Contractual Term (in Years) | |||
Balance (in years) | 8 years 11 months 23 days | ||
Number of unvested options scheduled to vest | |||
Aggregate intrinsic value of stock option awards outstanding | $ 0 | ||
Omnibus Plan | Stock Options | Maximum | |||
Number of unvested options scheduled to vest | |||
Volatility rate, peer group determined by tech companies that completed IPO within the state year range (in years) | 10 years | ||
Awards vesting beginning the first anniversary of the grant date | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Awards vesting beginning the second anniversary of the grant date | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
2017 | Omnibus Plan | |||
Number of unvested options scheduled to vest | |||
Unvested options (in shares) | 379,643 | ||
2018 | Omnibus Plan | |||
Number of unvested options scheduled to vest | |||
Unvested options (in shares) | 469,627 | ||
2019 | Omnibus Plan | |||
Number of unvested options scheduled to vest | |||
Unvested options (in shares) | 469,352 | ||
2020 | Omnibus Plan | |||
Number of unvested options scheduled to vest | |||
Unvested options (in shares) | 118,886 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) - Omnibus Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted Average Grant Date Fair Value | ||
Unrecognized compensation expense | $ 2,467 | |
Period over which compensation expense expected to recognize | 1 year 7 months 6 days | |
Restricted stock units | ||
Number of Restricted Stock Units | ||
Granted (in shares) | 305,234 | |
Vested (in shares) | (15,803) | |
Forfeited (in shares) | (18,965) | |
Restricted stock units outstanding at the end of the period (in shares) | 270,466 | |
Weighted Average Grant Date Fair Value | ||
Granted (in dollars per share) | $ 7.22 | |
Vested (in dollars per share) | 7.91 | |
Forfeited (in dollars per share) | 7.91 | |
Restricted stock units outstanding at the end of the period (in dollars per shares) | $ 7.13 | |
Compensation expense | $ 2,770 | $ 239 |
Stock-Based Compensation - Opti
Stock-Based Compensation - Option Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Option Plan | |||
Number of shares | |||
Balance at beginning of year (in shares) | 462,000 | 627,000 | 649,000 |
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | (245,666) | (66,000) | |
Forfeited (in shares) | (99,000) | (22,000) | |
Balance at end of year (in shares) | 216,334 | 462,000 | 627,000 |
Exercisable (in shares) | 216,334 | ||
Weighted-Average Exercise Price | |||
Balance at beginning of year (in dollars per share) | $ 0.0003 | $ 0.0004 | $ 0.0004 |
Exercised (in dollars per share) | 0.0003 | 0.0005 | |
Forfeited (in dollars per share) | 0.0003 | 0.0001 | |
Balance at end of year (in dollars per share) | 0.0004 | $ 0.0003 | $ 0.0004 |
Exercisable at end of year (in dollars per share) | $ 0.0004 | ||
Weighted- Average Remaining Contractual Term (in Years) | |||
Balance (in years) | 5 years 4 months 2 days | ||
Exercisable | 5 years 4 months 2 days | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option life (in years) | 10 years | ||
Stock Options | Option Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option life (in years) | 10 years | ||
Weighted- Average Remaining Contractual Term (in Years) | |||
Aggregate intrinsic value of stock option awards outstanding | $ 898 |
Stock-Based Compensation - Re75
Stock-Based Compensation - Restricted Shares (Details) - Restricted shares - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Number of Restricted Stock Units | ||
Restricted stock units outstanding at the beginning of the period (in shares) | 191,664 | |
Granted (in shares) | 191,664 | |
Vested (in shares) | (96,800) | |
Restricted stock units outstanding at the end of the period (in shares) | 94,864 | 191,664 |
Weighted Average Grant Date Fair Value | ||
Restricted stock units outstanding at the beginning of the period (in dollars per shares) | $ 9.48 | |
Granted (in dollars per share) | $ 9.48 | |
Vested (in dollars per share) | 9.48 | |
Restricted stock units outstanding at the end of the period (in dollars per shares) | $ 9.48 | $ 9.48 |
Compensation expense | $ 809 | $ 646 |
Unrecognized compensation expense | $ 326 | |
Period over which compensation expense expected to recognize | 1 year 1 month 24 days | |
Maximum | ||
Weighted Average Grant Date Fair Value | ||
Vesting period | 3 years |
Stock-Based Compensation - Phan
Stock-Based Compensation - Phantom Stock Plan (Details) - Phantom Stock Plan - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Liability settled | $ 13,892 | |
Stock based compensation expense | $ 8,748 | $ 4,534 |
Segment Reporting - Revenue and
Segment Reporting - Revenue and EBITDA (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting | |||||||||||
Revenues | $ 67,380 | $ 81,202 | $ 73,725 | $ 86,393 | $ 93,567 | $ 107,697 | $ 95,536 | $ 77,310 | $ 308,700 | $ 374,110 | $ 261,006 |
EBITDA | 45,512 | 83,401 | 47,023 | ||||||||
Operating Segments | U.S. Debit and Credit | |||||||||||
Segment Reporting | |||||||||||
Revenues | 208,795 | 263,668 | 153,015 | ||||||||
EBITDA | 52,090 | 78,981 | 37,547 | ||||||||
Operating Segments | U.S. Prepaid Debit | |||||||||||
Segment Reporting | |||||||||||
Revenues | 60,065 | 65,878 | 59,271 | ||||||||
EBITDA | 18,646 | 22,993 | 18,654 | ||||||||
Operating Segments | U.K. Limited | |||||||||||
Segment Reporting | |||||||||||
Revenues | 29,689 | 34,361 | 35,163 | ||||||||
EBITDA | 2,839 | 3,572 | 2,943 | ||||||||
Operating Segments | Other | |||||||||||
Segment Reporting | |||||||||||
Revenues | 13,110 | 17,420 | 23,908 | ||||||||
EBITDA | (28,063) | (22,145) | (12,121) | ||||||||
Intersegment eliminations | |||||||||||
Segment Reporting | |||||||||||
Revenues | $ (2,959) | $ (7,217) | $ (10,351) |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of EBITDA to Income Before Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of total segment EBITDA to income before taxes | |||||||||||
Total segment EBITDA from continuing operations | $ 45,512 | $ 83,401 | $ 47,023 | ||||||||
Interest, net | (20,044) | (18,328) | (7,508) | ||||||||
Income tax expense | (3,142) | (17,846) | (10,291) | ||||||||
Depreciation and amortization | (16,927) | (15,966) | (13,252) | ||||||||
Net income from continuing operations | $ (4,013) | $ 4,026 | $ (328) | $ 5,714 | $ (1,615) | $ 14,760 | $ 12,155 | $ 5,960 | $ 5,399 | $ 31,261 | $ 15,972 |
Segment Reporting - Balance She
Segment Reporting - Balance Sheet Data (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 264,420 | $ 280,353 |
Operating Segments | U.S. Debit and Credit | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 205,417 | 221,274 |
Operating Segments | U.S. Prepaid Debit | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 23,509 | 20,960 |
Operating Segments | U.K. Limited | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 26,060 | 25,897 |
Operating Segments | Other | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 9,434 | $ 12,222 |
Segment Reporting - Geographic
Segment Reporting - Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Total plant, equipment and leasehold improvement additions | $ 14,879 | $ 20,063 | $ 15,568 | ||||||||
Revenues | $ 67,380 | $ 81,202 | $ 73,725 | $ 86,393 | $ 93,567 | $ 107,697 | $ 95,536 | $ 77,310 | 308,700 | 374,110 | 261,006 |
Total long-lived assets | 171,763 | 179,224 | 171,763 | 179,224 | |||||||
Total North America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total plant, equipment and leasehold improvement additions | 13,432 | 19,404 | 15,114 | ||||||||
Revenues | 274,542 | 328,652 | 212,551 | ||||||||
Total long-lived assets | 160,672 | 166,631 | 160,672 | 166,631 | |||||||
U.S. | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total plant, equipment and leasehold improvement additions | 13,169 | 19,129 | 15,082 | ||||||||
Revenues | 262,544 | 316,111 | 196,418 | ||||||||
Total long-lived assets | 157,773 | 164,377 | 157,773 | 164,377 | |||||||
Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total plant, equipment and leasehold improvement additions | 263 | 275 | 32 | ||||||||
Revenues | 11,998 | 12,541 | 16,133 | ||||||||
Total long-lived assets | 2,899 | 2,254 | 2,899 | 2,254 | |||||||
U.K. | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total plant, equipment and leasehold improvement additions | 1,447 | 659 | 454 | ||||||||
Revenues | 25,705 | 36,954 | 36,682 | ||||||||
Total long-lived assets | $ 11,091 | $ 12,593 | 11,091 | 12,593 | |||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 8,453 | $ 8,504 | $ 11,773 |
Segment Reporting - Net Sales b
Segment Reporting - Net Sales by Product and Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting | |||||||||||
Product net sales | $ 168,510 | $ 241,609 | $ 159,220 | ||||||||
Services net sales | 140,190 | 132,501 | 101,786 | ||||||||
Total net sales | $ 67,380 | $ 81,202 | $ 73,725 | $ 86,393 | $ 93,567 | $ 107,697 | $ 95,536 | $ 77,310 | $ 308,700 | $ 374,110 | $ 261,006 |
Quarterly Financial Informati82
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information (Unaudited) | |||||||||||
Net sales | $ 67,380 | $ 81,202 | $ 73,725 | $ 86,393 | $ 93,567 | $ 107,697 | $ 95,536 | $ 77,310 | $ 308,700 | $ 374,110 | $ 261,006 |
Gross profit | 20,436 | 29,063 | 22,707 | 29,692 | 31,429 | 43,049 | 35,835 | 25,508 | 101,898 | 135,821 | 81,727 |
Income (loss) from continuing operations | (4,013) | 4,026 | (328) | 5,714 | (1,615) | 14,760 | 12,155 | 5,960 | 5,399 | 31,261 | 15,972 |
Income (Loss) from a discontinued operation, net of taxes | (679) | 281 | (398) | ||||||||
Net income (loss) | (4,013) | 4,026 | (328) | 5,714 | (2,294) | 14,760 | 12,155 | 6,241 | 5,399 | 30,863 | 13,302 |
Preferred stock dividends | (94) | (7,096) | (12,747) | (12,611) | (32,548) | (44,477) | |||||
Net (loss) income attributable to common stockholders | $ (4,013) | $ 4,026 | $ (328) | $ 5,714 | $ (2,388) | $ 7,664 | $ (592) | $ (6,370) | $ 5,399 | $ (1,685) | $ (31,175) |
Basic and diluted earnings per share: | |||||||||||
Continuing operations | $ (0.07) | $ 0.07 | $ (0.01) | $ 0.10 | $ (0.03) | $ 0.19 | $ (0.02) | $ (0.16) | $ 0.10 | $ (0.03) | $ (0.69) |
Discontinued operation | (0.01) | 0.01 | (0.01) | (0.07) | |||||||
Total basic and diluted earnings per share | $ (0.07) | $ 0.07 | $ (0.01) | $ 0.10 | $ (0.04) | $ 0.19 | $ (0.02) | $ (0.15) | $ 0.10 | $ (0.04) | $ (0.76) |
Quarterly Financial Informati83
Quarterly Financial Information - Cost of Sales Reclassification (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information (Unaudited) | |||
Cost of Sales from products | $ 111,627 | $ 155,516 | $ 113,399 |
Cost of Sales from services | $ 84,453 | $ 73,111 | $ 57,233 |
Subsequent Event (Details)
Subsequent Event (Details) - $ / shares | Mar. 01, 2017 | Nov. 09, 2016 | Dec. 31, 2016 |
Subsequent Event [Line Items] | |||
Cash dividends declared per common share | $ 0.045 | $ 0.18 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Cash dividends declared per common share | $ 0.045 |