CPI Card (PMTS) 10-Q8 Nov 172017 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2017	Oct. 26, 2017
Document and Entity Information
Entity Registrant Name	CPI Card Group Inc.
Entity Central Index Key	1,641,614
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		55,673,755
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 14,815	$ 36,955
Accounts receivable, net of allowances of $53 and $126, respectively	42,712	31,492
Inventories	18,637	19,369
Prepaid expenses and other current assets	3,891	4,601
Income taxes receivable	4,415
Total current assets	84,470	92,417
Plant, equipment and leasehold improvements, net	51,320	53,419
Intangible assets, net	42,800	46,348
Goodwill	72,638	71,996
Other assets	280	240
Total assets	251,508	264,420
Current liabilities:
Accounts payable	13,482	10,996
Accrued expenses	12,856	17,487
Income taxes payable		64
Deferred revenue and customer deposits	5,194	6,729
Total current liabilities	31,532	35,276
Long-term debt	303,383	301,922
Deferred income taxes	20,512	21,261
Other long-term liabilities	1,666	1,234
Total liabilities	357,093	359,693
Commitments and contingencies (Note 10)
Stockholders' deficit:
Common Stock; $0.001 par value—100,000,000 shares authorized; 55,661,337 and 55,359,251 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively	56	55
Capital deficiency	(113,689)	(114,881)
Accumulated earnings	13,242	25,968
Accumulated other comprehensive loss	(5,194)	(6,415)
Total stockholders' deficit	(105,585)	(95,273)
Total liabilities and stockholders' deficit	$ 251,508	$ 264,420

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Condensed Consolidated Balance Sheets
Allowance on accounts receivable	$ 53	$ 126
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)	55,661,337	55,359,251
Common shares, outstanding shares (in shares)	55,661,337	55,359,251

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net sales:
Products	$ 31,417	$ 37,482	$ 95,005	$ 132,535
Services	36,627	43,720	94,893	108,785
Total net sales	68,044	81,202	189,898	241,320
Cost of sales:
Products (exclusive of depreciation and amortization shown below)	22,366	23,583	66,161	87,248
Services (exclusive of depreciation and amortization shown below)	21,916	25,855	58,969	64,682
Depreciation and amortization	2,786	2,701	8,412	7,928
Total cost of sales	47,068	52,139	133,542	159,858
Gross Profit	20,976	29,063	56,356	81,462
Operating expenses:
Selling, general and administrative (exclusive of depreciation and amortization shown below)	15,806	15,838	47,519	46,969
Depreciation and amortization	1,674	1,529	5,183	4,602
Total operating expenses	17,480	17,367	52,702	51,571
Income from operations	3,496	11,696	3,654	29,891
Other expense, net
Interest, net	(5,305)	(5,008)	(15,530)	(15,109)
Foreign currency gain (loss)	314	(124)	568	(192)
Other income, net	5	3	12	17
Total other expense, net	(4,986)	(5,129)	(14,950)	(15,284)
(Loss) income before income taxes	(1,490)	6,567	(11,296)	14,607
Income tax benefit (expense)	755	(2,541)	3,893	(5,194)
Net (loss) income	$ (735)	$ 4,026	$ (7,403)	$ 9,413
Basic and diluted (loss) earnings per share:
Basic and diluted (loss) earnings per share:	$ (0.01)	$ 0.07	$ (0.13)	$ 0.17
Weighted-average shares outstanding
Basic (in shares)	55,639,551	55,255,239	55,558,825	55,999,722
Diluted (in shares)	55,639,551	55,508,684	55,558,825	56,232,195
Dividends declared per common share		$ 0.045	$ 0.09	$ 0.135
Comprehensive (loss) income
Net (loss) income	$ (735)	$ 4,026	$ (7,403)	$ 9,413
Currency translation adjustment	434	(465)	1,221	(1,414)
Total comprehensive (loss) income	$ (301)	$ 3,561	$ (6,182)	$ 7,999

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating activities
Net (loss) income	$ (7,403)	$ 9,413
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities
Depreciation and amortization expense	13,595	12,530
Stock-based compensation expense	1,367	2,785
Amortization of debt issuance costs and debt discount	1,461	1,437
Excess tax benefits from stock-based compensation		(526)
Deferred income taxes	(863)	(445)
Other, net	(209)	220
Changes in operating assets and liabilities:
Accounts receivable	(10,681)	9,053
Inventories	1,186	1,978
Prepaid expenses and other assets	709	(32)
Income taxes	(4,470)	4,522
Accounts payable	2,319	(4,352)
Accrued expenses	(2,384)	1,699
Deferred revenue and customer deposits	(1,957)	1,307
Other liabilities	402	183
Cash (used in) provided by operating activities	(6,928)	39,772
Investing activities
Acquisitions of plant, equipment and leasehold improvements	(7,808)	(12,369)
Cash used in investing activities	(7,808)	(12,369)
Financing activities
Payments of Sellers Note		(9,000)
Common stock repurchased		(6,008)
Dividends paid on common stock	(7,537)	(5,031)
Taxes withheld and paid on stock-based compensation awards	(341)
Excess tax benefits from stock-based compensation		526
Cash used in financing activities	(7,878)	(19,513)
Effect of exchange rates on cash	474	(226)
Net (decrease) increase in cash and cash equivalents	(22,140)	7,664
Cash and cash equivalents, beginning of period	36,955	13,606
Cash and cash equivalents, end of period	14,815	21,270
Supplemental disclosures of cash flow information
Cash paid during the period for: Interest	13,719	10,718
Cash paid during the period for: Income taxes, net payments	$ 1,437	$ 1,113

Business Overview and Summary o

Business Overview and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Business Overview and Summary of Significant Accounting Policies
Business Overview and Summary of Significant Accounting Policies	CPI Card Group Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Dollars in Thousands, Except Share and Per Share Amounts or as Otherwise Indicated) (Unaudited) 1. Business Overview and Summary of Significant Accounting Policies Business Overview CPI Card Group Inc. (which, together with its subsidiaries, is referred to herein as “CPI” or the “Company”) is a leading provider of comprehensive Financial Payment Card solutions in the United States. The Company defines Financial Payment Cards as credit, debit and prepaid debit cards issued on the networks of the Payment Card Brands (Visa, MasterCard, American Express and Discover) and Interac (in Canada). The Company serves its customers through a network of ten production and card services facilities, including eight high-security facilities in the United States and Canada that are each certified by one or more of the Payment Card Brands and Interac (in Canada) and, where required by the Company’s customers, certified to be in compliance with the standards of the Payment Card Industry (“PCI”) Security Standards Council. In addition to its eight facilities in the United States and Canada, the Company has two facilities in the United Kingdom that produce retail cards, such as gift and loyalty cards, and provide card personalization, packaging and fulfillment services for customers in the United Kingdom and continental Europe. These facilities are not certified by 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. Basis of Presentation Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, these financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for the fair statement of the results of the interim periods presented. The Condensed Consolidated Balance Sheet as of December 31, 2016 is derived from the audited financial statements as of that date. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Use of Estimates Management uses estimates and assumptions relating to the reporting of assets and liabilities in its preparation of the condensed 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 tax assets; debt; and stock-based compensation expense. Actual results could differ from those estimates. Inventories Inventories consist of raw materials, work-in-process and finished goods and are measured at the lower of cost or net realizable value (determined on the first-in, first-out or specific identification basis) in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (“ASU”) 2015-11, Inventory — Simplifying the Measurement of Inventory, which the Company adopted on January 1, 2017. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The adoption of this standard did not impact the Company’s financial position, results of operations or cash flows during either the three or nine months ended September 30, 2017. Stock-based Compensation The Company accounts for stock-based compensation pursuant to Accounting Standards Codification (“ASC”) Topic 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 11 “Stock Based Compensation” for additional discussion regarding details of the Company's stock-based compensation plans. As a result of the Company’s adoption of ASU 2016-09, Compensation–Stock Compensation: Improvements to Employee Share-Based Payment Accounting ( “ASU 2016-09” ) as of January 1, 2017, the Company accounts for forfeitures when they occur. In addition, excess tax benefits and deficiencies in connection with the Company’s stock-based compensation plans are recorded in “Income tax benefit” in the Condensed Consolidated Statement of Operations and Comprehensive (Loss) Income. Recently Issued Accounting Pronouncements The FASB issued 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 amended, as of January 1, 2018 using the modified retrospective transition method, with the cumulative effect of initial adoption recognized at the date of initial application. The Company is currently assessing the impact that the future adoption of ASU 2014-09, as amended, will have on its condensed consolidated financial statements. The Company believes it meets the criteria for recognizing certain performance obligations over time, as much of its finished product provides value to only a specified customer, has no alternative use, and the Company has the right to payment for work completed on such items. After the adoption of ASU 2014-09, the Company would plan to expense the costs of these performance obligations over time and apply a margin to estimate associated revenues. The Company is evaluating the required changes to its business and accounting processes, and internal controls to support recognition and disclosures under the new standard. 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 (the Company’s fiscal year 2019) 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 condensed consolidated financial statements. In January 2017, the FASB issued ASU 2017-04 , Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment to simplify the method of measuring a goodwill impairment charge in the event a reporting unit’s carrying amount exceeds its fair value. In those circumstances, the new standard requires the Company to recognize an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its fair value. The Company cannot predict if or when such an impairment charge may occur, or the amount of any potential impairment, and is currently evaluating the potential impact that the adoption of ASU 2017-04 will have on its results of operations, financial position and condensed consolidated financial statements. The Company is required to adopt the new standard on January 1, 2020, with early adoption permitted.

Inventories

Inventories	9 Months Ended
Inventories	Sep. 30, 2017
Inventories
Inventories	2. Inventories Inventories are summarized below: September 30, 2017 December 31, 2016 Raw materials $ 6,239 $ 8,206 Work-in-process 8,516 6,340 Finished goods 3,882 4,823 $ 18,637 $ 19,369

Plant, Equipment and Leasehold

Plant, Equipment and Leasehold Improvements	9 Months Ended
Plant, Equipment and Leasehold Improvements	Sep. 30, 2017
Plant, Equipment and Leasehold Improvements
Plant, Equipment and Leasehold Improvements	3. Plant, Equipment and Leasehold Improvements Plant, equipment and leasehold improvements consist of the following: September 30, 2017 December 31, 2016 Buildings $ 2,298 $ 2,077 Machinery and equipment 62,277 59,464 Furniture, fixtures and computer equipment 7,445 6,634 Leasehold improvements 19,562 18,655 Construction in progress 3,775 1,136 95,357 87,966 Less accumulated depreciation and amortization (44,037) (34,547) $ 51,320 $ 53,419 Amounts recorded for the depreciation of plant, equipment and leasehold improvements was $3,233 and $3,098 for the three months ended September 30, 2017 and 2016, respectively, and $9,917 and $9,124 for the nine months ended September 30, 2017 and 2016, respectively.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	9 Months Ended
Goodwill and Other Intangible Assets	Sep. 30, 2017
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	4. Goodwill and Other Intangible Assets The Company’s goodwill by reportable segment at September 30, 2017 and December 31, 2016 is as follows: September 30, 2017 December 31, 2016 U.S. Debit and Credit $ 64,330 $ 64,330 U.K. Limited 6,413 5,908 Other 1,895 1,758 $ 72,638 $ 71,996 The change in goodwill from December 31, 2016 to September 30, 2017 was a result of foreign currency translation adjustments. Intangible assets consist of customer relationships, technology and software, non-compete agreements and trademarks. The changes in the cost basis of the intangibles from December 31, 2016 to September 30, 2017 are related to foreign currency translation adjustments. Intangible amortization expense was $1,227 and $1,132 for the three months ended September 30, 2017 and 2016, respectively, and $3,678 and $3,406 for the nine months ended September 30, 2017 and 2016, respectively. As of September 30, 2017 and December 31, 2016, intangible assets, excluding goodwill, were comprised of the following: September 30, 2017 December 31, 2016 Average Life Accumulated Net Book Accumulated Net Book (Years) Cost Amortization Value Cost Amortization Value Customer relationships 12 to 20 $ 59,293 $ (23,787) $ 35,506 $ 58,994 $ (20,972) $ 38,022 Technology and software 7 to 10 7,101 (2,863) 4,238 7,101 (2,167) 4,934 Non-compete agreements 5 to 8 491 (375) 116 491 (331) 160 Trademarks 7.5 to 10 3,330 (390) 2,940 3,330 (98) 3,232 Intangible assets subject to amortization $ 70,215 $ (27,415) $ 42,800 $ 69,916 $ (23,568) $ 46,348 The estimated future aggregate amortization expense for the identified amortizable intangibles noted above as of September 30, 2017 is as follows: 2017 (remaining 3 months) $ 1,228 2018 4,913 2019 4,893 2020 4,853 2021 4,582 Thereafter 22,331 $ 42,800

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
Fair Value of Financial Instruments	Sep. 30, 2017
Fair Value of Financial Instruments
Fair Value of Financial Instruments	5. 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—Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.  Level 2— Observable inputs other than Level 1 prices such as quoted prices in active markets for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term for the assets or liabilities.  Level 3— Valuations based on 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 measurement date. The Company’s financial assets and liabilities that are not required to be remeasured at fair value in the Condensed Consolidated Balance Sheets are as follows: Carrying Value as of Fair Value as of Fair Value Measurement at September 30, 2017 September 30, September 30, (Using Fair Value Hierarchy) 2017 2017 Level 1 Level 2 Level 3 Liabilities: First Lien Term Loan $ 312,500 $ 223,438 $ — $ 223,438 $ — Carrying Value as of Fair Value as of Fair Value Measurement at December 31, 2016 December 31, December 31, (Using Fair Value Hierarchy) 2016 2016 Level 1 Level 2 Level 3 Liabilities: First Lien Term Loan $ 312,500 $ 290,625 $ — $ 290,625 $ — The aggregate fair value of the Company’s First Lien Term Loan, as defined in Note 6, “Long-Term Debt and Credit Facility,” was based on bank quotes. The carrying amounts for cash and cash equivalents approximate fair value due to their short maturities.

Long-Term Debt and Credit Facil

Long-Term Debt and Credit Facility	9 Months Ended
Long-Term Debt and Credit Facility	Sep. 30, 2017
Long-Term Debt and Credit Facility
Long-Term Debt and Credit Facility	6. Long-Term Debt and Credit Facility As of September 30, 2017 and December 31, 2016, long-term debt and credit facilities consist of the following: Interest September 30, December 31, Rate (1) 2017 2016 First lien term loan facility (1) 5.96 % $ 312,500 $ 312,500 Unamortized discount (3,290) (3,795) Unamortized deferred financing costs (5,827) (6,783) Long-term debt $ 303,383 $ 301,922 (1 ) Interest rate at September 30, 2017. Interest rate at December 31, 2016 was 5.50%. First Lien Credit Facility On August 17, 2015, the Company entered into a first lien credit facility (the “First Lien Credit Facility”) with a syndicate of lenders providing for a $435,000 first lien term loan (the “First Lien Term Loan”) and a $40,000 revolving credit facility (the “Revolving Credit Facility”). The First Lien Term Loan 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 ratio not in excess of 7.0 times trailing twelve month Adjusted EBITDA, as defined in the agreement. As of September 30, 2017, 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 based on an annual excess cash flow calculation, pursuant to the terms of the agreement, with any required payments to be made after the issuance of the Company’s annual financial statements. As of September 30, 2017, the Company does not expect to have a required excess cash flow payment related to 2017. As of September 30, 2017, the Company did not have any outstanding amounts under the Revolving Credit Facility, and has $19,950 available for borrowing. Additional amounts may be available for borrowing under the term of the Revolving Credit Facility, up to the full $40,000, to the extent the Company’s net leverage ratio does not exceed 7.0 times Adjusted EBITDA, as defined in the agreement. 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 September 30, 2017 and December 31, 2016, 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. The Company has accrued interest of $4,192 and $3,858, recorded within “Accrued expenses” on the Condensed Consolidated Balance Sheets as of September 30, 2017, and December 31, 2016, respectively. 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. 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.

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2017
Income Taxes
Income Taxes	7. Income Taxes During the three months ended September 30, 2017, the Company recognized an income tax benefit of $755 on a pre-tax loss of $1,490, representing an effective income tax rate of 50.7%, compared to an income tax expense of $2,541 on pre-tax income of $6,567, representing an effective tax rate of 38.7% during the three months ended September 30, 2016. During the nine months ended September 30, 2017, the Company recognized an income tax benefit of $3,893 on a pre-tax loss of $11,296, representing an effective income tax rate of 34.5%, compared to an income tax expense of $5,194 on pre-tax income of $14,607, representing an effective tax rate of 35.6% during the nine months ended September 30, 2016. The effective tax rates differ from the federal U.S. statutory rate primarily due to a benefit from permanent deductions related to credits for domestic production activities and the impact of state and foreign income taxes. In addition, as a result of the January 1, 2017 adoption of ASU 2016-09, excess tax benefits and deficiencies in connection with the Company’s stock-based compensation plans are recorded to income tax benefit and impact the effective tax rate. The Company’s tax returns are subject to audits by U.S. federal, state, and foreign tax authorities. During March 2017, the Company was notified that the Internal Revenue Service ("

Stockholders' Equity

Stockholders' Equity	9 Months Ended
Stockholders' Equity	Sep. 30, 2017
Stockholders’ Equity
Stockholders’ Equity	8. Stockholders’ Equity During the three and nine months ended September 30, 2017, the Company paid dividends of $2,511 and $7,537, respectively, representing $0.045 and $0.135 per share, respectively. During August 2017, the Company discontinued its quarterly dividend of $0.045 per share. On May 11, 2016, the Board of Directors approved a stock repurchase program that authorized 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. The stock repurchase program expired by its terms during May 2017. During the three and nine months ended September 30, 2017, there were no common shares repurchased.

(Loss) Earnings per Share

(Loss) Earnings per Share	9 Months Ended
(Loss) Earnings per Share	Sep. 30, 2017
(Loss) Earnings per Share
(Loss) Earnings per Share	9. (Loss) Earnings per Share Basic and diluted (loss) earnings per share is computed by dividing net (loss) income by the weighted-average number of common shares outstanding during the period. The following table sets forth the computation of basic and diluted (loss) earnings per share: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Numerator: Net (loss) income $ (735) $ 4,026 $ (7,403) $ 9,413 Denominator: Basic-weighted-average common shares outstanding 55,639,551 55,255,239 55,558,825 55,999,722 Diluted-weighted-average common shares outstanding 55,639,551 55,508,684 55,558,825 56,232,195 Basic and Diluted (Loss) earnings per share: $ (0.01) $ 0.07 $ (0.13) $ 0.17 The Company reported a net loss for the three and nine months ended September 30, 2017. Accordingly, the potentially dilutive effect of 4,765,224 stock options and 263,323 restricted stock units has been excluded from the computation of diluted earnings per share as their inclusion would be anti-dilutive.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2017
Commitments and Contingencies.
Commitments and Contingencies	10. Commitments and Contingencies Commitments The Company incurred rent expense under non-cancellable operating leases of $970 and $907 for the three months ended September 30, 2017 and 2016, respectively, and $2,875 and $2,541 for the nine months ended September 30, 2017 and 2016, respectively. Contingencies In accordance with applicable accounting guidance, the Company establishes an accrued liability when loss contingencies are both probable and estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. As a matter develops, the Company, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether such matter presents a loss contingency that is probable and estimable. Once the loss contingency is deemed to be both probable and estimable, the Company will establish an accrued liability and record a corresponding amount of litigation-related expense. The Company expenses professional fees associated with litigation claims and assessments as incurred. CPI Card Group Inc. Securities Litigation, Case No. 1:16-CV-04531 (S.D.N.Y.) On June 15, 2016, two purported CPI stockholders 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 initial public offering (“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, as amended (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 ended 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 (the “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, which was denied by the court on October 30, 2017. 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 potential loss is not probable or estimable and no accrual has been recognized as of September 30, 2017 or 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 complaint alleged that the Company infringed a now-expired Gemalto patent by incorporating into the Company’s products microchips that allegedly practice the EMV standard. The Company successfully moved to transfer the lawsuit to the District of Colorado, answered the complaint, and filed counterclaims that the asserted patent was invalid and unenforceable, and that Gemalto’s lawsuit was a “sham” intended to interfere with the Company’s IPO and business relationships. Gemalto answered the Company’s counterclaims in February 2016. In March 2016, Gemalto provided specific infringement contentions, which named CPI products that incorporate microchips supplied by two specific vendors. On May 31, 2016, the Company filed an Inter Partes Review ("IPR") petition with the United States Patent & Trademark Office’s Patent Trial & Appeal Board (“PTAB”), seeking re-examination of Gemalto’s asserted patent. 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 petition was granted 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 PTAB heard oral argument on the IPR on August 4, 2017. No decision has yet been rendered. 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 alleged that the Company infringed a Gemalto patent on networked smartcard printing by way of the Company’s Card Once offering. Gemalto provided initial infringement contentions to the Company in July 2016, and amended its contentions in October 2016. During May 2017, the Company filed an IPR petition with the PTAB, seeking re-examination of Gemalto’s asserted patent. The PTAB has not yet ruled on the Company’s petition. On September 28, 2017, the Company reached a settlement with Gemalto to resolve both lawsuits. Under the terms of the settlement, the Company has agreed to make a one-time payment of $750 in the fourth quarter of 2017. The settlement will result in the dismissal of both lawsuits with prejudice. The settlement also includes a mutual covenant not to sue for a period of 18 months. The Company previously had accrued a $1,000 loss contingency, which does not include any potential indemnity or other third-party recoveries. As a result of the settlement, the Company has recorded a $250 reduction to its previously recorded loss contingency, which is recorded in “Selling, General and Administrative” expenses in the Condensed Consolidated Statement of Operations during the three months ended September 30, 2017. The net expense recognized for this contingency during the nine months ended September 30, 2017 was $750. 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 these matters will not have a material adverse effect on our business, financial condition or results of operations.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
Stock-Based Compensation	Sep. 30, 2017
Stock-Based Compensation
Stock-Based Compensation	11. Stock-Based Compensation CPI Card Group Inc. Omnibus Incentive Plan During October 2015, the Company adopted the CPI Card Group Inc. Omnibus Incentive Plan (the “Omnibus Plan”) pursuant to which cash and equity based incentives may be granted to participating employees, advisors and directors. The Company had reserved 4,000,000 shares of common stock for issuance under the Omnibus Plan. Effective September 25, 2017, the Omnibus Plan was amended and restated, providing for an increase in the number of shares of common stock authorized for issuance thereunder by 2,000,000, subject to the effectiveness of stockholder approval under the applicable law, after which the Company will have reserved 6,000,000 shares of common stock for issuance. As of September 30, 2017, there were 827,378 shares available for grant under the Omnibus Plan. During the three months ended September 30, 2017, the Company granted awards of non-qualified stock options for 2,780,147 shares of common stock, of which 1,230,173 are contingent upon the effectiveness of stockholder approval of the Omnibus Plan amendment, as described above. The third quarter 2017 stock option awards were made in lieu of the regular cycle of Omnibus Plan awards that the Company would have otherwise made in the first quarter of 2018, and also in conjunction with the appointment of the Company’s President and Chief Executive Officer. During the nine months ended September 30, 2017, the Company granted awards of non-qualified stock options for 3,565,517 shares of common stock, of which 1,230,173 are contingent upon the effectiveness of stockholder approval of the Omnibus Plan amendment, as described above. All stock option grants have a 10-year term, and will generally vest ratably over a three-year period beginning on the first anniversary of the grant date. As of September 30, 2017, there are 28,125 exercisable options outstanding under the Omnibus Plan. Outstanding stock options under the Omnibus Plan, including the contingent option awards discussed above, are as follows: Weighted- Weighted- Average Average Remaining Exercise Contractual Term Options Price (in Years) Outstanding as of December 31, 2016 1,437,508 $ Granted 3,565,517 Forfeited (270,801) Outstanding as of September 30, 2017 4,732,224 $ 9.45 Unvested options as of September 30, 2017 will vest as follows: 2017 273,863 2018 1,584,148 2019 1,553,511 2020 1,280,440 2021 12,137 Total unvested options as of September 30, 2017 4,704,099 The fair value of the stock option awards granted during the nine months ended September 30, 2017, was determined using a Black-Scholes option-pricing model with the following weighted-average assumptions: Nine Months Ended September 30, 2017 Expected term in years 6.0 Volatility 31.9 % Risk-free interest rate 2.0 % Dividend yield (1) 0.9 % (1) Represents the weighted-average dividend yield for grants made during the nine month period ended September 30, 2017. The Company discontinued its quarterly dividend program during August 2017. The Company did not grant any awards of restricted stock units during the three months ended September 30, 2017. During the nine months ended September 30, 2017, the Company granted awards of restricted stock units for 239,446 shares of common stock. The restricted stock units contain conditions associated with continued employment or service. The majority of the restricted stock units granted will vest in one year or three years from the date of grant. On the vesting date, 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 nine month period ended September 30, 2017: Weighted- Average Grant Date Shares Fair Value Outstanding as of December 31, 2016 270,466 $ 7.13 Granted 239,446 3.11 Vested (240,688) 7.30 Forfeited (5,901) 4.35 Outstanding as of September 30, 2017 263,323 $ 3.38 During the nine months ended September 30, 2017, the Company granted awards of 932,837 cash performance units with a grant date fair value of $663. There were no awards of cash performance units granted during the three months ended September 30, 2017. These awards will settle in cash in three annual payments on the first, second and third anniversaries of the date of grant. The cash performance units are based on the performance of the Company’s stock, measured based on the Company’s stock price at each of the first, second, and third anniversaries of the grant date compared to the Company’s stock price on the date of grant. The cash performance units were valued using a Monte Carlo simulation. The Monte Carlo model used the following valuation assumptions based on the 3-year term of the awards: leverage adjusted peer volatility of 48%, risk free rate of 1.5%, and a dividend yield of 4.0%. The Company recognizes compensation expense on a straight-line basis for each annual performance period. The cash performance units are accounted for as a liability and remeasured to fair value at the end of each reporting period. As of September 30, 2017, the Company recognized a liability of $75 in “Accrued expenses” and $62 in “Other long-term liabilities” in the Condensed Consolidated Balance Sheet for unsettled cash performance units. The following table summarizes the changes in the number of outstanding cash performance units for the nine month period ended September 30, 2017: Weighted-Average Units Grant Date Fair Value Outstanding as of December 31, 2016 — $ — Granted 932,837 0.71 Vested — — Forfeited (77,746) 0.71 Outstanding as of September 30, 2017 855,091 $ 0.71 Compensation expense for the Omnibus Plan for the three months ended September 30, 2017 and 2016 was $507 and $840, respectively, and was $1,738 and $2,045, during the nine months ended September 30, 2017 and 2016, respectively. As of September 30, 2017, the total unrecognized compensation expense related to unvested options, restricted stock units, and cash performance unit awards under the Omnibus Plan was $2,885, which the Company expects to recognize over an estimated weighted average period of 1.8 years. CPI Holdings I, Inc. Amended and Restated 2007 Stock Option Plan In 2007, the Company’s Board of Directors adopted the CPI Holdings I, Inc. Amended and Restated 2007 Stock Option Plan (the “Option Plan”). Under the provisions of the Option Plan, stock options may be granted to employees, directors, and consultants at an exercise price greater than or equal to (and not less than) the fair market value of a share on the date the option is granted. As a result of the Company’s adoption of the Omnibus Plan, as further described above, no further awards will be made under the Option Plan. The outstanding stock options under the Option Plan are non-qualified, have a 10-year life and are fully vested as of September 30, 2017. The following table summarizes the changes in the number of outstanding stock options under the Option Plan for the nine months ended September 30, 2017: Weighted- Average Remaining Weighted- Average Contractual Term Options Exercise Price (in Years) Outstanding and Exercisable as of December 31, 2016 216,334 $ 0.0004 Granted — — Exercised (183,334) 0.0004 Forfeited — — Outstanding and Exercisable as of September 30, 2017 33,000 $ 0.0005 5.66 There was no compensation expense related to options previously granted under the Option Plan for the three and nine months ended September 30, 2017, as all options were fully vested. The aggregate intrinsic value of stock option awards outstanding and exercisable under the Option Plan as of September 30, 2017 was $39. Other Stock-Based Compensation Awards During June 2015, the Company issued 191,664 restricted shares of common stock to executives with a weighted-average grant date fair value of $9.48 per share. There was no activity relating to restricted common stock for the three months ended September 30, 2017, and there are no outstanding unvested shares of restricted common stock as of September 30, 2017. The terms of the unvested restricted shares of common stock provided voting and regular dividend rights to the holders, and accordingly are included in weighted-average shares outstanding in the Company’s basic (loss) earnings per share calculation. See Note 9, “(Loss) Earnings per Share”. During the nine months ended September 30, 2017, of the remaining 94,864 of unvested restricted stock awards that were outstanding, 47,432 shares vested, and the remaining 47,432 shares were forfeited. The executive who held the remaining 94,864 unvested restricted shares changed employment status to a consultant during the first quarter of 2017, and accordingly, the Company remeasured the awards on the date of the change in employment status and reduced stock-based compensation expense by $143. There was no compensation expense recorded for these awards during the three months ended September 30, 2017, and compensation expense related to these awards for the nine months ended September 30, 2017 was $(371). Compensation expense related to these awards for the three and nine months ended September 30, 2016 was $94 and $740, respectively.

Segment Reporting

Segment Reporting	9 Months Ended
Segment Reporting	Sep. 30, 2017
Segment Reporting
Segment Reporting	12. 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 when the Company believes information about the segment would be useful to the readers of the financial statements. The Company’s chief operating decision maker is its Chief Executive Officer who is charged with management of the Company and is responsible for the evaluation of operating performance and decision making about the allocation of resources to operating segments based on measures such as 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 before interest expense, income taxes, depreciation and amortization. The Company’s chief operating decision maker believes EBITDA is a meaningful measure and is superior to available GAAP measures as it represents a transparent view of the Company’s operating performance that is unaffected by fluctuations in property, equipment and leasehold improvement additions. The Company’s chief operating decision maker uses EBITDA to perform periodic reviews and comparison of operating trends and identify strategies to improve the allocation of resources amongst segments. As of September 30, 2017, the Company’s reportable segments are as follows:  U.S. Debit and Credit;  U.S. Prepaid Debit; and  U.K. Limited. The “Other” category includes the Company’s corporate headquarters and a less significant operating segment that derives its revenue from the production of Financial Payment Cards and retail gift cards in Canada. Performance Measures of Reportable Segments Revenue and EBITDA of the Company’s reportable segments for the three and nine months ended September 30, 2017 and 2016 were as follows: Revenue Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 U.S. Debit and Credit $ 39,304 $ 49,156 $ 121,017 $ 165,055 U.S. Prepaid Debit 19,935 23,087 42,146 47,419 U.K. Limited 7,047 7,675 23,644 21,896 Other 2,661 2,710 8,390 9,530 Intersegment eliminations (903) (1,426) (5,299) (2,580) Total: $ 68,044 $ 81,202 $ 189,898 $ 241,320 EBITDA Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 U.S. Debit and Credit $ 6,476 $ 12,917 $ 22,379 $ 43,242 U.S. Prepaid Debit 7,606 8,593 12,698 15,417 U.K. Limited 403 942 2,295 1,841 Other (6,210) (6,647) (19,543) (18,254) Total: $ 8,275 $ 15,805 $ 17,829 $ 42,246 The following table provides a reconciliation of total segment EBITDA to net (loss) income for the three and nine months ended September 30, 2017 and 2016: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Total segment EBITDA $ 8,275 $ 15,805 $ 17,829 $ 42,246 Interest, net (5,305) (5,008) (15,530) (15,109) Income tax benefit (expense) 755 (2,541) 3,893 (5,194) Depreciation and amortization (4,460) (4,230) (13,595) (12,530) Net (loss) income $ (735) $ 4,026 $ (7,403) $ 9,413 Balance Sheet Data of Reportable Segments Total assets of the Company’s reportable segments as of September 30, 2017 and December 31, 2016 were as follows: September 30, 2017 December 31, 2016 U.S. Debit and Credit $ 182,454 $ 205,417 U.S. Prepaid Debit 33,124 23,509 U.K. Limited 23,443 26,060 Other 12,487 9,434 Total assets: $ 251,508 $ 264,420 Plant, Equipment and Leasehold Improvement Additions of Geographic Locations Plant, equipment and leasehold improvement additions of the Company’s geographical locations for the three and nine months ended September 30, 2017 and 2016 were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 U.S. $ 1,081 $ 4,757 $ 6,131 $ 11,580 Canada 38 47 161 208 Total North America 1,119 4,804 6,292 11,788 U.K. 61 374 1,390 1,165 Total plant, equipment and leasehold improvement additions $ 1,180 $ 5,178 $ 7,682 $ 12,953 Net Sales to Geographic Locations Net sales to geographic locations for the three and nine months ended September 30, 2017 and 2016 were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 U.S. $ 59,011 $ 69,573 $ 159,161 $ 205,027 Canada 2,048 2,792 6,831 10,221 Total North America 61,059 72,365 165,992 215,248 U.K. 6,155 7,910 20,047 22,697 Other (a) 830 927 3,859 3,375 Total net sales $ 68,044 $ 81,202 $ 189,898 $ 241,320 (a) 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 September 30, 2017 and December 31, 2016 were as follows: September 30, 2017 December 31, 2016 U.S. $ 151,015 $ 157,773 Canada 3,002 2,899 Total North America: 154,017 160,672 U.K. 12,741 11,091 Total long-lived assets $ 166,758 $ 171,763 Net Sales by Product and Services Net sales from products and services sold by the Company for the three and nine months ended September 30, 2017 and 2016 were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Product net sales (a) $ 31,417 $ 37,482 $ 95,005 $ 132,535 Services net sales (b) 36,627 43,720 94,893 108,785 Total net sales: $ 68,044 $ 81,202 $ 189,898 $ 241,320 (a) Product net sales include the design and production of Financial Payment Cards in contact-EMV, Dual-Interface EMV, contactless and magnetic stripe card formats. The Company also generates product revenue from the sale of Card Once ® instant issuance systems, private label credit cards and retail gift cards. (b) Services net sales include revenue from the personalization and fulfillment of Financial Payment Cards, providing tamper-evident security packaging and fulfillment services to Prepaid Debit Card program managers, and software as a service personalization of instant issuance debit cards. The Company also generates service 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.

Business Overview and Summary18

Business Overview and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Business Overview and Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, these financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for the fair statement of the results of the interim periods presented. The Condensed Consolidated Balance Sheet as of December 31, 2016 is derived from the audited financial statements as of that date. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.
Use of Estimates	Use of Estimates Management uses estimates and assumptions relating to the reporting of assets and liabilities in its preparation of the condensed 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 tax assets; debt; and stock-based compensation expense. Actual results could differ from those estimates.
Inventories	Inventories Inventories consist of raw materials, work-in-process and finished goods and are measured at the lower of cost or net realizable value (determined on the first-in, first-out or specific identification basis) in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (“ASU”) 2015-11, Inventory — Simplifying the Measurement of Inventory, which the Company adopted on January 1, 2017. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The adoption of this standard did not impact the Company’s financial position, results of operations or cash flows during either the three or nine months ended September 30, 2017.
Stock-Based Compensation	Stock-based Compensation The Company accounts for stock-based compensation pursuant to Accounting Standards Codification (“ASC”) Topic 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 11 “Stock Based Compensation” for additional discussion regarding details of the Company's stock-based compensation plans. As a result of the Company’s adoption of ASU 2016-09, Compensation–Stock Compensation: Improvements to Employee Share-Based Payment Accounting ( “ASU 2016-09” ) as of January 1, 2017, the Company accounts for forfeitures when they occur. In addition, excess tax benefits and deficiencies in connection with the Company’s stock-based compensation plans are recorded in “Income tax benefit” in the Condensed Consolidated Statement of Operations and Comprehensive (Loss) Income.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements The FASB issued 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 amended, as of January 1, 2018 using the modified retrospective transition method, with the cumulative effect of initial adoption recognized at the date of initial application. The Company is currently assessing the impact that the future adoption of ASU 2014-09, as amended, will have on its condensed consolidated financial statements. The Company believes it meets the criteria for recognizing certain performance obligations over time, as much of its finished product provides value to only a specified customer, has no alternative use, and the Company has the right to payment for work completed on such items. After the adoption of ASU 2014-09, the Company would plan to expense the costs of these performance obligations over time and apply a margin to estimate associated revenues. The Company is evaluating the required changes to its business and accounting processes, and internal controls to support recognition and disclosures under the new standard. 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 (the Company’s fiscal year 2019) 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 condensed consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment to simplify the method of measuring a goodwill impairment charge in the event a reporting unit’s carrying amount exceeds its fair value. In those circumstances, the new standard requires the Company to recognize an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its fair value. The Company cannot predict if or when such an impairment charge may occur, or the amount of any potential impairment, and is currently evaluating the potential impact that the adoption of ASU 2017-04 will have on its results of operations, financial position and condensed consolidated financial statements. The Company is required to adopt the new standard on January 1, 2020, with early adoption permitted.

Inventories (Tables)

Inventories (Tables)	9 Months Ended
Inventories (Tables)	Sep. 30, 2017
Inventories
Schedule of inventories	September 30, 2017 December 31, 2016 Raw materials $ 6,239 $ 8,206 Work-in-process 8,516 6,340 Finished goods 3,882 4,823 $ 18,637 $ 19,369

Plant, Equipment and Leasehol20

Plant, Equipment and Leasehold Improvements (Tables)	9 Months Ended
Plant, Equipment and Leasehold Improvements (Tables)	Sep. 30, 2017
Plant, Equipment and Leasehold Improvements
Schedule of plant, equipment and leasehold improvements	September 30, 2017 December 31, 2016 Buildings $ 2,298 $ 2,077 Machinery and equipment 62,277 59,464 Furniture, fixtures and computer equipment 7,445 6,634 Leasehold improvements 19,562 18,655 Construction in progress 3,775 1,136 95,357 87,966 Less accumulated depreciation and amortization (44,037) (34,547) $ 51,320 $ 53,419

Goodwill and Other Intangible21

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
Goodwill and Other Intangible Assets (Tables)	Sep. 30, 2017
Goodwill and Other Intangible Assets
Schedule of goodwill by reportable segment	September 30, 2017 December 31, 2016 U.S. Debit and Credit $ 64,330 $ 64,330 U.K. Limited 6,413 5,908 Other 1,895 1,758 $ 72,638 $ 71,996
Schedule of intangible assets excluding goodwill	September 30, 2017 December 31, 2016 Average Life Accumulated Net Book Accumulated Net Book (Years) Cost Amortization Value Cost Amortization Value Customer relationships 12 to 20 $ 59,293 $ (23,787) $ 35,506 $ 58,994 $ (20,972) $ 38,022 Technology and software 7 to 10 7,101 (2,863) 4,238 7,101 (2,167) 4,934 Non-compete agreements 5 to 8 491 (375) 116 491 (331) 160 Trademarks 7.5 to 10 3,330 (390) 2,940 3,330 (98) 3,232 Intangible assets subject to amortization $ 70,215 $ (27,415) $ 42,800 $ 69,916 $ (23,568) $ 46,348
Schedule of future aggregate amortization expense for identified amortizable intangibles	2017 (remaining 3 months) $ 1,228 2018 4,913 2019 4,893 2020 4,853 2021 4,582 Thereafter 22,331 $ 42,800

Fair Value of Financial Instr22

Fair Value of Financial Instruments (Tables)	9 Months Ended
Fair Value of Financial Instruments (Tables)	Sep. 30, 2017
Fair Value of Financial Instruments
Schedule of financial assets and liabilities subject to fair value measurements	Carrying Value as of Fair Value as of Fair Value Measurement at September 30, 2017 September 30, September 30, (Using Fair Value Hierarchy) 2017 2017 Level 1 Level 2 Level 3 Liabilities: First Lien Term Loan $ 312,500 $ 223,438 $ — $ 223,438 $ — Carrying Value as of Fair Value as of Fair Value Measurement at December 31, 2016 December 31, December 31, (Using Fair Value Hierarchy) 2016 2016 Level 1 Level 2 Level 3 Liabilities: First Lien Term Loan $ 312,500 $ 290,625 $ — $ 290,625 $ —

Long-Term Debt and Credit Fac23

Long-Term Debt and Credit Facility (Tables)	9 Months Ended
Long-Term Debt and Credit Facility (Tables)	Sep. 30, 2017
Long-Term Debt and Credit Facility
Schedule of long-term debt	Interest September 30, December 31, Rate (1) 2017 2016 First lien term loan facility (1) 5.96 % $ 312,500 $ 312,500 Unamortized discount (3,290) (3,795) Unamortized deferred financing costs (5,827) (6,783) Long-term debt $ 303,383 $ 301,922 (1 ) Interest rate at September 30, 2017. Interest rate at December 31, 2016 was 5.50%.

(Loss) Earnings per Share (Tabl

(Loss) Earnings per Share (Tables)	9 Months Ended
(Loss) Earnings per Share (Tables)	Sep. 30, 2017
(Loss) Earnings per Share
Computation of basic and diluted EPS	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Numerator: Net (loss) income $ (735) $ 4,026 $ (7,403) $ 9,413 Denominator: Basic-weighted-average common shares outstanding 55,639,551 55,255,239 55,558,825 55,999,722 Diluted-weighted-average common shares outstanding 55,639,551 55,508,684 55,558,825 56,232,195 Basic and Diluted (Loss) earnings per share: $ (0.01) $ 0.07 $ (0.13) $ 0.17

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
Stock-Based Compensation (Tables)	Sep. 30, 2017
Summary of changes in outstanding restricted stock units	Weighted- Average Grant Date Shares Fair Value Outstanding as of December 31, 2016 270,466 $ 7.13 Granted 239,446 3.11 Vested (240,688) 7.30 Forfeited (5,901) 4.35 Outstanding as of September 30, 2017 263,323 $ 3.38
Summary of changes in number of outstanding restricted shares of common stock	Weighted-Average Units Grant Date Fair Value Outstanding as of December 31, 2016 — $ — Granted 932,837 0.71 Vested — — Forfeited (77,746) 0.71 Outstanding as of September 30, 2017 855,091 $ 0.71
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, 2016 1,437,508 $ Granted 3,565,517 Forfeited (270,801) Outstanding as of September 30, 2017 4,732,224 $ 9.45
Schedule of vesting for unvested options	2017 273,863 2018 1,584,148 2019 1,553,511 2020 1,280,440 2021 12,137 Total unvested options as of September 30, 2017 4,704,099
Schedule of valuation assumptions	: Nine Months Ended September 30, 2017 Expected term in years 6.0 Volatility 31.9 % Risk-free interest rate 2.0 % Dividend yield (1) 0.9 % (1) Represents the weighted-average dividend yield for grants made during the nine month period ended September 30, 2017. The Company discontinued its quarterly dividend program during August 2017.
Option Plan
Summary of outstanding and exercisable stock options	Weighted- Average Remaining Weighted- Average Contractual Term Options Exercise Price (in Years) Outstanding and Exercisable as of December 31, 2016 216,334 $ 0.0004 Granted — — Exercised (183,334) 0.0004 Forfeited — — Outstanding and Exercisable as of September 30, 2017 33,000 $ 0.0005 5.66

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
Segment Reporting (Tables)	Sep. 30, 2017
Segment Reporting
Schedule of revenue and EBITDA of the company's reportable segments	Revenue Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 U.S. Debit and Credit $ 39,304 $ 49,156 $ 121,017 $ 165,055 U.S. Prepaid Debit 19,935 23,087 42,146 47,419 U.K. Limited 7,047 7,675 23,644 21,896 Other 2,661 2,710 8,390 9,530 Intersegment eliminations (903) (1,426) (5,299) (2,580) Total: $ 68,044 $ 81,202 $ 189,898 $ 241,320 EBITDA Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 U.S. Debit and Credit $ 6,476 $ 12,917 $ 22,379 $ 43,242 U.S. Prepaid Debit 7,606 8,593 12,698 15,417 U.K. Limited 403 942 2,295 1,841 Other (6,210) (6,647) (19,543) (18,254) Total: $ 8,275 $ 15,805 $ 17,829 $ 42,246
Schedule of reconciliation of total segment EBITDA to income before taxes	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Total segment EBITDA $ 8,275 $ 15,805 $ 17,829 $ 42,246 Interest, net (5,305) (5,008) (15,530) (15,109) Income tax benefit (expense) 755 (2,541) 3,893 (5,194) Depreciation and amortization (4,460) (4,230) (13,595) (12,530) Net (loss) income $ (735) $ 4,026 $ (7,403) $ 9,413
Schedule of total assets of the company's reportable segments	September 30, 2017 December 31, 2016 U.S. Debit and Credit $ 182,454 $ 205,417 U.S. Prepaid Debit 33,124 23,509 U.K. Limited 23,443 26,060 Other 12,487 9,434 Total assets: $ 251,508 $ 264,420
Schedule of plant, equipment and leasehold improvement additions of geographic locations	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 U.S. $ 1,081 $ 4,757 $ 6,131 $ 11,580 Canada 38 47 161 208 Total North America 1,119 4,804 6,292 11,788 U.K. 61 374 1,390 1,165 Total plant, equipment and leasehold improvement additions $ 1,180 $ 5,178 $ 7,682 $ 12,953
Schedule of net sales of company's geographic locations	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 U.S. $ 59,011 $ 69,573 $ 159,161 $ 205,027 Canada 2,048 2,792 6,831 10,221 Total North America 61,059 72,365 165,992 215,248 U.K. 6,155 7,910 20,047 22,697 Other (a) 830 927 3,859 3,375 Total net sales $ 68,044 $ 81,202 $ 189,898 $ 241,320 (a) Amounts in Other include sales to various countries that individually are not material.
Schedule of Long lived assets of the company's geographic segments	September 30, 2017 December 31, 2016 U.S. $ 151,015 $ 157,773 Canada 3,002 2,899 Total North America: 154,017 160,672 U.K. 12,741 11,091 Total long-lived assets $ 166,758 $ 171,763
Schedule of net sales from product and services sold by the company	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Product net sales (a) $ 31,417 $ 37,482 $ 95,005 $ 132,535 Services net sales (b) 36,627 43,720 94,893 108,785 Total net sales: $ 68,044 $ 81,202 $ 189,898 $ 241,320 (a) Product net sales include the design and production of Financial Payment Cards in contact-EMV, Dual-Interface EMV, contactless and magnetic stripe card formats. The Company also generates product revenue from the sale of Card Once ® instant issuance systems, private label credit cards and retail gift cards. (b) Services net sales include revenue from the personalization and fulfillment of Financial Payment Cards, providing tamper-evident security packaging and fulfillment services to Prepaid Debit Card program managers, and software as a service personalization of instant issuance debit cards. The Company also generates service 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.

Business Overview and Summary27

Business Overview and Summary of Significant Accounting Policies - Business Overview and Basis of Presentation (Details)	9 Months Ended
	Sep. 30, 2017item
Business Overview and Summary of Significant Accounting Policies
Total number of production and card services facilities	10
United States and Canada
Business Overview and Summary of Significant Accounting Policies
Number of high-security production and card services facilities	8
Number of payment card brands which certify card services	1
U.K.
Business Overview and Summary of Significant Accounting Policies
Total number of production and card services facilities	2

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Inventories
Raw materials	$ 6,239	$ 8,206
Work-in-process	8,516	6,340
Finished goods	3,882	4,823
Inventory	$ 18,637	$ 19,369

Plant, Equipment and Leasehol29

Plant, Equipment and Leasehold Improvements (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Plant, Equipment and Leasehold Improvements
Plant, equipment and leasehold improvements, gross	$ 95,357		$ 95,357		$ 87,966
Less accumulated depreciation and amortization	(44,037)		(44,037)		(34,547)
Plant, equipment and leasehold improvements, net	51,320		51,320		53,419
Depreciation	3,233	$ 3,098	9,917	$ 9,124
Buildings
Plant, Equipment and Leasehold Improvements
Plant, equipment and leasehold improvements, gross	2,298		2,298		2,077
Machinery and equipment
Plant, Equipment and Leasehold Improvements
Plant, equipment and leasehold improvements, gross	62,277		62,277		59,464
Furniture, fixtures and computer equipment
Plant, Equipment and Leasehold Improvements
Plant, equipment and leasehold improvements, gross	7,445		7,445		6,634
Leasehold improvements
Plant, Equipment and Leasehold Improvements
Plant, equipment and leasehold improvements, gross	19,562		19,562		18,655
Construction in progress
Plant, Equipment and Leasehold Improvements
Plant, equipment and leasehold improvements, gross	$ 3,775		$ 3,775		$ 1,136

Goodwill and Other Intangible30

Goodwill and Other Intangible Assets - Goodwill by Reporting Segment (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Goodwill	$ 72,638	$ 71,996
U.S. Debit and Credit
Goodwill	64,330	64,330
U.K. Limited
Goodwill	6,413	5,908
Other
Goodwill	$ 1,895	$ 1,758

Goodwill and Other Intangible31

Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Intangible Assets [Line Items]
Intangible amortization expense	$ 1,227	$ 1,132	$ 3,678	$ 3,406
Intangible assets subject to amortization, Cost	70,215		70,215		$ 69,916
Intangible assets subject to amortization, Accumulated Amortization	(27,415)		(27,415)		(23,568)
Intangible assets subject to amortization, Net Book Value	42,800		42,800		46,348
Customer relationships
Intangible Assets [Line Items]
Intangible assets subject to amortization, Cost	59,293		59,293		58,994
Intangible assets subject to amortization, Accumulated Amortization	(23,787)		(23,787)		(20,972)
Intangible assets subject to amortization, Net Book Value	35,506		$ 35,506		$ 38,022
Customer relationships \| Minimum
Intangible Assets [Line Items]
Weighted-average useful life			12 years		12 years
Customer relationships \| Maximum
Intangible Assets [Line Items]
Weighted-average useful life			20 years		20 years
Technology and software
Intangible Assets [Line Items]
Intangible assets subject to amortization, Cost	7,101		$ 7,101		$ 7,101
Intangible assets subject to amortization, Accumulated Amortization	(2,863)		(2,863)		(2,167)
Intangible assets subject to amortization, Net Book Value	4,238		$ 4,238		$ 4,934
Technology and software \| Minimum
Intangible Assets [Line Items]
Weighted-average useful life			7 years		7 years
Technology and software \| Maximum
Intangible Assets [Line Items]
Weighted-average useful life			10 years		10 years
Non-compete agreements
Intangible Assets [Line Items]
Intangible assets subject to amortization, Cost	491		$ 491		$ 491
Intangible assets subject to amortization, Accumulated Amortization	(375)		(375)		(331)
Intangible assets subject to amortization, Net Book Value	116		$ 116		$ 160
Non-compete agreements \| Minimum
Intangible Assets [Line Items]
Weighted-average useful life			5 years		5 years
Non-compete agreements \| Maximum
Intangible Assets [Line Items]
Weighted-average useful life			8 years		8 years
Trademarks
Intangible Assets [Line Items]
Intangible assets subject to amortization, Cost	3,330		$ 3,330		$ 3,330
Intangible assets subject to amortization, Accumulated Amortization	(390)		(390)		(98)
Intangible assets subject to amortization, Net Book Value	$ 2,940		$ 2,940		$ 3,232
Trademarks \| Minimum
Intangible Assets [Line Items]
Weighted-average useful life			7 years 6 months		7 years 6 months
Trademarks \| Maximum
Intangible Assets [Line Items]
Weighted-average useful life			10 years		10 years

Goodwill and Other Intangible32

Goodwill and Other Intangible Assets - Future Aggregate Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Estimated future aggregate amortization expense
2017 (remaining 3 months)	$ 1,228
2,018	4,913
2,019	4,893
2,020	4,853
2,021	4,582
Thereafter	22,331
Intangible assets subject to amortization, Net Book Value	$ 42,800	$ 46,348

Fair Value of Financial Instr33

Fair Value of Financial Instruments (Details) - First Lien Credit Facility - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Liabilities:
Carrying amount	$ 312,500	$ 312,500
Term Loan
Liabilities:
Carrying amount	312,500	312,500
Long-term debt	223,438	290,625
Level 2 \| Term Loan
Liabilities:
Long-term debt	$ 223,438	$ 290,625

Long-Term Debt and Credit Fac34

Long-Term Debt and Credit Facility - Long-Term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Total long-term debt	$ 303,383	$ 301,922
First Lien Credit Facility
Debt Instrument [Line Items]
Interest rate (as a percent)	5.96%	5.50%
Long-term debt	$ 312,500	$ 312,500
Unamortized discount	(3,290)	(3,795)
Unamortized deferred financing costs	$ (5,827)	$ (6,783)

Long-Term Debt and Credit Fac35

Long-Term Debt and Credit Facility - First Lien Credit Facility (Details) $ in Thousands	Aug. 17, 2015USD ($)	Sep. 30, 2017USD ($)	Dec. 31, 2016USD ($)
Accrued expenses
Long-term Debt
Accrued interest		$ 4,192	$ 3,858
First Lien Credit Facility
Long-term Debt
Maximum net leverage ratio	7
Term Loan \| First Lien Credit Facility
Long-term Debt
Maximum borrowing capacity	$ 435,000
Term Loan \| Eurodollar rate \| First Lien Credit Facility
Long-term Debt
Applicable margin over reference rate (as a percent)	4.50%
Term Loan \| Eurodollar rate \| First Lien Credit Facility \| Minimum
Long-term Debt
Interest rate (as a percent)	1.00%
Term Loan \| Base rate \| First Lien Credit Facility
Long-term Debt
Applicable margin over reference rate (as a percent)	3.50%
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%
Fronting fee for letters of credit (as a percent)		0.125%
Amount drawn to trigger net leverage requirement (as a percent)	50.00%
Letters of credit outstanding		$ 50
Amount outstanding		$ 0
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 Fac36

Long-Term Debt and Credit Facility - Sellers Note (Details) - Sellers Note $ in Thousands	Sep. 02, 2016USD ($)
Long-term Debt
Promissory note	$ 9,000
Interest rate (as a percent)	5.00%

Long-Term Debt and Credit Fac37

Long-Term Debt and Credit Facility - Letters of Credit (Details) - First Lien Credit Facility $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)item	Dec. 31, 2016USD ($)	Aug. 17, 2015USD ($)
Long-term Debt
Long-term debt	$ 312,500	$ 312,500
Term Loan
Long-term Debt
Maximum borrowing capacity			$ 435,000
Long-term debt	$ 312,500	$ 312,500
Revolving Credit Facility
Long-term Debt
Number of outstanding letters of credit \| item	1
Letters of credit outstanding	$ 50
Remaining borrowing capacity	$ 19,950
Fee on outstanding letters of credit (as a percent)	4.50%
Fronting fee for letters of credit (as a percent)	0.125%
Maximum borrowing capacity			$ 40,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Taxes
Income tax expense (benefit)	$ (755)	$ 2,541	$ (3,893)	$ 5,194
Income before income taxes
(Loss) income before income taxes	$ (1,490)	$ 6,567	$ (11,296)	$ 14,607
Effective income tax rate (as a percent)	50.70%	38.70%	34.50%	35.60%

Stockholders' Equity - Common S

Stockholders' Equity - Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended	9 Months Ended
	Aug. 31, 2017	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016
Dividends, Common Stock [Abstract]
Dividends paid on common stock		$ 2,511	$ 7,537	$ 5,031
Cash dividend paid per common share		$ 0.045	$ 0.135
Amount of discontinued quarterly dividends	$ 0.045

Stockholders' Equity - Repurcha

Stockholders' Equity - Repurchase Program (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	May 11, 2016
Stockholders’ Equity
Maximum value of shares authorized for repurchase under repurchase plan			$ 20,000
Maximum number of shares authorized for repurchase under repurchase program			2,827,105
Shares repurchased and retired (in shares)	0	0

(Loss) Earnings per Share (Deta

(Loss) Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Numerator:
Net (loss) income	$ (735)	$ 4,026	$ (7,403)	$ 9,413
Denominator:
Basic - weighted average common shares outstanding	55,639,551	55,255,239	55,558,825	55,999,722
Dilutive - weighted average common shares outstanding	55,639,551	55,508,684	55,558,825	56,232,195
(Loss) earnings per share:
Earnings Per Share, Basic and Diluted	$ (0.01)	$ 0.07	$ (0.13)	$ 0.17
Stock Options
Outstanding stock based awards
Potential dilutive effect of share-based compensation excluded (in shares)			4,765,224
Restricted stock units
Outstanding stock based awards
Potential dilutive effect of share-based compensation excluded (in shares)			263,323

Commitments and Contingencies -

Commitments and Contingencies - Rental Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Commitments and Contingencies.
Operating leases, rent expense	$ 970	$ 907	$ 2,875	$ 2,541

Commitments and Contingencies43

Commitments and Contingencies - Contingencies (Details) $ in Thousands	Sep. 28, 2017USD ($)item	Jun. 15, 2016plaintiff	Dec. 31, 2017USD ($)	Sep. 30, 2017USD ($)
Loss Contingencies [Line Items]
Number of purported shareholders that have filed lawsuits \| plaintiff		2
Gemalto Suit \| Settled Litigation
Loss Contingencies [Line Items]
Loss contingency accrual				$ 1,000
The number of patents involved in lawsuit \| item	2
Period of no lawsuits upon settlement agreement	18 months
Amount of reduction to previously recorded loss contingency	$ 250
Settlement expense				$ 750
Gemalto Suit \| Forecast \| Settled Litigation
Loss Contingencies [Line Items]
One-time settlement payment amount			$ 750

Stock-Based Compensation - Omni

Stock-Based Compensation - Omnibus Incentive Plan (Details) - Omnibus Plan - USD ($) $ / shares in Units, $ in Thousands	Sep. 25, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Oct. 09, 2015
Valuation Assumptions:
Compensation expense		$ 507	$ 840	$ 1,738	$ 2,045
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized	6,000,000					4,000,000
Number of additional shares authorized	2,000,000
Number of shares available for grant		827,378		827,378
Stock options granted (in shares)		2,780,147		3,565,517
Stock option life (in years)					10 years
Vesting period					3 years
Number of exercisable options outstanding		28,125		28,125
Number of shares
Balance at beginning of year (in shares)				1,437,508
Granted (in shares)		2,780,147		3,565,517
Forfeited (in shares)				(270,801)
Balance at end of year (in shares)		4,732,224		4,732,224
Weighted-Average Exercise Price
Balance at beginning of year (in dollars per share)				$ 8.62
Granted (in dollars per share)				1.77
Forfeited (in dollars per share)				9.20
Balance at end of year (in dollars per share)		$ 3.41		$ 3.41
Weighted- Average Remaining Contractual Term (in Years)
Balance (in years)				9 years 5 months 12 days
Number of unvested options scheduled to vest
Unvested options (in shares)		4,704,099		4,704,099
Valuation Assumptions:
Expected term in years				6 years
Volatility (as a percent)				31.90%
Risk-free interest rate				2.00%
Dividend yield (as a percent)				0.90%
Based on effectiveness of stockholder approval \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares)		1,230,173		1,230,173
Number of shares
Granted (in shares)		1,230,173		1,230,173
2017 \| Stock Options
Number of unvested options scheduled to vest
Unvested options (in shares)		273,863		273,863
2018 \| Stock Options
Number of unvested options scheduled to vest
Unvested options (in shares)		1,584,148		1,584,148
2019 \| Stock Options
Number of unvested options scheduled to vest
Unvested options (in shares)		1,553,511		1,553,511
2020 \| Stock Options
Number of unvested options scheduled to vest
Unvested options (in shares)		1,280,440		1,280,440
2021 \| Stock Options
Number of unvested options scheduled to vest
Unvested options (in shares)		12,137		12,137

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Restricted stock units
Number of Restricted Stock Units
Units outstanding at the beginning of the period (in shares)			270,466
Granted (in shares)			239,446
Vested (in shares)			(240,688)
Forfeited (in shares)			(5,901)
Units outstanding at the end of the period (in shares)	263,323		263,323
Weighted Average Grant Date Fair Value
Units outstanding at the beginning of the period (in dollars per shares)			$ 7.13
Granted (in dollars per share)			3.11
Vested (in dollars per share)			7.30
Forfeited (in dollars per share)			4.35
Units outstanding at the end of the period (in dollars per shares)	$ 3.38		$ 3.38
Omnibus Plan
Weighted Average Grant Date Fair Value
Compensation expense	$ 507	$ 840	$ 1,738	$ 2,045
Omnibus Plan \| Restricted stock units
Number of Restricted Stock Units
Granted (in shares)			239,446
Weighted Average Grant Date Fair Value
Unrecognized compensation expense	$ 2,885		$ 2,885
Period over which compensation expense expected to recognize			1 year 9 months 18 days
Omnibus Plan \| Restricted stock units \| Minimum
Weighted Average Grant Date Fair Value
Vesting period			1 year
Omnibus Plan \| Restricted stock units \| Maximum
Weighted Average Grant Date Fair Value
Vesting period			3 years

Stock-Based Compensation - Cash

Stock-Based Compensation - Cash Performance Units (Details) - Cash Performance $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2017USD ($)$ / sharesshares	Sep. 30, 2017USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date fair value \| $	$ 663	$ 663
Period over which compensation expense expected to recognize		3 years
Valuation Assumptions:
Expected term in years		3 years
Volatility (as a percent)		48.00%
Risk-free interest rate		1.50%
Dividend yield (as a percent)		4.00%
Number of Cash Performance Units
Granted (in shares) \| shares	0	932,837
Forfeited (in shares) \| shares		(77,746)
Units outstanding at the end of the period (in shares) \| shares	855,091	855,091
Weighted Average Grant Date Fair Value
Granted (in dollars per share) \| $ / shares		$ 0.71
Forfeited (in dollars per share) \| $ / shares		0.71
Units outstanding at the end of the period (in dollars per shares) \| $ / shares	$ 0.71	$ 0.71
Accrued expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash performance liability \| $	$ 75	$ 75
Other Long Term Liabilities
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash performance liability \| $	$ 62	$ 62

Stock-Based Compensation - Opti

Stock-Based Compensation - Option Plan (Details) - Option Plan $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2017USD ($)$ / sharesshares	Sep. 30, 2017USD ($)$ / sharesshares
Number of shares
Balance at beginning of year (in shares) \| shares		216,334
Exercised (in shares) \| shares		(183,334)
Balance at end of year (in shares) \| shares	33,000	33,000
Weighted-Average Exercise Price
Balance at beginning of year (in dollars per share) \| $ / shares		$ 0.0004
Exercised (in dollars per share) \| $ / shares		0.0004
Balance at end of year (in dollars per share) \| $ / shares	$ 0.0005	$ 0.0005
Weighted- Average Remaining Contractual Term (in Years)
Balance (in years)		5 years 7 months 28 days
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option life (in years)		10 years
Compensation expense \| $	$ 0	$ 0
Weighted- Average Remaining Contractual Term (in Years)
Aggregate intrinsic value of stock option awards outstanding \| $	$ 39	$ 39

Stock-Based Compensation - Re48

Stock-Based Compensation - Restricted Shares (Details) - Restricted shares - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended			9 Months Ended
	Jun. 30, 2015	Sep. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Number of Restricted Stock Units
Units outstanding at the beginning of the period (in shares)			94,864		94,864
Granted (in shares)	191,664
Vested (in shares)					(47,432)
Forfeited (in shares)					(47,432)
Units outstanding at the end of the period (in shares)		0	94,864		0
Weighted Average Grant Date Fair Value
Granted (in dollars per share)	$ 9.48
Compensation expense		$ 0	$ (143)	$ 94	$ (371)	$ 740

Segment Reporting - Revenue and

Segment Reporting - Revenue and EBITDA (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting
Revenues	$ 68,044	$ 81,202	$ 189,898	$ 241,320
EBITDA	8,275	15,805	17,829	42,246
U.S. Debit and Credit
Segment Reporting
EBITDA	6,476	12,917	22,379	43,242
U.S. Prepaid Debit
Segment Reporting
EBITDA	7,606	8,593	12,698	15,417
U.K. Limited
Segment Reporting
EBITDA	403	942	2,295	1,841
Other
Segment Reporting
EBITDA	(6,210)	(6,647)	(19,543)	(18,254)
Operating Segments \| U.S. Debit and Credit
Segment Reporting
Revenues	39,304	49,156	121,017	165,055
Operating Segments \| U.S. Prepaid Debit
Segment Reporting
Revenues	19,935	23,087	42,146	47,419
Operating Segments \| U.K. Limited
Segment Reporting
Revenues	7,047	7,675	23,644	21,896
Operating Segments \| Other
Segment Reporting
Revenues	2,661	2,710	8,390	9,530
Intersegment eliminations
Segment Reporting
Revenues	$ (903)	$ (1,426)	$ (5,299)	$ (2,580)

Segment Reporting - Reconciliat

Segment Reporting - Reconciliation of EBITDA to Income Before Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Reconciliation of total segment EBITDA to income before taxes
Total segment EBITDA from continuing operations	$ 8,275	$ 15,805	$ 17,829	$ 42,246
Interest, net	(5,305)	(5,008)	(15,530)	(15,109)
Income tax benefit (expense)	755	(2,541)	3,893	(5,194)
Depreciation and amortization	(4,460)	(4,230)	(13,595)	(12,530)
Net (loss) income	$ (735)	$ 4,026	$ (7,403)	$ 9,413

Segment Reporting - Balance She

Segment Reporting - Balance Sheet Data (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 251,508	$ 264,420
Operating Segments \| U.S. Debit and Credit
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	182,454	205,417
Operating Segments \| U.S. Prepaid Debit
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	33,124	23,509
Operating Segments \| U.K. Limited
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	23,443	26,060
Operating Segments \| Other
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 12,487	$ 9,434

Segment Reporting - Geographic

Segment Reporting - Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Segment Reporting Information [Line Items]
Total plant, equipment and leasehold improvement additions	$ 1,180	$ 5,178	$ 7,682	$ 12,953
Revenues	68,044	81,202	189,898	241,320
Total long-lived assets	166,758		166,758		$ 171,763
Total North America
Segment Reporting Information [Line Items]
Total plant, equipment and leasehold improvement additions	1,119	4,804	6,292	11,788
Revenues	61,059	72,365	165,992	215,248
Total long-lived assets	154,017		154,017		160,672
U.S.
Segment Reporting Information [Line Items]
Total plant, equipment and leasehold improvement additions	1,081	4,757	6,131	11,580
Revenues	59,011	69,573	159,161	205,027
Total long-lived assets	151,015		151,015		157,773
Canada
Segment Reporting Information [Line Items]
Total plant, equipment and leasehold improvement additions	38	47	161	208
Revenues	2,048	2,792	6,831	10,221
Total long-lived assets	3,002		3,002		2,899
U.K.
Segment Reporting Information [Line Items]
Total plant, equipment and leasehold improvement additions	61	374	1,390	1,165
Revenues	6,155	7,910	20,047	22,697
Total long-lived assets	12,741		12,741		$ 11,091
Other
Segment Reporting Information [Line Items]
Revenues	$ 830	$ 927	$ 3,859	$ 3,375

Segment Reporting - Net Sales b

Segment Reporting - Net Sales by Product and Services (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting
Product net sales	$ 31,417	$ 37,482	$ 95,005	$ 132,535
Services net sales	36,627	43,720	94,893	108,785
Total net sales	$ 68,044	$ 81,202	$ 189,898	$ 241,320