CPI Card (PMTS) 10-Q5 Aug 242024 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2024	Jul. 29, 2024
Cover Abstract
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Securities Act File Number	001-37584
Entity Registrant Name	CPI Card Group Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	26-0344657
Entity Address, Address Line One	10368 W. Centennial Road
Entity Address, City or Town	Littleton
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80127
City Area Code	720
Local Phone Number	681-6304
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	PMTS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		11,076,131
Entity Central Index Key	0001641614
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 7,479	$ 12,413
Accounts receivable, net	76,425	73,724
Inventories, net	85,907	70,594
Prepaid expenses and other current assets	9,934	8,647
Total current assets	179,745	165,378
Plant, equipment, leasehold improvements and operating lease right-of-use assets, net of accumulated depreciation of $69,578 and $66,436 respectively	60,773	63,053
Intangible assets, net of accumulated amortization of $53,640 and $51,763 respectively	12,245	14,122
Goodwill	47,150	47,150
Other assets	21,533	3,980
Total assets	321,446	293,683
Current liabilities:
Accounts payable	20,279	12,802
Accrued expenses	47,350	35,803
Deferred revenue and customer deposits	1,320	840
Total current liabilities	68,949	49,445
Long-term debt	269,654	264,997
Deferred income taxes	4,958	7,139
Other long-term liabilities	22,442	24,038
Total liabilities	366,003	345,619
Commitments and contingencies (Note 12)
Series A Preferred Stock; $0.001 par value-100,000 shares authorized; 0 shares issued and outstanding at June 30, 2024 and December 31, 2023
Stockholders' deficit:
Common stock; $0.001 par value-100,000,000 shares authorized; 11,186,596 and 11,446,155 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively	11	11
Capital deficiency	(106,300)	(102,223)
Accumulated earnings	61,732	50,276
Total stockholders' deficit	(44,557)	(51,936)
Total liabilities and stockholders' deficit	$ 321,446	$ 293,683

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Condensed Consolidated Balance Sheets
Accumulated depreciation and amortization	$ 69,578	$ 66,436
Intangible assets accumulated amortization	$ 53,640	$ 51,763
Preferred shares, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred shares, authorized shares (in shares)	100,000	100,000
Preferred shares, issued shares (in shares)	0	0
Preferred shares, outstanding shares (in shares)	0	0
Common shares, par value (in dollars per share)	$ 0.001	$ 0.001
Common shares, authorized shares (in shares)	100,000,000	100,000,000
Common shares, issued shares (in shares)	11,186,596	11,446,155
Common shares, outstanding shares (in shares)	11,186,596	11,446,155

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Net sales:
Total net sales	$ 118,818	$ 114,960	$ 230,754	$ 235,812
Cost of sales:
Depreciation and amortization	2,794	2,613	5,481	4,987
Total cost of sales	76,430	74,135	146,848	151,893
Gross profit	42,388	40,825	83,906	83,919
Operating expenses:
Selling, general and administrative (exclusive of depreciation and amortization shown below)	26,225	21,885	52,268	42,951
Depreciation and amortization	1,254	1,448	2,584	2,878
Total operating expenses	27,479	23,333	54,852	45,829
Income from operations	14,909	17,492	29,054	38,090
Other expense, net:
Interest, net	(6,530)	(6,740)	(12,955)	(13,521)
Other expense, net	(78)	(78)	(143)	(192)
Total other expense, net	(6,608)	(6,818)	(13,098)	(13,713)
Income before income taxes	8,301	10,674	15,956	24,377
Income tax expense	(2,300)	(4,151)	(4,500)	(6,981)
Net income	$ 6,001	$ 6,523	$ 11,456	$ 17,396
Basic earnings per share (in dollars per share)	$ 0.54	$ 0.57	$ 1.03	$ 1.52
Diluted earnings per share (in dollars per share)	$ 0.51	$ 0.55	$ 0.97	$ 1.46
Basic weighted-average shares outstanding (in shares)	11,049,968	11,427,404	11,158,334	11,411,162
Diluted weighted-average shares outstanding (in shares)	11,776,894	11,876,568	11,817,584	11,888,219
Comprehensive income:
Net income	$ 6,001	$ 6,523	$ 11,456	$ 17,396
Total comprehensive income	6,001	6,523	11,456	17,396
Products
Net sales:
Total net sales	63,844	63,946	122,002	139,736
Cost of sales:
Products and Services (exclusive of depreciation and amortization shown below)	41,893	41,308	79,695	87,288
Services
Net sales:
Total net sales	54,974	51,014	108,752	96,076
Cost of sales:
Products and Services (exclusive of depreciation and amortization shown below)	$ 31,743	$ 30,214	$ 61,672	$ 59,618

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Deficit - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance at Dec. 31, 2022	$ 11	$ (108,379)	$ 26,291	$ (82,077)
Beginning balance (in shares) at Dec. 31, 2022	11,390,355
Shares issued under stock-based compensation plans		(120)		(120)
Shares issued under stock-based compensation plans (in shares)	39,890
Stock-based compensation		1,831		1,831
Components of comprehensive income:
Net income			17,396	17,396
Ending balance at Jun. 30, 2023	$ 11	(106,668)	43,687	(62,970)
Ending balance (in shares) at Jun. 30, 2023	11,430,245
Beginning balance at Mar. 31, 2023	$ 11	(107,907)	37,164	(70,732)
Beginning balance (in shares) at Mar. 31, 2023	11,424,628
Shares issued under stock-based compensation plans		(51)		(51)
Shares issued under stock-based compensation plans (in shares)	5,617
Stock-based compensation		1,290		1,290
Components of comprehensive income:
Net income			6,523	6,523
Ending balance at Jun. 30, 2023	$ 11	(106,668)	43,687	(62,970)
Ending balance (in shares) at Jun. 30, 2023	11,430,245
Beginning balance at Dec. 31, 2023	$ 11	(102,223)	50,276	$ (51,936)
Beginning balance (in shares) at Dec. 31, 2023	11,446,155			11,446,155
Shares issued under stock-based compensation plans		(1,286)		$ (1,286)
Shares issued under stock-based compensation plans (in shares)	93,191
Stock-based compensation		5,154		5,154
Repurchase and retirement of common shares		(7,945)		$ (7,945)
Repurchase and retirement of common shares (in shares)	(352,750)			(352,750)
Components of comprehensive income:
Net income			11,456	$ 11,456
Ending balance at Jun. 30, 2024	$ 11	(106,300)	61,732	$ (44,557)
Ending balance (in shares) at Jun. 30, 2024	11,186,596			11,186,596
Beginning balance at Mar. 31, 2024	$ 11	(104,193)	55,731	$ (48,451)
Beginning balance (in shares) at Mar. 31, 2024	11,391,476
Shares issued under stock-based compensation plans		(1,177)		(1,177)
Shares issued under stock-based compensation plans (in shares)	79,612
Stock-based compensation		2,094		2,094
Repurchase and retirement of common shares		(3,024)		(3,024)
Repurchase and retirement of common shares (in shares)	(284,492)
Components of comprehensive income:
Net income			6,001	6,001
Ending balance at Jun. 30, 2024	$ 11	$ (106,300)	$ 61,732	$ (44,557)
Ending balance (in shares) at Jun. 30, 2024	11,186,596			11,186,596

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Operating activities
Net income	$ 11,456	$ 17,396
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	6,188	5,931
Amortization expense	1,877	1,934
Stock-based compensation expense	5,154	1,831
Amortization of debt issuance costs and debt discount	917	936
Loss on debt extinguishment		218
Deferred income taxes	(2,181)	426
Other, net	302	253
Changes in operating assets and liabilities:
Accounts receivable, net	(2,720)	5,287
Inventories	(15,584)	(7,351)
Prepaid expenses and other assets	(20,316)	(1,381)
Income taxes, net	1,598	(772)
Accounts payable	7,079	(1,758)
Accrued expenses and other liabilities	9,858	(9,784)
Deferred revenue and customer deposits	480	(2,844)
Cash provided by operating activities	4,108	10,322
Investing activities
Capital expenditures for plant, equipment and leasehold improvements, net	(2,744)	(6,594)
Other		128
Cash used in investing activities	(2,744)	(6,466)
Financing activities
Principal payments on 2026 Senior Notes		(14,877)
Proceeds from 2026 ABL Revolver	4,000	13,000
Payments on finance lease obligations	(2,413)	(1,739)
Common stock repurchased	(6,481)
Other	(1,404)	(120)
Cash used in financing activities	(6,298)	(3,736)
Effect of exchange rates on cash		11
Net (decrease) increase in cash and cash equivalents	(4,934)	131
Cash and cash equivalents, beginning of period	12,413	11,037
Cash and cash equivalents, end of period	7,479	11,168
Supplemental disclosures of cash flow information
Cash paid (refunded) during the period for: Interest	12,332	13,135
Cash paid (refunded) during the period for: Income taxes paid	6,481	7,408
Cash paid (refunded) during the period for: Income taxes refunded	(272)	(26)
Right-of-use assets obtained in exchange for lease obligations- Operating leases	1,292	168
Right-of-use assets obtained in exchange for lease obligations- Financing leases	983	2,169
Accounts payable and accrued expenses for capital expenditures for plant, equipment and leasehold improvements	500	$ 368
Unsettled share repurchases included in accrued expenses	$ 2,197

Business Overview and Summary o

Business Overview and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2024
Business Overview and Summary of Significant Accounting Policies
Business Overview and Summary of Significant Accounting Policies	1. Business Overview and Summary of Significant Accounting Policies Business Overview CPI Card Group Inc. (which, together with its subsidiary companies, is referred to herein as “CPI” or the “Company”) is a payments technology company and leading provider of comprehensive Financial Payment Card solutions in the United States. CPI is engaged in the design, production, data personalization, packaging and fulfillment of Financial Payment Cards, which the Company defines as credit, debit and Prepaid Debit Cards (defined below) issued on the networks of the Payment Card Brands (Visa, Mastercard ® ® ® CPI serves its customers through a network of high-security production and card services facilities in the United States, each of which is audited for compliance with the standards of the Payment Card Industry Security Standards Council (“PCI Security Standards Council”) by one or more of the Payment Card Brands. CPI’s network of high-security production facilities allows the Company to optimize its solutions offerings and serve its customers. The Company’s business consists of the following reportable segments: Debit and Credit, Prepaid Debit and Other. The Debit and Credit segment primarily produces Financial Payment Cards and provides integrated card services to card-issuing financial institutions primarily in the United States. The Prepaid Debit segment primarily provides integrated card services to Prepaid Debit Card program managers primarily in the United States. The Company’s “Other” segment includes corporate expenses. 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 8 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, 2023 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, 2023. Use of Estimates Management uses estimates and assumptions relating to the reporting of assets and liabilities at the date of the financial statements, the reported revenues and expenses recognized during the reporting period, and certain financial statement disclosures in the 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, leases, valuation allowances for inventories and deferred taxes, revenue recognized for work performed but not completed and uncertain tax positions. Actual results could differ from those estimates. Recent Accounting Pronouncements Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which will require enhanced segment disclosures. Adoption of this accounting standard is effective for the Company for fiscal years beginning after December 15, 2023. The Company is evaluating the impact of adoption of this standard and does not anticipate that the application of ASU 2023-07 will have a material impact on the Company’s consolidated financial position, results of operations, or cash flows. In December 2023, the Financial Accounting Standards Board issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures which will require a disaggregated rate reconciliation disclosure as well as additional information regarding taxes paid. Adoption of this accounting standard is effective for the Company for fiscal years beginning after December 15, 2024. The Company is evaluating the impact of adoption of this standard and does not anticipate that the application of ASU 2023-09 will have a material impact on the Company’s consolidated financial position, results of operations, or cash flows.

Net Sales

Net Sales	6 Months Ended
Net Sales	Jun. 30, 2024
Net Sales.
Net Sales	2. Net Sales The Company disaggregates its net sales by major source as follows: Three Months Ended June 30, 2024 Products Services Total Debit and Credit $ 64,461 $ 31,159 $ 95,620 Prepaid Debit — 23,815 23,815 Intersegment eliminations (617) — (617) Total $ 63,844 $ 54,974 $ 118,818 Six Months Ended June 30, 2024 Products Services Total Debit and Credit $ 122,832 $ 60,761 $ 183,593 Prepaid Debit — 48,013 48,013 Intersegment eliminations (830) (22) (852) Total $ 122,002 $ 108,752 $ 230,754 Three Months Ended June 30, 2023 Products Services Total Debit and Credit $ 64,001 $ 29,193 $ 93,194 Prepaid Debit — 21,821 21,821 Intersegment eliminations (55) — (55) Total $ 63,946 $ 51,014 $ 114,960 Six Months Ended June 30, 2023 Products Services Total Debit and Credit $ 140,033 $ 55,146 $ 195,179 Prepaid Debit — 40,951 40,951 Intersegment eliminations (297) (21) (318) Total $ 139,736 $ 96,076 $ 235,812 Products Net Sales “Products” net sales are recognized when obligations under the terms of a contract with a customer are satisfied. In most instances, this occurs over time as cards are produced for specific customers and have no alternative use and the Company has an enforceable right to payment for work performed. For work performed but not completed and unbilled, the Company estimates revenue by taking actual costs incurred and applying historical margins for similar types of contracts. Items included in “Products” net sales are the design and production of Financial Payment Cards, including contact-EMV ® ® ® ® Europay, Mastercard and Visa (“EMV ® ”) is a global technical standard maintained by EMV Co, LLC. EMV ® is a registered trademark in the U.S. and other countries and an unregistered trademark elsewhere. The EMV trademark is owned by EMV Co, LLC Services Net Sales Net sales are recognized for “Services” as the services are performed. Items included in “Services” net sales include the personalization and fulfillment of Financial Payment Cards, providing tamper-evident secure packaging and fulfillment services to Prepaid Debit Card program managers, and software-as-a-service personalization of instant issuance debit cards. As applicable, for work performed but not completed and unbilled, the Company estimates revenue by taking actual costs incurred and applying historical margins for similar types of contracts. Customer Contracts The Company often enters into Master Services Agreements (“MSAs”) with its customers. Generally, enforceable rights and obligations for goods and services occur only when a customer places a purchase order or statement of work to obtain goods or services under an MSA. The contract term as defined by ASC 606, Revenue from Contracts with Customers Costs to Obtain a Contract with a Customer Costs to obtain a contract (“contract costs”) include only those costs incurred to obtain a contract that the Company would not have incurred if the contract had not been obtained. For contracts where the term is greater than one year, these costs are recorded as an asset and amortized consistent with the timing of the related revenue over the life of the contract. The current portion of the asset is included in “prepaid expenses and other current assets” and the noncurrent portion is included in “other assets” on the Company's condensed consolidated balance sheets. Contract costs incurred but unpaid are included in “accrued expenses” on the Company's condensed consolidated balance sheets. Contract costs are expensed as incurred when the amortization period is one year or less.

Accounts Receivable

Accounts Receivable	6 Months Ended
Accounts Receivable	Jun. 30, 2024
Accounts Receivable
Accounts Receivable	3. Accounts Receivable Accounts receivable consisted of the following: June 30, December 31, 2024 2023 Trade accounts receivable $ 68,170 $ 69,245 Unbilled accounts receivable 8,499 4,725 76,669 73,970 Less allowance for credit losses (244) (246) $ 76,425 $ 73,724

Inventories

Inventories	6 Months Ended
Inventories	Jun. 30, 2024
Inventories
Inventories	4 Inventories Inventories consisted of the following: June 30, December 31, 2024 2023 Raw materials $ 81,475 $ 66,210 Finished goods 7,481 7,162 Inventory reserve (3,049) (2,778) $ 85,907 $ 70,594

Plant, Equipment, Leasehold Imp

Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets	6 Months Ended
	Jun. 30, 2024
Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets
Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets	5 5. Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets Plant, equipment, leasehold improvements and operating lease right-of-use assets consisted of the following: June 30, December 31, 2024 2023 Machinery and equipment $ 69,120 $ 67,506 Machinery and equipment under financing leases 24,757 23,774 Furniture, fixtures and computer equipment 448 107 Leasehold improvements 18,374 16,335 Construction in progress 841 1,778 Operating lease right-of-use assets 16,811 19,989 130,351 129,489 Less accumulated depreciation and amortization (69,578) (66,436) $ 60,773 $ 63,053

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
Fair Value of Financial Instruments	Jun. 30, 2024
Fair Value of Financial Instruments
Fair Value of Financial Instruments	6. 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 the measurement date. The Company’s financial assets and liabilities that are not required to be re-measured at fair value in the condensed consolidated balance sheets were as follows: Carrying Estimated Value as of Fair Value as of Fair Value Measurement at June 30, 2024 June 30, June 30, (Using Fair Value Hierarchy) 2024 2024 Level 1 Level 2 Level 3 Liabilities: 2026 Senior Notes $ 267,897 $ 273,818 $ — $ 273,818 $ — 2026 ABL Revolver $ 4,000 $ 4,000 $ — $ 4,000 $ — Carrying Estimated Value as of Fair Value as of Fair Value Measurement at December 31, 2023 December 31, December 31, (Using Fair Value Hierarchy) 2023 2023 Level 1 Level 2 Level 3 Liabilities: 2026 Senior Notes $ 267,897 $ 261,834 $ — $ 261,834 $ — 2026 ABL Revolver $ — $ — $ — $ — $ — The aggregate fair value of the Company’s 2026 Senior Notes (as defined in Note 8, “Long-Term Debt”) was based on bank quotes. The fair value measurement associated with the 2026 ABL Revolver (as defined in Note 8, “Long-Term Debt”) approximates its carrying value as of June 30, 2024, given the applicable variable interest rates. The carrying amounts for cash and cash equivalents, accounts receivable and accounts payable each approximate fair value due to their short-term nature.

Accrued Expenses

Accrued Expenses	6 Months Ended
Accrued Expenses	Jun. 30, 2024
Accrued Expenses.
Accrued Expenses	7. Accrued Expenses Accrued expenses consisted of the following: June 30, December 31, 2024 2023 Accrued payroll and related employee expenses $ 7,885 $ 11,431 Accrued employee performance bonuses 2,843 667 Employer payroll taxes 438 298 Accrued rebates 2,594 2,919 Capitalized contract costs payable 10,000 — Accrued interest 6,739 6,830 Current operating and financing lease liabilities 7,391 7,318 Accrued share repurchases 2,197 733 Other 7,263 5,607 Total accrued expenses $ 47,350 $ 35,803 Other accrued expenses as of June 30, 2024, and December 31, 2023, consisted primarily of miscellaneous accruals for invoices not yet received, executive retention and severance, and self-insurance claims that have yet to be reported.

Long-Term Debt

Long-Term Debt	6 Months Ended
Long-Term Debt	Jun. 30, 2024
Long-Term Debt.
Long-Term Debt	8. Long-Term Debt As of June 30, 2024, and December 31, 2023, long-term debt consisted of the following: June 30, December 31, 2024 2023 2026 Senior Notes (1) $ 267,897 $ 267,897 2026 ABL Revolver (2) 4,000 — Unamortized deferred financing costs (2,243) (2,900) Total long-term debt 269,654 264,997 Less current maturities — — Long-term debt, net of current maturities $ 269,654 $ 264,997 (1) The 2026 Senior Notes bear interest at a fixed rate of 8.625% . (2) The 2026 ABL Revolver bears interest at a variable rate of 6.679% as of June 30, 2024. 2026 Senior Notes On March 15, 2021, the Company completed an offering by its wholly-owned subsidiary, CPI CG Inc., of $310.0 million aggregate principal amount of 8.625% Senior Secured Notes due 2026 (the “2026 Senior Notes”) and related guarantees. The 2026 Senior Notes bear interest at a rate of 8.625% per annum and mature on March 15, 2026. Interest is payable on the 2026 Senior Notes on March 15 and September 15 of each year. The Company had obligations to make an offer to repay the 2026 Senior Notes, requiring prepayment in advance of the maturity date, upon the occurrence of certain events including a change of control, certain asset sales and based on an annual excess cash flow calculation. The annual excess cash flow calculation is determined pursuant to the terms of that certain Indenture, dated as of March 15, 2021, by and among CPI CG Inc., the Company, the subsidiary guarantors and U.S. Bank National Association, as trustee, with any required prepayments to be made after the issuance of the Company’s annual financial statements. No such payment is required to be made in 2024 and was not required to be made in 2023 based on the Company’s operating results for the years ended December 31, 2023 and 2022, respectively. Refer to Note 15, “Subsequent Events” for information on the refinancing of the 2026 Senior Notes that occurred in July 2024. 2026 ABL Revolver On March 15, 2021, the Company and CPI CG Inc., as borrower, entered into a Credit Agreement with Wells Fargo Bank, National Association, as lender, administrative agent and collateral agent, providing for an asset-based, senior secured revolving credit facility (the “2026 ABL Revolver”). The 2026 ABL Revolver matures on the earliest to occur of March 15, 2026 and the date that is 90 days prior to the maturity of the 2026 Senior Notes. On March 3, 2022, the Company and CPI CG Inc. entered into Amendment No. 1 to the Credit Agreement (the “Amendment”), which amended the 2026 ABL Revolver. The Amendment, among other things, increased the available borrowing capacity under the 2026 ABL Revolver to $75.0 million, increased the uncommitted accordion feature to $25.0 million from $15.0 million, and revised the interest rate provisions to replace the prior LIBOR benchmark with updated benchmark provisions using the secured overnight financing rate (“SOFR”) as administered by the Federal Reserve Bank of New York. On October 11, 2022, the Company and CPI CG Inc. entered into Amendment No. 2 to the Credit Agreement, which amended the 2026 ABL Revolver to adjust certain monthly document delivery terms and to clarify the treatment of certain inventory. Borrowings under the amended 2026 ABL Revolver bear interest at a rate per annum equal to the applicable term SOFR adjusted for a credit spread, plus an applicable interest rate margin. The Company may select a one, three or six-month term SOFR, which is adjusted for a credit spread of 0.10% to 0.30% depending on the term selected. Through March 31, 2023, the applicable interest rate margin ranged from 1.50% to 1.75% depending on the average excess availability of the facility for the most recently completed quarter. The unused portion of the 2026 ABL Revolver commitment accrued a monthly unused line fee, 0.50% per annum through March 31, 2023, multiplied by the aggregate amount of Revolver commitments less the average Revolver usage during the immediately preceding month. The interest rate margin and unused line fee percentage changed , effective April 1, 2023, to between 1.25% and 1.75% (interest rate margin) and 0.375% and 0.50% (unused line fee). Refer to Note 15, “Subsequent Events” for information on the refinancing of the 2026 ABL Revolver that occurred in July 2024. Deferred Financing Costs and Discount Certain costs and discounts incurred with borrowings are reflected as a reduction to the long-term debt balance. These costs are amortized as an adjustment to interest expense over the life of the borrowing using the effective-interest rate method. The remaining unamortized debt issuance costs recorded on the 2026 Senior Notes were $2.2 million and are reported as a reduction to the long-term debt balance as of June 30, 2024. The remaining unamortized net discount and debt issuance costs on the 2026 ABL Revolver and related Amendment were $0.8 million and are recorded as other assets (current and long-term) on the consolidated balance sheet as of June 30, 2024.

Income Taxes

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2024
Income Taxes
Income Taxes	9. Income Taxes The Company’s effective tax rates on pre-tax income were 27.7% and 38.9% for the three months ended June 30, 2024 and 2023, respectively, and 28.2% and 28.6% for the six months ended June 30, 2024 and 2023, respectively. The decrease in the effective tax rate for the three months ended June 30, 2024, compared to the corresponding period in the prior year was primarily due to limitation of executive compensation deductibility related to the former CEO’s retention agreement recognized in the second quarter of 2023. The effective tax rate for the six months ended June 30, 2024 was consistent with the rate in the comparable period in the prior year as the limitation of executive compensation deductibility recognized in the second quarter of 2023 was offset by a reduction in a valuation allowance related to interest deductibility due to a state tax law change recognized in the first quarter of 2023. For the six months ended June 30, 2024 and 2023, the effective tax rate differs from the U.S. federal statutory income tax rate as follows: June 30, 2024 2023 Tax at federal statutory rate 21.0 % 21.0 % State taxes, net 6.2 5.1 Valuation allowance — (1.4) Permanent items (1) 1.9 4.7 Other (0.9) (0.8) Effective income tax rate 28.2 % 28.6 % (1) Includes the deductibility limitations on excess compensation .

Stockholders' Deficit

Stockholders' Deficit	6 Months Ended
Stockholders' Deficit	Jun. 30, 2024
Stockholders' Deficit
Stockholders' Deficit	10. Stockholders’ Deficit Share Repurchases On November 2, 2023, the Company's board of directors approved a share repurchase plan authorizing the Company to repurchase up to $20.0 million of the Company's common stock, par value $0.001 per share. This authorization expires on December 31, 2024. During the six months ended June 30, 2024, the Company repurchased 352,750 shares of its common stock at an average price of $18.14 per share, excluding commissions, or $6.4 million in aggregate, on a trade date basis. This amount includes 244,314 shares purchased from a stockholder that is part of our majority stockholder group at an average price of $18.03 per share, in accordance with the Stock Repurchase Agreements entered into with Tricor Pacific Capital Partners (Fund IV) US, LP (“Parallel49”). As of June 30, 2024, the Company is obligated to repurchase an additional 120,534 shares at an average price of $18.23 per share from Parallel49. This obligation

Earnings per Share

Earnings per Share	6 Months Ended
Earnings per Share	Jun. 30, 2024
Earnings per Share
Earnings per Share	11. Earnings per Share Basic and diluted earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. The Company's calculation of weighted-average shares outstanding has been reduced by 120,534 shares that the Company repurchased from Parallel49 in July 2024. Shares excluded from the calculation of diluted earnings per share because their inclusion would be anti-dilutive were 15,185 and 105,884 for the three months ended June 30, 2024 and 2023, respectively, and 24,298 and 132,594 for the six months ended June 30, 2024 and 2023, respectively. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Numerator: Net income $ 6,001 $ 6,523 $ 11,456 $ 17,396 Denominator: Basic weighted-average common shares outstanding 11,049,968 11,427,404 11,158,334 11,411,162 Dilutive shares 726,926 449,164 659,250 477,057 Diluted weighted-average common shares outstanding 11,776,894 11,876,568 11,817,584 11,888,219 Basic earnings per share $ 0.54 $ 0.57 $ 1.03 $ 1.52 Diluted earnings per share $ 0.51 $ 0.55 $ 0.97 $ 1.46

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2024
Commitments and Contingencies.
Commitments and Contingencies	12 Contingencies In accordance with applicable accounting guidance, the Company establishes an accrued expense 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 expense and record a corresponding amount of expense. The Company expenses professional fees associated with litigation claims and assessments as incurred. Smart Packaging Solutions SA v. CPI Card Group Inc. On April 20, 2021, Smart Packaging Solutions, SA (“SPS”) filed a patent infringement lawsuit against the Company in the United States District Court for the District of Delaware seeking an unspecified amount of damages and equitable relief. In the complaint, SPS alleged that the Company infringed four patents that SPS has exclusively licensed from Feinics AmaTech Teoranta. The patents all relate to antenna technology. SPS alleged that the Company incorporates the patented technology into its products that use contactless communication. On June 3, 2024 the Delaware District Court entered an order dismissing the litigation against the Company. In addition to the matter described above, the Company may be subject to routine legal proceedings in the ordinary course of business. The Company believes that the ultimate resolution of any such matters will not have a material adverse effect on its business, financial condition or results of operations. Voluntary Disclosure Program The Company is subject to unclaimed or abandoned property (escheat) laws which require it to turn over to state governmental authorities the property of others held by the Company that has been unclaimed for specified periods of time. Property subject to escheat laws generally relates to uncashed checks, trade accounts receivable credits and unpaid payable balances. During the second quarter of 2022, the Company received a letter from the Delaware Secretary of State inviting the Company to participate in the Delaware Secretary of State’s Abandoned or Unclaimed Property Voluntary Disclosure Agreement Program to avoid being sent an audit notice by the Delaware Department of Finance. On August 31, 2022, the Company entered into Delaware’s Voluntary Disclosure Agreement Program in order to voluntarily comply with Delaware’s abandoned property law in exchange for certain protections and benefits. The Company intends to work in good faith to complete a review of its books and records related to unclaimed or abandoned property during the periods required under the program. Any potential loss, or range of loss, that may result from this matter is not currently reasonably estimable.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
Stock-Based Compensation	Jun. 30, 2024
Stock-Based Compensation
Stock-Based Compensation	13. Stock-Based Compensation In October 2015, the Company adopted the CPI Card Group Inc. Omnibus Incentive Plan (as amended and supplemented, the “Omnibus Plan”) pursuant to which cash and equity-based incentives may be granted to participating employees, advisors, and directors. Effective January 30, 2024, the Company’s stockholders approved an amendment to the Omnibus Plan to increase the total number of shares of the Company’s Common Stock reserved and available for issuance thereunder by 1,000,000 shares, resulting in a total of 3,200,000 shares issuable under the Omnibus Plan. As of June 30, 2024, there were 957,803 shares of Common Stock available for grant under the Omnibus Plan. In June 2023, the Company announced an award comprised of 25% nonqualified stock options and 75% restricted stock units to its CEO at the time as an incentive to remain employed by the Company through February 28, 2024. The first one -third of the awards was granted in June 2023, the second one -third was granted in August 2023, and the remainder was granted in November 2023. All of these awards will vest ratably over a two-year period irrespective of employment status with expense related to these awards to be recognized by the Company through February 28, 2024. As part of the CEO’s incentive package, the requisite service and exercise periods for his awards granted in 2023 prior to June 2023 were also modified with expense related to the modification being recognized in June 2023 through February 2024. During 2024, executives receive a quarterly restricted stock unit grant comprising one-fourth of the annual equity-based incentive component of their total compensation. The number of shares awarded will be determined based on a value tied to the monthly average closing price of the Company’s common stock. As of June 30, 2024, there were 858,855 options outstanding at a weighted average exercise price of $ 19.54 . No options were granted during the six months ended June 30, 2024. Options have 7-year terms and are issued with exercise prices equal to the fair market value of the Company’s common stock on the grant date. During the six months ended June 30, 2024, the Company granted 125,879 restricted stock units at a weighted average grant date fair value of $20.55, and as of June 30, 2024, there were 701,264 outstanding restricted stock units at a weighted average grant date fair value of $20.43. In January 2024, the Company granted 60,000 performance stock units (PSU) in connection with the appointment of its CEO, with a grant date fair value of $0.9 million using a Monte Carlo simulation model. The PSU award will vest, subject to continuous employment, in equal one All equity awards are contingent and issued only upon approval by the compensation committee of the Company’s board of directors, or as otherwise permitted under the Omnibus Plan. The Company accounts for stock-based compensation pursuant to ASC 718, Share-Based Payments.

Segment Reporting

Segment Reporting	6 Months Ended
Segment Reporting	Jun. 30, 2024
Segment Reporting
Segment Reporting	14. Segment Reporting The Company has identified reportable segments that represent 10% or more of its net sales, EBITDA (as defined below) or total assets, or when the Company believes information about the segment would be useful to the readers of the financial statements. The Company’s chief operating decision maker is its Chief Executive Officer, who is charged with management of the Company and is responsible for the evaluation of operating performance and decision making about the allocation of resources to operating segments based on measures, such as net sales and EBITDA. EBITDA is the primary measure used by the Company’s chief operating decision maker to evaluate segment operating performance. As the Company uses the term, “EBITDA” is defined as income before interest expense, income taxes, depreciation and amortization. The Company’s chief operating decision maker believes EBITDA is a meaningful measure and is useful as a supplement to GAAP measures as it represents a transparent view of the Company’s operating performance that is unaffected by fluctuations in property, equipment and leasehold improvement additions. The Company’s chief operating decision maker uses EBITDA to perform periodic reviews and comparison of operating trends and to identify strategies to improve the allocation of resources amongst segments. As of June 30, 2024, the Company’s reportable segments were as follows: ● Debit and Credit ● Prepaid Debit ● Othe r Debit and Credit Segment The Debit and Credit segment primarily produces Financial Payment Cards and provides integrated card services, including digital services, for card-issuing financial institutions primarily in the United States. Products produced by this segment primarily include EMV and non-EMV Financial Payment Cards, including contact and contactless cards, and Eco-Focused Cards. The Company also sells Card Once instant card issuance solutions, and private label credit cards that are not issued on the networks of the Payment Card Brands. The Company provides print-on-demand services, where images, personalized payment cards, and related collateral are produced on a one-by-one, on demand basis for customers. This segment also provides a variety of integrated card services, including card personalization and fulfillment services and instant issuance services. The Debit and Credit segment facilities and operations are audited for compliance with the standards of the PCI Security Standards Council by multiple Payment Card Brands. Prepaid Debit Segment The Prepaid Debit segment primarily provides integrated prepaid card services to Prepaid Debit Card providers primarily in the United States, including tamper-evident security packaging. This segment also produces Financial Payment Cards issued on the networks of the Payment Card Brands that are included in the tamper-evident security packages. The Prepaid Debit segment facilities and operations are audited for compliance with the standards of the PCI Security Standards Council by multiple Payment Card Brands. Other The Other segment includes corporate expenses. Performance Measures of Reportable Segments Net sales and EBITDA of the Company’s reportable segments, as well as a reconciliation of total segment EBITDA to income from operations and net income for the three and six months ended June 30, 2024 and 2023, were as follows: Three Months Ended June 30, 2024 Debit and Credit Prepaid Debit Other Intersegment Eliminations Total Net sales $ 95,620 $ 23,815 $ — $ (617) $ 118,818 Cost of sales 61,456 15,591 — (617) 76,430 Gross profit 34,164 8,224 — — 42,388 Operating expenses 8,775 1,315 17,389 — 27,479 Income (loss) from operations $ 25,389 $ 6,909 $ (17,389) $ — $ 14,909 EBITDA by segment: Income (loss) from operations $ 25,389 $ 6,909 $ (17,389) $ — $ 14,909 Depreciation and amortization 2,237 895 916 — 4,048 Other income (expense) (1) (1) (76) — (78) EBITDA $ 27,625 $ 7,803 $ (16,549) $ — $ 18,879 Six Months Ended June 30, 2024 Debit and Credit Prepaid Debit Other Intersegment Eliminations Total Net sales $ 183,593 $ 48,013 $ — $ (852) $ 230,754 Cost of sales 117,934 29,766 — (852) 146,848 Gross profit 65,659 18,247 — — 83,906 Operating expenses 17,516 2,593 34,743 — 54,852 Income (loss) from operations $ 48,143 $ 15,654 $ (34,743) $ — $ 29,054 EBITDA by segment: Income (loss) from operations $ 48,143 $ 15,654 $ (34,743) $ — $ 29,054 Depreciation and amortization 4,387 1,766 1,912 — 8,065 Other income (expense) (63) (2) (78) — (143) EBITDA $ 52,467 $ 17,418 $ (32,909) $ — $ 36,976 Three Months Ended June 30, 2023 Debit and Credit Prepaid Debit Other Intersegment Eliminations Total Net sales $ 93,194 $ 21,821 $ — $ (55) $ 114,960 Cost of sales 60,156 14,034 — (55) 74,135 Gross profit 33,038 7,787 — — 40,825 Operating expenses 7,957 159 15,217 — 23,333 Income (loss) from operations $ 25,081 $ 7,628 $ (15,217) $ — $ 17,492 EBITDA by segment: Income (loss) from operations $ 25,081 $ 7,628 $ (15,217) $ — $ 17,492 Depreciation and amortization 2,353 704 1,004 — 4,061 Other income (expense) 21 1 (100) — (78) EBITDA $ 27,455 $ 8,333 $ (14,313) $ — $ 21,475 Six Months Ended June 30, 2023 Debit and Credit Prepaid Debit Other Intersegment Eliminations Total Net sales $ 195,179 $ 40,951 $ — $ (318) $ 235,812 Cost of sales 123,957 28,254 — (318) 151,893 Gross profit 71,222 12,697 — — 83,919 Operating expenses 16,115 1,392 28,322 — 45,829 Income (loss) from operations $ 55,107 $ 11,305 $ (28,322) $ — $ 38,090 EBITDA by segment: Income (loss) from operations $ 55,107 $ 11,305 $ (28,322) $ — $ 38,090 Depreciation and amortization 4,514 1,328 2,023 — 7,865 Other income (expense) 26 1 (219) — (192) EBITDA $ 59,647 $ 12,634 $ (26,518) $ — $ 45,763 Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net income $ 6,001 $ 6,523 $ 11,456 $ 17,396 Interest, net 6,530 6,740 12,955 13,521 Income tax expense 2,300 4,151 4,500 6,981 Depreciation and amortization 4,048 4,061 8,065 7,865 EBITDA $ 18,879 $ 21,475 $ 36,976 $ 45,763

Subsequent Events

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2024
Subsequent Event
Subsequent Events	15. Subsequent Events On July 11, 2024 (the “Closing Date”), the Company completed a private offering by its wholly-owned subsidiary, CPI CG Inc., of $285.0 million aggregate principal amount of 10.000% senior secured notes due 2029 (the “2029 Senior Notes”) and related guarantees at an issue price of 100%. The notes and related guarantees were offered and sold in a private transaction exempt from the registration requirements of the Securities Act of 1933, as amended, to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A. Net proceeds from the 2029 Senior Notes, together with cash on hand, were used to redeem the entire principal balance of $267.9 million of 2026 Senior Notes as of the Closing Date, and to pay related fees, the early redemption premium of 102.156% , and expenses. As part of the redemption, the Company expensed the remaining unamortized debt issuance costs related to the 2026 Senior Notes of In addition, on the Closing Date, the Company and CPI CG Inc. as borrower, entered into a credit agreement (the “2029 ABL Revolver”) with JPMorgan Chase Bank, N.A., as lender, administrative agent and collateral agent, providing for an asset-based, senior secured revolving credit facility of up to $75.0 million, consisting of revolving loans, letters of credit and swing line loans provided by lenders, with a sublimit on letters of credit outstanding at any time of $10.0 million. The 2029 ABL Revolver also includes an uncommitted accordion feature whereby the borrower may increase the 2029 ABL Revolver commitment by an aggregate amount not to exceed $25.0 million, subject to certain conditions. The 2029 ABL Revolver matures on the earliest to occur of July 11, 2029 and the date that is 91 days prior to the maturity of the 2029 Senior Notes. As of the Closing Date, the Company had $4.0 million of outstanding borrowings under the 2026 ABL Revolver. The Company used initial borrowings under the 2029 ABL Revolver, together with cash on hand and proceeds under the notes, to repay in full and terminate the existing credit facilities evidenced by the 2026 ABL Revolver. Borrowings under the 2029 ABL Revolver bear interest at a rate per annum that ranges from Adjusted Term SOFR The 2029 Senior Notes and 2029 ABL Revolver are guaranteed by the Company and essentially secured by substantially all of the assets of the Company and its subsidiaries. In connection with both the 2029 Senior Notes and the 2029 ABL Revolver, as of June 30, 2024, the Company recorded $1.3 million of accrued debt issuance costs included in “Prepaid expenses and other assets”, “Accounts payable” and “Accrued expenses and other liabilities” in the Condensed Consolidated Statements of Cash Flows which will be paid in the third quarter of 2024.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 6,001	$ 6,523	$ 11,456	$ 17,396

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2024	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false	false
Non-Rule 10b5-1 Arrangement Adopted	false	false
Rule 10b5-1 Arrangement Terminated	false	false
Non-Rule 10b5-1 Arrangement Terminated	false	false

Business Overview and Summary_2

Business Overview and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2024
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 8 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, 2023 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, 2023.
Use of Estimates	Use of Estimates Management uses estimates and assumptions relating to the reporting of assets and liabilities at the date of the financial statements, the reported revenues and expenses recognized during the reporting period, and certain financial statement disclosures in the 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, leases, valuation allowances for inventories and deferred taxes, revenue recognized for work performed but not completed and uncertain tax positions. Actual results could differ from those estimates.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which will require enhanced segment disclosures. Adoption of this accounting standard is effective for the Company for fiscal years beginning after December 15, 2023. The Company is evaluating the impact of adoption of this standard and does not anticipate that the application of ASU 2023-07 will have a material impact on the Company’s consolidated financial position, results of operations, or cash flows. In December 2023, the Financial Accounting Standards Board issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures which will require a disaggregated rate reconciliation disclosure as well as additional information regarding taxes paid. Adoption of this accounting standard is effective for the Company for fiscal years beginning after December 15, 2024. The Company is evaluating the impact of adoption of this standard and does not anticipate that the application of ASU 2023-09 will have a material impact on the Company’s consolidated financial position, results of operations, or cash flows.

Net Sales (Tables)

Net Sales (Tables)	6 Months Ended
Net Sales (Tables)	Jun. 30, 2024
Net Sales.
Schedule of disaggregation of net sales by major source	Three Months Ended June 30, 2024 Products Services Total Debit and Credit $ 64,461 $ 31,159 $ 95,620 Prepaid Debit — 23,815 23,815 Intersegment eliminations (617) — (617) Total $ 63,844 $ 54,974 $ 118,818 Six Months Ended June 30, 2024 Products Services Total Debit and Credit $ 122,832 $ 60,761 $ 183,593 Prepaid Debit — 48,013 48,013 Intersegment eliminations (830) (22) (852) Total $ 122,002 $ 108,752 $ 230,754 Three Months Ended June 30, 2023 Products Services Total Debit and Credit $ 64,001 $ 29,193 $ 93,194 Prepaid Debit — 21,821 21,821 Intersegment eliminations (55) — (55) Total $ 63,946 $ 51,014 $ 114,960 Six Months Ended June 30, 2023 Products Services Total Debit and Credit $ 140,033 $ 55,146 $ 195,179 Prepaid Debit — 40,951 40,951 Intersegment eliminations (297) (21) (318) Total $ 139,736 $ 96,076 $ 235,812

Accounts Receivable (Tables)

Accounts Receivable (Tables)	6 Months Ended
Accounts Receivable (Tables)	Jun. 30, 2024
Accounts Receivable
Schedule of accounts receivable	June 30, December 31, 2024 2023 Trade accounts receivable $ 68,170 $ 69,245 Unbilled accounts receivable 8,499 4,725 76,669 73,970 Less allowance for credit losses (244) (246) $ 76,425 $ 73,724

Inventories (Tables)

Inventories (Tables)	6 Months Ended
Inventories (Tables)	Jun. 30, 2024
Inventories
Schedule of inventories	June 30, December 31, 2024 2023 Raw materials $ 81,475 $ 66,210 Finished goods 7,481 7,162 Inventory reserve (3,049) (2,778) $ 85,907 $ 70,594

Plant, Equipment, Leasehold I_2

Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets (Tables)	6 Months Ended
	Jun. 30, 2024
Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets
Schedule of plant, equipment, leasehold improvements and operating lease right-to-use assets	June 30, December 31, 2024 2023 Machinery and equipment $ 69,120 $ 67,506 Machinery and equipment under financing leases 24,757 23,774 Furniture, fixtures and computer equipment 448 107 Leasehold improvements 18,374 16,335 Construction in progress 841 1,778 Operating lease right-of-use assets 16,811 19,989 130,351 129,489 Less accumulated depreciation and amortization (69,578) (66,436) $ 60,773 $ 63,053

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	6 Months Ended
Fair Value of Financial Instruments (Tables)	Jun. 30, 2024
Fair Value of Financial Instruments
Schedule of financial assets and liabilities subject to fair value measurements	Carrying Estimated Value as of Fair Value as of Fair Value Measurement at June 30, 2024 June 30, June 30, (Using Fair Value Hierarchy) 2024 2024 Level 1 Level 2 Level 3 Liabilities: 2026 Senior Notes $ 267,897 $ 273,818 $ — $ 273,818 $ — 2026 ABL Revolver $ 4,000 $ 4,000 $ — $ 4,000 $ — Carrying Estimated Value as of Fair Value as of Fair Value Measurement at December 31, 2023 December 31, December 31, (Using Fair Value Hierarchy) 2023 2023 Level 1 Level 2 Level 3 Liabilities: 2026 Senior Notes $ 267,897 $ 261,834 $ — $ 261,834 $ — 2026 ABL Revolver $ — $ — $ — $ — $ —

Accrued Expenses (Tables)

Accrued Expenses (Tables)	6 Months Ended
Accrued Expenses (Tables)	Jun. 30, 2024
Accrued Expenses.
Schedule of accrued expenses	June 30, December 31, 2024 2023 Accrued payroll and related employee expenses $ 7,885 $ 11,431 Accrued employee performance bonuses 2,843 667 Employer payroll taxes 438 298 Accrued rebates 2,594 2,919 Capitalized contract costs payable 10,000 — Accrued interest 6,739 6,830 Current operating and financing lease liabilities 7,391 7,318 Accrued share repurchases 2,197 733 Other 7,263 5,607 Total accrued expenses $ 47,350 $ 35,803

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
Long-Term Debt (Tables)	Jun. 30, 2024
Long-Term Debt.
Schedule of long-term debt	June 30, December 31, 2024 2023 2026 Senior Notes (1) $ 267,897 $ 267,897 2026 ABL Revolver (2) 4,000 — Unamortized deferred financing costs (2,243) (2,900) Total long-term debt 269,654 264,997 Less current maturities — — Long-term debt, net of current maturities $ 269,654 $ 264,997 (1) The 2026 Senior Notes bear interest at a fixed rate of 8.625% . (2) The 2026 ABL Revolver bears interest at a variable rate of 6.679% as of June 30, 2024.

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
Income Taxes (Tables)	Jun. 30, 2024
Income Taxes
Schedule of effective income tax rate reconciliation	June 30, 2024 2023 Tax at federal statutory rate 21.0 % 21.0 % State taxes, net 6.2 5.1 Valuation allowance — (1.4) Permanent items (1) 1.9 4.7 Other (0.9) (0.8) Effective income tax rate 28.2 % 28.6 % (1) Includes the deductibility limitations on excess compensation .

Earnings per Share (Tables)

Earnings per Share (Tables)	6 Months Ended
Earnings per Share (Tables)	Jun. 30, 2024
Earnings per Share
Computation of basic and diluted earnings per share	Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Numerator: Net income $ 6,001 $ 6,523 $ 11,456 $ 17,396 Denominator: Basic weighted-average common shares outstanding 11,049,968 11,427,404 11,158,334 11,411,162 Dilutive shares 726,926 449,164 659,250 477,057 Diluted weighted-average common shares outstanding 11,776,894 11,876,568 11,817,584 11,888,219 Basic earnings per share $ 0.54 $ 0.57 $ 1.03 $ 1.52 Diluted earnings per share $ 0.51 $ 0.55 $ 0.97 $ 1.46

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
Segment Reporting (Tables)	Jun. 30, 2024
Segment Reporting
Schedule of revenue and EBITDA of the company's reportable segments	Three Months Ended June 30, 2024 Debit and Credit Prepaid Debit Other Intersegment Eliminations Total Net sales $ 95,620 $ 23,815 $ — $ (617) $ 118,818 Cost of sales 61,456 15,591 — (617) 76,430 Gross profit 34,164 8,224 — — 42,388 Operating expenses 8,775 1,315 17,389 — 27,479 Income (loss) from operations $ 25,389 $ 6,909 $ (17,389) $ — $ 14,909 EBITDA by segment: Income (loss) from operations $ 25,389 $ 6,909 $ (17,389) $ — $ 14,909 Depreciation and amortization 2,237 895 916 — 4,048 Other income (expense) (1) (1) (76) — (78) EBITDA $ 27,625 $ 7,803 $ (16,549) $ — $ 18,879 Six Months Ended June 30, 2024 Debit and Credit Prepaid Debit Other Intersegment Eliminations Total Net sales $ 183,593 $ 48,013 $ — $ (852) $ 230,754 Cost of sales 117,934 29,766 — (852) 146,848 Gross profit 65,659 18,247 — — 83,906 Operating expenses 17,516 2,593 34,743 — 54,852 Income (loss) from operations $ 48,143 $ 15,654 $ (34,743) $ — $ 29,054 EBITDA by segment: Income (loss) from operations $ 48,143 $ 15,654 $ (34,743) $ — $ 29,054 Depreciation and amortization 4,387 1,766 1,912 — 8,065 Other income (expense) (63) (2) (78) — (143) EBITDA $ 52,467 $ 17,418 $ (32,909) $ — $ 36,976 Three Months Ended June 30, 2023 Debit and Credit Prepaid Debit Other Intersegment Eliminations Total Net sales $ 93,194 $ 21,821 $ — $ (55) $ 114,960 Cost of sales 60,156 14,034 — (55) 74,135 Gross profit 33,038 7,787 — — 40,825 Operating expenses 7,957 159 15,217 — 23,333 Income (loss) from operations $ 25,081 $ 7,628 $ (15,217) $ — $ 17,492 EBITDA by segment: Income (loss) from operations $ 25,081 $ 7,628 $ (15,217) $ — $ 17,492 Depreciation and amortization 2,353 704 1,004 — 4,061 Other income (expense) 21 1 (100) — (78) EBITDA $ 27,455 $ 8,333 $ (14,313) $ — $ 21,475 Six Months Ended June 30, 2023 Debit and Credit Prepaid Debit Other Intersegment Eliminations Total Net sales $ 195,179 $ 40,951 $ — $ (318) $ 235,812 Cost of sales 123,957 28,254 — (318) 151,893 Gross profit 71,222 12,697 — — 83,919 Operating expenses 16,115 1,392 28,322 — 45,829 Income (loss) from operations $ 55,107 $ 11,305 $ (28,322) $ — $ 38,090 EBITDA by segment: Income (loss) from operations $ 55,107 $ 11,305 $ (28,322) $ — $ 38,090 Depreciation and amortization 4,514 1,328 2,023 — 7,865 Other income (expense) 26 1 (219) — (192) EBITDA $ 59,647 $ 12,634 $ (26,518) $ — $ 45,763
Schedule of reconciliation of total segment EBITDA to income before taxes	Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net income $ 6,001 $ 6,523 $ 11,456 $ 17,396 Interest, net 6,530 6,740 12,955 13,521 Income tax expense 2,300 4,151 4,500 6,981 Depreciation and amortization 4,048 4,061 8,065 7,865 EBITDA $ 18,879 $ 21,475 $ 36,976 $ 45,763

Net Sales (Details)

Net Sales (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Net Sales (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue
Total net sales	$ 118,818	$ 114,960	$ 230,754	$ 235,812
Operating Segments \| Debit and Credit
Disaggregation of Revenue
Total net sales	95,620	93,194	183,593	195,179
Operating Segments \| Prepaid Debit
Disaggregation of Revenue
Total net sales	23,815	21,821	48,013	40,951
Intersegment eliminations
Disaggregation of Revenue
Total net sales	(617)	(55)	(852)	(318)
Products
Disaggregation of Revenue
Total net sales	63,844	63,946	122,002	139,736
Products \| Operating Segments \| Debit and Credit
Disaggregation of Revenue
Total net sales	64,461	64,001	122,832	140,033
Products \| Intersegment eliminations
Disaggregation of Revenue
Total net sales	(617)	(55)	(830)	(297)
Services
Disaggregation of Revenue
Total net sales	54,974	51,014	108,752	96,076
Services \| Operating Segments \| Debit and Credit
Disaggregation of Revenue
Total net sales	31,159	29,193	60,761	55,146
Services \| Operating Segments \| Prepaid Debit
Disaggregation of Revenue
Total net sales	$ 23,815	$ 21,821	48,013	40,951
Services \| Intersegment eliminations
Disaggregation of Revenue
Total net sales			$ (22)	$ (21)

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Accounts Receivable
Trade accounts receivable	$ 68,170	$ 69,245
Unbilled accounts receivable	8,499	4,725
Accounts receivable, gross	76,669	73,970
Less allowance for credit losses	(244)	(246)
Accounts receivable, net	$ 76,425	$ 73,724

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Inventories
Raw materials	$ 81,475	$ 66,210
Finished goods	7,481	7,162
Inventory reserve	(3,049)	(2,778)
Inventory	$ 85,907	$ 70,594

Plant, Equipment, Leasehold I_3

Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Plant, Equipment and Leasehold Improvements
Plant, equipment and leasehold improvements, gross	$ 130,351	$ 129,489
Less accumulated depreciation and amortization	(69,578)	(66,436)
Total property, equipment and leasehold improvements, net	60,773	63,053
Machinery and equipment
Plant, Equipment and Leasehold Improvements
Plant, equipment and leasehold improvements, gross	69,120	67,506
Machinery and equipment under financing leases
Plant, Equipment and Leasehold Improvements
Plant, equipment and leasehold improvements, gross	24,757	23,774
Furniture, fixtures and computer equipment
Plant, Equipment and Leasehold Improvements
Plant, equipment and leasehold improvements, gross	448	107
Leasehold improvements
Plant, Equipment and Leasehold Improvements
Plant, equipment and leasehold improvements, gross	18,374	16,335
Construction in progress
Plant, Equipment and Leasehold Improvements
Plant, equipment and leasehold improvements, gross	841	1,778
Operating lease right-of-use assets
Plant, Equipment and Leasehold Improvements
Plant, equipment and leasehold improvements, gross	$ 16,811	$ 19,989

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Mar. 15, 2021
2026 Senior Notes
Liabilities:
Carrying amount	$ 267,897	$ 267,897	$ 310,000
2026 Senior Notes \| Level 2
Liabilities:
Long-term debt	273,818	261,834
2026 ABL Revolver
Liabilities:
Carrying amount	4,000
2026 ABL Revolver \| Level 2
Liabilities:
Long-term debt	4,000
Estimate of Fair Value \| 2026 Senior Notes
Liabilities:
Long-term debt	273,818	$ 261,834
Estimate of Fair Value \| 2026 ABL Revolver
Liabilities:
Long-term debt	$ 4,000

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Accrued Expenses.
Accrued payroll and related employee expenses	$ 7,885	$ 11,431
Accrued employee performance bonuses	2,843	667
Employer payroll taxes	438	298
Accrued rebates	2,594	2,919
Capitalized contract costs payable	10,000
Accrued interest	6,739	6,830
Current operating and financing lease liabilities	7,391	7,318
Accrued share repurchases	2,197	733
Other	7,263	5,607
Total accrued expenses	$ 47,350	$ 35,803

Long-Term Debt - Long-Term Debt

Long-Term Debt - Long-Term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Mar. 15, 2021
Long-term Debt
Unamortized deferred financing costs	$ (2,243)	$ (2,900)
Total long-term debt	269,654	264,997
Long-term debt, net of current maturities	269,654	264,997
2026 Senior Notes
Long-term Debt
Long-term debt	$ 267,897	$ 267,897	$ 310,000
Interest Rate (as a percent)	8.625%
2026 ABL Revolver
Long-term Debt
Long-term debt	$ 4,000
Interest Rate (as a percent)	6.679%

Long-Term Debt - First Lien Cre

Long-Term Debt - First Lien Credit Facility (Details) $ in Thousands			12 Months Ended	13 Months Ended
	Apr. 01, 2023	Mar. 03, 2022 USD ($)	Dec. 31, 2023 USD ($)	Mar. 31, 2023	Jun. 30, 2024 USD ($)	Mar. 15, 2021 USD ($) D
2026 Senior Notes
Long-term Debt
Interest rate (as a percent)						8.625%
Long-term debt			$ 267,897		$ 267,897	$ 310,000
Prepayment of debt			$ 0
Debi issuance cost					2,200
2026 ABL Revolver
Long-term Debt
Maximum borrowing capacity		$ 75,000
Number of maturity days \| D						90
Maximum uncommitted accordion feature amount		$ 25,000				$ 15,000
Long-term debt					4,000
Debi issuance cost					$ 800
2026 ABL Revolver \| Minimum
Long-term Debt
Adjustment for credit spread		0.10%
Applicable margin over reference rate (as a percent)	1.25%			1.50%
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]	us-gaap:SecuredOvernightFinancingRateSofrMember			us-gaap:SecuredOvernightFinancingRateSofrMember
Unused commitment fee (as a percent)	0.375%
2026 ABL Revolver \| Maximum
Long-term Debt
Adjustment for credit spread		0.30%
Applicable margin over reference rate (as a percent)	1.75%			1.75%
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]	us-gaap:SecuredOvernightFinancingRateSofrMember			us-gaap:SecuredOvernightFinancingRateSofrMember
Unused commitment fee (as a percent)	0.50%			0.50%

Income Taxes - Other (Details)

Income Taxes - Other (Details)	3 Months Ended		6 Months Ended
Income Taxes - Other (Details)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Taxes
Effective income tax rate	27.70%	38.90%	28.20%	28.60%

Income Taxes - Effective Income

Income Taxes - Effective Income Tax Rate Reconciliation (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Effective Income Tax Rate Reconciliation
Tax at federal statutory rate (as a percent)			21%	21%
State taxes, net (as a percent)			6.20%	5.10%
Valuation allowance (as a percent)				(1.40%)
Permanent items (as a percent)			1.90%	4.70%
Other (as a percent)			(0.90%)	(0.80%)
Effective income tax rate (as a percent)	27.70%	38.90%	28.20%	28.60%

Stockholders' Deficit (Details)

Stockholders' Deficit (Details) - USD ($) $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023	Nov. 02, 2023
Repurchase Program
Maximum value of shares authorized for repurchase under repurchase plan			$ 20
Common shares, par value (in dollars per share)	$ 0.001	$ 0.001	$ 0.001
Shares repurchased and retired (in shares)	352,750
Average cost of shares repurchased (in dollars per share)	$ 18.14
Value of shares repurchased and retired	$ 6.4
Share repurchase obligation (in shares)	120,534
Share repurchase obligation weighted average price (in dollars per share)	$ 18.23
Value of remaining shares available under repurchase authorization	$ 11.2
Tricor Pacific Capital Partners (Fund IV) US, LP
Repurchase Program
Shares repurchased and retired (in shares)	244,314
Average cost of shares repurchased (in dollars per share)	$ 18.03

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Numerator:
Net income	$ 6,001	$ 6,523	$ 11,456	$ 17,396
Denominator:
Basic weighted-average common shares outstanding (in shares)	11,049,968	11,427,404	11,158,334	11,411,162
Dilutive shares (in shares)	726,926	449,164	659,250	477,057
Diluted weighted-average common shares outstanding (in shares)	11,776,894	11,876,568	11,817,584	11,888,219
Basic earnings per share (in dollars per share)	$ 0.54	$ 0.57	$ 1.03	$ 1.52
Diluted earnings per share (in dollars per share)	$ 0.51	$ 0.55	$ 0.97	$ 1.46
Outstanding stock based awards
Potential dilutive effect of stock options included (in shares)			120,534
Potential antidilutive effect of share-based compensation excluded (in shares)	15,185	105,884	24,298	132,594

Commitments and Contingencies -

Commitments and Contingencies - Contingencies (Details)	Apr. 20, 2021 item
Smart Packaging Solutions SA v. CPI Card Group, Inc. \| Pending Litigation
Commitments and Contingencies
The number of patents involved in lawsuit	4

Stock-Based Compensation - Omni

Stock-Based Compensation - Omnibus Incentive Plan (Details) - USD ($) $ / shares in Units, $ in Millions		1 Months Ended	6 Months Ended
	Jan. 30, 2024	Jan. 31, 2024	Jun. 30, 2024
Performance Stock Units \| Chief Executive Officer
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Granted (in units)		60,000
Equity units granted		$ 0.9
Vesting Percentage		33.30%
Number of consecutive trading days with minimum share price		90 days
Vesting period		5 years
Performance Stock Units \| Chief Executive Officer \| Minimum \| Awards vesting category one
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share price (in dollar per share)		$ 35
Performance Stock Units \| Chief Executive Officer \| Minimum \| Awards vesting category two
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share price (in dollar per share)		50
Performance Stock Units \| Chief Executive Officer \| Minimum \| Awards vesting category three
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share price (in dollar per share)		$ 65
Omnibus Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of additional shares authorized	1,000,000
Number of shares authorized	3,200,000
Number of shares available for grant			957,803
Omnibus Plan \| Stock Options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock option life (in years)			7 years
Stock options granted (in shares)			0
Outstanding (in shares)			858,855
Exercise price (in dollars per share)			$ 19.54
Omnibus Plan \| Restricted stock units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Granted (in units)			125,879

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Units (Details) - Omnibus Plan - Restricted stock units	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Stock based compensation
Granted (in units) \| shares	125,879
Granted (in dollars per unit) \| $ / shares	$ 20.55
Outstanding (in units) \| shares	701,264
Outstanding (in dollars per unit) \| $ / shares	$ 20.43

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional information (Details)	1 Months Ended		6 Months Ended
Stock-Based Compensation - Additional information (Details)	Aug. 31, 2023	Jun. 30, 2023	Jun. 30, 2024
Stock Options
Stock based compensation
Percentage of award in a plan		25%
Restricted stock units
Stock based compensation
Percentage of award in a plan		75%
June 2023 Award One [Member]
Stock based compensation
Vesting period			2 years
June 2023 Award One [Member] \| Awards vesting category one
Stock based compensation
Percentage of award granted	0.33%
June 2023 award two \| Awards vesting category two
Stock based compensation
Percentage of award granted		0.33%

Segment Reporting - Revenue and

Segment Reporting - Revenue and EBITDA from Continuing Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Segment Reporting
Total net sales	$ 118,818	$ 114,960	$ 230,754	$ 235,812
Cost of sales	76,430	74,135	146,848	151,893
Gross profit	42,388	40,825	83,906	83,919
Operating expenses	27,479	23,333	54,852	45,829
Income from operations	14,909	17,492	29,054	38,090
EBITDA by segment:
Income (loss) from operations	14,909	17,492	29,054	38,090
Depreciation and amortization	4,048	4,061	8,065	7,865
Other income (expenses)	(78)	(78)	(143)	(192)
EBITDA	18,879	21,475	36,976	45,763
Operating Segments \| Debit and Credit
Segment Reporting
Total net sales	95,620	93,194	183,593	195,179
Cost of sales	61,456	60,156	117,934	123,957
Gross profit	34,164	33,038	65,659	71,222
Operating expenses	8,775	7,957	17,516	16,115
Income from operations	25,389	25,081	48,143	55,107
EBITDA by segment:
Income (loss) from operations	25,389	25,081	48,143	55,107
Depreciation and amortization	2,237	2,353	4,387	4,514
Other income (expenses)	(1)	21	(63)	26
EBITDA	27,625	27,455	52,467	59,647
Operating Segments \| Prepaid Debit
Segment Reporting
Total net sales	23,815	21,821	48,013	40,951
Cost of sales	15,591	14,034	29,766	28,254
Gross profit	8,224	7,787	18,247	12,697
Operating expenses	1,315	159	2,593	1,392
Income from operations	6,909	7,628	15,654	11,305
EBITDA by segment:
Income (loss) from operations	6,909	7,628	15,654	11,305
Depreciation and amortization	895	704	1,766	1,328
Other income (expenses)	(1)	1	(2)	1
EBITDA	7,803	8,333	17,418	12,634
Operating Segments \| Other
Segment Reporting
Operating expenses	17,389	15,217	34,743	28,322
Income from operations	(17,389)	(15,217)	(34,743)	(28,322)
EBITDA by segment:
Income (loss) from operations	(17,389)	(15,217)	(34,743)	(28,322)
Depreciation and amortization	916	1,004	1,912	2,023
Other income (expenses)	(76)	(100)	(78)	(219)
EBITDA	(16,549)	(14,313)	(32,909)	(26,518)
Intersegment eliminations
Segment Reporting
Total net sales	(617)	(55)	(852)	(318)
Cost of sales	$ (617)	$ (55)	$ (852)	$ (318)

Segment Reporting - Reconciliat

Segment Reporting - Reconciliation of EBITDA to net income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
EBITDA by segment:
Net income	$ 6,001	$ 6,523	$ 11,456	$ 17,396
Interest, net	6,530	6,740	12,955	13,521
Income tax expense	2,300	4,151	4,500	6,981
Depreciation and amortization	4,048	4,061	8,065	7,865
Total segment EBITDA	$ 18,879	$ 21,475	$ 36,976	$ 45,763

Subsequent Events (Details)

Subsequent Events (Details) $ in Thousands			13 Months Ended
Subsequent Events (Details) $ in Thousands	Jul. 11, 2024 USD ($) period	Apr. 01, 2023	Mar. 31, 2023	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)	Mar. 03, 2022 USD ($)	Mar. 15, 2021 USD ($) D
2026 Senior Notes
Subsequent Events
Interest rate (as a percent)							8.625%
Long-term debt				$ 267,897	$ 267,897		$ 310,000
Debi issuance cost				2,200
2026 ABL Revolver
Subsequent Events
Long-term debt				4,000
Maximum borrowing capacity						$ 75,000
Maximum uncommitted accordion feature amount						$ 25,000	$ 15,000
Number of maturity days \| D							90
Debi issuance cost				800
2026 ABL Revolver \| Minimum
Subsequent Events
Applicable margin over reference rate (as a percent)		1.25%	1.50%
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]		us-gaap:SecuredOvernightFinancingRateSofrMember	us-gaap:SecuredOvernightFinancingRateSofrMember
Unused commitment fee (as a percent)		0.375%
2026 ABL Revolver \| Maximum
Subsequent Events
Applicable margin over reference rate (as a percent)		1.75%	1.75%
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]		us-gaap:SecuredOvernightFinancingRateSofrMember	us-gaap:SecuredOvernightFinancingRateSofrMember
Unused commitment fee (as a percent)		0.50%	0.50%
2029 Senior Notes and 2029 ABL Revolver
Subsequent Events
Debi issuance cost				$ 1,300
Subsequent Events \| 2029 Senior Notes
Subsequent Events
Aggregate principal amount	$ 285,000
Interest rate (as a percent)	10%
Issue Price Percentage (in %)	100%
Subsequent Events \| 2026 Senior Notes
Subsequent Events
Interest rate (as a percent)	10%
Long-term debt	$ 267,900
Redemption percentage (as a percent)	102.156%
Debi issuance cost	$ 2,200
Subsequent Events \| 2029 ABL Revolver
Subsequent Events
Maximum uncommitted accordion feature amount	$ 25,000
Number of maturity days \| period	91
Line of credit outstanding	$ 4,000
Subsequent Events \| 2029 ABL Revolver \| Minimum
Subsequent Events
Applicable margin over reference rate (as a percent)	1.50%
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]	us-gaap:SecuredOvernightFinancingRateSofrMember
Unused commitment fee (as a percent)	0.375%
Subsequent Events \| 2029 ABL Revolver \| Maximum
Subsequent Events
Maximum borrowing capacity	$ 75,000
Applicable margin over reference rate (as a percent)	1.75%
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]	us-gaap:SecuredOvernightFinancingRateSofrMember
Unused commitment fee (as a percent)	0.50%
Subsequent Events \| 2029 ABL Revolver \| Letter of credit
Subsequent Events
Maximum borrowing capacity	$ 10,000