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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________

FORM 8-K

_________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  August 1, 2024

_______________________________

CoreCard Corporation

(Exact name of registrant as specified in its charter)

_______________________________

Georgia001-0933058-1964787
(State or Other Jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer Identification No.)

One Meca Way

Norcross, Georgia 30093

(Address of Principal Executive Offices) (Zip Code)

(770) 381-2900

(Registrant's telephone number, including area code)

 

(Former name or former address, if changed since last report)

_______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value for the classCCRDNYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 
 
Item 2.02. Results of Operations and Financial Condition.

On August 1, 2024, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.
      
99.1 Press Release dated August 1, 2024
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 CoreCard Corporation
   
  
Date: August 1, 2024By: /s/ Matthew A. White        
  Matthew A. White
  Chief Financial Officer
  

 

EXHIBIT 99.1

CoreCard Corporation Reports Second Quarter 2024 Results

NORCROSS, Ga., Aug. 01, 2024 (GLOBE NEWSWIRE) -- CoreCard Corporation (NYSE: CCRD) (“CoreCard” or the “Company”), the leading provider of innovative credit technology solutions and processing services to the financial technology and services market, announced today its financial results for the quarter ended June 30, 2024.

"Overall revenue of $13.8 million in the second quarter was in-line with our expectations,” said Leland Strange, CEO of CoreCard. "We continue to see encouraging results from the ongoing investment in our platform and processing capabilities, and we continue to onboard new customers that value the features and functionality offered by the CoreCard platform. The lower revenue this quarter compared to last year was primarily driven by lower license revenue and lower processing revenue from Kabbage.”

Financial Highlights for the three months ended June 30, 2024

Total revenues in the three-month period ended June 30, 2024, was $13.8 million compared to $15.7 million in the comparable period in 2023.

In the following table, revenue is disaggregated by type of revenue for the three months ended June 30, 2024 and 2023:

  Three Months Ended
  June 30,
(in thousands) 2024  2023
License $− $1,794
Professional services  6,973  7,354
Processing and maintenance  5,694  5,689
Third party  1,130  855
Total $13,797 $15,692
       

Income from operations was $1.1 million for the second quarter compared to income from operations of $2.7 million in the comparable prior year quarter.

Net income was $0.9 million for the second quarter compared to net income of $1.9 million in the comparable prior year quarter.

Earnings per diluted share was $0.11 for the second quarter compared to $0.22 in the comparable prior year quarter.

Adjusted earnings per diluted share was $0.15 for the second quarter compared to $0.23 in the comparable prior year quarter.

Adjusted EBITDA was $2.5 million for the second quarter compared to $4.8 million in the comparable prior year quarter.

Investor Conference Call
The company is holding an investor conference call today, August 1, 2024, at 11 A.M. Eastern Time. Interested investors are invited to attend the conference call by accessing the webcast at https://www.webcast-eqs.com/register/corecard080124/en or by dialing 1-877-407-0890. As part of the conference call CoreCard will be conducting a question-and-answer session where participants are invited to email their questions to questions@corecard.com prior to the call. A transcript of the call will be posted on the company’s website at investors.corecard.com as soon as available after the call.

The company will file its Form 10-Q for the period ended June 30, 2024, with the Securities and Exchange Commission today. For additional information about reported results, investors will be able to access the Form 10-Q on the company’s website at investors.corecard.com or on the SEC website, www.sec.gov.

About CoreCard Corporation

CoreCard Corporation (NYSE: CCRD) provides the gold standard card issuing platform built for the future of global transactions in an embedded digital world. Dedicated to continual technological innovation in the ever-evolving payments industry backed by decades of deep expertise in credit card offerings, CoreCard helps customers conceptualize, implement, and manage all aspects of their issuing card programs. Keenly focused on steady, sustainable growth, CoreCard has earned the trust of some of the largest companies and financial institutions in the world, providing truly real-time transactions via their proven, reliable platform operating on private on-premise and leading cloud technology infrastructure.

Forward-Looking Statements

The forward-looking statements in this press release are made under the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The Company’s actual results could differ materially from those indicated by the forward-looking statements because of various risks and uncertainties including those listed in Item 1A of the Company’s Annual Report on Form 10-K and in the Company’s other filings and reports with the Securities and Exchange Commission. All of the risks and uncertainties are beyond the ability of the Company to control, and in many cases, the Company cannot predict the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. When used in this press release, the words “believes,” “plans,” “expects,” “will,” “intends,” “continue,” “outlook,” “progressing,” and “anticipates” and similar expressions as they relate to the Company or its management are intended to identify forward-looking statements. Except as required by law, the Company is not obligated to publicly release any revisions to these forward-looking statements to reflect the events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

For further information,
email CoreCardIR@icrinc.com 

CoreCard Corporation
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except share and per share amounts)

 Three Months Ended June 30, Six Months Ended June 30,
  2024   2023   2024   2023 
Revenue    
Services$13,797  $13,898  $26,873  $28,654 
Products−   1,794 −   1,794 
Total net revenue 13,797   15,692   26,873   30,448 
Cost of revenue    
Services 9,090   9,296   18,590   19,101 
Products− − − − 
Total cost of revenue 9,090   9,296   18,590   19,101 
Expenses    
Marketing 116   105   230   174 
General and administrative 1,490   1,516   2,917   3,065 
Research and development 1,952   2,092   3,460   3,605 
Income from operations 1,149   2,683   1,676   4,503 
Investment income (loss) (199)  (391)  (438)  (686)
Other income 235   201   526   345 
Income before income taxes 1,185   2,493   1,764   4,162 
Income taxes 289   618   438   1,031 
Net income$896  $1,875  $1,326  $3,131 
Earnings per share:   
Basic$0.11  $0.22  $0.16  $0.37 
Diluted$0.11  $0.22  $0.16  $0.37 
Basic weighted average common shares outstanding 8,084,335   8,493,040   8,160,235   8,497,888 
Diluted weighted average common shares outstanding 8,143,247   8,516,573   8,207,004   8,524,337 
                


CoreCard Corporation
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)

As of June 30, 2024 December 31, 2023
ASSETS(unaudited) (audited)
Current assets:  
Cash$22,589  $26,918 
Marketable securities 5,257   5,230 
Accounts receivable, net 7,097   7,536 
Other current assets 5,738   4,805 
Total current assets 40,681   44,489 
Investments 3,624   4,062 
Property and equipment, at cost less accumulated depreciation 11,841   11,319 
Other long-term assets 5,411   3,956 
Total assets$61,557  $63,826 


LIABILITIES AND STOCKHOLDERS’ EQUITY		  
Current liabilities:  
Accounts payable$1,154  $ 1,557  
Deferred revenue, current portion 1,572    2,310  
Accrued payroll 2,150    2,172  
Accrued expenses 991    971  
Other current liabilities 2,140    2,530  
Total current liabilities 8,007    9,540  
Noncurrent liabilities:  
Deferred revenue, net of current portion 205   265 
Long-term lease obligation  2,183    1,121 
Other long-term liabilities 313   196 
Total noncurrent liabilities 2,701   1,582 
Stockholders’ equity:  
Common stock, $0.01 par value: Authorized shares - 20,000,000;  
Issued shares – 9,026,940 and 9,016,140 at June 30, 2024 and December 31, 2023, respectively;  
Outstanding shares – 8,024,518 and 8,295,408 at June 30, 2024 and December 31, 2023, respectively 91   90 
Additional paid-in capital 17,205   16,621 
Treasury stock, 1,002,422 and 720,732 shares at June 30, 2024 and December 31, 2023, respectively, at cost (24,097)  (20,359)
Accumulated other comprehensive income 4   32 
Accumulated income 57,646   56,320 
Total stockholders’ equity 50,849   52,704 
Total liabilities and stockholders’ equity$61,557  $63,826 
        

Reconciliation of GAAP to NON-GAAP Measures

Information Regarding Non-GAAP Measures

In addition to the financial measures prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), this press release contains certain non-GAAP financial measures. CoreCard considers Adjusted EBITDA and Adjusted earnings per diluted share (“Adjusted EPS”) as supplemental measures of the company’s performance that is not required by, nor presented in accordance with GAAP.

We define Adjusted EBITDA as net income (loss) adjusted to exclude depreciation and amortization; share-based compensation expense; income tax expense (benefit); investment income (loss); and other income (expense), net. We believe that Adjusted EBITDA is an important measure of operating performance because it allows management and our board of directors to evaluate and compare our core operating results from period to period.

We define Adjusted EPS as diluted earnings per share adjusted to exclude the impact of share-based compensation expense. We believe that Adjusted EPS is an important measure of operating performance because it allows management and our board of directors to evaluate and compare our core operating results from period to period.

Adjusted EPS and Adjusted EBITDA should not be considered in isolation, or construed as an alternative to net income, or any other performance measures derived in accordance with GAAP, or as an alternative to cash flow from operating activities or as a measure of the company's liquidity. In addition, other companies may calculate Adjusted EPS and Adjusted EBITDA differently than CoreCard, which limits its usefulness in comparing CoreCard’s financial results with those of other companies.

The following table shows CoreCard’s GAAP results reconciled to non-GAAP results included in this release:

 Three Months Ended
 Six Months Ended
 June 30,
 June 30,
(in thousands)    2024   2023        2024   2023 
GAAP net income$896
  $1,875  $1,326
  $3,131 
Share-based compensation 425   150   585   150 
Income tax benefit (106)  (38)  (146)  (38)
Adjusted net income$1,215  $1,987  $1,765  $3,243 
Adjusted EPS$0.15  $0.23  $0.22   0.38 
Weighted-average shares 8,143   8,517   8,207   8,524 
                


 Three Months Ended
 Six Months Ended
 June 30,
 June 30,
(in thousands) 2024   2023   2024   2023 
GAAP net income$896
  $1,875  $1,326
  $3,131 
Depreciation and amortization 902   1,960   1,927   3,655 
Share-based compensation 425   150   585   150 
Investment loss 199    391    438    686  
Other income, net (235)   (201 )  (526)   (345 )
Income tax expense 289   618   438   1,031 
Adjusted EBITDA$2,476   4,793  $4,188  $8,308 

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Aug. 01, 2024
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Document Period End Date Aug. 01, 2024
Entity File Number 001-09330
Entity Registrant Name CoreCard Corporation
Entity Central Index Key 0000320340
Entity Tax Identification Number 58-1964787
Entity Incorporation, State or Country Code GA
Entity Address, Address Line One One Meca Way
Entity Address, City or Town Norcross
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Title of 12(b) Security Common Stock, $0.01 par value for the class
Trading Symbol CCRD
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