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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):  October 31, 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 October 31, 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 October 31, 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: October 31, 2024By: /s/ Matthew A. White        
  Matthew A. White
  Chief Financial Officer
  

 

EXHIBIT 99.1

CoreCard Corporation Reports Third Quarter 2024 Results

17% increase in Total Revenue Year-over-Year

NORCROSS, Ga., Oct. 31, 2024 (GLOBE NEWSWIRE) -- CoreCard Corporation [NYSE: CCRD], 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 September 30, 2024.

"Overall revenue of $15.7 million in the third quarter, an increase of 17% compared to last year, exceeded our expectations, reflecting license revenue earlier than expected, continued growth in processing and maintenance revenue and higher professional services revenue. We continue to invest in our platform and processing capabilities, which are showing encouraging results. CoreCard provides a best-in-class credit platform that is extremely well positioned to capture the growing demand for next-generation card management platforms by large and complex modern card issuers,” said Leland Strange, CEO of CoreCard Corporation.

“For the fourth quarter of 2024, we expect total revenue between $13.3 and $13.7 million and earnings per share between $0.07 and $0.09. For fiscal year 2025, we expect total revenue between $60 million and $64 million and earnings per share between $0.88 and $0.94. We expect full-year 2025 revenue growth, excluding our largest customer, to be 30-40%,” said Matt White, CFO of CoreCard Corporation.

Financial Highlights for the three months ended September 30, 2024

Total revenues in the three-month period ended September 30, 2024, was $15.7 million compared to $13.4 million in the comparable period in 2023.

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

 Three Months Ended
 September 30,
(in thousands) 20242023
License$1,420 $− 
Professional services 7,006  6,432 
Processing and maintenance 6,067  5,814 
Third party 1,210  1,153 
Total$15,703 $13,399 
       

Income from operations was $2.8 million for the third quarter compared to income from operations of $0.4 million in the comparable prior year quarter.

Net income (loss) was net income of $2.2 million for the third quarter compared to a net loss of $0.2 million in the comparable prior year quarter.

Earnings per diluted share was $0.27 for the third quarter compared to a loss per share of $0.03 in the comparable prior year quarter.

Adjusted earnings per diluted share was $0.30 for the third quarter compared to $0.09 in the comparable prior year quarter.

Adjusted EBITDA was $3.9 million for the third quarter compared to $1.9 million in the comparable prior year quarter.

Use of Non-GAAP Financial Measures

Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section of the tables titled "Information Regarding Non-GAAP Financial Measures".

Investor Conference Call

The company is holding an investor conference call today, October 31, 2024, at 11:00 A.M. Eastern Time. Interested investors are invited to attend the conference call by accessing the webcast at https://www.webcast-eqs.com/register/corecard103124/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 September 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
September 30,		Nine Months Ended
September 30,
 20242023
20242023
Revenue        
Services$14,283 $13,399 $41,156 $42,053 
Products1,420 - 1,420 1,794 
Total net revenue15,703 13,399 42,576 43,847 
Cost of revenue        
Services8,999 9,279 27,588 28,380 
Products− - − - 
Total cost of revenue8,999 9,279 27,588 28,380 
Expenses        
Marketing79 63 309 237 
General and administrative1,339 1,155 4,256 4,220 
Development2,501 2,489 5,961 6,094 
Income from operations2,785 413 4,462 4,916 
Investment income (loss)(90)(1,015)(528)(1,701)
Other income (loss), net233 308 758 653 
Income (loss) before income taxes2,928 (294)4,692 3,868 
Income tax expense (benefit)732 (72)1,170 959 
Net income (loss)$2,196 $(222)$3,522 $2,909 
Earnings (loss) per share:        
Basic$0.28 $(0.03)$0.44 $0.34 
Diluted$0.27 $(0.03)$0.43 $0.34 
Basic weighted average common shares outstanding7,957,571 8,460,473 8,092,681 8,485,416 
Diluted weighted average common shares outstanding8,017,870 8,460,473 8,142,972 8,509,825 
         


CoreCard Corporation

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)
       
As of September 30,
2024		December 31,
2023
ASSETS(unaudited)(audited)
Current assets:      
Cash and cash equivalents$22,498 $26,918 
Marketable securities 5,511  5,230 
Accounts receivable, net 7,320  7,536 
Other current assets 6,522  4,805 
Total current assets 41,851  44,489 
Investments 3,632  4,062 
Property and equipment, at cost less accumulated depreciation 11,954  11,319 
Other long-term assets 5,371  3,956 
Total assets$62,808 $63,826 
       
LIABILITIES AND STOCKHOLDERS’ EQUITY      
Current liabilities:      
Accounts payable$1,628 $1,557 
Deferred revenue, current portion 1,264  2,310 
Accrued payroll 2,459  2,172 
Accrued expenses 1,050  971 
Other current liabilities 2,143  2,530 
Total current liabilities 8,544  9,540 
Noncurrent liabilities:      
Deferred revenue, net of current portion 161  265 
Other long-term liabilities 372  196 
Long-term lease obligation 2,044  1,121 
Total noncurrent liabilities 2,577  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 September 30, 2024 and December 31, 2023, respectively;      
Outstanding shares – 7,901,148 and 8,295,408 at September 30, 2024 and December 31, 2023, respectively 91  90 
Additional paid-in capital 17,479  16,621 
Treasury stock, 1,125,792 and 720,732 shares at September 30, 2024 and December 31, 2023, respectively, at cost (25,825) (20,359)
Accumulated other comprehensive income (loss) 100  32 
Accumulated income 59,842  56,320 
Total stockholders’ equity 51,687  52,704 
Total liabilities and stockholders’ equity$62,808 $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 and non-operating investment gains or losses. 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
Nine Months Ended
 September 30,
September 30,
(in thousands)2024
2023 2024 2023
GAAP net income (loss)$2,196 $(222)$3,522 $2,909 
Investment loss -  1,000  -  1,000 
Share-based compensation 274  -  859  - 
Income tax benefit (68) -  (215) - 
Adjusted net income$2,402 $778 $4,166 $3,909 
Adjusted EPS$0.30 $0.09 $0.51  0.46 
Weighted-average shares 8,018  8,480  8,143  8,510 
             


 Three Months EndedNine Months Ended
 September 30,September 30,
(in thousands)2024202320242023
GAAP net income (loss)$2,196 $(222)$3,522 $2,909 
Depreciation and amortization 849  1,356  2,776  5,011 
Share-based compensation 274  150  859  150 
Investment loss 90  1,015  528  1,701 
Other income, net (233) (308) (758) (653)
Income tax expense (benefit) 732  (72) 1,170  959 
Adjusted EBITDA$3,908 $1,919 $8,097 $10,077 
Total Revenue$15,703 $13,399 $42,576 $43,847 
Adjusted EBITDA Margin 24.9% 14.3% 19.0% 23.0%
             

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Oct. 31, 2024
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Entity File Number 001-09330
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Entity Incorporation, State or Country Code GA
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