[July 26, 2017] |
|
Cimpress Reports Fourth Quarter and Fiscal Year 2017 Financial Results
Cimpress N.V. (Nasdaq: CMPR), the world leader in mass customization,
today announced financial results for the fourth quarter and fiscal year
ended June 30, 2017.
"Fiscal year 2017 was important in terms of the evolution of Cimpress,"
said Robert Keane, president and chief executive officer. "We
decentralized our operations, delivered many new capabilities and
product offerings, began using our mass customization platform, made
strong investments in organic growth opportunities, and completed our
largest acquisition to date. Additionally, we continue to improve our
understanding of and approach to capital allocation, pushing this
understanding deeper into our organization. I describe these subjects in
detail in my annual letter to investors which was published
simultaneously with this earnings announcement on ir.cimpress.com. We
also plan to highlight our progress and fiscal year 2018 plans at our
upcoming investor day on August 8, 2017."
Sean Quinn, chief financial officer, said, "Fourth quarter revenue
growth decelerated, in line with our expectations. As mentioned last
quarter, the timing shift of the Easter holiday from the third quarter
in 2016 to the fourth quarter in 2017 created much of this dynamic.
Looking at the full year which removes typical quarterly fluctuations,
our revenue growth by segment was in line with our commentary at the
beginning of the year. As described throughout the year, we continue to
see pressure on Vistaprint's gross profit from shipping price reductions
and the rapid expansion of product selection and design services as we
have prioritized launching and learning about demand levels ahead of
in-year profits. We often note that we are not targeting absolute gross
margin or even contribution margin increases; we seek to maximize our
cash flows over long periods of time. With that said, the Vistaprint
business sees opportunities to optimize costs and pricing starting in
the upcoming year as we scale these offerings and realize the
operational benefits of our recent reorganization."
The following year-over-year items negatively influenced GAAP operating
income in the fourth quarter and full year:
-
Increased organic investments in fiscal year 2017 compared to fiscal
year 2016, which materially weigh on profitability. These investments
include costs that impact our gross profit such as shipping price
reductions, expanded design services, and new product introductions.
For the full year, the increase in organic investments impacted
operating income by approximately $45 million.
-
Restructuring charges related to the reorganization announced on
January 25, 2017. The year-over-year increase was $0.8 million for the
fourth quarter and $26.3 million for the full year. In our full-year
results, the savings we realized from the restructuring partially
offset the restructuring charges.
-
A year-over-year increase in acquisition-related charges as follows:
First, earn-out related charges primarily associated with the prior
year acquisition of WIRmachenDRUCK of $10.5 million for the fourth
quarter and $34.0 million for the full year. This increase brings the
fair value of the earn-out to the maximum amount of €40 million, with
a small time-based discount. Second, an increase in
acquisition-related amortization of intangible assets of $2.2 million
for the quarter and $5.6 million for the year. Third, the acceleration
of the vesting of equity awards from two unrelated acquisition-related
employment contracts led to a year-over-year increase in share-based
compensation costs of $3.4 million in the fourth quarter and $4.8
million for the full-year. The full-year acquisition-related impacts
are partially offset by a year-over-year decrease in impairment
charges of $21.3 million related to acquisitions.
-
An increase in share-based compensation expense due to the
implementation of our previously described long-term incentive program
at the beginning of fiscal year 2017. The year-over-year increase was
$3.9 million for the fourth quarter and $13.7 million for the full
year, excluding share-based compensation related to restructuring and
acquisition-related investment consideration, which are included in
the respective impacts listed above.
-
A profit decline due to the termination of two partner contracts as
previously described. The year-over-year impact of this was
approximately $1 million for the fourth quarter, and $18 million for
the full year.
-
Unfavorable year-over-year currency fluctuations that were offset
below the line by year-over-year changes in realized gains from
hedging contracts in other income, net.
Quinn added, "Including the currency impact, the items listed above
weigh on our operating income by over $100 million in fiscal year 2017
compared to fiscal year 2016. We do not ask our shareholders to ignore
these costs, but it is important to understand them in order to analyze
the underlying operating trends in our business."
For fiscal year 2018, Cimpress expects to achieve year-over-year savings
from its recent restructuring, net of charges, as follows: approximately
$35 million on a free cash flow basis, and approximately $50 million on
an operating income basis. These savings estimates do not include the
annualized savings related to the reduction in previously planned hiring
that we have achieved in fiscal year 2017 since they do not impact the
actual year-over-year savings.
Quinn added, "As we look ahead to fiscal year 2018, we are on track to
recognize the financial benefits of our recent restructuring in line
with our past commentary. Our businesses are focused on delivering
strong returns from past investment spend and, as outlined in detail in
our letter to investors dated July 26, 2017, we expect to continue to
invest significantly against our organic growth opportunities, albeit at
a more modest amount relative to fiscal year 2017. These are among the
factors that we expect to result in higher unlevered free cash flow in
fiscal year 2018."
Anticipated Sale of Albumprinter Business:
Cimpress has recently entered into a definitive agreement to divest its
Albumprinter business, including its FotoKnudsen subsidiary. Although
Albumprinter's capabilities clearly fall within the sphere of mass
customization, Cimpress believes it can more attractively invest the
capital it will free up as a result of this transaction. We expect the
sale of Albumprinter to be completed in the first quarter of fiscal year
2018. The assets and liabilities are "held for sale" on our balance
sheet as of June 30, 2017.
Consolidated Financial Metrics:
-
Revenue for the fourth quarter of fiscal year 2017 was $564.3 million,
an 18 percent increase compared to revenue of $479.2 million in the
same quarter a year ago. Excluding the estimated impact from currency
exchange rate fluctuations and revenue from businesses acquired during
the past twelve months, revenue grew 9 percent year over year in the
fourth quarter. For the full year, total consolidated revenue grew 19
percent year over year. Excluding the estimated impact from currency
exchange rate fluctuations and revenue from businesses acquired during
the past twelve months, revenue for the full year grew 8 percent.
Revenue growth for the fourth quarter, and even more so for the full
year, was negatively impacted by the loss of certain partner revenue.
These terminated partner relationships will not impact our
year-over-year growth rates in future quarters because more than four
quarters have now passed since the cessation of revenue from these
sources.
-
Gross margin (revenue minus the cost of revenue as a percent of total
revenue) in the fourth quarter was 50.5 percent, down from 53.7
percent in the same quarter a year ago due to lower Vistaprint gross
margins as a result of planned investments, as well as unfavorable
currency changes. For the full fiscal year, gross margin was 51.4
percent compared to 56.7 percent in fiscal year 2016, due to the same
reasons described above for the quarter, as well as a year-over-year
mix impact from recent acquisitions.
-
Contribution margin (revenue minus the cost of revenue, the cost of
advertising and payment processing as a percent of total revenue) in
the fourth quarter was 32.9 percent, down from 36.1 percent in the
same quarter a year ago. For the full fiscal year, contribution margin
was 32.8 percent compared to 37.9 percent in the prior fiscal year.
Advertising as a percent of revenue was flat year over year for both
the fourth quarter and full year; therefore the contribution margin
trend was driven by the decline in gross margin as described above.
-
GAAP operating loss in the fourth quarter was $9.7 million, or 1.7
percent of revenue, compared to operating income of $16.0 million, or
3.3 percent of revenue, in the same quarter a year ago. GAAP operating
loss for fiscal year 2017 was $45.7 million, or 2.1 percent of
revenue, compared to operating income of $78.2 million, or 4.4 percent
of revenue, in the prior fiscal year. The drivers of this significant
loss are described above, before the "Anticipated Sale of Albumprinter
Business" section of this release.
-
Adjusted NOPAT for the fourth quarter, which is defined at the end of
this press release, was $9.6 million, or 1.7 percent of revenue, down
from $16.9 million, or 3.5 percent of revenue, in the same quarter a
year ago. For the full fiscal year, adjusted NOPAT was $64.6 million,
or 3.0 percent of revenue, down from $139.8 million, or 7.8 percent of
revenue, in fiscal year 2016. The profit impacts described above that
also impacted adjusted NOPAT were the increased organic investments,
the increase in share-based compensation related to our new long-term
incentive program, and the reduction in partner profits. Because the
restructuring charges are excluded from adjusted NOPAT, there is a
positive impact from restructuring savings during the quarter and year.
-
GAAP net loss attributable to Cimpress for the fourth quarter was
$34.7 million, or 6.2 percent of revenue, compared to net income of
$16.9 million, or 3.5 percent of revenue in the same quarter a year
ago. For the full fiscal year, GAAP net loss attributable to Cimpress
was $71.7 million, or 3.4 percent of revenue, compared to GAAP net
income of $54.3 million, or 3.0 percent of revenue, in the prior
fiscal year. In addition to the impacts described above, GAAP net loss
was negatively influenced by year-over-year non-operational, non-cash
currency impacts, and positively influenced by a significant reduction
in our tax provision in the current period compared to the year-ago
period due to our consolidated losses as well as favorable discrete
items during the quarter and year.
-
GAAP net loss per diluted share for the fourth quarter was $1.11,
versus net income of $0.51 in the same quarter a year ago. For fiscal
year 2017, GAAP net loss per diluted share was $2.29, versus net
income per diluted share of $1.64 in the prior full fiscal year.
-
Capital expenditures in the fourth quarter were $17.2 million, or 3.1
percent of revenue, versus $17.8 million, or 3.7 percent of revenue in
the same quarter a year ago. During the full fiscal year capital
expenditures were $74.2 million or 3.5 percent of revenue, compared to
$80.4 million or 4.5 percent of revenue in fiscal year 2016.
-
During the fourth quarter, the company generated $33.1 million of cash
from operations and $7.1 million in free cash flow, a non-GAAP
financial measure, which is defined at the end of this press release.
During the full fiscal year, the company generated $156.7 million of
cash from operations and $45.1 million in free cash flow.
-
As of June 30, 2017, the company had $37.7 million of cash and cash
equivalents (including $12.0 million of cash held for sale related to
the planned Albumprinter divestiture) and $876.7 million of debt, net
of issuance costs. After considering debt covenant limitations, as of
June 30, 2017 the company had $211.8 million available for borrowing
under its committed credit facility. Based on Cimpress' debt covenant
definitions, its total leverage ratio was 3.45 as of June 30, 2017.
The company continues to expect to reduce its leverage ratio
approximately to, or below, its long-term target of 3 times trailing
twelve month EBITDA by the end of calendar year 2017 through a
combination of debt repayment and EBITDA expansion. As recently
announced, Cimpress amended and increased the size of its credit
facility in July for long-term flexibility.
-
Cimpress did not repurchase shares during the fourth quarter. For the
full year, Cimpress purchased 593,763 shares for $50.0 million
inclusive of transaction costs, at an average price per share of
$84.22.
Supplemental Materials and July 27, 2017 Conference Call Information
Cimpress has posted an end-of-year presentation with accompanying
prepared remarks, as well as our annual letter to investors at
ir.cimpress.com. On Thursday, July 27, 2017 at 7:30 a.m. (EDT) the
company will host a live Q&A conference call with management to discuss
the financial results, which will be available via webcast at
ir.cimpress.com and via dial-in at +1 (844) 778-4144, conference ID
36574151. A replay of the Q&A session will be available on the company's
website following the call on July 27, 2017.
Important Reminder of Cimpress' Priorities
We ask investors and potential investors in Cimpress to understand the
upper-most objectives by which we endeavor to make all decisions,
including investment decisions. Often we make decisions in service of
these priorities that could be considered non-optimal were they to be
evaluated based on other criteria such as (but not limited to) near- and
mid-term net income, operating income, EPS, cash flow, EBITDA, and
adjusted NOPAT.
Our priorities are:
-
Strategic Objective: To be the world
leader in mass customization. By mass customization, we mean
producing, with the reliability, quality and affordability of mass
production, small individual orders where each and every one embodies
the personal relevance inherent to customized physical products.
-
Financial Objective: To maximize
intrinsic value per share, defined as (a) the unlevered free cash flow
per share that, in our best judgment, will occur between now and the
long-term future, appropriately discounted to reflect our cost of
capital, minus (b) net debt per share.
To understand these objectives and their implications, Cimpress
encourages investors to read Robert Keane's letter to investors
published on July 26, 2017 at ir.cimpress.com and to review materials
that will be presented at our upcoming annual investor day meeting on
August 8, 2017.
About non-GAAP financial measures
To supplement Cimpress' consolidated financial statements presented in
accordance with U.S. generally accepted accounting principles, or GAAP,
Cimpress has used the following measures defined as non-GAAP financial
measures by Securities and Exchange Commission, or SEC, rules: adjusted
net operating profit after tax, free cash flow, unlevered free cash
flow, constant-currency revenue growth and constant-currency revenue
growth excluding revenue from acquisitions made in the last twelve
months:
-
Adjusted net operating profit after tax is defined as GAAP operating
income, less cash taxes attributable to current period operations and
interest expense associated with our Waltham, Massachusetts lease,
excluding M&A related items such as acquisition-related amortization
and depreciation, changes in the fair value of contingent
consideration, and expense for deferred payments or equity awards that
are treated as compensation expense, plus the impact of certain
unusual items such as discontinued operations, restructuring charges,
or impairments, plus realized gains or losses on currency derivatives
that are not included in operating income.
-
Free cash flow is defined as net cash provided by operating activities
less purchases of property, plant and equipment, purchases of
intangible assets not related to acquisitions, and capitalization of
software and website development costs, plus payment of contingent
consideration in excess of acquisition-date fair value, plus gains on
proceeds from insurance.
-
Unlevered free cash flow is defined as free cash flow as described
above, plus the cash paid during the period for interest, minus the
interest expense associated with our Waltham, Massachusetts lease.
-
Constant-currency revenue growth is estimated by translating all
non-U.S. dollar denominated revenue generated in the current period
using the prior year period's average exchange rate for each currency
to the U.S. dollar.
-
Fourth quarter constant-currency revenue growth excluding revenue from
acquisitions made during the past twelve months excludes the impact of
currency as defined above and revenue from National Pen.
These non-GAAP financial measures are provided to enhance investors'
understanding of our current operating results from the underlying and
ongoing business for the same reasons they are used by management. For
example, as we have become more acquisitive over recent years we believe
excluding the costs related to the purchase of a business (such as
amortization of acquired intangible assets, contingent consideration, or
impairment of goodwill) provides further insight into the performance of
the underlying acquired business in addition to that provided by our
GAAP operating income. As another example, as we do not apply hedge
accounting for our currency forward contracts, we believe inclusion of
realized gains and losses on these contracts that are intended to be
matched against operational currency fluctuations provides further
insight into our operating performance in addition to that provided by
our GAAP operating income. We do not, nor do we suggest that investors
should, consider such non-GAAP financial measures in isolation from, or
as a substitute for, financial information prepared in accordance with
GAAP. For more information on these non-GAAP financial measures, please
see the tables captioned "Reconciliations of Non-GAAP Financial
Measures" included at the end of this release. The tables have more
details on the GAAP financial measures that are most directly comparable
to non-GAAP financial measures and the related reconciliation between
these financial measures.
About Cimpress
Cimpress N.V. (Nasdaq: CMPR) is the world leader in mass customization.
For more than 20 years, the company has focused on developing software
and manufacturing capabilities that transform traditional markets in
order to make customized products accessible and affordable to everyone.
Cimpress brings its products to market via a portfolio of more than 20
brands including Vistaprint, Drukwerkdeal, Pixartprinting, Exaprint,
WIRmachenDRUCK, National Pen and many others. That portfolio serves
multiple customer segments across many applications for mass
customization. The company produces more than 46 million unique ordered
items a year. To learn more, visit http://www.cimpress.com.
Cimpress and the Cimpress logo are trademarks of Cimpress N.V. or its
subsidiaries. All other brand and product names appearing on this
announcement may be trademarks or registered trademarks of their
respective holders.
This press release contains statements about our future expectations,
plans, and prospects of our business that constitute forward-looking
statements for purposes of the safe harbor provisions under the Private
Securities Litigation Reform Act of 1995, including our expectations for
the growth and development of our business, cash flows, and revenue, the
expected savings from our recent organizational changes, and the
expected sale of our Albumprinter business. Forward-looking projections
and expectations are inherently uncertain, are based on assumptions and
judgments by management, and may turn out to be wrong. The sale of our
Albumprinter business may be delayed or may not close at all if either
Cimpress or the buyer fails to satisfy the conditions to close the
transaction. Our actual results may differ materially from those
indicated by the forward-looking statements in this press release as a
result of various important factors, including but not limited to our
failure to execute our strategy; our inability to make the investments
in our business that we plan to make or the failure of those investments
to achieve the results we expect; our failure to develop our mass
customization platform or the failure of the platform to drive the
efficiencies and competitive advantage we expect; our ability to
accurately forecast the savings and charges relating to our
organizational changes; unanticipated changes in our markets, customers,
or business; our loss of key personnel; our failure to reposition our
Vistaprint brand and to promote and strengthen all of our brands; our
failure to attract new customers and retain our current customers; our
failure to manage the growth and complexity of our business and expand
our operations; the failure of the businesses we acquire or invest in to
perform as expected; the willingness of purchasers of customized
products and services to shop online; competitive pressures; general
economic conditions; and other factors described in our Form 10-Q for
the fiscal quarter ended March 31, 2017 and the other documents we
periodically file with the U.S. SEC.
In addition, the statements and projections in this press release
represent our expectations and beliefs as of the date of this press
release, and subsequent events and developments may cause these
expectations, beliefs, and projections to change. We specifically
disclaim any obligation to update any forward-looking statements. These
forward-looking statements should not be relied upon as representing our
expectations or beliefs as of any date subsequent to the date of this
press release.
Operational Metrics & Financial Tables to Follow
|
CIMPRESS N.V.
|
CONSOLIDATED BALANCE SHEETS
|
(unaudited in thousands, except share and per share data)
|
|
|
|
|
|
June 30, 2017
|
|
June 30, 2016
|
Assets
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
25,697
|
|
|
$
|
77,426
|
|
Marketable securities
|
|
|
|
-
|
|
|
7,893
|
|
Accounts receivable, net of allowances of $3,590 and $490,
respectively
|
|
|
|
48,630
|
|
|
32,327
|
|
Inventory
|
|
|
|
46,563
|
|
|
18,125
|
|
Prepaid expenses and other current assets
|
|
|
|
78,835
|
|
|
64,997
|
|
Assets held for sale
|
|
|
|
46,276
|
|
|
-
|
|
Total current assets
|
|
|
|
246,001
|
|
|
200,768
|
|
Property, plant and equipment, net
|
|
|
|
511,947
|
|
|
493,163
|
|
Software and web site development costs, net
|
|
|
|
48,470
|
|
|
35,212
|
|
Deferred tax assets
|
|
|
|
48,004
|
|
|
26,093
|
|
Goodwill
|
|
|
|
514,963
|
|
|
466,005
|
|
Intangible assets, net
|
|
|
|
275,924
|
|
|
216,970
|
|
Other assets
|
|
|
|
34,560
|
|
|
25,658
|
|
Total assets
|
|
|
|
$
|
1,679,869
|
|
|
$
|
1,463,869
|
|
Liabilities, noncontrolling interests and shareholders' equity
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
127,386
|
|
|
$
|
86,682
|
|
Accrued expenses
|
|
|
|
175,567
|
|
|
178,987
|
|
Deferred revenue
|
|
|
|
30,372
|
|
|
25,842
|
|
Short-term debt
|
|
|
|
28,926
|
|
|
21,717
|
|
Other current liabilities
|
|
|
|
78,435
|
|
|
22,635
|
|
Liabilities held for sale
|
|
|
|
8,797
|
|
|
-
|
|
Total current liabilities
|
|
|
|
449,483
|
|
|
335,863
|
|
Deferred tax liabilities
|
|
|
|
60,743
|
|
|
69,430
|
|
Lease financing obligation
|
|
|
|
106,606
|
|
|
110,232
|
|
Long-term debt
|
|
|
|
847,730
|
|
|
656,794
|
|
Other liabilities
|
|
|
|
94,683
|
|
|
60,173
|
|
Total liabilities
|
|
|
|
1,559,245
|
|
|
1,232,492
|
|
Commitments and contingencies
|
|
|
|
|
|
|
Redeemable noncontrolling interests
|
|
|
|
45,412
|
|
|
65,301
|
|
Shareholders' equity:
|
|
|
|
|
|
|
Preferred shares, par value €0.01 per share, 100,000,000 shares
authorized; none issued and outstanding
|
|
|
|
-
|
|
|
-
|
|
Ordinary shares, par value €0.01 per share, 100,000,000 shares
authorized; 44,080,627 shares issued; and 31,415,503 and 31,536,732
shares outstanding, respectively
|
|
|
|
615
|
|
|
615
|
|
Treasury shares, at cost,12,665,124 and 12,543,895 shares,
respectively
|
|
|
|
(588,365
|
)
|
|
(548,549
|
)
|
Additional paid-in capital
|
|
|
|
361,376
|
|
|
335,192
|
|
Retained earnings
|
|
|
|
414,771
|
|
|
486,482
|
|
Accumulated other comprehensive loss
|
|
|
|
(113,398
|
)
|
|
(108,015
|
)
|
Total shareholders' equity attributable to Cimpress N.V.
|
|
|
|
74,999
|
|
|
165,725
|
|
Noncontrolling interests
|
|
|
|
213
|
|
|
351
|
|
Total shareholders' equity
|
|
|
|
75,212
|
|
|
166,076
|
|
Total liabilities, noncontrolling interests and shareholders' equity
|
|
|
|
$
|
1,679,869
|
|
|
$
|
1,463,869
|
|
|
|
|
|
|
|
|
|
|
|
|
CIMPRESS N.V.
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(unaudited in thousands, except share and per share data)
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Year ended June 30,
|
|
|
|
|
2017
|
|
|
2016
|
|
2017
|
|
2016
|
Revenue
|
|
|
|
$
|
564,256
|
|
|
$
|
479,205
|
|
|
$
|
2,135,405
|
|
|
$
|
1,788,044
|
|
Cost of revenue (1)
|
|
|
|
279,077
|
|
|
222,097
|
|
|
1,036,975
|
|
|
773,640
|
|
Technology and development expense (1)
|
|
|
|
64,702
|
|
|
57,546
|
|
|
243,230
|
|
|
210,080
|
|
Marketing and selling expense (1)
|
|
|
|
159,622
|
|
|
133,707
|
|
|
610,932
|
|
|
508,502
|
|
General and administrative expense (1)
|
|
|
|
57,098
|
|
|
39,376
|
|
|
207,569
|
|
|
145,844
|
|
Amortization of acquired intangibles
|
|
|
|
12,603
|
|
|
10,449
|
|
|
46,145
|
|
|
40,563
|
|
Restructuring expense (1)
|
|
|
|
810
|
|
|
-
|
|
|
26,700
|
|
|
381
|
|
Impairment of goodwill and acquired intangible assets
|
|
|
|
-
|
|
|
-
|
|
|
9,556
|
|
|
30,841
|
|
(Loss) income from operations
|
|
|
|
(9,656
|
)
|
|
16,030
|
|
|
(45,702
|
)
|
|
78,193
|
|
Other (expense) income, net
|
|
|
|
(11,473
|
)
|
|
18,169
|
|
|
10,362
|
|
|
26,098
|
|
Interest expense, net
|
|
|
|
(12,858
|
)
|
|
(9,819
|
)
|
|
(43,977
|
)
|
|
(38,196
|
)
|
(Loss) income before income taxes
|
|
|
|
(33,987
|
)
|
|
24,380
|
|
|
(79,317
|
)
|
|
66,095
|
|
Income tax (benefit) provision
|
|
|
|
526
|
|
|
7,211
|
|
|
(7,118
|
)
|
|
15,684
|
|
Net (loss) income
|
|
|
|
(34,513
|
)
|
|
17,169
|
|
|
(72,199
|
)
|
|
50,411
|
|
Add: Net loss (income) attributable to noncontrolling interest
|
|
|
|
(189
|
)
|
|
(239
|
)
|
|
488
|
|
|
3,938
|
|
Net (loss) income attributable to Cimpress N.V.
|
|
|
|
$
|
(34,702
|
)
|
|
$
|
16,930
|
|
|
$
|
(71,711
|
)
|
|
$
|
54,349
|
|
Basic net (loss) income per share attributable to Cimpress N.V.
|
|
|
|
$
|
(1.11
|
)
|
|
$
|
0.54
|
|
|
$
|
(2.29
|
)
|
|
$
|
1.72
|
|
Diluted net (loss) income per share attributable to Cimpress N.V.
|
|
|
|
$
|
(1.11
|
)
|
|
$
|
0.51
|
|
|
$
|
(2.29
|
)
|
|
$
|
1.64
|
|
Weighted average shares outstanding - basic
|
|
|
|
31,195,625
|
|
|
31,418,823
|
|
|
31,291,581
|
|
|
31,656,234
|
|
Weighted average shares outstanding - diluted
|
|
|
|
31,195,625
|
|
|
32,996,473
|
|
|
31,291,581
|
|
|
33,049,454
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Share-based compensation is allocated as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Year ended June 30,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
Cost of revenue
|
|
|
|
$
|
80
|
|
|
$
|
15
|
|
|
$
|
289
|
|
|
$
|
72
|
|
Technology and development expense
|
|
|
|
|
2,158
|
|
|
1,534
|
|
|
8,724
|
|
|
5,892
|
|
Marketing and selling expense
|
|
|
|
|
1,315
|
|
|
368
|
|
|
4,857
|
|
|
1,591
|
|
General and administrative expense
|
|
|
|
|
9,429
|
|
|
3,702
|
|
|
28,500
|
|
|
16,273
|
|
Restructuring expense
|
|
|
|
|
-
|
|
|
-
|
|
|
6,257
|
|
|
-
|
|
Note: During the third quarter of fiscal 2017, we changed the
presentation of amortization expense for acquired intangible assets. The
expense was previously classified within each of the respective expense
lines of our consolidated statement of operations and now is presented
as a separate financial statement line item, "Amortization of acquired
intangible assets". Prior period results have been recast to reflect
this change.
Also, given the significance of our third quarter restructuring charges
we are presenting these expenses as a separate financial statement line
item, "Restructuring expense", in our consolidated statement of
operations. Prior period results have been recast to reflect this change.
|
CIMPRESS N.V.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(unaudited, in thousands)
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Year ended June 30,
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Operating activities
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
|
|
|
$
|
(34,513
|
)
|
|
$
|
17,169
|
|
|
$
|
(72,199
|
)
|
|
$
|
50,411
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
42,616
|
|
|
35,401
|
|
|
158,400
|
|
|
131,918
|
|
Impairment of goodwill and acquired intangible assets
|
|
|
|
|
-
|
|
|
-
|
|
|
9,556
|
|
|
30,841
|
|
Share-based compensation expense
|
|
|
|
|
12,982
|
|
|
5,619
|
|
|
48,627
|
|
|
23,772
|
|
Deferred taxes
|
|
|
|
|
(3,509
|
)
|
|
(4,741
|
)
|
|
(41,358
|
)
|
|
(15,922
|
)
|
Abandonment of long-lived assets
|
|
|
|
|
678
|
|
|
1,216
|
|
|
2,408
|
|
|
10,979
|
|
Change in contingent earn-out liability
|
|
|
|
|
12,013
|
|
|
-
|
|
|
39,377
|
|
|
-
|
|
Gain on sale of available-for-sale securities
|
|
|
|
|
-
|
|
|
-
|
|
|
(2,268
|
)
|
|
-
|
|
Unrealized loss (gain) on derivatives not designated as hedging
instruments included in net (loss) income
|
|
|
|
|
14,974
|
|
|
(9,142
|
)
|
|
15,813
|
|
|
(8,163
|
)
|
Payment of contingent consideration in excess of acquisition date
fair value
|
|
|
|
|
-
|
|
|
(8,613
|
)
|
|
-
|
|
|
(8,613
|
)
|
Effect of exchange rate changes on monetary assets and liabilities
denominated in non-functional currency
|
|
|
|
|
1,525
|
|
|
(6,027
|
)
|
|
(5,690
|
)
|
|
(9,199
|
)
|
Other non-cash items
|
|
|
|
|
493
|
|
|
2,989
|
|
|
2,886
|
|
|
5,784
|
|
Gain on proceeds from insurance
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(3,136
|
)
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
1,267
|
|
|
4,396
|
|
|
4,701
|
|
|
6,766
|
|
Inventory
|
|
|
|
|
(1,563
|
)
|
|
1,305
|
|
|
(8,699
|
)
|
|
(11
|
)
|
Prepaid expenses and other assets
|
|
|
|
|
(1,868
|
)
|
|
(3,399
|
)
|
|
521
|
|
|
(7,668
|
)
|
Accounts payable
|
|
|
|
|
15,424
|
|
|
13,174
|
|
|
25,332
|
|
|
25,670
|
|
Accrued expenses and other liabilities
|
|
|
|
|
(27,427
|
)
|
|
2,791
|
|
|
(20,671
|
)
|
|
13,929
|
|
Net cash provided by operating activities
|
|
|
|
|
33,092
|
|
|
52,138
|
|
|
156,736
|
|
|
247,358
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
|
|
|
(17,241
|
)
|
|
(17,794
|
)
|
|
(74,157
|
)
|
|
(80,435
|
)
|
Business acquisitions, net of cash acquired
|
|
|
|
|
-
|
|
|
(1,972
|
)
|
|
(204,875
|
)
|
|
(164,412
|
)
|
Purchases of intangible assets
|
|
|
|
|
(87
|
)
|
|
(23
|
)
|
|
(197
|
)
|
|
(476
|
)
|
Capitalization of software and website development costs
|
|
|
|
|
(8,629
|
)
|
|
(8,140
|
)
|
|
(37,307
|
)
|
|
(26,324
|
)
|
Proceeds from sale of available-for-sale securities
|
|
|
|
|
-
|
|
|
-
|
|
|
6,346
|
|
|
-
|
|
Proceeds from the sale of assets
|
|
|
|
|
282
|
|
|
-
|
|
|
4,513
|
|
|
-
|
|
Proceeds from insurance related to investing activities
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,624
|
|
Other investing activities
|
|
|
|
|
1,392
|
|
|
1,710
|
|
|
3,888
|
|
|
2,485
|
|
Net cash used in investing activities
|
|
|
|
|
(24,283
|
)
|
|
(26,219
|
)
|
|
(301,789
|
)
|
|
(265,538
|
)
|
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from borrowings of debt
|
|
|
|
|
125,071
|
|
|
82,000
|
|
|
737,075
|
|
|
598,008
|
|
Payments of debt and debt issuance costs
|
|
|
|
|
(141,860
|
)
|
|
(98,501
|
)
|
|
(540,142
|
)
|
|
(430,692
|
)
|
Payment of purchase consideration included in acquisition-date fair
value
|
|
|
|
|
-
|
|
|
(2,980
|
)
|
|
(539
|
)
|
|
(7,330
|
)
|
Payments of withholding taxes in connection with equity awards
|
|
|
|
|
(3,752
|
)
|
|
(1,699
|
)
|
|
(14,568
|
)
|
|
(7,467
|
)
|
Payments of capital lease obligations
|
|
|
|
|
(3,858
|
)
|
|
(3,796
|
)
|
|
(15,887
|
)
|
|
(13,933
|
)
|
Purchase of ordinary shares
|
|
|
|
|
-
|
|
|
-
|
|
|
(50,008
|
)
|
|
(153,467
|
)
|
Purchase of noncontrolling interests
|
|
|
|
|
-
|
|
|
-
|
|
|
(20,230
|
)
|
|
-
|
|
Proceeds from issuance of ordinary shares
|
|
|
|
|
5,861
|
|
|
1,326
|
|
|
6,192
|
|
|
4,705
|
|
Capital contribution from noncontrolling interest
|
|
|
|
|
-
|
|
|
-
|
|
|
1,404
|
|
|
5,141
|
|
Other financing activities
|
|
|
|
|
-
|
|
|
-
|
|
|
1,281
|
|
|
(303
|
)
|
Net cash provided by (used in) financing activities
|
|
|
|
|
(18,538
|
)
|
|
(23,650
|
)
|
|
104,578
|
|
|
(5,338
|
)
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
|
4,001
|
|
|
(1,569
|
)
|
|
788
|
|
|
(2,640
|
)
|
Increase in cash held for sale
|
|
|
|
|
12,042
|
|
|
-
|
|
|
12,042
|
|
|
-
|
|
Net (decrease) increase in cash and cash equivalents
|
|
|
|
|
(17,770
|
)
|
|
700
|
|
|
(51,729
|
)
|
|
(26,158
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
|
|
43,467
|
|
|
76,726
|
|
|
77,426
|
|
|
103,584
|
|
Cash and cash equivalents at end of period
|
|
|
|
|
$
|
25,697
|
|
|
$
|
77,426
|
|
|
$
|
25,697
|
|
|
$
|
77,426
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CIMPRESS N.V.
|
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
|
(unaudited, in thousands)
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Year ended June 30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Adjusted net operating profit after tax reconciliation:
|
|
|
|
|
|
|
|
|
|
|
GAAP operating (loss) income
|
|
|
|
$
|
(9,656
|
)
|
|
$
|
16,030
|
|
|
$
|
(45,702
|
)
|
|
$
|
78,193
|
|
Less: Cash taxes attributable to current year (see below)
|
|
|
|
(12,283
|
)
|
|
(12,649
|
)
|
|
(31,104
|
)
|
|
(32,236
|
)
|
Exclude expense impact of:
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related amortization and depreciation
|
|
|
|
12,662
|
|
|
10,518
|
|
|
46,402
|
|
|
40,834
|
|
Earn-out related charges¹
|
|
|
|
12,245
|
|
|
1,793
|
|
|
40,384
|
|
|
6,378
|
|
Share-based compensation related to investment consideration
|
|
|
|
4,559
|
|
|
1,130
|
|
|
9,638
|
|
|
4,835
|
|
Certain impairments²
|
|
|
|
-
|
|
|
1,216
|
|
|
9,556
|
|
|
41,820
|
|
Restructuring related charges
|
|
|
|
810
|
|
|
-
|
|
|
26,700
|
|
|
381
|
|
Less: Interest expense associated with Waltham lease
|
|
|
|
(1,904
|
)
|
|
(1,961
|
)
|
|
(7,727
|
)
|
|
(6,287
|
)
|
Include: Realized gains on currency derivatives not included in
operating income
|
|
|
|
3,156
|
|
|
837
|
|
|
16,474
|
|
|
5,863
|
|
Adjusted NOPAT3
|
|
|
|
$
|
9,589
|
|
|
$
|
16,914
|
|
|
$
|
64,621
|
|
|
$
|
139,781
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash taxes paid in the current year4
|
|
|
|
$
|
13,375
|
|
|
$
|
8,661
|
|
|
$
|
49,342
|
|
|
$
|
19,750
|
|
Less: cash taxes received (paid) and related to prior years4
|
|
|
|
1,867
|
|
|
(1,722
|
)
|
|
(10,319
|
)
|
|
934
|
|
Plus: cash taxes attributable to the current year but not yet
(received) paid
|
|
|
|
(3,320
|
)
|
|
5,316
|
|
|
(5,650
|
)
|
|
9,298
|
|
Plus: cash impact of excess tax benefit on equity awards
attributable to current year
|
|
|
|
3,353
|
|
|
1,224
|
|
|
8,003
|
|
|
5,574
|
|
Less: cash tax (paid) received related to NOPAT exclusion items
|
|
|
|
856
|
|
|
-
|
|
|
(681
|
)
|
|
-
|
|
Less: cash taxes paid related to the transfer of IP
|
|
|
|
(3,848
|
)
|
|
(830
|
)
|
|
(9,591
|
)
|
|
(3,320
|
)
|
Cash taxes attributable to current year
|
|
|
|
$
|
12,283
|
|
|
$
|
12,649
|
|
|
$
|
31,104
|
|
|
$
|
32,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
¹Includes expense recognized for the change in fair value of contingent
consideration and compensation expense related to earn-out mechanisms
dependent upon continued employment. 2Includes the
impact of certain impairments of goodwill and other long-lived assets as
defined by ASC 350 - "Intangibles - Goodwill and Other". 3Adjusted
NOPAT will include the impact of discontinued operations as defined by
ASC 205-20 in periods in which they occur. 4For the
quarter and year ended June 30, 2016, cash taxes paid in the current
period includes a cash tax refund of $8,479, which is subsequently
eliminated from cash taxes attributable to the current period as it
relates to a refund of a prior years' taxes generated as a result of a
prior year excess share-based compensation deduction. Therefore, the
impact is not included in adjusted NOPAT for the current period.
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Year ended June 30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Free cash flow reconciliation:
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
$
|
33,092
|
|
|
$
|
52,138
|
|
|
$
|
156,736
|
|
|
$
|
247,358
|
|
Purchases of property, plant and equipment
|
|
|
|
(17,241
|
)
|
|
(17,794
|
)
|
|
(74,157
|
)
|
|
(80,435
|
)
|
Purchases of intangible assets not related to acquisitions
|
|
|
|
(87
|
)
|
|
(23
|
)
|
|
(197
|
)
|
|
(476
|
)
|
Capitalization of software and website development costs
|
|
|
|
(8,629
|
)
|
|
(8,140
|
)
|
|
(37,307
|
)
|
|
(26,324
|
)
|
Payment of contingent consideration in excess of acquisition-date
fair value
|
|
|
|
-
|
|
|
8,613
|
|
|
-
|
|
|
8,613
|
|
Proceeds from insurance related to investing activities
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,624
|
|
Free cash flow
|
|
|
|
$
|
7,135
|
|
|
$
|
34,794
|
|
|
$
|
45,075
|
|
|
$
|
152,360
|
|
Plus: cash paid during the period for interest
|
|
|
|
17,845
|
|
|
14,741
|
|
|
45,275
|
|
|
37,623
|
|
Less: interest expense for Waltham lease
|
|
|
|
(1,904
|
)
|
|
(1,961
|
)
|
|
(7,727
|
)
|
|
(6,287
|
)
|
Unlevered free cash flow
|
|
|
|
$
|
23,076
|
|
|
$
|
47,574
|
|
|
$
|
82,623
|
|
|
$
|
183,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CIMPRESS N.V.
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (CONT.) AND SEGMENT
INFORMATION
|
(unaudited in thousands)
|
|
GAAP Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Currency Impact:
|
|
Constant- Currency
|
|
Impact of Acquisitions:
|
|
Constant- Currency revenue growth
|
|
2017
|
|
2016
|
|
% Change
|
|
|
(Favorable)/ Unfavorable
|
|
Revenue Growth
|
|
(Favorable)/ Unfavorable
|
|
Excluding acquisitions
|
Revenue growth reconciliation by reportable segment:
|
|
|
|
|
|
|
|
|
|
|
Vistaprint
|
$
|
319,195
|
|
|
$
|
305,008
|
|
|
5
|
%
|
|
1
|
%
|
|
6
|
%
|
|
-
|
%
|
|
6
|
%
|
Upload and Print
|
161,792
|
|
|
146,468
|
|
|
11
|
%
|
|
3
|
%
|
|
14
|
%
|
|
-
|
%
|
|
14
|
%
|
National Pen
|
53,884
|
|
|
-
|
|
|
100
|
%
|
|
-
|
%
|
|
100
|
%
|
|
(100
|
)%
|
|
-
|
%
|
All Other Businesses
|
29,385
|
|
|
27,729
|
|
|
6
|
%
|
|
1
|
%
|
|
7
|
%
|
|
-
|
%
|
|
7
|
%
|
Total revenue
|
$
|
564,256
|
|
|
$
|
479,205
|
|
|
18
|
%
|
|
2
|
%
|
|
20
|
%
|
|
(11
|
)%
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Year ended June 30,
|
|
|
|
Currency Impact:
|
|
Constant- Currency
|
|
Impact of Acquisitions:
|
|
Constant- Currency revenue growth
|
|
2017
|
|
2016
|
|
% Change
|
|
(Favorable)/ Unfavorable
|
|
Revenue Growth
|
|
(Favorable)/ Unfavorable
|
|
Excluding acquisitions
|
Revenue growth reconciliation by reportable segment:
|
|
|
|
|
|
|
|
|
|
|
Vistaprint
|
$
|
1,305,285
|
|
|
$
|
1,217,162
|
|
|
7%
|
|
2%
|
|
9%
|
|
-%
|
|
9%
|
Upload and Print
|
588,613
|
|
|
432,638
|
|
|
36%
|
|
3%
|
|
39%
|
|
(26)%
|
|
13%
|
National Pen
|
112,712
|
|
|
-
|
|
|
100%
|
|
-%
|
|
100%
|
|
(100)%
|
|
-%
|
All Other Businesses
|
128,795
|
|
|
138,244
|
|
|
(7)%
|
|
-%
|
|
(7)%
|
|
-%
|
|
(7)%
|
Total revenue
|
$
|
2,135,405
|
|
|
$
|
1,788,044
|
|
|
19%
|
|
2%
|
|
21%
|
|
(13)%
|
|
8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Year ended June 30,
|
Adjusted net operating profit (loss) by reportable segment:
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Vistaprint
|
|
|
|
$
|
37,149
|
|
|
$
|
47,677
|
|
|
$
|
165,193
|
|
|
$
|
213,027
|
|
Upload and Print
|
|
|
|
20,118
|
|
|
17,448
|
|
|
63,833
|
|
|
58,643
|
|
National Pen
|
|
|
|
1,001
|
|
|
-
|
|
|
(2,225
|
)
|
|
-
|
|
All Other Businesses
|
|
|
|
(9,222
|
)
|
|
(10,768
|
)
|
|
(30,747
|
)
|
|
(8,924
|
)
|
Total
|
|
|
|
49,046
|
|
|
54,357
|
|
|
196,054
|
|
|
262,746
|
|
Corporate and global functions
|
|
|
|
(30,330
|
)
|
|
(25,631
|
)
|
|
(116,803
|
)
|
|
(96,592
|
)
|
Acquisition-related amortization and depreciation
|
|
|
|
(12,662
|
)
|
|
(10,518
|
)
|
|
(46,402
|
)
|
|
(40,834
|
)
|
Earn-out related charges¹
|
|
|
|
(12,245
|
)
|
|
(1,793
|
)
|
|
(40,384
|
)
|
|
(6,378
|
)
|
Share-based compensation related to investment consideration
|
|
|
|
(4,559
|
)
|
|
(1,130
|
)
|
|
(9,638
|
)
|
|
(4,835
|
)
|
Certain impairments
|
|
|
|
-
|
|
|
(1,216
|
)
|
|
(9,556
|
)
|
|
(41,820
|
)
|
Restructuring related charges
|
|
|
|
(810
|
)
|
|
-
|
|
|
(26,700
|
)
|
|
(381
|
)
|
Interest expense for Waltham lease
|
|
|
|
1,904
|
|
|
1,961
|
|
|
7,727
|
|
|
6,287
|
|
Total (loss) income from operations
|
|
|
|
$
|
(9,656
|
)
|
|
$
|
16,030
|
|
|
$
|
(45,702
|
)
|
|
$
|
78,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
¹Includes expense recognized for the change in fair value of contingent
consideration and compensation expense related to earn-out mechanisms
dependent upon continued employment.
Note: As part of the reorganization announced in January 2017, several
groups that previously were part of our corporate and global functions,
including significant portions of our technology, manufacturing and
supply chain, finance, legal and other related groups, have been
decentralized into our operating segments. The majority of the groups
transferred into our operating segments joined Vistaprint and to a
smaller extent our Upload and Print businesses.
During the fourth quarter of fiscal 2017, we identified errors related
to our unaudited segment profitability disclosures that were recast and
reported during the third quarter of fiscal 2017. As part of this
process we transferred, in error, certain costs from our Corporate and
global functions cost center to our Vistaprint segment. This resulted in
the understatement of Vistaprint's adjusted net operating profit of
$5,591 and $7,998 for the nine months ended March 31, 2017 and 2016,
respectively and $2,727 for the three months ended March 31, 2016. This
also resulted in an offsetting understatement of the costs of our
corporate and global functions for the same amounts for the periods
included above. The impacts of these errors have been revised within our
results for the years ended June 30, 2017 and 2016. We have determined
that these errors were not material, individually or in the aggregate,
to any of the previously issued financial statements.
|
CIMPRESS N.V.
|
Supplemental Information
|
(unaudited, in thousands)
|
|
In $ millions, except where noted
|
|
Q2 FY2016
|
|
Q3 FY2016
|
|
Q4 FY2016
|
|
FY2016
|
|
Q1 FY2017
|
|
Q2 FY2017
|
|
Q3 FY2017
|
|
Q4 FY2017
|
|
FY2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue - Consolidated as Reported
|
|
$496.3
|
|
$436.8
|
|
$479.2
|
|
$1,788.0
|
|
$443.7
|
|
$576.9
|
|
$550.6
|
|
$564.3
|
|
$2,135.4
|
y/y growth
|
|
13
|
%
|
|
29
|
%
|
|
26
|
%
|
|
20
|
%
|
|
18
|
%
|
|
16
|
%
|
|
26
|
%
|
|
18
|
%
|
|
19
|
%
|
y/y growth in constant currency
|
|
20
|
%
|
|
31
|
%
|
|
26
|
%
|
|
24
|
%
|
|
19
|
%
|
|
18
|
%
|
|
28
|
%
|
|
20
|
%
|
|
21
|
%
|
Vistaprint (1)
|
|
$354.8
|
|
$289.9
|
|
$305.0
|
|
$1,217.2
|
|
$285.4
|
|
$379.4
|
|
$321.3
|
|
$319.2
|
|
$1,305.3
|
y/y growth
|
|
3
|
%
|
|
8
|
%
|
|
11
|
%
|
|
6
|
%
|
|
7
|
%
|
|
7
|
%
|
|
11
|
%
|
|
5
|
%
|
|
7
|
%
|
y/y growth in constant currency
|
|
8
|
%
|
|
10
|
%
|
|
12
|
%
|
|
10
|
%
|
|
8
|
%
|
|
9
|
%
|
|
12
|
%
|
|
6
|
%
|
|
9
|
%
|
as % of revenue
|
|
71
|
%
|
|
66
|
%
|
|
64
|
%
|
|
68
|
%
|
|
64
|
%
|
|
66
|
%
|
|
58
|
%
|
|
57
|
%
|
|
61
|
%
|
Upload and Print
|
|
$93.3
|
|
$116.4
|
|
$146.5
|
|
$432.6
|
|
$132.0
|
|
$152.4
|
|
$142.5
|
|
$161.8
|
|
$588.6
|
y/y growth
|
|
112
|
%
|
|
201
|
%
|
|
94
|
%
|
|
120
|
%
|
|
72
|
%
|
|
63
|
%
|
|
22
|
%
|
|
11
|
%
|
|
36
|
%
|
y/y growth in constant currency
|
|
128
|
%
|
|
203
|
%
|
|
92
|
%
|
|
127
|
%
|
|
73
|
%
|
|
66
|
%
|
|
27
|
%
|
|
14
|
%
|
|
39
|
%
|
as % of revenue
|
|
19
|
%
|
|
27
|
%
|
|
30
|
%
|
|
24
|
%
|
|
30
|
%
|
|
26
|
%
|
|
26
|
%
|
|
29
|
%
|
|
28
|
%
|
National Pen
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
$58.8
|
|
$53.9
|
|
$112.7
|
y/y growth
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
y/y growth in constant currency
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
as % of revenue
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
11
|
%
|
|
10
|
%
|
|
5
|
%
|
All Other Businesses (1)
|
|
$48.2
|
|
$30.6
|
|
$27.7
|
|
$138.2
|
|
$26.3
|
|
$45.0
|
|
$28.0
|
|
$29.4
|
|
$128.8
|
y/y growth
|
|
(4
|
)%
|
|
(7
|
)%
|
|
(8
|
)%
|
|
(6
|
)%
|
|
(17
|
)%
|
|
(7
|
)%
|
|
(8
|
)%
|
|
6
|
%
|
|
(7
|
)%
|
y/y growth in constant currency
|
|
8
|
%
|
|
(3
|
)%
|
|
(8
|
)%
|
|
2
|
%
|
|
(19
|
)%
|
|
(7
|
)%
|
|
(9
|
)%
|
|
7
|
%
|
|
(7
|
)%
|
as % of revenue
|
|
10
|
%
|
|
7
|
%
|
|
6
|
%
|
|
8
|
%
|
|
6
|
%
|
|
8
|
%
|
|
5
|
%
|
|
5
|
%
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Physical printed products and other
|
|
$480.2
|
|
$421.4
|
|
$464.0
|
|
$1,724.6
|
|
$428.7
|
|
$562.2
|
|
$536.0
|
|
$549.7
|
|
$2,076.6
|
Digital products/services
|
|
$16.1
|
|
$15.4
|
|
$15.2
|
|
$63.4
|
|
$15.0
|
|
$14.6
|
|
$14.6
|
|
$14.6
|
|
$58.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising & commissions expense - consolidated
|
|
$85.0
|
|
$74.3
|
|
$76.4
|
|
$305.9
|
|
$78.3
|
|
$94.1
|
|
$100.4
|
|
$91.1
|
|
$363.9
|
as % of revenue
|
|
17
|
%
|
|
17
|
%
|
|
16
|
%
|
|
17
|
%
|
|
18
|
%
|
|
16
|
%
|
|
18
|
%
|
|
16
|
%
|
|
17
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TTM Bookings - Vistaprint (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% TTM Bookings from repeat orders (1)
|
|
74
|
%
|
|
74
|
%
|
|
74
|
%
|
|
|
|
75
|
%
|
|
75
|
%
|
|
75
|
%
|
|
76
|
%
|
|
|
% TTM Bookings from first-time orders (1)
|
|
26
|
%
|
|
26
|
%
|
|
26
|
%
|
|
|
|
25
|
%
|
|
25
|
%
|
|
25
|
%
|
|
24
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising & commissions expense - Vistaprint
|
|
$73.3
|
|
$64.5
|
|
$65.3
|
|
$265.5
|
|
$68.6
|
|
$79.6
|
|
$73.1
|
|
$68.8
|
|
$290.1
|
as % of revenue
|
|
21
|
%
|
|
22
|
%
|
|
21
|
%
|
|
22
|
%
|
|
24
|
%
|
|
21
|
%
|
|
23
|
%
|
|
22
|
%
|
|
22
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Headcount at end of period
|
|
7,463
|
|
|
7,585
|
|
|
7,995
|
|
|
|
|
8,522
|
|
|
11,312
|
|
|
10,909
|
|
|
11,639
|
|
|
|
Full-time employees
|
|
6,845
|
|
|
7,226
|
|
|
7,468
|
|
|
|
|
8,066
|
|
|
9,923
|
|
|
10,323
|
|
|
10,704
|
|
|
|
Temporary employees
|
|
618
|
|
|
359
|
|
|
527
|
|
|
|
|
456
|
|
|
1,389
|
|
|
586
|
|
|
935
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Some numbers may not add due to rounding. Metrics are unaudited.
(1) In Q2 2016, revenue and TTM bookings from the Corporate Solutions
business was recast to reflect a change in the calculation approach,
resulting in an immaterial change to historical revenue for the
Vistaprint and All Other Businesses reportable segments, as well as TTM
bookings from repeat and first-time orders.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170726006186/en/
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