[November 01, 2017] |
|
Cimpress Reports First Quarter Fiscal Year 2018 Financial Results
Cimpress N.V. (Nasdaq: CMPR), the world leader in mass customization,
today announced financial results for the first quarter of its fiscal
year ended September 30, 2017.
"We are off to a solid start for fiscal year 2018," said Robert Keane,
president and chief executive officer. "Our businesses delivered strong
results in terms of the value they are creating for their customers, and
our financial results are on track relative to our internal objectives
for fiscal year 2018 growth in revenue and unlevered free cash flow. We
entered this fiscal year with our new decentralized operating structure
that we announced on January 25, 2017, and we have seen the intended
benefits, including tightened coordination between marketing and
manufacturing activities throughout our businesses, reduction of
complexity and costs, and an improved ability to evaluate performance
and assess returns on the capital we invest."
Keane continued, "That decentralization resulted, among many other
changes, in the transfer to Vistaprint of nearly three thousand team
members who were previously in central teams. We continue to see
evidence that the Vistaprint business has successfully strengthened its
customer value proposition and improved customer retention. Following
more than six months of experience with their newly integrated
organization, the Vistaprint leadership team has taken the difficult but
appropriate decision to reorganize the business. These changes will
reduce headcount and other operating costs, but also simplify and
streamline operations and more closely align functions to increase the
speed of execution. We believe these changes will improve the
steady-state free cash flow of this business and, importantly, free up
capital to reinvest in other areas of Vistaprint that provide the
greatest benefit to our customers and our long-term shareholders."
Cimpress expects the Vistaprint headcount and cost reductions to be
largely implemented over the coming two months and believes they will
reduce fiscal year 2018 operating expenses by between $20 million and
$22 million. Based on a preliminary assessment of these potential
actions, the company expects to take a restructuring charge of
approximately $15 million to $17 million during the quarter ending
December 31, 2017, but we expect net savings for the full fiscal year
2018. Cimpress will provide additional information in its second quarter
earnings documents after the Vistaprint restructuring is implemented.
Sean Quinn, chief financial officer, said, "First quarter revenue growth
by segment was in line with our commentary at the beginning of the year.
Our profits increased significantly year over year due in part to
savings from the decentralization we announced last January and some
non-operational benefits described below. Conversely, as anticipated, we
continue to see pressure on Vistaprint's incremental gross profit from
the rapid expansion of new products and design services. As described at
our August 8, 2017 investor day, we believe that Vistaprint has multiple
pricing and operating levers to alleviate some of this pressure
throughout fiscal year 2018 as we scale the new product offerings, but
we expect it to take time. In the meantime, our revenue from newly
launched products continues to grow strongly, so the mix effect on our
profitability is meaningful: Vistaprint's gross margin was about 400
basis points lower this quarter compared to the same period last year.
Finally, we remain on track to reduce our leverage to approximately
three times trailing-twelve month EBITDA by the end of our second fiscal
quarter despite repurchasing $41 million of Cimpress shares during the
first quarter."
The following year-over-year items positively influenced GAAP operating
income in the first quarter:
-
A $47.5 million gain on the sale of our Albumprinter business, net of
transaction costs. The amount of this gain was influenced by the
partial allocation of goodwill to our other businesses in past
periods, and the minimal carrying value of acquired intangible assets
related to Albumprinter at the time of the sale, partially offset by
negative currency-related impacts.
-
Net restructuring savings of approximately $10 million related to the
decentralization announced on January 25, 2017. These savings were
realized largely in technology and development and general and
administrative costs. From a segment reporting perspective, about half
of the savings benefit Vistaprint's Segment Profit, with the bulk of
the remaining benefit in our central and corporate costs.
-
A year-over-year decrease in acquisition-related charges as follows:
First, earn-out related charges were $15.1 million lower in the first
quarter of fiscal year 2018 versus the prior-year period. Share-based
compensation related to investment consideration also decreased year
over year by $4.1 million. These reductions were partially offset by
an increase in acquisition-related amortization of intangible assets
of $2.5 million.
-
Favorable year-over-year currency fluctuations that were offset below
the line by year-over-year changes in realized gains and losses from
hedging contracts in other expense, net.
Quinn added, "As we look ahead to the remainder of fiscal year 2018, we
are on track to recognize the financial benefits of the decentralization
announced last January in line with our past commentary. We now also
expect to recognize net savings and organizational benefits from the
Vistaprint restructuring announced today. Finally, we see no material
changes to our planned investment spend that we outlined in detail in
our letter to investors dated July 26, 2017."
Sale of Albumprinter Business: As
anticipated, on August 31, 2017 we sold our Albumprinter business, net
of transaction costs and based on the exchange rate as of the date of
sale, for $93.1 million plus $11.9 million in pre-closing dividends. In
connection with the divestiture, we have entered into an agreement under
which Albumprinter will continue to fulfill photobook orders for our
Vistaprint business via our mass customization platform.
Consolidated Financial Metrics:
-
Revenue for the first quarter of fiscal year 2018 was $563.3 million,
a 27 percent increase compared to revenue of $443.7 million in the
same quarter a year ago. Excluding the estimated impact from currency
exchange rate fluctuations and revenue from businesses acquired or
divested during the past twelve months, revenue grew 12 percent year
over year in the first quarter.
-
Gross margin (revenue minus the cost of revenue as a percent of total
revenue) in the first quarter was 49.6 percent, down from 52.0 percent
in the same quarter a year ago due to lower Vistaprint gross margins
as a result of significant growth in lower-margin new products which
are not yet at scale, as well as a continued mix shift toward our
Upload and Print businesses which have a lower gross margin than our
Vistaprint and National Pen businesses.
-
Contribution margin (revenue minus the cost of revenue, the cost of
advertising and payment processing as a percent of total revenue) in
the first quarter was 31.0 percent, down from 32.5 percent in the same
quarter a year ago. Advertising spend as a percent of revenue declined
year over year for the first quarter, which partially offset the
decline in gross margin as described above.
-
GAAP operating income in the first quarter was $46.6 million, or 8.3
percent of revenue, compared to an operating loss of $27.8 million, or
6.3 percent of revenue, in the same quarter a year ago. The drivers of
this significant improvement are described above, before the "Sale of
Albumprinter Business" section of this release.
-
Adjusted NOP for the first quarter, which is defined at the end of
this press release, was $10.4 million, or 1.8 percent of revenue, up
from $2.7 million, or 0.6 percent of revenue, in the same quarter a
year ago. This increase is primarily due to the savings from our
fiscal year 2017 decentralization.
-
GAAP net income attributable to Cimpress for the first quarter was
$23.4 million, or 4.1 percent of revenue, compared to a net loss of
$29.1 million, or 6.6 percent of revenue in the same quarter a year
ago. In addition to the impacts described above, GAAP net income was
negatively influenced by year-over-year non-operational, non-cash
currency impacts, and a reduction in our tax benefit in the current
period compared to the year-ago period due to lower discrete tax
benefits in the current period compared to the same prior-year period.
In addition, we adopted a new accounting standard (ASU 2016-16)
effective this quarter which changes how we account for the tax
effects of certain intra-entity sales. We expect this change will be
unfavorable to our GAAP tax expense and effective tax rate for the
year, but in no way changes our current or future cash taxes.
-
GAAP net income per diluted share for the first quarter was $0.72,
versus a net loss of $0.92 in the same quarter a year ago.
-
Capital expenditures in the first quarter were $20.5 million or 3.6
percent of revenue, versus $19.3 million, or 4.4 percent of revenue in
the same quarter a year ago.
-
During the first quarter, we generated $16.4 million of cash from
operations and $(6.5) million in unlevered free cash flow, a non-GAAP
financial measure, which is defined at the end of this press release.
Cash from operations was impacted by approximately $4 million of
payments related to our January 2017 restructuring as well as
transaction costs from the sale of Albumprinter.
-
As of September 30, 2017, we had $42.8 million of cash and cash
equivalents and $820.8 million of debt, net of issuance costs. After
considering debt covenant limitations, as of September 30, 2017 the
company had $262.4 million available for borrowing under its committed
credit facility. Based on Cimpress' debt covenant definitions, its
total leverage ratio was 3.39 as of September 30, 2017. The company
continues to expect to reduce its leverage ratio to approximately 3
times trailing twelve month EBITDA by the end of calendar year 2017
through a combination of debt repayment and EBITDA expansion.
-
During the first quarter, Cimpress repurchased 452,820 shares for
$40.7 million inclusive of transaction costs, at an average price per
share of $89.82.
Supplemental Materials and November 2, 2017 Conference Call
Information Cimpress has posted an end-of-quarter presentation
with accompanying prepared remarks at ir.cimpress.com. On Thursday,
November 2, 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 86537588. A replay of the Q&A session will
be available on the company's website following the call on November 2,
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 NOP.
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 were presented at our 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,
free cash flow, unlevered free cash flow, constant-currency revenue
growth and constant-currency revenue growth excluding revenue from
acquisitions and divestitures made in the last twelve months:
-
Adjusted Net Operating Profit is defined as GAAP operating income plus
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,
impairments, or gains related to the purchase or sale of subsidiaries,
plus certain 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.
-
First quarter constant-currency revenue growth excluding revenue from
acquisitions and divestitures made during the past twelve months
excludes the impact of currency as defined above and revenue from
Albumprinter and 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. 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, our expectations for our
debt position, and the expected effects of and savings from our recent
decentralization and anticipated Vistaprint restructuring.
Forward-looking projections and expectations are inherently uncertain,
are based on assumptions and judgments by management, and may turn out
to be wrong. 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; the failure of our
decentralization and restructuring to have the effects that we expect;
our ability to accurately forecast the savings and charges relating to
restructuring activities; 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-K for the fiscal year ended June 30, 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
|
|
|
|
|
|
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CIMPRESS N.V.
|
CONSOLIDATED BALANCE SHEETS
|
(unaudited in thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
September 30, 2017
|
|
|
June 30, 2017
|
Assets
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
42,800
|
|
|
|
$
|
25,697
|
|
Accounts receivable, net of allowances of $4,297 and $3,590,
respectively
|
|
|
58,413
|
|
|
|
48,630
|
|
Inventory
|
|
|
56,754
|
|
|
|
46,563
|
|
Prepaid expenses and other current assets
|
|
|
75,921
|
|
|
|
78,835
|
|
Assets held for sale
|
|
|
-
|
|
|
|
46,276
|
|
Total current assets
|
|
|
233,888
|
|
|
|
246,001
|
|
Property, plant and equipment, net
|
|
|
511,890
|
|
|
|
511,947
|
|
Software and website development costs, net
|
|
|
50,312
|
|
|
|
48,470
|
|
Deferred tax assets
|
|
|
78,748
|
|
|
|
48,004
|
|
Goodwill
|
|
|
525,806
|
|
|
|
514,963
|
|
Intangible assets, net
|
|
|
268,678
|
|
|
|
275,924
|
|
Other assets
|
|
|
26,772
|
|
|
|
34,560
|
|
Total assets
|
|
|
$
|
1,696,094
|
|
|
|
$
|
1,679,869
|
|
Liabilities, noncontrolling interests and shareholders' equity
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
121,119
|
|
|
|
$
|
127,386
|
|
Accrued expenses
|
|
|
186,502
|
|
|
|
175,567
|
|
Deferred revenue
|
|
|
39,239
|
|
|
|
30,372
|
|
Short-term debt
|
|
|
19,941
|
|
|
|
28,926
|
|
Other current liabilities
|
|
|
86,998
|
|
|
|
78,435
|
|
Liabilities held for sale
|
|
|
-
|
|
|
|
8,797
|
|
Total current liabilities
|
|
|
453,799
|
|
|
|
449,483
|
|
Deferred tax liabilities
|
|
|
58,805
|
|
|
|
60,743
|
|
Lease financing obligation
|
|
|
105,679
|
|
|
|
106,606
|
|
Long-term debt
|
|
|
800,860
|
|
|
|
847,730
|
|
Other liabilities
|
|
|
108,607
|
|
|
|
94,683
|
|
Total liabilities
|
|
|
1,527,750
|
|
|
|
1,559,245
|
|
Commitments and contingencies
|
|
|
|
|
|
|
Redeemable noncontrolling interests
|
|
|
83,841
|
|
|
|
45,412
|
|
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 31,020,287 and 31,415,503
shares outstanding, respectively
|
|
|
615
|
|
|
|
615
|
|
Treasury shares, at cost, 13,060,340 and 12,665,124 shares,
respectively
|
|
|
(627,002
|
)
|
|
|
(588,365
|
)
|
Additional paid-in capital
|
|
|
366,684
|
|
|
|
361,376
|
|
Retained earnings
|
|
|
432,273
|
|
|
|
414,771
|
|
Accumulated other comprehensive loss
|
|
|
(88,325
|
)
|
|
|
(113,398
|
)
|
Total shareholders' equity attributable to Cimpress N.V.
|
|
|
84,245
|
|
|
|
74,999
|
|
Noncontrolling interests
|
|
|
258
|
|
|
|
213
|
|
Total shareholders' equity
|
|
|
84,503
|
|
|
|
75,212
|
|
Total liabilities, noncontrolling interests and shareholders' equity
|
|
|
$
|
1,696,094
|
|
|
|
$
|
1,679,869
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CIMPRESS N.V.
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(unaudited in thousands, except share and per share data)
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
2017
|
|
|
2016
|
Revenue
|
|
|
$
|
563,284
|
|
|
|
$
|
443,713
|
|
Cost of revenue (1)
|
|
|
283,755
|
|
|
|
213,050
|
|
Technology and development expense (1)
|
|
|
62,103
|
|
|
|
59,010
|
|
Marketing and selling expense (1)
|
|
|
166,093
|
|
|
|
132,668
|
|
General and administrative expense (1)
|
|
|
38,778
|
|
|
|
56,580
|
|
Amortization of acquired intangibles
|
|
|
12,633
|
|
|
|
10,213
|
|
Restructuring expense (1)
|
|
|
854
|
|
|
|
-
|
|
(Gain) on sale of subsidiaries
|
|
|
(47,545
|
)
|
|
|
-
|
|
Income (loss) from operations
|
|
|
46,613
|
|
|
|
(27,808
|
)
|
Other expense, net
|
|
|
(16,312
|
)
|
|
|
(2,132
|
)
|
Interest expense, net
|
|
|
(13,082
|
)
|
|
|
(9,904
|
)
|
Income (loss) before income taxes
|
|
|
17,219
|
|
|
|
(39,844
|
)
|
Income tax (benefit) expense
|
|
|
(6,187
|
)
|
|
|
(9,814
|
)
|
Net income (loss)
|
|
|
23,406
|
|
|
|
(30,030
|
)
|
Add: Net (income) loss attributable to noncontrolling interest
|
|
|
(43
|
)
|
|
|
927
|
|
Net income (loss) attributable to Cimpress N.V.
|
|
|
$
|
23,363
|
|
|
|
$
|
(29,103
|
)
|
Basic net income (loss) per share attributable to Cimpress N.V.
|
|
|
$
|
0.75
|
|
|
|
$
|
(0.92
|
)
|
Diluted net income (loss) per share attributable to Cimpress N.V.
|
|
|
$
|
0.72
|
|
|
|
$
|
(0.92
|
)
|
Weighted average shares outstanding - basic
|
|
|
31,220,311
|
|
|
|
31,570,824
|
|
Weighted average shares outstanding - diluted
|
|
|
32,332,162
|
|
|
|
31,570,824
|
|
|
|
|
|
|
|
|
|
|
(1) Share-based compensation is allocated as follows:
|
|
|
Three Months Ended September 30,
|
|
|
|
2017
|
|
|
2016
|
Cost of revenue
|
|
|
$
|
40
|
|
|
|
$
|
43
|
Technology and development expense
|
|
|
1,856
|
|
|
|
2,325
|
Marketing and selling expense
|
|
|
985
|
|
|
|
820
|
General and administrative expense
|
|
|
3,928
|
|
|
|
8,383
|
Restructuring expense
|
|
|
103
|
|
|
|
-
|
|
|
|
|
|
|
|
|
For the three months ended September 30, 2017 we recognized $727 of
restructuring costs related to a restructuring initiative within our All
Other Businesses segment, as well as $127 of restructuring costs related
to the January 2017 restructuring initiative.
|
|
|
|
CIMPRESS N.V.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
2017
|
|
|
2016
|
Operating activities
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
23,406
|
|
|
|
$
|
(30,030
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
42,384
|
|
|
|
35,405
|
|
Share-based compensation expense
|
|
|
6,912
|
|
|
|
11,571
|
|
Deferred taxes
|
|
|
(16,589
|
)
|
|
|
(18,163
|
)
|
Gain on sale of subsidiaries
|
|
|
(47,545
|
)
|
|
|
-
|
|
Change in contingent earn-out liability
|
|
|
827
|
|
|
|
16,020
|
|
Unrealized loss on derivatives not designated as hedging instruments
included in net income (loss)
|
|
|
6,066
|
|
|
|
1,811
|
|
Effect of exchange rate changes on monetary assets and liabilities
denominated in non-functional currency
|
|
|
8,386
|
|
|
|
3,027
|
|
Other non-cash items
|
|
|
23
|
|
|
|
670
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(8,839
|
)
|
|
|
2,917
|
|
Inventory
|
|
|
(8,985
|
)
|
|
|
(1,220
|
)
|
Prepaid expenses and other assets
|
|
|
(4,893
|
)
|
|
|
671
|
|
Accounts payable
|
|
|
(1,621
|
)
|
|
|
(7,952
|
)
|
Accrued expenses and other liabilities
|
|
|
16,847
|
|
|
|
(5,127
|
)
|
Net cash provided by operating activities
|
|
|
16,379
|
|
|
|
9,600
|
|
Investing activities
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
|
(20,457
|
)
|
|
|
(19,319
|
)
|
Proceeds from the sale of subsidiaries, net of transactions costs
and cash divested
|
|
|
93,779
|
|
|
|
-
|
|
Business acquisitions, net of cash acquired
|
|
|
(110
|
)
|
|
|
(580
|
)
|
Purchases of intangible assets
|
|
|
(24
|
)
|
|
|
(26
|
)
|
Capitalization of software and website development costs
|
|
|
(8,934
|
)
|
|
|
(8,312
|
)
|
Other investing activities
|
|
|
(1,956
|
)
|
|
|
785
|
|
Net cash provided by (used in) investing activities
|
|
|
62,298
|
|
|
|
(27,452
|
)
|
Financing activities
|
|
|
|
|
|
|
Proceeds from borrowings of debt
|
|
|
179,532
|
|
|
|
87,000
|
|
Payments of debt and debt issuance costs
|
|
|
(237,929
|
)
|
|
|
(82,725
|
)
|
Payments of withholding taxes in connection with equity awards
|
|
|
(1,190
|
)
|
|
|
(7,549
|
)
|
Payments of capital lease obligations
|
|
|
(4,658
|
)
|
|
|
(3,276
|
)
|
Purchase of ordinary shares
|
|
|
(40,674
|
)
|
|
|
-
|
|
Proceeds from issuance of ordinary shares
|
|
|
6,070
|
|
|
|
-
|
|
Issuance of loans
|
|
|
(12,000
|
)
|
|
|
-
|
|
Proceeds from sale of noncontrolling interest
|
|
|
35,390
|
|
|
|
-
|
|
Net cash used in financing activities
|
|
|
(75,459
|
)
|
|
|
(6,550
|
)
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
1,843
|
|
|
|
601
|
|
Change in cash held for sale
|
|
|
12,042
|
|
|
|
-
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
17,103
|
|
|
|
(23,801
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
25,697
|
|
|
|
77,426
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
42,800
|
|
|
|
$
|
53,625
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CIMPRESS N.V.
|
SEGMENT INFORMATION AND RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
|
(unaudited in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
|
|
Currency
Impact:
|
|
|
Constant-
Currency
|
|
|
Impact of Acquisitions/ Divestitures:
|
|
|
Constant- Currency Revenue Growth
|
|
|
|
2017
|
|
|
2016
|
|
|
%
Change
|
|
|
(Favorable)/ Unfavorable
|
|
|
Revenue Growth
|
|
|
(Favorable)/ Unfavorable
|
|
|
Excluding Acquisitions/ Divestitures
|
Revenue growth reconciliation by reportable segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
Vistaprint
|
|
|
$
|
319,043
|
|
|
|
$
|
286,535
|
|
|
|
11
|
%
|
|
|
(1
|
)%
|
|
|
10
|
%
|
|
|
-
|
%
|
|
|
10
|
%
|
Upload and Print
|
|
|
160,390
|
|
|
|
131,957
|
|
|
|
22
|
%
|
|
|
(6
|
)%
|
|
|
16
|
%
|
|
|
-
|
%
|
|
|
16
|
%
|
National Pen
|
|
|
59,717
|
|
|
|
-
|
|
|
|
100
|
%
|
|
|
-
|
%
|
|
|
100
|
%
|
|
|
(100
|
)%
|
|
|
-
|
%
|
All Other Businesses
|
|
|
28,054
|
|
|
|
26,334
|
|
|
|
7
|
%
|
|
|
(2
|
)%
|
|
|
5
|
%
|
|
|
35
|
%
|
|
|
40
|
%
|
Inter-segment eliminations
|
|
|
(3,920
|
)
|
|
|
(1,113
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
|
$
|
563,284
|
|
|
|
$
|
443,713
|
|
|
|
27
|
%
|
|
|
(3
|
)%
|
|
|
24
|
%
|
|
|
(12
|
)%
|
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
Profit (loss) by reportable segment ("Segment Profit"):
|
|
|
2017
|
|
|
2016
|
Vistaprint
|
|
|
$
|
30,895
|
|
|
|
$
|
25,272
|
|
Upload and Print
|
|
|
14,768
|
|
|
|
13,451
|
|
National Pen
|
|
|
1,185
|
|
|
|
-
|
|
All Other Businesses
|
|
|
(7,551
|
)
|
|
|
(9,752
|
)
|
Total Segment Profit
|
|
|
39,297
|
|
|
|
28,971
|
|
Central and corporate costs
|
|
|
(28,257
|
)
|
|
|
(28,186
|
)
|
Acquisition-related amortization and depreciation
|
|
|
(12,687
|
)
|
|
|
(10,213
|
)
|
Earn-out related charges¹
|
|
|
(1,137
|
)
|
|
|
(16,247
|
)
|
Share-based compensation related to investment consideration
|
|
|
(40
|
)
|
|
|
(4,103
|
)
|
Restructuring related charges
|
|
|
(854
|
)
|
|
|
-
|
|
Interest expense for Waltham lease
|
|
|
1,911
|
|
|
|
1,970
|
|
Gain on the purchase or sale of subsidiaries2
|
|
|
48,380
|
|
|
|
-
|
|
Total income (loss) from operations
|
|
|
$
|
46,613
|
|
|
|
$
|
(27,808
|
)
|
|
|
|
|
|
|
|
|
|
|
|
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 the gain on the sale of Albumprinter, as well as a bargain
purchase gain as defined by ASC 805-30 for an acquisition in which the
identifiable assets acquired and liabilities assumed are greater than
the consideration transferred, that was recognized in general and
administrative expense in our consolidated statement of operations
during the three months ended September 30, 2017.
Note: During the first quarter of fiscal 2018, we began presenting
inter-segment fulfillment activity as revenue for the fulfilling
business unit for purposes of measuring and reporting our segment
financial performance. We have revised historical results to reflect the
consistent application of our current accounting methodology. In
addition, we adjusted our historical segment profitability for the
allocation of certain IT costs that are allocated to each of our
businesses in fiscal 2018.
|
|
|
|
CIMPRESS N.V.
|
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (CONT.)
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
2017
|
|
|
2016
|
Adjusted Net Operating Profit reconciliation:
|
|
|
|
|
|
|
GAAP operating income (loss)
|
|
|
$
|
46,613
|
|
|
|
$
|
(27,808
|
)
|
Exclude expense (benefit) impact of:
|
|
|
|
|
|
|
Acquisition-related amortization and depreciation
|
|
|
12,687
|
|
|
|
10,213
|
|
Earn-out related charges¹
|
|
|
1,137
|
|
|
|
16,247
|
|
Share-based compensation related to investment consideration
|
|
|
40
|
|
|
|
4,103
|
|
Restructuring related charges
|
|
|
854
|
|
|
|
-
|
|
Less: Interest expense associated with Waltham lease
|
|
|
(1,911
|
)
|
|
|
(1,970
|
)
|
Less: Gain on the purchase or sale of subsidiaries2
|
|
|
(48,380
|
)
|
|
|
-
|
|
Include: Realized (losses) gains on certain currency derivatives not
included in operating income
|
|
|
(634
|
)
|
|
|
1,888
|
|
Adjusted NOP
|
|
|
$
|
10,406
|
|
|
|
$
|
2,673
|
|
|
|
|
|
|
|
|
|
|
|
|
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 gain on the sale of Albumprinter, as well as a bargain purchase gain
as defined by ASC 805-30 for an acquisition in which the identifiable
assets acquired and liabilities assumed are greater than the
consideration transferred, that was recognized in general and
administrative expense in our consolidated statement of operations
during the three months ended September 30, 2017.
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
2017
|
|
|
2016
|
Unlevered free cash flow reconciliation:
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
$
|
16,379
|
|
|
|
$
|
9,600
|
|
Purchases of property, plant and equipment
|
|
|
(20,457
|
)
|
|
|
(19,319
|
)
|
Purchases of intangible assets not related to acquisitions
|
|
|
(24
|
)
|
|
|
(26
|
)
|
Capitalization of software and website development costs
|
|
|
(8,934
|
)
|
|
|
(8,312
|
)
|
Free cash flow
|
|
|
$
|
(13,036
|
)
|
|
|
$
|
(18,057
|
)
|
Plus: cash paid during the period for interest
|
|
|
8,430
|
|
|
|
5,362
|
|
Less: interest expense for Waltham lease
|
|
|
(1,911
|
)
|
|
|
(1,970
|
)
|
Unlevered free cash flow
|
|
|
$
|
(6,517
|
)
|
|
|
$
|
(14,665
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Note: We continue to look at profit by reportable segment ("Segment
Profit"); however, starting with the first quarter of fiscal 2018, we no
longer use Adjusted NOPAT as an internal measure of consolidated
profitability, and therefore we have stopped reporting it. Rather, we
are using Adjusted Net Operating Profit, which corresponds to our prior
Adjusted NOPAT measure, without the effect of cash taxes attributable to
the current period.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171101006489/en/
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