Cimpress Reports Fourth Quarter and Fiscal Year 2016 Financial Results
-
Fourth quarter 2016 results:
-
Revenue grew 26 percent year over year to
$479.2 million - Revenue grew 11 percent year over year excluding the impact of currency exchange rate fluctuations and revenue from businesses acquired during the past twelve months
-
GAAP income from operations was
$16.0 million in the current period versus$15.2 million in the year-ago period -
GAAP net income per diluted share was
$0.51 in the fourth quarter of 2016 versus GAAP net loss per diluted share of$(0.11) in the year-ago period -
Adjusted net operating profit after tax (adjusted NOPAT) was
$16.9 million versus$19.8 million in the year-ago period
-
Revenue grew 26 percent year over year to
-
Fiscal year 2016 results:
-
Revenue grew 20 percent year over year to
$1,788.0 million - Revenue grew 11 percent year over year excluding the impact of currency exchange rate fluctuations and revenue from businesses acquired during the past twelve months
-
GAAP income from operations was
$78.2 million in the current fiscal year versus$96.3 million in the year-ago period, largely due to impairment charges of$41.8 million in fiscal 2016 and the impact of major long-term investments that have been previously discussed -
GAAP net income per diluted share was
$1.64 in fiscal 2016 versus$2.73 in the year-ago period, largely due to impairment charges and major long-term investments -
Adjusted net operating profit after tax (adjusted NOPAT) was
$139.8 million versus$125.1 million in the year-ago period
-
Revenue grew 20 percent year over year to
VENLO,
"In fiscal year 2016 we made significant progress against our strategic
initiatives outlined at the beginning of the year," said
Keane continued, "Our philosophy and approach to allocating capital and
tracking the return on such investments remains consistent with last
year. I encourage investors to review my letter to investors published
today on our investor relations website. That letter focuses on
"Our GAAP operating income, net income and adjusted NOPAT results for
the fourth quarter reflect increased profits in our Vistaprint and
Upload and Print business units, which includes profits from companies
we acquired in the last year," Quinn continued. "These metrics were also
influenced by a negative profit impact of roughly
Consolidated Financial Metrics:
-
Revenue for the fourth quarter of fiscal year 2016 was
$479.2 million , a 26 percent increase compared to revenue of$380.5 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 11 percent year over year in the fourth quarter. For the full year, total consolidated revenue grew 20 percent year over year. The year-over-year strengthening of the U.S. dollar negatively impacted our revenue growth rate for the full year. Excluding the estimated impact from currency exchange rate fluctuations revenue growth was 24 percent. Excluding the estimated impact from both currency exchange rate fluctuations and revenue from businesses acquired during the past twelve months, revenue for the full year grew 11 percent. -
Gross margin (revenue minus the cost of revenue as a percent of total
revenue) in the fourth quarter was 53.5 percent, down from 58.9
percent in the same quarter a year ago due primarily to the increased
weighting of our Upload and Print business units. For the full fiscal
year, gross margin was 56.7 percent compared to 61.9 percent in fiscal
year 2015, due to the weighting of our Upload and Print business units
as well as impairment charges of
$11.0 million related to write-downs of proprietary technology investments during the year. -
Operating income in the fourth quarter was
$16.0 million , or 3.3 percent of revenue, an increase in absolute dollars but a decrease as a percent of revenue compared to operating income of$15.2 million , or 4.0 percent of revenue, in the same quarter a year ago. For the full fiscal year, operating income was$78.2 million , or 4.4 percent of revenue, down from operating income of$96.3 million , or 6.4 percent of revenue, in the prior fiscal year. -
Adjusted NOPAT for the fourth quarter, which is defined at the end of
this press release, was
$16.9 million , or 3.5 percent of revenue, down from$19.8 million , or 5.2 percent of revenue, in the same quarter a year ago. For the full fiscal year, adjusted NOPAT was$139.8 million , up from$125.1 million in fiscal year 2015. -
GAAP net income attributable to
Cimpress for the fourth quarter was$16.9 million , or 3.5 percent of revenue, compared to a GAAP net loss of$(3.7) million , or (1.0) percent of revenue in the same quarter a year ago. GAAP net loss in the prior year quarter was significantly impacted by year-over-year non-operational, non-cash currency impacts. The net impact of the release of previously deferred revenue in the fourth quarter of fiscal 2015 related to unredeemed group buying vouchers was a year-over-year headwind of$3.7 million to revenue growth, operating income, net income and adjusted NOPAT in the current period. For the full fiscal year, GAAP net income attributable toCimpress was$54.3 million , or 3.0 percent of revenue, down 41 percent compared to GAAP net income of$92.2 million , or 6.2 percent of revenue, in the prior fiscal year. For the full year both operating income and GAAP net income were significantly influenced by a goodwill impairment charge of$30.8 million related to one of our acquired businesses inEurope discussed in detail in our Q3 FY16 earnings materials, as well as impairment charges of$11.0 million related to write-downs of proprietary technology investments during the year, included in cost of goods sold. -
GAAP net income per diluted share for the fourth quarter was
$0.51 , versus a net loss of$(0.11) in the same quarter a year ago. This was heavily influenced by year-over-year non-operational, non-cash currency impacts. For fiscal year 2016, GAAP net income per diluted share was$1.64 , versus$2.73 in the prior full fiscal year. -
Capital expenditures in the fourth quarter were
$17.8 million , or 3.7 percent of revenue. During the full fiscal year capital expenditures were$80.4 million or 4.5 percent of revenue. -
During the fourth quarter, the company generated
$52.1 million of cash from operations and$34.8 million in free cash flow, a non-GAAP measure, which is defined at the end of this press release. During the full fiscal year, the company generated$247.4 million of cash from operations and$152.4 million in free cash flow. -
As of
June 30, 2016 , the company had$77.4 million in cash and cash equivalents and$678.5 million of debt, net of issuance costs. After considering debt covenant limitations, as ofJune 30, 2016 the company had$427.5 million available for borrowing under its committed credit facility. -
Cimpress did not repurchase shares during the fourth quarter. For the full year,Cimpress purchased 2,159,613 shares for$153.5 million inclusive of transaction costs, an average price per share of$71.06 .
Important Reminder of Cimpress’ Priorities
We ask investors
and potential investors in
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,
About non-GAAP financial measures
To supplement Cimpress’
consolidated financial statements presented in accordance with U.S.
generally accepted accounting principles, or GAAP,
The presentation of non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented 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.
Cimpress’ management believes that these non-GAAP financial measures provide meaningful supplemental information in assessing our performance and liquidity by excluding certain items that may not be indicative of our recurring core business operating results, which could be non-cash charges or benefits or discrete cash charges or benefits that are infrequent in nature. These non-GAAP financial measures also have facilitated management’s internal comparisons to Cimpress’ historical performance and our competitors’ operating results.
About
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 and our planned investments
in our business. 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 these forward-looking statements 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; unanticipated changes in our
markets, customers, or business; competitive pressures; our failure to
maintain compliance with the covenants in our revolving credit facility
and senior notes or to pay our debts when due; general economic
conditions; and other factors described in our Form 10-Q for the fiscal
quarter ended
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. |
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CONSOLIDATED BALANCE SHEETS |
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(unaudited in thousands, except share and per share data) |
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June 30, |
June 30, |
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Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 77,426 | $ | 103,584 | ||||
Marketable securities | 7,893 | 6,910 | ||||||
Accounts receivable, net of allowances of $490 and $372, respectively | 32,327 | 32,145 | ||||||
Inventory | 18,125 | 18,356 | ||||||
Prepaid expenses and other current assets | 64,997 | 55,103 | ||||||
Total current assets | 200,768 | 216,098 | ||||||
Property, plant and equipment, net | 493,163 | 467,511 | ||||||
Software and web site development costs, net | 35,212 | 22,109 | ||||||
Deferred tax assets | 26,093 | 17,172 | ||||||
Goodwill | 466,005 | 400,629 | ||||||
Intangible assets, net | 216,970 | 151,063 | ||||||
Other assets | 25,658 | 25,213 | ||||||
Total assets | $ | 1,463,869 | $ | 1,299,795 | ||||
Liabilities, noncontrolling interests and shareholders’ equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 86,682 | $ | 65,875 | ||||
Accrued expenses | 178,987 | 172,826 | ||||||
Deferred revenue | 25,842 | 23,407 | ||||||
Deferred tax liabilities | — | 1,043 | ||||||
Short-term debt | 21,717 | 21,057 | ||||||
Other current liabilities | 22,635 | 21,470 | ||||||
Total current liabilities | 335,863 | 305,678 | ||||||
Deferred tax liabilities | 69,430 | 48,007 | ||||||
Lease financing obligation | 110,232 | 93,841 | ||||||
Long-term debt | 656,794 | 493,039 | ||||||
Other liabilities | 60,173 | 52,073 | ||||||
Total liabilities | 1,232,492 | 992,638 | ||||||
Commitments and contingencies | ||||||||
Redeemable noncontrolling interests | 65,301 | 57,738 | ||||||
Shareholders’ equity: | ||||||||
Preferred shares, par value €0.01 per share, 100,000,000 shares authorized; none issued and |
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outstanding |
— | — | ||||||
Ordinary shares, par value €0.01 per share, 100,000,000 shares authorized; 44,080,627 shares |
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issued; and 31,536,732 and 33,203,065 shares outstanding, respectively |
615 | 615 | ||||||
Treasury shares, at cost,12,543,895 and 10,877,562 shares, respectively | (548,549 | ) | (412,132 | ) | ||||
Additional paid-in capital | 335,192 | 324,281 | ||||||
Retained earnings | 486,482 | 435,052 | ||||||
Accumulated other comprehensive loss | (108,015 | ) | (98,909 | ) | ||||
Total shareholders’ equity attributable to Cimpress N.V. | 165,725 | 248,907 | ||||||
Noncontrolling interest | 351 | 512 | ||||||
Total shareholders' equity | 166,076 | 249,419 | ||||||
Total liabilities, noncontrolling interests and shareholders’ equity | $ | 1,463,869 | $ | 1,299,795 |
CIMPRESS N.V. |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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(unaudited in thousands, except share and per share data) |
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Three Months Ended
|
Year Ended
|
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2016 | 2015 | 2016 | 2015 | |||||||||||||
Revenue | $ | 479,205 | $ | 380,468 | $ | 1,788,044 | $ | 1,494,206 | ||||||||
Cost of revenue (1) | 222,786 | 156,218 | 775,005 | 568,599 | ||||||||||||
Technology and development expense (1) | 60,623 | 55,519 | 220,981 | 194,360 | ||||||||||||
Marketing and selling expense (1) | 140,506 | 118,063 | 537,664 | 489,743 | ||||||||||||
General and administrative expense (1) | 39,260 | 35,432 | 145,360 | 145,180 | ||||||||||||
Impairment of goodwill | — | — | 30,841 | — | ||||||||||||
Income from operations | 16,030 | 15,236 | 78,193 | 96,324 | ||||||||||||
Other income (expense), net | 18,169 | (10,148 | ) | 26,098 | 20,134 | |||||||||||
Interest expense, net | (9,819 | ) | (7,197 | ) | (38,196 | ) | (16,705 | ) | ||||||||
Income (loss) before income taxes | 24,380 | (2,109 | ) | 66,095 | 99,753 | |||||||||||
Income tax provision* | 7,211 | 2,783 | 15,684 | 10,441 | ||||||||||||
Net income (loss)* | 17,169 | (4,892 | ) | 50,411 | 89,312 | |||||||||||
Add: Net (income) loss attributable to noncontrolling interest | (239 | ) | 1,190 | 3,938 | 2,900 | |||||||||||
Net income (loss) attributable to Cimpress N.V.* | $ | 16,930 | $ | (3,702 | ) | $ | 54,349 | $ | 92,212 | |||||||
Basic net income (loss) per share attributable to Cimpress N.V. | $ | 0.54 | $ | (0.11 | ) | $ | 1.72 | $ | 2.82 | |||||||
Diluted net income (loss) per share attributable to Cimpress N.V.* | $ | 0.51 | $ | (0.11 | ) | $ | 1.64 | $ | 2.73 | |||||||
Weighted average shares outstanding — basic | 31,418,823 | 32,966,832 | 31,656,234 | 32,644,870 | ||||||||||||
Weighted average shares outstanding — diluted* | 32,996,473 | 32,966,832 | 33,049,454 | 33,816,498 |
____________________________________________
(1) Share-based compensation is allocated as follows:
Three Months Ended
|
Year Ended
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2016 | 2015 | 2016 | 2015 | ||||||||||||
Cost of revenue | $ | 15 | $ | 16 | $ | 72 | $ | 78 | |||||||
Technology and development expense | 1,534 | 1,178 | 5,892 | 4,139 | |||||||||||
Marketing and selling expense | 368 | 515 | 1,591 | 1,952 | |||||||||||
General and administrative expense | 3,702 | 3,602 | 16,273 | 17,906 |
*During the fourth quarter of fiscal 2016, we adopted Accounting
Standards Update (ASU) 2016-09 requiring the recognition of excess tax
benefits as a component of income tax expense which were historically
recognized in equity. As the ASU requires a prospective adoption, our
fiscal 2016 net income includes a
In addition, the ASU requires a prospective update to the treasury method of calculating weighted average diluted shares outstanding resulting in the inclusion of 205,000 additional shares in our diluted EPS calculation. There is no adjustment for fiscal 2015.
CIMPRESS N.V. |
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(unaudited, in thousands) |
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Three Months Ended |
Year Ended |
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2016 | 2015 | 2016 | 2015 | |||||||||||||
Operating activities | ||||||||||||||||
Net income (loss) | $ | 17,169 | $ | (4,892 | ) | $ | 50,411 | $ | 89,312 | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating |
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activities: |
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Depreciation and amortization | 35,401 | 27,744 | 131,918 | 97,500 | ||||||||||||
Impairment of goodwill | — | — | 30,841 | — | ||||||||||||
Share-based compensation expense | 5,619 | 5,311 | 23,772 | 24,075 | ||||||||||||
Deferred taxes | (4,741 | ) | (6,274 | ) | (15,922 | ) | (14,940 | ) | ||||||||
Abandonment of long-lived assets | 1,216 | — | 10,979 | — | ||||||||||||
Unrealized (gain) loss on derivative instruments included in net income | (9,142 | ) | 5,567 | (8,163 | ) | (1,868 | ) | |||||||||
Change in fair value of contingent consideration | — | — | — | 14,890 | ||||||||||||
Payment of contingent consideration in excess of acquisition date fair value | (8,613 | ) | (6,806 | ) | (8,613 | ) | (8,055 | ) | ||||||||
Effect of exchange rate changes on monetary assets and liabilities denominated in |
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non-functional currency |
(6,027 | ) | 9,477 | (9,199 | ) | (6,455 | ) | |||||||||
Other non-cash items | 2,989 | 1,004 | 5,784 | 4,130 | ||||||||||||
Gain on proceeds from insurance | — | — | (3,136 | ) | — | |||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | 4,396 | 2,912 | 6,766 | 2,057 | ||||||||||||
Inventory | 1,305 | (2,290 | ) | (11 | ) | (4,491 | ) | |||||||||
Prepaid expenses and other assets | (3,399 | ) | (9,467 | ) | (7,668 | ) | 8,597 | |||||||||
Accounts payable | 13,174 | 1,023 | 25,670 | (4,026 | ) | |||||||||||
Accrued expenses and other liabilities | 2,791 | 23,613 | 13,929 | 41,296 | ||||||||||||
Net cash provided by operating activities | 52,138 | 46,922 | 247,358 | 242,022 | ||||||||||||
Investing activities | ||||||||||||||||
Purchases of property, plant and equipment | (17,794 | ) | (25,708 | ) | (80,435 | ) | (75,813 | ) | ||||||||
Business acquisitions, net of cash acquired | (1,972 | ) | (100,807 | ) | (164,412 | ) | (123,804 | ) | ||||||||
Purchases of intangible assets | (23 | ) | (49 | ) | (476 | ) | (250 | ) | ||||||||
Capitalization of software and website development costs | (8,140 | ) | (4,806 | ) | (26,324 | ) | (17,323 | ) | ||||||||
Proceeds from insurance related to investing activities | — | — | 3,624 | — | ||||||||||||
Other investing activities | 1,710 | — | 2,485 | — | ||||||||||||
Net cash used in investing activities | (26,219 | ) | (131,370 | ) | (265,538 | ) | (217,190 | ) | ||||||||
Financing activities | ||||||||||||||||
Proceeds from borrowings of debt | 82,000 | 149,000 | 598,008 | 367,500 | ||||||||||||
Proceeds from issuance of senior notes | — | — | — | 275,000 | ||||||||||||
Payments of debt and debt issuance costs | (98,501 | ) | (69,669 | ) | (430,692 | ) | (588,293 | ) | ||||||||
Payment of purchase consideration included in acquisition-date fair value | (2,980 | ) | (4,084 | ) | (7,330 | ) | (11,105 | ) | ||||||||
Payments of withholding taxes in connection with equity awards | (1,699 | ) | (25,054 | ) | (7,467 | ) | (29,351 | ) | ||||||||
Payments of capital lease obligations | (3,796 | ) | (1,435 | ) | (13,933 | ) | (5,750 | ) | ||||||||
Purchase of ordinary shares | — | — | (153,467 | ) | — | |||||||||||
Proceeds from issuance of ordinary shares | 1,326 | 2,156 | 4,705 | 13,123 | ||||||||||||
Capital contribution from noncontrolling interest | — | — | 5,141 | 4,160 | ||||||||||||
Other financing activities | — | — | (303 | ) | (118 | ) | ||||||||||
Net cash (used in) provided by financing activities | (23,650 | ) | 50,914 | (5,338 | ) | 25,166 | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | (1,569 | ) | 2,906 | (2,640 | ) | (8,922 | ) | |||||||||
Net increase (decrease) in cash and cash equivalents | 700 | (30,628 | ) | (26,158 | ) | 41,076 | ||||||||||
Cash and cash equivalents at beginning of period | 76,726 | 134,212 | 103,584 | 62,508 | ||||||||||||
Cash and cash equivalents at end of period | $ | 77,426 | $ | 103,584 | $ | 77,426 | $ | 103,584 |
Note: During fiscal 2016, we adopted the new share-based compensation accounting standard, ASU 2016-09 and elected to apply the amendment related to the presentation of excess tax benefits on the consolidated statements of cash flows on a retrospective basis. We have updated our previously filed consolidated statements of cash flows for all prior presented periods.
CIMPRESS N.V. |
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RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES |
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(unaudited, in thousands) |
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Three Months Ended |
Year Ended |
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2016 | 2015 | 2016 | 2015 | |||||||||||||
Adjusted net operating profit after tax reconciliation: | ||||||||||||||||
GAAP operating income | $ | 16,030 | $ | 15,236 | $ | 78,193 | $ | 96,324 | ||||||||
Less: Cash taxes attributable to current period (see below) | (12,649 | ) | (7,656 | ) | (32,236 | ) | (24,986 | ) | ||||||||
Exclude expense impact of: | ||||||||||||||||
Acquisition-related amortization and depreciation | 10,518 | 7,374 | 40,834 | 24,264 | ||||||||||||
Earn-out related charges¹ | 1,793 | 385 | 6,378 | 15,275 | ||||||||||||
Share-based compensation related to investment consideration | 1,130 | 473 | 4,835 | 3,570 | ||||||||||||
Certain impairments² | 1,216 | — | 41,820 | — | ||||||||||||
Restructuring costs | — | 2,528 | 381 | 3,202 | ||||||||||||
Less: Interest expense associated with Waltham lease | (1,961 | ) | — | (6,287 | ) | — | ||||||||||
Include: Realized gains on currency forward contracts not included in |
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operating income |
837 | 1,487 | 5,863 | 7,450 | ||||||||||||
Adjusted NOPAT | $ | 16,914 | $ | 19,827 | $ | 139,781 | $ | 125,099 | ||||||||
Cash taxes paid in the current period³ | $ | 8,661 | $ | 3,639 | $ | 19,750 | $ | 14,284 | ||||||||
Less: cash taxes (paid) received and related to prior periods³ | (1,722 | ) | (925 | ) | 934 | (5,477 | ) | |||||||||
Plus: cash taxes attributable to the current period but not yet paid | 5,316 | 3,703 | 9,298 | 6,667 | ||||||||||||
Plus: cash impact of excess tax benefit on equity awards attributable to |
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current period |
1,224 | 2,094 | 5,574 | 12,932 | ||||||||||||
Less: installment payment related to the transfer of IP in a prior year | (830 | ) | (855 | ) | (3,320 | ) | (3,420 | ) | ||||||||
Cash taxes attributable to current period | $ | 12,649 | $ | 7,656 | $ | 32,236 | $ | 24,986 |
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
impairments or abandonments of goodwill and other long-lived assets as
defined by ASC 350 - "Intangibles - Goodwill and Other" or ASC 360 -
"Property, plant, and equipment."
³For the fiscal year
ended
Three Months Ended |
Year Ended |
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2016 | 2015 | 2016 | 2015 | |||||||||||||
Free cash flow reconciliation: | ||||||||||||||||
Net cash provided by operating activities | $52,138 | $46,922 | $247,358 | $242,022 | ||||||||||||
Purchases of property, plant and equipment | (17,794 | ) | (25,708 | ) | (80,435 | ) | (75,813 | ) | ||||||||
Purchases of intangible assets not related to acquisitions | (23 | ) | (49 | ) | (476 | ) | (250 | ) | ||||||||
Capitalization of software and website development costs | (8,140 | ) | (4,806 | ) | (26,324 | ) | (17,323 | ) | ||||||||
Payment of contingent consideration in excess of acquisition-date fair |
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value |
8,613 | 6,806 | 8,613 | 8,055 | ||||||||||||
Proceeds from insurance related to investing activities | — | — | 3,624 | — | ||||||||||||
Free cash flow | $ | 34,794 | $ | 23,165 | $ | 152,360 | $ | 156,691 |
Note: During fiscal 2016, we adopted the new share-based compensation accounting standard, ASU 2016-09 and elected to apply the amendment related to the presentation of excess tax benefits on the consolidated statements of cash flows on a retrospective basis. We have updated our previously filed consolidated statements of cash flows for all prior presented periods. This change is reflected in the free cash flow reconciliation above.
CIMPRESS N.V. |
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (CONTINUED) |
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(unaudited in thousands) |
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GAAP Revenue | ||||||||||||||||||
Three Months Ended |
Currency |
Constant- |
Impact of |
Constant- |
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2016 | 2015 |
% |
(Favorable)/Unfavorable |
Revenue |
(Favorable)/Unfavorable |
Excluding |
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Revenue growth reconciliation by reportable segment: | ||||||||||||||||||
Vistaprint business unit | $ | 305,008 | $ | 274,525 | 11% | 1% | 12% | —% | 12% | |||||||||
Upload and Print business units | 146,468 | 75,693 | 94% | (2)% | 92% | (71)% | 21% | |||||||||||
All Other business units | 27,729 | 30,250 | (8)% | —% | (8)% | —% |
(8)% |
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Total revenue | $ | 479,205 | $ | 380,468 | 26% | —% | 26% | (15)% | 11% |
GAAP Revenue | ||||||||||||||||||
Year Ended |
Currency |
Constant- |
Impact of |
Constant- |
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2016 | 2015 |
% Change |
(Favorable)/Unfavorable |
Revenue |
(Favorable)/Unfavorable | Excluding acquisitions | ||||||||||||
Revenue growth reconciliation by reportable segment: | ||||||||||||||||||
Vistaprint business unit | $ | 1,217,162 | $ | 1,149,706 | 6% | 4% | 10% | —% | 10% | |||||||||
Upload and Print business units | 432,638 | 197,075 | 120% | 7% | 127% | (100)% | 27% | |||||||||||
All Other business units | 138,244 | 147,425 | (6)% | 8% | 2% | —% | 2% | |||||||||||
Total revenue | $ | 1,788,044 | $ | 1,494,206 | 20% | 4% | 24% | (13)% | 11% |
Three Months Ended |
Year Ended |
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Adjusted net operating profit by reportable segment: | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Vistaprint business unit | $ | 86,512 | $ | 74,493 | $ | 350,486 | $ | 323,542 | ||||||||
Upload and Print business units | 17,650 | 11,692 | 59,654 | 25,267 | ||||||||||||
All Other business units | (10,702 | ) | (973 | ) | (8,801 | ) | 9,346 | |||||||||
Total | 93,460 | 85,212 | 401,339 | 358,155 | ||||||||||||
Corporate and global functions | (64,734 | ) | (59,215 | ) | (235,185 | ) | (215,519 | ) | ||||||||
Acquisition-related amortization and depreciation | (10,518 | ) | (7,374 | ) | (40,834 | ) | (24,265 | ) | ||||||||
Earn-out related charges¹ | (1,793 | ) | (386 | ) | (6,378 | ) | (15,276 | ) | ||||||||
Share-based compensation related to investment consideration | (1,130 | ) | (473 | ) | (4,835 | ) | (3,569 | ) | ||||||||
Certain impairments² | (1,216 | ) | — | (41,820 | ) | — | ||||||||||
Restructuring charges | — | (2,528 | ) | (381 | ) | (3,202 | ) | |||||||||
Interest expense for Waltham lease | 1,961 | — | 6,287 | — | ||||||||||||
Total income from operations | $ | 16,030 | $ | 15,236 | $ | 78,193 | $ | 96,324 |
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
impairments or abandonments of goodwill and other long-lived assets as
defined by ASC 350 - "Intangibles - Goodwill and Other" or ASC 360 -
"Property, plant, and equipment."
Note: The following factors, among others, may limit the comparability of adjusted net operating profit by segment:
• We do not allocate support costs across operating segments or corporate and global functions.
• Some of our acquired business units in our Upload and Print business units and All Other business units segments are burdened by the costs of their local finance, HR, and other administrative support functions, whereas other business units leverage our global functions and do not receive an allocation for these services.
• Our All Other business units reporting segment includes businesses which have adjusted NOP losses as they are in early stages of investment relative to the scale of the underlying businesses.
CIMPRESS N.V. |
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Supplemental Information |
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(unaudited, in thousands) |
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In $ millions, except where noted |
Q4 |
FY2015 |
Q1 |
Q2 |
Q3 |
Q4 |
FY2016 | |||||||||
Revenue - Consolidated as Reported | $380.5 | $1,494.2 | $375.7 | $496.3 | $436.8 | $479.2 | $1,788.0 | |||||||||
y/y growth | 13 | % | 18 | % | 13 | % | 13 | % | 29 | % | 26 | % | 20 | % | ||
y/y growth in constant currency | 22 | % | 23 | % | 21 | % | 20 | % | 31 | % | 26 | % | 24 | % | ||
Vistaprint (1) | $274.5 | $1,149.7 | $267.5 | $354.8 | $289.9 | $305.0 | $1,217.2 | |||||||||
y/y growth | 5 | % | 4 | % | 2 | % | 3 | % | 8 | % | 11 | % | 6 | % | ||
y/y growth in constant currency | 11 | % | 9 | % | 8 | % | 8 | % | 10 | % | 12 | % | 10 | % | ||
as % of revenue | 72 | % | 77 | % | 71 | % | 71 | % | 66 | % | 64 | % | 68 | % | ||
Upload and Print | $75.7 | $197.1 | $76.5 | $93.3 | $116.4 | $146.5 | $432.6 | |||||||||
y/y growth | 74 | % | 352 | % | 98 | % | 112 | % | 201 | % | 94 | % | 120 | % | ||
y/y growth in constant currency | 100 | % | 352 | % | 118 | % | 128 | % | 203 | % | 92 | % | 127 | % | ||
as % of revenue | 20 | % | 13 | % | 20 | % | 19 | % | 27 | % | 30 | % | 24 | % | ||
All Other (1) | $30.3 | $147.4 | $31.7 | $48.2 | $30.6 | $27.7 | $138.2 | |||||||||
y/y growth | (5 | )% | 18 | % | (6 | )% | (4 | )% | (7 | )% | (8 | )% | (6 | )% | ||
y/y growth in constant currency | 7 | % | 19 | % | 7 | % | 8 | % | (3 | )% | (8 | )% | 2 | % | ||
as % of revenue | 8 | % | 10 | % | 9 | % | 10 | % | 7 | % | 6 | % | 8 | % | ||
Physical printed products and other | $363.3 | $1,423.1 | $359.0 | $480.2 | $421.4 | $464.0 | $1,724.6 | |||||||||
Digital products/services | $17.2 | $71.1 | $16.7 | $16.1 | $15.4 | $15.2 | $63.4 | |||||||||
Advertising & commissions expense - consolidated | $64.8 | $286.4 | $70.2 | $85.0 | $74.3 | $76.4 | $305.9 | |||||||||
as % of revenue | 17 | % | 19 | % | 19 | % | 17 | % | 17 | % | 16 | % | 17 | % | ||
TTM Bookings - Vistaprint (1) | ||||||||||||||||
% TTM Bookings from repeat orders (1) | 73 | % | 73 | % | 74 | % | 74 | % | 74 | % | ||||||
% TTM Bookings from first-time orders (1) | 27 | % | 27 | % | 26 | % | 26 | % | 26 | % | ||||||
Advertising & commissions expense - Vistaprint | $59.1 | $256.0 | $62.4 | $73.3 | $64.5 | $65.3 | $265.5 | |||||||||
as % of revenue | 22 | % | 22 | % | 23 | % | 21 | % | 22 | % | 21 | % | 22 | % | ||
Headcount at end of period | 6,552 | 6,836 | 7,463 | 7,585 | 7,995 | |||||||||||
Full-time employees | 6,168 | 6,447 | 6,845 | 7,226 | 7,468 | |||||||||||
Temporary employees | 384 | 389 | 618 | 359 | 527 | |||||||||||
Some numbers may not add due to rounding. Metrics are unaudited. | ||||||||||||||||
(1) In Q2 2016, revenue and TTM bookings from the Corporate Solutions business unit was recast to reflect a change in the calculation approach, resulting in an immaterial |
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change to historical revenue for the Vistaprint and All Other 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/20160727006322/en/
Source:
Cimpress N.V.
Investor Relations:
Meredith Burns,
+1-781-652-6480
ir@cimpress.com
or
Media
Relations:
Cheryl Wadsworth
mediarelations@cimpress.com