TABLE OF CONTENTS
Page
OUR UPPERMOST OBJECTIVES AND OUR STRATEGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
LETTER FROM CEO ROBERT KEANE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
SUMMARY CONSOLIDATED RESULTS: 3-YEAR TREND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
SUMMARY CONSOLIDATED RESULTS: QUARTERLY TREND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
INCOME STATEMENT HIGHLIGHTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
CASH FLOW AND RETURN ON INVESTED CAPITAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
SEGMENT RESULTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
VISTAPRINT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
UPLOAD AND PRINT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
NATIONAL PEN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
ALL OTHER BUSINESSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
CENTRAL AND CORPORATE COSTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
CURRENCY IMPACTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
ADJUSTED EBITDA, DEBT AND SHARE REPURCHASES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
HOUSEKEEPING ITEMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
BALANCE SHEET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
INCOME STATEMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
CASH FLOW STATEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
ABOUT NON-GAAP MEASURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
NON-GAAP RECONCILIATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
ABOUT CIMPRESS, SAFE HARBOR STATEMENT AND CONTACT INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . 33
Page 2 of 33
IMPORTANT REMINDER OF CIMPRESS' UPPERMOST OBJECTIVES
We ask investors and potential investors in Cimpress to understand the uppermost 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 operating income, net income, EPS, Adjusted Net Operating Profit (Adjusted NOP),
Adjusted EBITDA, and cash flow.
Our uppermost objectives are:
• Strategic: 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: To maximize intrinsic value per share (“IVPS”). We define IVPS as (a) the unlevered free cash
flow per diluted 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 diluted share. We define
unlevered free cash flow as free cash flow plus cash interest expense related to borrowing.
An explicit implication of our uppermost financial objective is that we accept fluctuations in our financial metrics as
we seek to make investments that we believe will further improve customer value and/or deliver attractive long-term
returns on investment. Such investments often negatively impact near-term revenue growth, gross margin,
contribution profit and/or cash flow.
To understand these objectives further, 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.
OUR STRATEGY
Cimpress invests in and builds customer-focused, entrepreneurial, mass-customization businesses for the long
term, which we manage in a decentralized, autonomous manner.
We drive competitive advantage across Cimpress by investing in a select few shared capabilities that have the
greatest potential to create company-wide value.
We limit all other central activities to only those which absolutely must be performed centrally.
Page 3 of 33
LETTER FROM ROBERT
Dear Investor,
We remain on track to deliver on our financial objectives for this fiscal year. The following are a few key highlights of
our financial results for Q3 FY 2018:
• Consolidated revenue grew 16% year over year, and organic constant-currency revenue grew 11%, which
in the aggregate was in line with the growth in Q2 FY 2018 and in Q3 FY 2017. This growth was bolstered
by National Pen, which was in the organic growth rate for the first time, and was offset by a deceleration in
our Vistaprint and Upload and Print businesses. This is described in more detail on page 8 of this
document.
• Operating income and Adjusted NOP both increased significantly year over year primarily as a result of net
restructuring savings and operating efficiencies.
• Cash flow from operations declined compared to the prior year, whereas free cash flow improved. Note that
during the quarter we made earn-out payments related to our WIRmachenDRUCK and Easyflyer
acquisitions, in line with past commentary. These payments negatively impacted cash flow from operations
this quarter but not our free cash flow as we view these payments as part of the purchase price and not part
of operations.
• We repurchased 321,113 of our own shares during Q3 for $39.6 million at an average price per share of
$123.23. Year to date we have repurchased 895,377 of our own shares for $94.7 million at an average
price per share of $105.78.
• Our leverage ratio increased from 2.58 times trailing-twelve-month EBITDA at the end of December, 2017
to 2.79 at the end of March, 2018, as our EBITDA expanded sequentially but our debt increased from
seasonal working capital outflows and the earn-out payments and share repurchases outlined above.
Organizationally and culturally, we see evidence that the decentralization of the past year is helping us to "stay
small as we get big". That change has significantly increased the accountability of each of the leaders of our
businesses for key success drivers including, but not limited to, customer value improvements, the attraction and
motivation of talented team members, the delivery of attractive returns on investment, and the operation of our
businesses in a socially responsible manner.
We also believe that Cimpress continues to strengthen our customer value propositions as a result of the many
changes and investments we have made over the past six years. We believe that the capital we are allocating
across our company, combined with the organizational and strategic changes we have implemented over the last
year, is solidifying our competitive position and increasing our intrinsic value per share.
Sincerely,
Robert S. Keane
Founder, President & CEO
Please see non-GAAP reconciliations at the end of this document. Page 4 of 33
SUMMARY CONSOLIDATED RESULTS: THREE-YEAR TREND - Q3 FY 2018
$ in thousands, except percentages
REVENUE BY REPORTABLE SEGMENT, TOTAL REVENUE AND INCOME (LOSS) FROM OPERATIONS:
Q3
FY 2016
Q3
FY 2017
Q3
FY 2018
YTD
FY 2016
YTD
FY 2017
YTD
FY 2018
Vistaprint $ 290,691 $ 322,804 $ 357,606 $ 914,626 $ 990,160 $ 1,105,557
Upload and Print 116,356 142,476 183,768 286,171 426,821 536,685
National Pen — 58,828 81,545 — 58,828 267,360
All Other Businesses 30,560 28,027 18,865 110,515 99,410 67,913
Inter-segment eliminations (790) (1,550) (5,715) (2,473) (4,070) (16,108)
Total revenue $ 436,817 $ 550,585 $ 636,069 $ 1,308,839 $1,571,149 $ 1,961,407
Reported revenue growth 29 % 26 % 16% 18% 20 % 25%
Organic constant currency revenue growth 10 % 11 % 11% 11% 9 % 11%
Income (loss) from operations $ (17,531) $ (41,943) $ 16,627 $ 62,163 $ (36,046) $ 135,949
Income (loss) from operations margin (4.0)% (7.6)% 2.6% 4.7% (2.3)% 6.9%
PROFIT (LOSS) BY REPORTABLE SEGMENT ("SEGMENT PROFIT")
AND ADJUSTED NET OPERATING PROFIT (NOP):
Q3
FY 2016
Q3
FY 2017
Q3
FY 2018
YTD
FY 2016
YTD
FY 2017
YTD
FY 2018
Vistaprint $ 45,631 $ 37,627 $ 57,661 $ 166,790 $ 129,915 $ 187,605
Upload and Print 15,448 12,983 17,367 40,868 43,232 54,605
National Pen — (3,226) 355 — (3,226) 19,185
All Other Businesses (3,996) (10,085) (9,342) 1,541 (21,944) (25,459)
Total Segment Profit $ 57,083 $ 37,299 $ 66,041 $ 209,199 $ 147,977 $ 235,936
Central and corporate costs ex. unallocated
share-based compensation (26,077) (26,017) (27,291) (71,771) (78,669) (79,400)
Unallocated share-based compensation — (2,011) (8,600) — (8,773) (18,158)
Include: Realized (losses) gains on certain currency
derivatives not included in operating income 1,391 4,591 (4,811) 5,026 13,318 (8,958)
Adjusted Net Operating Profit $ 32,397 $ 13,862 $ 25,339 $ 142,454 $ 73,853 $ 129,420
Adjusted Net Operating Profit margin 7.4% 2.5 % 4.0% 10.9% 4.7 % 6.6%
Adjusted Net Operating Profit year-over-year growth 60% (57)% 83% 16% (48)% 75%
CASH FLOW AND OTHER METRICS:
Q3
FY 2016
Q3
FY 2017
Q3
FY 2018
YTD
FY 2016
YTD
FY 2017
YTD
FY 2018
Net cash provided by (used in) operating activities $ 32,905 $ 8,985 $ (32,109) $ 195,220 $ 123,644 $ 144,633
Net cash provided by (used in) investing activities (160,108) (22,805) (21,955) (239,319) (277,506) 13,979
Free cash flow 7,705 (21,261) (3,027) 117,566 37,940 116,649
Cash interest related to borrowing 2,909 5,378 6,153 18,556 21,607 28,209
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.
Please see non-GAAP reconciliations at the end of this document. Page 5 of 33
SUMMARY CONSOLIDATED RESULTS: QUARTERLY TREND - Q3 FY 2018
$ in millions, except percentages and share data
Revenue & Reported Revenue Growth (1)
Q3FY1
6
Q4FY1
6
Q1FY1
7
Q2FY1
7
Q3FY1
7
Q4FY1
7
Q1FY1
8
Q2FY1
8
Q3FY1
8
$437
$479
$444
$577
$551 $564 $563
$762
$636
29% 26%
18%
16%
26%
18%
27%
32%
16%
Organic Constant-Currency Revenue Growth
Q3FY1
6
Q4FY1
6
Q1FY1
7
Q2FY1
7
Q3FY1
7
Q4FY1
7
Q1FY1
8
Q2FY1
8
Q3FY1
8
10%
11%
6%
8%
11%
9%
12%
11% 11%
Cash Flow from Operations (2)
Q3FY1
6
Q4FY1
6
Q1FY1
7
Q2FY1
7
Q3FY1
7
Q4FY1
7
Q1FY1
8
Q2FY1
8
Q3FY1
8
$33
$52
$10
$105
$9
$33
$16
$160
$(32)
FCF Interest
Free Cash Flow &
Cash Interest Related to Borrowing
Q3FY1
6
Q4FY1
6
Q1FY1
7
Q2FY1
7
Q3FY1
7
Q4FY1
7
Q1FY1
8
Q2FY1
8
Q3FY1
8
Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318
FCF $8 $35 ($18) $77 ($21) $7 ($13) $133 ($3)
Interest $3 $13 $3 $13 $5 $16 $7 $16 $6
(1) Reported revenue growth rates are impacted by the timing of acquisitions.
(2) Q3FY18 cash flow from operations includes the payment of contingent earn-out liabilities of $49.2 million related to the WIRmachenDRUCK and
Easyflyer acquisitions.
Please see non-GAAP reconciliations at the end of this document. Page 6 of 33
SUMMARY CONSOLIDATED RESULTS (CONT.)
$ in millions, except percentages and share data
GAAP OI (Loss) Adjusted NOP
GAAP Operating Income (Loss)
& Adjusted Net Operating Profit
Q3FY1
6
Q4FY1
6
Q1FY1
7
Q2FY1
7
Q3FY1
7
Q4FY1
7
Q1FY1
8
Q2FY1
8
Q3FY1
8
($18)
$16
($28)
$34
($42)
($10)
$47
$73
$17
$32 $30
$3
$57
$14
$22
$10
$94
$25
Net Income (Loss) Attributable to Cimpress
Q3FY1
6
Q4FY1
6
Q1FY1
7
Q2FY1
7
Q3FY1
7
Q4FY1
7
Q1FY1
8
Q2FY1
8
Q3FY1
8
($33)
$17
($29)
$35
($43)
($35)
$23
$30
($2)
Long-Term Short-Term
Debt (1)
Q3FY1
6
Q4FY1
6
Q1FY1
7
Q2FY1
7
Q3FY1
7
Q4FY1
7
Q1FY1
8
Q2FY1
8
Q3FY1
8
$697 $679 $682
$876 $891 $877
$821
$701
$813
Basic Diluted
Weighted Average Shares Outstanding (M) (2)
Q3FY1
6
Q4FY1
6
Q1FY1
7
Q2FY1
7
Q3FY1
7
Q4FY1
7
Q1FY1
8
Q2FY1
8
Q3FY1
8
31.3 31.4 31.6 31.3 31.1 31.2 31.2 31.0 30.7
31.3
33.0
31.6 32.6 31.1 31.2
32.3 32.3
30.7
(1) Debt net of issuance costs and discounts.
(2) Q3FY16, Q1FY17, Q3FY17, Q4FY17 & Q3FY18 basic and diluted shares are the same because we had a GAAP net loss in these periods.
Please see non-GAAP reconciliations at the end of this document. Page 7 of 33
INCOME STATEMENT HIGHLIGHTS
Our reported revenue growth of 16% benefited significantly
from year-over-year currency movements. Consolidated
organic constant-currency growth was 11% in Q3 of fiscal
years 2018 and 2017. Underneath this consistent top-level
constant-currency growth were offsetting items. National
Pen (included for the first time in our organic revenue
growth) grew strongly, but Vistaprint and Upload and Print
growth decelerated. The pressure on Vistaprint and our
Upload and Print businesses was due in part to the timing
of the Easter holiday, which fell on the first day of the fourth
quarter this year, and later in the fourth quarter last year. In
April we've seen the corresponding benefit of this timing-
related difference.
The following year-over-year items positively influenced
GAAP operating income:
• A $22.5 million decrease in restructuring charges
compared to the year-ago period.
• $17 million of combined year-over-year operating
expense savings related to the decentralization
announced on January 25, 2017 and the Vistaprint
restructuring implemented last quarter. These savings
were realized across technology and development,
marketing and selling, and general and administrative
costs. About 80% of the savings benefited Vistaprint's
Segment Profit, with the bulk of the remaining benefit in
our central and corporate costs.
• A $15.3 million year-over-year decrease in acquisition-
related charges as there were no impairment, earn-out,
or share-based compensation charges related to
investment consideration in the third quarter of fiscal year
2018, and acquisition-related amortization of intangible
assets was slightly lower year-over-year.
• Organic investments were lower than last year, as
anticipated and described in our annual letter to investors
of July 26, 2017.
• Favorable year-over-year currency fluctuations that were
offset below the line by year-over-year changes in
realized gains and losses from certain hedging contracts
in other (expense) income, net.
These positive year-over-year impacts were partially offset
by $5.6 million of share-based compensation expense
related to supplemental performance share unit awards.
Adjusted NOP increased significantly year over year
primarily due to the same reasons as GAAP operating
income, although Adjusted NOP excludes the impact of
restructuring charges and acquisition-related charges, and
includes realized gains or losses on our currency hedges.
The net year-over-year impact of currency on Adjusted
NOP was negative.
GAAP net income (loss) per diluted share for the third
quarter was $(0.07), versus ($1.38) in the same quarter a
Earlier period Later period
2-Year Stacked Reported Revenue Growth
Q3'15+Q3'1
6
Q4'15+Q4'1
6
Q1'16+Q1'1
7
Q2'16+Q2'1
7
Q3'16+Q3'1
7
Q4'16+Q4'1
7
Q1'17+Q1'1
8
Q2'17+Q2'1
8
Q3'17+Q3'1
8
19% 13% 13% 13%
29% 26% 18% 16% 26%
29%
48%
26%
39%
18%
31%
16%
29% 26%
55%
18%
44%
27%
45%
32%
48%
16%
42%
Earlier period Later period
2-Year Stacked Constant-Currency Organic
Revenue Growth
Q3'15+Q3'1
6
Q4'15+Q4'1
6
Q1'16+Q1'1
7
Q2'16+Q2'1
7
Q3'16+Q3'1
7
Q4'16+Q4'1
7
Q1'17+Q1'1
8
Q2'17+Q2'1
8
Q3'17+Q3'1
8
11% 13% 11% 10% 10% 11% 6% 8% 11%
10%
21%
11%
24%
6%
17%
8%
18%
11%
21%
9%
20%
12%
18%
11%
19%
11%
22%
GAAP Operating Income (Loss) & Margin (%)
Q3 FY1
6
Q4 FY1
6
Q1 FY1
7
Q2FY1
7
Q3FY1
7
Q4FY1
7
Q1FY1
8
Q2FY1
8
Q3 FY1
8
($18)
$16
($28)
$34
($42)
($10)
$47
$73
$17
(4)% 3% (6)%
6%
(8)%
(2)%
8% 10%
3%
Adjusted Net Operating Profit & Margin (%)
Q3FY1
6
Q4FY1
6
Q1FY1
7
Q2FY1
7
Q3FY1
7
Q4FY1
7
Q1FY1
8
Q2FY1
8
Q3FY1
8
$32 $30
$3
$57
$14
$22
$10
$94
$25
7% 6%
1%
10%
3% 4% 2%
12%
4%
Please see non-GAAP reconciliations at the end of this document. Page 8 of 33
year ago. In addition to the positive factors described
above, GAAP net income was positively influenced by non-
operational, non-cash year-over-year currency impacts in
other (expense) income, net, more than offset by a year-
over-year increase in our tax provision.
Gross margin (revenue minus the cost of revenue
expressed as a percent of revenue) in the third quarter was
49.8%, down from 51.2% in the same quarter a year ago,
primarily due to the divestiture of Albumprinter in our All
Other Businesses segment, as well as a continued mix
shift due to stronger growth in 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, expressed
as a percent of revenue) in the third quarter was 31.2%,
down slightly from 31.4% in the same quarter a year ago.
Advertising as a percent of revenue decreased year over
year for the third quarter from 18.2% to 17.0%, which
nearly offset the decrease in gross margin as described
above. Lower Vistaprint advertising spend as a percent of
revenue, our divestiture of Albumprinter, and currency
movements accounted for most of this change in
advertising as a percent of revenue.
Our incremental contribution profit in the quarter was
modest when excluding the benefit of currency. The
primary driver of this was that the Vistaprint business
continues to grow revenue from newer product lines that
are not yet optimized for scale. We continue to focus on the
marketing, production and operating initiatives that will help
improve the financial contribution of these newer products
over time. We are making progress in line with
expectations, but we remind investors that this effort will
take time.
TTM OI (Loss) TTM Adjusted NOP
GAAP Operating Income (Loss) &
Adjusted Net Operating Profit
(TTM)
Q3F
Y16
Q4F
Y16
Q1F
Y17
Q2F
Y17
Q3F
Y17
Q4F
Y17
Q1F
Y18
Q2F
Y18
Q3F
Y18
$77 $78
$38
$4
($20) ($46)
$29
$68
$126
$170 $172
$151
$122
$103 $96 $103
$140 $151
Gross Profit Gross Margin %
Gross Profit & Gross Margin
Q3F
Y16
Q4F
Y16
Q1F
Y17
Q2F
Y17
Q3F
Y17
Q4F
Y17
Q1F
Y18
Q2F
Y18
Q3F
Y18
$240 $257 $231
$300 $282 $285 $280
$402
$317
54.9% 53.7% 52.0% 52.1% 51.2% 50.5% 49.6% 52.7% 49.8%
Contribution Profit Contribution Margin %
Contribution Profit & Contribution Margin
Q3F
Y16
Q4F
Y16
Q1F
Y17
Q2F
Y17
Q3F
Y17
Q4F
Y17
Q1F
Y18
Q2F
Y18
Q3F
Y18
$159 $173 $144
$197
$173 $186 $175
$261
$198
36.3% 36.1%
32.5% 34.1% 31.4% 32.9% 31.0%
34.3%
31.2%
Please see non-GAAP reconciliations at the end of this document. Page 9 of 33
CASH FLOW & RETURN ON INVESTED CAPITAL
For the third quarter of FY 2018, we used $32.1 million of
cash from operations, compared with generating $9.0
million in the third quarter of FY 2017. The year-over-year
decrease was primarily driven by the payment of
contingent earn-out liabilities of $49.2 million related to the
WIRmachenDRUCK and Easyflyer acquisitions included
within operating cash flow and larger seasonal
unfavorability in working capital. These year-over-year
operating cash flow impacts were partially offset by
increased profitability from revenue growth, net savings
from restructuring (including a decrease of $3.3 million in
cash restructuring payments made in the quarter), and
lower cash taxes. The chart "Certain Cash Payments
Impacting Cash Flow from Operations" on the next page
illustrates the impact of interest expense, restructuring
payments and earn-outs on our operating cash flow.
Free cash flow was $(3.0) million in the third quarter of
fiscal 2018 compared to $(21.3) million in the same period
a year ago due in part to the same reasons as our
operating cash flow trends, with the exception of the earn-
out related payments, which we add back to calculate free
cash flow because we consider them to be part of the
purchase price for M&A, not part of operating activities. In
addition, free cash flow benefited from a decrease in
capital expenditures of $11.9 million, partially offset by an
increase in capitalized software and development costs of
$1.8 million relative to the year-ago period.
Internally, our most important quarterly and annual
performance metric is "unlevered free cash flow", which we
define as free cash flow plus cash interest expense related
to borrowing. The top two charts at the right illustrate these
components on a quarterly and trailing-twelve-month basis.
Trailing-twelve-month cash from operations, free cash flow
and unlevered free cash flow improved year over year as
we have realized net restructuring savings and our net
investment spend has decreased year over year.
The GAAP operating measures that we use as a basis to
calculate Return on Invested Capital (ROIC) are total debt,
total shareholders' equity, and operating income. The year-
over-year trend in these GAAP measures was favorable to
ROIC, as operating income increased significantly and debt
decreased significantly. On a trailing-twelve-month basis,
Adjusted ROIC as of March 31, 2018 improved significantly
compared to the prior-year Q3 TTM period. TTM Adjusted
ROIC was approximately 12% including share-based
compensation not related to investment consideration, and
16% excluding all share-based compensation expense. As
of Q2 FY18, Adjusted ROIC reflected a full year of National
Pen operating results, which are highly seasonal in the
December period.
FCF Interest
Free Cash Flow &
Cash Interest Related to Borrowing
(Quarterly)
Q3FY1
6
Q4FY1
6
Q1FY1
7
Q2FY1
7
Q3FY1
7
Q4FY1
7
Q1FY1
8
Q2FY1
8
Q3FY1
8
Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318
FCF $8 $35 ($18) $77 ($21) $7 ($13) $133 ($3)
Interest $3 $13 $3 $13 $5 $16 $7 $16 $6
FCF Interest
Free Cash Flow &
Cash Interest Related to Borrowing
(TTM)
Q3FY1
6
Q4FY1
6
Q1FY1
7
Q2FY1
7
Q3FY1
7
Q4FY1
7
Q1FY1
8
Q2FY1
8
Q3FY1
8
$141 $152 $134 $102 $73 $45 $50
$106 $124
$20 $31 $32
$32
$34
$38 $41
$43
$44
TTM Adjusted ROIC
TTM Adjusted ROIC ex SBC
Adjusted Return on Invested Capital
(TTM)
Q3FY1
6
Q4FY1
6
Q1FY1
7
Q2FY1
7
Q3FY1
7
Q4FY1
7
Q1FY1
8
Q2FY1
8
Q3FY1
8
19% 18%
15%
10%
6% 5% 6%
10% 12%
21% 20%
17%
13%
9% 8% 9%
14% 16%
Please see non-GAAP reconciliations at the end of this document. Page 10 of 33
Cash Flow from Operations
(Quarterly)
Q3F
Y16
Q4F
Y16
Q1F
Y17
Q2F
Y17
Q3F
Y17
Q4F
Y17
Q1F
Y18
Q2F
Y18
Q3F
Y18
$33
$52
$10
$105
$9
$33
$16
$160
$(32)
Cash Restructuring
Cash Interest Related to Borrowing
Cash Earn-Out Payments
Certain Cash Payments Impacting
Cash Flow from Operations*
(Quarterly)
Q3F
Y16
Q4F
Y16
Q1F
Y17
Q2F
Y17
Q3F
Y17
Q4F
Y17
Q1F
Y18
Q2F
Y18
Q3F
Y18
$8 $7 $4 $7 $4
$3 $13 $3
$13
$5
$13 $16
$23
$7
$11 $16
$23
$6
$9
$22
$49
$59
Capital Expenditures Capitalized Software
Capital Expenditures & Capitalization of Software
& Website Development Costs
(Quarterly)
Q3 F
Y16
Q4F
Y16
Q1F
Y17
Q2F
Y17
Q3F
Y17
Q4F
Y17
Q1F
Y18
Q2F
Y18
Q3F
Y18
$19 $18 $19 $17 $21 $17 $20 $18
$9
$6
$25
$8
$26
$8
$27
$11
$28
$10
$31
$9
$26
$9
$29
$9
$27
$11
$20
* Cash restructuring and cash interest related to borrowing impact both
cash flow from operations and free cash flow. Cash earn-out payments
impact cash flow from operations but are excluded from free cash flow.
Cash Flow from Operations
(TTM)
Q3F
Y16
Q4F
Y16
Q1F
Y17
Q2F
Y17
Q3F
Y17
Q4F
Y17
Q1F
Y18
Q2F
Y18
Q3F
Y18
$242 $247 $230
$200
$176
$157 $164
$219
$178
TTM Cash Restructuring
TTM Cash Interest Related to Borrowing
TTM Cash Earn-Out Payments
Certain Cash Payments Impacting
Cash Flow from Operations*
(TTM)
Q3F
Y16
Q4F
Y16
Q1F
Y17
Q2F
Y17
Q3F
Y17
Q4F
Y17
Q1F
Y18
Q2F
Y18
Q3F
Y18
$3 $3 $8 $15
$19 $26 $23$20
$31 $32 $32
$34
$38
$53
$41
$60
$43
$69
$44
$7
$30 $9
$43
$9
$41
$9
$41 $9
$51
$49
$116
Capital Expenditures Capitalized Software
Capital Expenditures & Capitalization of Software
& Website Development Costs
(TTM)
Q3 F
Y16
Q4F
Y16
Q1F
Y17
Q2F
Y17
Q3F
Y17
Q4F
Y17
Q1F
Y18
Q2F
Y18
Q3F
Y18
$88 $80 $75 $73 $75 $74 $75 $77 $65
$23
$111
$26
$106
$30
$105
$33
$106
$37
$112
$37
$111
$38
$113
$36
$113
$38
$103
Please see non-GAAP reconciliations at the end of this document. Page 11 of 33
SEGMENT RESULTS
Please see non-GAAP reconciliations at the end of this document. Page 12 of 33
VISTAPRINT
Vistaprint saw continued growth in repeat customer
bookings for the third quarter of FY 2018; however new
customer bookings decreased in constant currencies due
in part to reduced advertising spend as a percent of
revenue. The timing of the Easter holiday also negatively
impacted Q3 growth, which was 7% in constant currencies.
Vistaprint's constant-currency growth on a two-year
stacked basis has been consistent over the past several
quarters. Year-to-date Vistaprint revenue growth was 12%
on a reported basis and 9% in constant currencies.
Segment Profit in Q3 FY 2018 increased by $20.0 million
year over year, and Segment Profit margin was up 440
basis points compared to the year-ago period. A
combination of the following factors drove this
improvement: approximately $14 million of year-over-year
operating expense savings from our January 2017 and
November 2017 restructuring initiatives, revenue growth,
reduced advertising as a percent of revenue, and favorable
currency movements. As a reminder, we do not allocate
realized gains or losses from our hedging contracts to our
segment operating results.
As discussed at our investor day last August, one of
Vistaprint's objectives is to optimize the large number of
new products and services that were launched in fiscal
2017 and that we continue to launch in fiscal 2018. We
believe that there are pricing and operating levers to
improve the profitability of these products over time. That
effort is underway, and while we are already seeing some
positive indicators that these efforts are making a
difference, it will take time to scale and transition those new
products and services from investments to cash generative
business. While these investments in new products and
services put pressure on near-term profitability, we expect
they will continue to help us attract higher-value customers
and improve customer loyalty and, over time, deliver
attractive returns on our investment. During the third
quarter, we began to shift production of several of these
newer products from third parties to our own plants.
Consistent with what we have discussed previously, we
expect the year-over-year impact of shipping price
reductions within the Vistaprint business to be minimal for
fiscal year 2018. The year-over-year profit impact for the
third quarter was a benefit of approximately $1 million.
Revenue ($M) & Reported Revenue Growth
Q3F
Y16
Q4F
Y16
Q1F
Y17
Q2F
Y17
Q3F
Y17
Q4F
Y17
Q1F
Y18
Q2F
Y18
Q3F
Y18
$291 $306 $287
$381 $323 $321 $319
$429
$358
8%
12%
7% 7%
11%
5%
11% 13% 11%
Organic Constant Currency Revenue Growth
Q3F
Y16
Q4F
Y16
Q1F
Y17
Q2F
Y17
Q3F
Y17
Q4F
Y17
Q1F
Y18
Q2F
Y18
Q3F
Y18
10% 12% 8% 9%
12%
6%
10% 9% 7%
Earlier period Later period
2-Year Stacked Constant-Currency Organic
Revenue Growth
Q3
'15
+Q
3'1
6
Q4
'15
+Q
4'1
6
Q1
'16
+Q
1'1
7
Q2
'16
+Q
2'1
7
Q3
'16
+Q
3'1
7
Q4
'16
+Q
4'1
7
Q1
'17
+Q
1'1
8
Q2
'17
+Q
2'1
8
Q3
'17
+Q
3'1
8
11% 11% 8% 8% 10% 12% 8% 9% 12%
10%
21%
12%
23%
8%
16%
9%
17%
12%
22%
6%
18%
10%
18%
9%
18%
7%
19%
Segment Profit ($M) & Segment Profit Margin
Q3F
Y16
Q4F
Y16
Q1F
Y17
Q2F
Y17
Q3F
Y17
Q4F
Y17
Q1F
Y18
Q2F
Y18
Q3F
Y18
$46 $48
$25
$67
$38 $38 $31
$99
$58
16% 16%
9%
18%
12% 12% 10%
23%
16%
Vistaprint Advertising ($M) & % of Revenue
Q3F
Y16
Q4F
Y16
Q1F
Y17
Q2F
Y17
Q3F
Y17
Q4F
Y17
Q1F
Y18
Q2F
Y18
Q3F
Y18
$64 $65 $69
$80 $73 $69 $73
$89 $77
22% 21% 24% 21% 23% 21% 23% 21% 22%
UPLOAD AND PRINT BUSINESSES
Organic constant-currency revenue growth in Q3 FY 2018
decelerated versus the year-ago period as we saw
fluctuations in some of our businesses this quarter due in
part to the timing of the Easter holiday. Year-to-date Upload
and Print revenue growth was 26% on a reported basis and
15% in constant currencies.
Segment Profit in Q3 FY 2018 was up by $4.4 million year
over year due primarily to growth in gross profit dollars and
operating expense efficiencies in several businesses as
well as currency benefits, partially offset by increased
investments in technology. Segment Profit margin
increased 40 bps year over year.
We continue to see evidence that the January 2017
decentralization is driving the desired impacts within our
Upload and Print businesses. This is primarily due to
tighter cross-functional connections of marketing,
technology, manufacturing and service teams, allowing the
businesses to be more agile and work faster. We continue
to see opportunities to shift production of certain products
to lower-cost and/or higher-quality options through the
mass customization platform. The current benefits remain
relatively small, but we expect them to begin to grow
through Q4 and in FY 2019.
As described at our investor day in August 2017, the
aggregate unlevered free cash flow of the full portfolio of
Upload and Print businesses has exceeded our aggregate
deal model plans to date, and we expect it to continue to
do so in the future.
BUSINESSES IN THIS REPORTABLE SEGMENT
Revenue ($M) & Reported Revenue Growth
Q3FY1
6
Q4FY1
6
Q1FY1
7
Q2FY1
7
Q3FY1
7
Q4FY1
7
Q1FY1
8
Q2FY1
8
Q3FY1
8
$116
$146 $132
$152 $142
$162 $160
$193 $184
201%
94%
72% 63%
22% 10% 22% 26% 29%
Earlier period Later period
2-Year Stacked Constant-Currency Organic
Revenue Growth
Q3'15+Q3'1
6
Q4'15+Q4'1
6
Q1'16+Q1'1
7
Q2'16+Q2'1
7
Q3'16+Q3'1
7
Q4'16+Q4'1
7
Q1'17+Q1'1
8
Q2'17+Q2'1
8
Q3'17+Q3'1
8
34% 31% 31% 25% 21% 12% 11% 13%
25%
25%
21%
55%
12%
43%
11%
42%
13%
38%
14%
35%
16%
28%
16%
27%
12%
25%
Note: We did not own any Upload & Print businesses in the Q3 FY15
year-ago period, and therefore did not have organic constant-currency
revenue growth in that period.
Organic Constant Currency Revenue Growth
Q3FY1
6
Q4FY1
6
Q1FY1
7
Q2FY1
7
Q3FY1
7
Q4FY1
7
Q1FY1
8
Q2FY1
8
Q3FY1
8
25%
21%
12% 11% 13%
14% 16% 16% 12%
Segment Profit ($M) & Segment Profit Margin
Q3FY1
6
Q4FY1
6
Q1FY1
7
Q2FY1
7
Q3FY1
7
Q4FY1
7
Q1FY1
8
Q2FY1
8
Q3FY1
8
$15 $17 $13
$17
$13
$20
$15
$22
$17
13% 12% 10% 11% 9% 12% 9% 12% 9%
Please see non-GAAP reconciliations at the end of this document. Page 13 of 33
NATIONAL PEN
This is the first quarter in which we have a year-over-year
comparison for National Pen's post-acquisition financial
and operating results. Revenue grew strongly across
channels and geographies due to great execution, benefits
from actions taken last year to improve marketing
performance, increased marketing and prospecting
investment, and increased inter-company sales to other
Cimpress businesses.
National Pen's Q3 FY 2018 growth gives us increased
confidence in the changes we have discussed over recent
quarters. Now that we have seen two quarters of strong
growth following these actions we are optimistic that, for
the full fiscal year 2018, National Pen's pro-forma growth
rate will be higher than the high single-digit growth rate that
we indicated last quarter.
We believe National Pen can grow at a healthy rate in the
future, but caution investors that we do not expect ongoing
growth rates to be anywhere near this past quarter's 30%.
National Pen's high recent growth rate resulted in large part
from (i) reduced marketing investments a year ago as we
made the changes which lowered revenue in that
comparison period and (ii) changes that may not materially
benefit the growth rate beyond the first year after the
changes took place.
Segment Profit improved year over year by $3.6 million,
due to strong revenue growth, cost reductions specific to
National Pen and cost synergies under Cimpress, partially
offset by increased investments in technology and life-time
value based advertising.
We've made good progress on post-acquisition plans in
line with those we presented at investor day in August,
2017. Multiple other Cimpress businesses have begun to
tap into National Pen's product offering via our mass
customization platform. We've also gained operational cost
reductions by leveraging Cimpress' global shipping
contracts, as well several other operational savings.
Revenue ($M) & Reported Revenue Growth
Q3F
Y16
Q4F
Y16
Q1F
Y17
Q2F
Y17
Q3F
Y17
Q4F
Y17
Q1F
Y18
Q2F
Y18
Q3F
Y18
$59 $54 $60
$126
$82
39%
Organic Constant Currency Revenue Growth
Q3F
Y16
Q4F
Y16
Q1F
Y17
Q2F
Y17
Q3F
Y17
Q4F
Y17
Q1F
Y18
Q2F
Y18
Q3F
Y18
30%
Segment Profit ($M) & Segment Profit Margin
Q3F
Y16
Q4F
Y16
Q1F
Y17
Q2F
Y17
Q3F
Y17
Q4F
Y17
Q1F
Y18
Q2F
Y18
Q3F
Y18
($3)
$1 $1
$18
—
(5%)
2% 2%
14%
—%
Please see non-GAAP reconciliations at the end of this document. Page 14 of 33
ALL OTHER BUSINESSES
The first revenue chart on the right breaks out the
Albumprinter contribution to revenue in this segment for the
final four quarters of ownership. While reported revenue
growth in this segment reflects our August 31, 2017
divestiture of Albumprinter, the organic constant-currency
growth rate in the second chart excludes Albumprinter
starting at the beginning of FY18.
Corporate Solutions continues to build foundations for new
growth opportunities, remains early in this process and is
growing strongly. Our multiple Most of World businesses
also continue to grow strongly, but each off of small bases.
Q3 FY 2018 Segment Loss improved by $0.7 million year
over year primarily due to volume absorption and
advertising efficiency in our Most of World businesses,
partially offset by the divestiture of Albumprinter, whose
contribution to the All Other Businesses Segment Profit
was $0.5 million in the year-ago period. Segment Loss
margin declined from (36)% to (50)% year over year due to
the loss of Albumprinter revenue.
Our objective for all of these young businesses remains the
same: to build long-term foundations in large and
potentially attractive markets. It is likely that the organic
constant-currency revenue growth rate will continue to
fluctuate meaningfully as a result. In all of these
businesses we continue to operate at a significant
operating loss as previously described and as planned, and
we expect to continue to do so in the next several years.
BUSINESSES IN THIS REPORTABLE SEGMENT
Corporate Solutions, serving medium-sized businesses
and larger corporations, as well as our legacy business
with retail partners and franchise businesses. The primary
brand by which we market is "Vistaprint Corporate".
Most of World, consisting of our businesses in Brazil,
China, India and Japan. In Japan and India, we primarily
operate under close derivatives of the Vistaprint business
model and technology, albeit with product, content and
service offerings that we tailor to the Japanese and Indian
markets.
Historical Revenue (including Albumprinter)
Revenue (excluding Albumprinter)
Albumprinter Revenue
Reported Revenue Growth
Revenue ($M) & Reported Revenue Growth
Q3FY1
6
Q4FY1
6
Q1FY1
7
Q2FY1
7
Q3FY1
7
Q4FY1
7
Q1FY1
8
Q2FY1
8
Q3FY1
8
$31 $28 $26
$15 $11 $13 $15
$21 $19
$30
$45
$17
$28
$16
$29
$13
$28
(7)% (8)%
(17)%
(7)% (8)%
6% 7%
(53)%
(33)%
Organic Constant Currency Revenue Growth
Q3FY1
6
Q4FY1
6
Q1FY1
7
Q2FY1
7
Q3FY1
7
Q4FY1
7
Q1FY1
8
Q2FY1
8
Q3FY1
8
(3)% (8)%
(19)%
(7)% (9)%
7%
40%
24%
53%
Segment Loss ($M) & Margin (%) of Loss
Q3FY1
6
Q4FY1
6
Q1FY1
7
Q2FY1
7
Q3FY1
7
Q4FY1
7
Q1FY1
8
Q2FY1
8
Q3FY1
8
($4)
($11) ($10)
($2)
($10) ($9)
($8) ($9) ($9)(13%)
(39%) (37%)
(5%)
(36%)
(32%)
(27%)
(41%)
(50%)
Please see non-GAAP reconciliations at the end of this document. Page 15 of 33
CENTRAL AND CORPORATE COSTS
See the table below for definitions of the components of
central and corporate costs.
In Q3 FY 2018, our central and corporate costs excluding
unallocated share based compensation ("SBC") grew
slightly year over year. As a percent of revenue, these
costs excluding unallocated SBC declined by 40 bps. The
increase in unallocated SBC is due to the inclusion of
SPSUs defined in the table below.
Our Cimpress Technology team continues to build and
deploy our mass customization platform ("MCP"). This is a
growing set of software services and standards that deliver
business and customer functionality to our businesses. We
remain early in the journey toward our vision for MCP, but
are encouraged by the steady progress we are making.
Our decentralized businesses are actively involved in the
selection and scoping of new MCP functionality, an
approach which has increased the internal adoption of
these technologies.
What are Central and Corporate Costs?
MCP
Investment
Software engineering and related costs to expand
the functionality of our Mass Customization
Platform (MCP).
Central
Operating
Costs
Our operationally oriented shared-service
organizations of (1) global procurement, (2) the
technical maintenance and hosting of the MCP,
and (3) privacy, and information security
management, plus the administrative costs of our
Cimpress India offices where numerous Cimpress
businesses have dedicated business-specific
team members. Even if we did not manage our
Central Operating Costs on a shared basis they
would still be required to operate our businesses,
and we believe that, if decentralized, they would
cost the same or more as under our shared
model, albeit without as many current and
potential future synergies.
Corporate
Costs
Corporate activities, including the office of the
CEO, the supervisory board, directors and
officers insurance, treasury, tax, capital allocation,
financial consolidation, audit, corporate legal,
internal company-wide communications, investor
relations and corporate strategy.
Unallocated
SBC
The GAAP accounting value of performance
share units (PSUs) across Cimpress, minus what
we cross-charge either to our businesses or to
the above central cost categories. We cross-
charge the cash grant value of a long-term
incentive award. However, the total value of the
Supplemental PSUs (SPSUs) as described in the
next paragraph remain in Unallocated SBC.
Beginning in Q2 FY 2018, Unallocated SBC
includes expense related to certain SPSU awards
that include a multi-year financial performance
condition. They are subject to mark-to-market
accounting throughout the performance vesting
period if the performance condition is probable of
being achieved, so we expect the related costs to
be volatile depending on share price fluctuations.
Corporate Costs
Central Operating Costs
MCP Investment
Unallocated SBC
Central and Corporate Costs ($M)
Q3FY1
6
Q4FY1
6
Q1FY1
7
Q2FY1
7
Q3FY1
7
Q4FY1
7
Q1FY1
8
Q2FY1
8
Q3FY1
8
$11 $11 $12 $12 $9 $9 $10 $9 $10
$8 $8
$9 $8
$10 $10 $10 $10
$11
$7
$26
$7
$26
$6
$5 $7 $7 $6 $6
$6
$1
$28
$5
$30
$2
$28 $5
$31
$2
$28 $7
$33
$9
$36
Central and Corporate Costs
Excluding Unallocated Share-Based Comp*
($M and as a % of Total Revenue)
Q3FY1
6
Q4FY1
6
Q1FY1
7
Q2FY1
7
Q3FY1
7
Q4FY1
7
Q1FY1
8
Q2FY1
8
Q3FY1
8
$26 $26 $27 $26 $26 $26 $26 $26 $27
6%
5%
6%
4%
5% 5% 5%
3%
4%
* We present this cost category excluding the Unallocated SBC to help
our investors see the potential for scale leverage in these central
costs without the volatility and accounting complexities of the
Unallocated SBC. For avoidance of doubt, we view SBC as a cost,
and believe investors should, too. As a reminder we charge our
businesses a cost based on the cash value of long-term incentive
grants, which excludes some of these accounting complexities, and
which is included in each segment's results each period. You can find
additional information on the LTI overview document posted on
ir.cimpress.com. All numbers rounded to nearest million and may not
sum to total Central and Corporate Costs when combined with the
rounded Unallocated SBC figures in the chart above.
Please see non-GAAP reconciliations at the end of this document. Page 16 of 33
CURRENCY IMPACTS
Changes in currency rates positively impacted our year-
over-year revenue growth rate by about 800 basis points
for the third quarter of FY 2018.
There are many natural expense offsets in local currencies
in our business and, therefore, the net currency impact to
our bottom line is less pronounced than it is to revenue.
Our most significant net currency exposures by volume are
the Euro and the British Pound.
We also enter into currency derivative contracts to hedge
the risk for certain currencies where we have a net
Adjusted EBITDA exposure. We hedge our Adjusted
EBITDA because it is the primary metric used in our debt
covenants. We do not apply hedge accounting to these
hedges, which increases the volatility of the gains or losses
that are included in our net income from quarter to quarter.
Realized and unrealized gains or losses from these hedges
are recorded in Other (expense) income, net, along with
other currency-related gains or losses. The realized gains
or losses on our Adjusted EBITDA hedging contracts are
added back to our Adjusted NOP to show the economic
impact of our hedging activities.
Our Other expense, net was $1.6 million for the third
quarter of FY 2018. The vast majority of this is currency
related, as follows:
• Approximately $3 million of gains are primarily related to
unrealized non-cash net gains on intercompany loans
and currency hedges. These are included in our net
income, but excluded from our Adjusted NOP.
• The unrealized gains above were more than offset by the
realized losses on certain currency derivative contracts of
$4.8 million for the third quarter. These realized losses
affect both our net income and Adjusted NOP.
Other Income (Expense), Net
Q3F
Y16
Q4F
Y16
Q1F
Y17
Q2F
Y17
Q3F
Y17
Q4F
Y17
Q1F
Y18
Q2F
Y18
Q3F
Y18
($9)
$18
($2)
$31
($7)
($11)
($16)
($8)
($2)
Realized Gains (Losses) on
Certain Currency Derivatives
Q3F
Y16
Q4F
Y16
Q1F
Y17
Q2F
Y17
Q3F
Y17
Q4F
Y17
Q1F
Y18
Q2F
Y18
Q3F
Y18
$1 $1
$2
$7
$5
$3
($1)
($4)
($5)
Please see non-GAAP reconciliations at the end of this document. Page 17 of 33
ADJUSTED EBITDA, DEBT & SHARE REPURCHASES
We do not manage our overall business performance to
Adjusted EBITDA; however, it is a component of unlevered
free cash flow which is the financial metric we use in
managing the business on an annual basis.
Adjusted EBITDA is operating income minus depreciation
and amortization (including acquisition-related amortization
of intangible assets), goodwill and other impairment
charges, restructuring charges, gains on the purchase or
sale of subsidiaries, share-based compensation, and
several other items described in the non-GAAP
reconciliation section of this letter. Adjusted EBITDA for Q3
FY 2018 was $67.8 million, up 35% from Q3 FY 2017 and
our TTM Adjusted EBITDA was $306.4 million, up 29%
from the year-ago TTM period. Though Adjusted EBITDA
excludes several costs and benefits in our operating
income, Q3 and TTM Adjusted EBITDA moved in line with
the trends in operating income discussed on page 8 of this
document.
The calculation for our debt leverage ratio (total or senior
secured debt to trailing-twelve-month EBITDA) uses
definitions of both debt and EBITDA that differ from the
corresponding figures reported in this document. For
example, the EBITDA defined in our debt covenants gives
pro forma effect for acquired and divested businesses that
closed within the trailing-twelve-month period ended March
31, 2018, as well as other smaller differences.
Our total leverage ratio was 2.79 as of March 31, 2018,
and our senior secured leverage ratio was 1.85. While our
TTM Adjusted EBITDA did increase sequentially in Q3 FY
2018, our debt also increased due to the unfavorable
seasonal working capital changes in our third quarter, in
addition to $51.3 million of acquisition-related earn-out
payments, and the share repurchases described below.
Our credit facility provides ample liquidity for the company,
but we have various covenants that prevent us from
borrowing up to the maximum size of the credit facility as of
March 31, 2018.
During Q3 FY 2018, we repurchased 321,113 Cimpress
shares for $39.6 million inclusive of transaction costs, at an
average price per share of $123.23. We consider share
repurchases to be an important category of capital
deployment. We make our share repurchase decisions by
comparing the potential returns of share repurchases to the
potential returns on other uses of that capital. Our choice to
repurchase is also guided by our debt covenants and
obligations under our equity compensation plans, as well
as legal and tax considerations.
Adjusted EBITDA
(Quarterly)
Q3F
Y16
Q4F
Y16
Q1F
Y17
Q2F
Y17
Q3F
Y17
Q4F
Y17
Q1F
Y18
Q2F
Y18
Q3F
Y18
$60 $59
$35
$94
$50 $59 $46
$134
$68
Adjusted EBITDA
(TTM)
Q3F
Y16
Q4F
Y16
Q1F
Y17
Q2F
Y17
Q3F
Y17
Q4F
Y17
Q1F
Y18
Q2F
Y18
Q3F
Y18
$277 $283 $268 $248 $238 $238 $249
$289 $306
Total Leverage Ratio*
Q3F
Y16
Q4F
Y16
Q1F
Y17
Q2F
Y17
Q3F
Y17
Q4F
Y17
Q1F
Y18
Q2F
Y18
Q3F
Y18
2.60 2.50 2.66
3.43 3.59 3.45 3.39
2.58 2.79
* Total leverage ratio as calculated in accordance with our debt covenants
Amount Available for Borrowing
Q3F
Y16
Q4F
Y16
Q1F
Y17
Q2F
Y17
Q3F
Y17
Q4F
Y17
Q1F
Y18
Q2F
Y18
Q3F
Y18
$415 $427 $419
$221 $201 $212
$262
$490 $439
Interest Expense Related to Borrowing*
(Income Statement View)
Q3F
Y16
Q4F
Y16
Q1F
Y17
Q2F
Y17
Q3F
Y17
Q4F
Y17
Q1F
Y18
Q2F
Y18
Q3F
Y18
$8 $8 $8 $8
$10 $11 $11 $11 $11
* Interest expense related to borrowing excludes interest expense
associated with our Waltham, Massachusetts lease
Please see non-GAAP reconciliations at the end of this document. Page 18 of 33
HOUSEKEEPING ITEMS
Please note the following housekeeping items:
• Our current best estimate for total share-based compensation expense for the full fiscal year 2018 has
increased to approximately $45 million. We continue to expect a portion of our share-based compensation
expense to be volatile as certain awards granted in fiscal 2018 are subject to mark-to-market accounting
throughout a three-year performance vesting period, and therefore, the related accounting treatment is
sensitive to share price changes during such period. This is the primary driver of our increased estimate this
quarter.
• Throughout this fiscal year, the currency rates that have the greatest impact on our financial results have
generally moved favorably versus last year. However, the net impact of currency changes on our Adjusted NOP
has been negative as it also includes changes in our realized gains/losses from hedges. In fiscal 2019, we
expect currency to have a favorable year-over-year impact on Adjusted NOP if currency rates remain similar to
current rates.
Please see non-GAAP reconciliations at the end of this document. Page 19 of 33
CONSOLIDATED BALANCE SHEETS
(unaudited in thousands, except share and per share data)
Page 20 of 33
March 31,
2018
June 30,
2017
Assets
Current assets:
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 49,878 $ 25,697
Accounts receivable, net of allowances of $7,520 and $3,590, respectively . . . . . . . . . . . . 65,632 48,630
Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,009 46,563
Prepaid expenses and other current assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69,231 78,835
Assets held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 46,276
Total current assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247,750 246,001
Property, plant and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 501,115 511,947
Software and website development costs, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56,279 48,470
Deferred tax assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66,753 48,004
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 542,369 514,963
Intangible assets, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,593 275,924
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,994 34,560
Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,709,853 $ 1,679,869
Liabilities, noncontrolling interests and shareholders’ equity
Current liabilities:
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 147,089 $ 127,386
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210,407 175,567
Deferred revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,991 30,372
Short-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,214 28,926
Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,922 78,435
Liabilities held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 8,797
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 461,623 449,483
Deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56,089 60,743
Lease financing obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103,737 106,606
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 786,401 847,730
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120,610 94,683
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,528,460 1,559,245
Commitments and contingencies
Redeemable noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87,805 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 30,714,481 and 31,415,503 shares outstanding, respectively . . . . . . . 615 615
Treasury shares, at cost, 13,366,146 and 12,665,124 shares, respectively . . . . . . . . . . . . (675,536) (588,365)
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 390,758 361,376
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 459,940 414,771
Accumulated other comprehensive loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (82,476) (113,398)
Total shareholders’ equity attributable to Cimpress N.V.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93,301 74,999
Noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287 213
Total shareholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93,588 75,212
Total liabilities, noncontrolling interests and shareholders’ equity $ 1,709,853 $ 1,679,869
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited in thousands, except share and per share data)
Page 21 of 33
Three Months Ended
March 31,
Nine Months Ended
March 31,
2018 2017 2018 2017
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 636,069 $ 550,585 $ 1,961,407 $ 1,571,149
Cost of revenue (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319,209 268,482 963,249 757,898
Technology and development expense (1) . . . . . . . . . . . . . . . . . . . . . . 61,267 63,236 182,598 178,528
Marketing and selling expense (1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179,591 167,284 546,469 451,310
General and administrative expense (1) . . . . . . . . . . . . . . . . . . . . . . . . 44,103 45,730 127,869 150,471
Amortization of acquired intangible assets . . . . . . . . . . . . . . . . . . . . . . 12,941 13,450 38,132 33,542
Restructuring expense (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,331 24,790 14,686 25,890
(Gain) on sale of subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (47,545) —
Impairment of goodwill and acquired intangible assets . . . . . . . . . . . . . — 9,556 — 9,556
Income (loss) from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,627 (41,943) 135,949 (36,046)
Other (expense) income, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,558) (6,582) (25,602) 21,835
Interest expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,652) (11,584) (38,263) (31,119)
Income (loss) before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,417 (60,109) 72,084 (45,330)
Income tax expense (benefit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,019 (17,431) 19,657 (7,644)
Net (loss) income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,602) (42,678) 52,427 (37,686)
Add: Net (income) loss attributable to noncontrolling interest . . . . . . . . (663) (256) (1,394) 677
Net (loss) income attributable to Cimpress N.V. . . . . . . . . . . . . . . . . . . $ (2,265) $ (42,934) $ 51,033 $ (37,009)
Basic net (loss) income per share attributable to Cimpress N.V.. . . . . . $ (0.07) $ (1.38) $ 1.65 $ (1.18)
Diluted net (loss) income per share attributable to Cimpress N.V. . . . . $ (0.07) $ (1.38) $ 1.58 $ (1.18)
Weighted average shares outstanding — basic . . . . . . . . . . . . . . . . . . 30,724,018 31,103,388 30,992,066 31,323,451
Weighted average shares outstanding — diluted . . . . . . . . . . . . . . . . . 30,724,018 31,103,388 32,276,520 31,323,451
____________________________________________
(1) Share-based compensation is allocated as follows:
Three Months Ended
March 31,
Nine Months Ended
March 31,
2018 2017 2018 2017
Cost of revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 105 $ 91 $ 240 $ 209
Technology and development expense . . . . . . . . . . . . . . . . . . . . . . . . . 3,242 1,123 7,916 6,566
Marketing and selling expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,138 1,242 4,981 3,542
General and administrative expense . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,289 4,084 19,254 19,071
Restructuring expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 718 6,257 1,327 6,257
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
Page 22 of 33
Three Months Ended
March 31,
Nine Months Ended
March 31,
2018 2017 2018 2017
Operating activities
Net (loss) income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (1,602) $ (42,678) $ 52,427 $ (37,686)
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,437 43,402 127,120 115,784
Impairment of goodwill and acquired intangible assets . . . . . . . . . . . . — 9,556 — 9,556
Share-based compensation expense . . . . . . . . . . . . . . . . . . . . . . . . . . 13,492 12,797 33,718 35,645
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,683) (20,341) (9,552) (37,849)
Gain on sale of subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (47,545) —
Change in contingent earn-out liability . . . . . . . . . . . . . . . . . . . . . . . . . — 4,598 1,774 27,364
Gain on sale of available-for-sale securities . . . . . . . . . . . . . . . . . . . . . — — — (2,268)
Unrealized loss on derivatives not designated as hedging
instruments included in net income (loss). . . . . . . . . . . . . . . . . . . . . . . 4,705 5,412 9,246 839
Effect of exchange rate changes on monetary assets and liabilities
denominated in non-functional currency. . . . . . . . . . . . . . . . . . . . . . . . (8,064) 6,031 5,211 (7,215)
Payments of contingent consideration in excess of acquisition date
fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,639) — (4,639) —
Other non-cash items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,312 2,404 2,129 4,123
Changes in operating assets and liabilities: . . . . . . . . . . . . . . . . . . . . .
Accounts receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,760 2,612 (14,696) 3,434
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,747) (2,949) (12,104) (7,136)
Prepaid expenses and other assets. . . . . . . . . . . . . . . . . . . . . . . . . 4,310 16,679 136 2,389
Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (25,156) (11,900) 18,448 9,908
Accrued expenses and other liabilities. . . . . . . . . . . . . . . . . . . . . . . (54,234) (16,638) (17,040) 6,756
Net cash (used in) provided by operating activities (32,109) 8,985 144,633 123,644
Investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchases of property, plant and equipment. . . . . . . . . . . . . . . . . . . . . . (8,767) (20,656) (47,441) (56,916)
Business acquisitions, net of cash acquired . . . . . . . . . . . . . . . . . . . . . . — 1,941 (110) (204,875)
Proceeds from the sale of subsidiaries, net of transactions costs and
cash divested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 93,779 —
Purchases of intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (30) (22) (308) (110)
Capitalization of software and website development costs. . . . . . . . . . . (11,362) (9,568) (29,476) (28,678)
Proceeds from sale of available-for-sale securities. . . . . . . . . . . . . . . . . — — — 6,346
Other investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,796) 5,500 (2,465) 6,727
Net cash (used in) provided by investing activities (21,955) (22,805) 13,979 (277,506)
Financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from borrowings of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279,159 165,004 590,508 612,004
Payments of debt and debt issuance costs. . . . . . . . . . . . . . . . . . . . . . . (168,687) (150,511) (659,404) (398,282)
Payments of purchase consideration included in acquisition-date fair
value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,022) (539) (2,105) (539)
Payments of withholding taxes in connection with equity awards. . . . . . (982) (1,952) (3,080) (10,816)
Payments of capital lease obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,317) (5,215) (13,779) (12,029)
Purchase of ordinary shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (39,571) — (94,710) (50,008)
Purchase of noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — (20,230)
Proceeds from issuance of ordinary shares . . . . . . . . . . . . . . . . . . . . . . 2,497 74 11,516 331
Issuance of loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,500) — (16,500) —
Proceeds from sale of noncontrolling interest . . . . . . . . . . . . . . . . . . . . . — — 35,390 —
Capital contribution from noncontrolling interest . . . . . . . . . . . . . . . . . . . — — — 1,404
Other financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — 1,281
Net cash provided by (used in) financing activities . . . . . . . . . . . . . . . . . 61,577 6,861 (152,164) 123,116
Effect of exchange rate changes on cash . . . . . . . . . . . . . . . . . . . . . . . . 2,301 838 5,691 (3,213)
Change in cash held for sale. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 12,042 —
Net increase (decrease) in cash and cash equivalents 9,814 (6,121) 24,181 (33,959)
Cash and cash equivalents at beginning of period 40,064 49,588 25,697 77,426
Cash and cash equivalents at end of period $ 49,878 $ 43,467 $ 49,878 $ 43,467
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: Constant-currency revenue growth, constant-
currency revenue growth excluding revenue from acquisitions and divestitures made in the last twelve months,
Adjusted Net Operating Profit, Adjusted EBITDA, free cash flow and Trailing-Twelve-Month Return on Invested
Capital:
• 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.
• Q3 FY 2018 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.
• 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.
• Adjusted EBITDA is defined as operating income plus depreciation and amortization (excluding
depreciation and amortization related to our Waltham, Massachusetts office lease) plus share-based
compensation expense plus proceeds from insurance plus earn-out related charges plus certain
impairments plus restructuring related charges plus realized gains or losses on currency derivatives less
interest expense related to our Waltham, Massachusetts office lease less gain on purchase or sale of
subsidiaries.
• 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.
• Trailing-Twelve-Month Return on Invested Capital is Adjusted NOPAT or Adjusted NOPAT excluding share-
based compensation, divided by debt plus redeemable noncontrolling interest plus shareholders equity,
less excess cash. Adjusted NOPAT is defined as Adjusted NOP from above, less cash taxes. Adjusted
NOPAT excluding share-based compensation adds back all share-based compensation expense that has
not already been added back to Adjusted NOPAT. Excess cash is cash and equivalents greater than 5% of
last twelve month revenues and, if negative, is capped at zero. Operating leases have not been converted
to debt for purposes of this calculation.
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.
Page 23 of 33
REVENUE GROWTH RATES BY SEGMENT
(Quarterly)
Vistaprint Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18
Reported revenue growth 8% 12% 7% 7% 11% 5% 11 % 13 % 11 %
Currency impact 2% —% 1% 2% 1% 1% (1)% (4)% (4)%
Revenue growth in constant currency 10% 12% 8% 9% 12% 6% 10 % 9 % 7 %
Upload and Print Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18
Reported revenue growth 201 % 94 % 72 % 63 % 22 % 10% 22 % 26 % 29 %
Currency impact 2 % (2)% 1 % 3 % 5 % 4% (6)% (10)% (17)%
Revenue growth in constant currency 203 % 92 % 73 % 66 % 27 % 14% 16 % 16 % 12 %
Impact of TTM acquisitions (178)% (71)% (61)% (55)% (14)% —% — % — % — %
Revenue growth in constant currency excl. TTM
acquisitions 25 % 21 % 12 % 11 % 13 % 14% 16 % 16 % 12 %
National Pen Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18
Reported revenue growth1 N/A N/A N/A N/A 100 % 100 % 100 % 100 % 39 %
Currency impact N/A N/A N/A N/A — % — % — % — % (9)%
Revenue growth in constant currency N/A N/A N/A N/A 100 % 100 % 100 % 100 % 30 %
Impact of TTM acquisitions N/A N/A N/A N/A (100)% (100)% (100)% (100)% — %
Revenue growth in constant currency excl. TTM
acquisitions N/A N/A N/A N/A — % — % — % — % 30 %
Pro Forma National Pen Growth Rates:
Pro forma revenue growth in U.S. dollars N/A N/A N/A N/A (8)% (5)% (5)% 33 % N/A
Currency impact N/A N/A N/A N/A 3 % 3 % (2)% (5)% N/A
Pro forma revenue growth in constant currency N/A N/A N/A N/A (5)% (2)% (7)% 28 % N/A
Impact of discontinued operations N/A N/A N/A N/A 3 % 3 % 4 % — % N/A
Pro forma revenue growth in constant currency,
excluding discontinued operations N/A N/A N/A N/A (2)% 1 % (3)% 28 % N/A
All Other Businesses Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18
Reported revenue growth (7)% (8)% (17)% (7)% (8)% 6% 7 % (53)% (33)%
Currency impact 4 % — % (2)% — % (1)% 1% (2)% — % — %
Revenue growth in constant currency (3)% (8)% (19)% (7)% (9)% 7% 5 % (53)% (33)%
Impact of TTM acquisitions and divestitures — % — % — % — % — % —% 35 % 77 % 86 %
Revenue growth in constant currency excl. TTM
acquisitions & divestitures (3)% (8)% (19)% (7)% (9)% 7% 40 % 24 % 53 %
1National Pen's reported revenue growth was 100% from Q3 FY17 to Q2 FY18 since we did not own this business in the corresponding year-ago
periods.
Values may not sum to total due to rounding. Page 24 of 33
CONSTANT-CURRENCY REVENUE GROWTH RATES
(Quarterly)
Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18
Reported revenue growth 29 % 26 % 18 % 16 % 26 % 18 % 27 % 32 % 16 %
Currency impact 2 % — % 1 % 2 % 2 % 2 % (3)% (5)% (8)%
Revenue growth in constant currency 31 % 26 % 19 % 18 % 28 % 20 % 24 % 27 % 8 %
Impact of TTM acquisitions, divestitures & JVs (21)% (15)% (13)% (10)% (17)% (11)% (12)% (16)% 3 %
Revenue growth in constant currency ex. TTM
acquisitions, divestitures & JVs 10 % 11 % 6 % 8 % 11 % 9 % 12 % 11 % 11 %
Reported revenue growth rate ex. TTM
acquisitions, divestitures & JVs 8 % 11 % 6 % 6 % 9 % 7 % 15 % 16 % 19 %
Note: Q3FY17, Q4FY17, Q1FY18 and Q2FY18 total company revenue growth in constant currency excluding TTM acquisitions, divestitures and
joint ventures excludes the impact of currency and revenue from National Pen. Q1FY18, Q2FY18 and Q3FY18 excludes the impact of currency
and revenue from Albumprinter.
CONSTANT-CURRENCY REVENUE GROWTH RATES
(YTD)
YTD
Q3FY16
YTD
Q3FY17
YTD
Q3FY18
Reported revenue growth 18 % 20 % 25 %
Currency impact 6 % 2 % (5)%
Revenue growth in constant currency 24 % 22 % 20 %
Impact of TTM acquisitions, divestitures & JVs (13)% (13)% (9)%
Revenue growth in constant currency ex. TTM acquisitions, divestitures & JVs 11 % 9 % 11 %
Reported revenue growth rate ex. TTM acquisitions, divestitures & JVs 5 % 7 % 16 %
CONSTANT-CURRENCY REVENUE GROWTH RATES
(Annual)
Total Company FY14 FY15 FY16 FY17
Reported Revenue Growth 9 % 18 % 20 % 19 %
Currency Impact (1)% 5 % 4 % 2 %
Revenue Growth in Constant Currency 8 % 23 % 24 % 21 %
Impact of TTM Acquisitions & JVs (4)% (14)% (13)% (13)%
Revenue growth in constant currency ex. TTM
acquisitions & JVs 4 % 9 % 11 % 8 %
FY2017, by Reportable Segments Vistaprint Upload & Print National Pen All OtherBusinesses
Reported Revenue Growth 7% 36 % 100 % (7)%
Currency Impact 2% 3 % — % — %
Revenue Growth in Constant Currency 9% 39 % 100 % (7)%
Impact of TTM Acquisitions & JVs —% (26)% (100)% — %
Revenue growth in constant currency ex. TTM
acquisitions & JVs 9% 13 % — % (7)%
Values may not sum to total due to rounding. Page 25 of 33
TWO-YEAR STACKED CONSTANT-CURRENCY ORGANIC REVENUE GROWTH RATES
(Quarterly)
Total Company Q3FY15 Q4FY15 Q1FY16 Q2FY16
Reported revenue growth 19 % 13 % 13 % 13 %
Currency impact 7 % 9 % 8 % 7 %
Revenue growth in constant currency 26 % 22 % 21 % 20 %
Impact of TTM acquisitions, divestitures & JVs (15)% (9)% (10)% (10)%
Revenue growth in constant currency ex. TTM acquisitions, divestitures & JVs 11 % 13 % 11 % 10 %
Total Company Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18
Reported revenue growth 29 % 26 % 18 % 16 % 26 % 18 % 27 % 32 % 16 %
Currency impact 2 % — % 1 % 2 % 2 % 2 % (3)% (5)% (8)%
Revenue growth in constant currency 31 % 26 % 19 % 18 % 28 % 20 % 24 % 27 % 8 %
Impact of TTM acquisitions, divestitures & JVs (21)% (15)% (13)% (10)% (17)% (11)% (12)% (16)% 3 %
Revenue growth in constant currency ex. TTM
acquisitions, divestitures & JVs 10 % 11 % 6 % 8 % 11 % 9 % 12 % 11 % 11 %
2-Year Stacked Organic Constant-Currency Q3'15+Q3'16
Q4'15+
Q4'16
Q1'16+
Q1'17
Q2'16+
Q2'17
Q3'16+
Q3'17
Q4'16+
Q4'17
Q1'17+
Q1'18
Q2'17+
Q2'18
Q3'17+
Q3'18
Year 1 (Earlier of the 2 Stacked Periods) 11 % 13 % 11 % 10 % 10 % 11 % 6 % 8 % 11 %
Year 2 (More Recent of the 2 Stacked Periods) 10 % 11 % 6 % 8 % 11 % 9 % 12 % 11 % 11 %
Year 1 + Year 2 21 % 24 % 17 % 18 % 21 % 20 % 18 % 19 % 22 %
Note: Q3FY17, Q4FY17, Q1FY18 and Q2FY18 total company revenue growth in constant currency excluding TTM acquisitions, divestitures and
joint ventures excludes the impact of currency and revenue from National Pen. Q1FY18, Q2FY18 and Q3FY18 excludes the impact of currency
and revenue from Albumprinter.
Values may not sum to total due to rounding. Page 26 of 33
TWO-YEAR STACKED CONSTANT-CURRENCY ORGANIC REVENUE GROWTH RATES, CONT'D
(Quarterly)
Vistaprint Q3FY15 Q4FY15 Q1FY16 Q2FY16
Reported revenue growth 4% 5% 3% 3%
Currency impact 7% 6% 5% 5%
Revenue growth in constant currency 11% 11% 8% 8%
Impact of TTM acquisitions, divestitures & JVs —% —% —% —%
Revenue growth in constant currency ex. TTM acquisitions, divestitures & JVs 11% 11% 8% 8%
Vistaprint Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18
Reported revenue growth 8% 12% 7% 7% 11% 5% 11 % 13 % 11 %
Currency impact 2% —% 1% 2% 1% 1% (1)% (4)% (4)%
Revenue growth in constant currency 10% 12% 8% 9% 12% 6% 10 % 9 % 7 %
Impact of TTM acquisitions, divestitures & JVs —% —% —% —% —% —% — % — % — %
Revenue growth in constant currency ex. TTM
acquisitions, divestitures & JVs 10% 12% 8% 9% 12% 6% 10 % 9 % 7 %
2-Year Stacked Organic Constant-Currency Q3'15+Q3'16
Q4'15+
Q4'16
Q1'16+
Q1'17
Q2'16+
Q2'17
Q3'16+
Q3'17
Q4'16+
Q4'17
Q1'17+
Q1'18
Q2'17+
Q2'18
Q3'17+
Q3'18
Year 1 (Earlier of the 2 Stacked Periods) 11% 11% 8% 8% 10% 12% 8 % 9 % 12 %
Year 2 (More Recent of the 2 Stacked Periods) 10% 12% 8% 9% 12% 6% 10 % 9 % 7 %
Year 1 + Year 2 21% 23% 16% 17% 22% 18% 18 % 18 % 19 %
Upload & Print Q3FY15 Q4FY15 Q1FY16 Q2FY16
Reported revenue growth N/A 74 % 98 % 112 %
Currency impact N/A 26 % 20 % 16 %
Revenue growth in constant currency N/A 100 % 118 % 128 %
Impact of TTM acquisitions, divestitures & JVs N/A (66)% (87)% (97)%
Revenue growth in constant currency ex. TTM acquisitions, divestitures & JVs N/A 34 % 31 % 31 %
Upload & Print Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18
Reported revenue growth 201 % 94 % 72 % 63 % 22 % 10% 22 % 26 % 29 %
Currency impact 2 % (2)% 1 % 3 % 5 % 4% (6)% (10)% (17)%
Revenue growth in constant currency 203 % 92 % 73 % 66 % 27 % 14% 16 % 16 % 12 %
Impact of TTM acquisitions, divestitures & JVs (178)% (71)% (61)% (55)% (14)% —% — % — % — %
Revenue growth in constant currency ex. TTM
acquisitions, divestitures & JVs 25 % 21 % 12 % 11 % 13 % 14% 16 % 16 % 12 %
2-Year Stacked Organic Constant-Currency Q3'15+Q3'16
Q4'15+
Q4'16
Q1'16+
Q1'17
Q2'16+
Q2'17
Q3'16+
Q3'17
Q4'16+
Q4'17
Q1'17+
Q1'18
Q2'17+
Q2'18
Q3'17+
Q3'18
Year 1 (Earlier of the 2 Stacked Periods) N/A 34 % 31 % 31 % 25 % 21% 12 % 11 % 13 %
Year 2 (More Recent of the 2 Stacked Periods) 25 % 21 % 12 % 11 % 13 % 14% 16 % 16 % 12 %
Year 1 + Year 2 25 % 55 % 43 % 42 % 38 % 35% 28 % 27 % 25 %
Values may not sum to total due to rounding. Page 27 of 33
GROSS PROFIT AND CONTRIBUTION PROFIT
(in millions except percentages)
Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18
Total revenue $436.8 $479.2 $443.7 $576.9 $550.6 $564.3 $563.3 $762.1 $636.1
Cost of revenue $196.9 $222.1 $213.1 $276.4 $268.5 $279.1 $283.8 $360.3 $319.2
Gross profit (revenue minus cost of revenue) $239.9 $257.1 $230.7 $300.5 $282.1 $285.2 $279.5 $401.8 $316.9
as a percent of total revenue 54.9% 53.7% 52.0% 52.1% 51.2% 50.5% 49.6% 52.7% 49.8%
Advertising expense and payment processing fees $81.3 $84.0 $86.4 $103.6 $109.4 $99.4 $105.0 $140.8 $118.5
Contribution profit (gross profit minus
advertising/processing fees) $158.6 $173.1 $144.3 $196.9 $172.7 $185.7 $174.5 $261.0 $198.4
as a percent of total revenue 36.3% 36.1% 32.5% 34.1% 31.4% 32.9% 31.0% 34.3% 31.2%
PROFIT (LOSS) BY REPORTABLE SEGMENT ("SEGMENT PROFIT")
(Quarterly and YTD, in thousands)
Q3
FY 2016
Q3
FY 2017
Q3
FY 2018
YTD
FY 2016
YTD
FY 2017
YTD
FY 2018
Vistaprint $ 45,631 $ 37,627 $ 57,661 $ 166,790 $ 129,915 $ 187,605
Upload and Print 15,448 12,983 17,367 40,868 43,232 54,605
National Pen — (3,226) 355 — (3,226) 19,185
All Other Businesses (3,996) (10,085) (9,342) 1,541 (21,944) (25,459)
Total Segment Profit $ 57,083 $ 37,299 $ 66,041 $ 209,199 $ 147,977 $ 235,936
Central and corporate costs ex. unallocated SBC (26,077) (26,017) (27,291) (71,771) (78,669) (79,400)
Unallocated SBC — (2,011) (8,600) — (8,773) (18,158)
Include: Realized (losses) gains on certain currency derivatives
not included in operating income 1,391 4,591 (4,811) 5,026 13,318 (8,958)
Adjusted NOP $ 32,397 $ 13,862 $ 25,339 $ 142,454 $ 73,853 $ 129,420
Exclude: Realized losses (gains) on certain currency derivatives not
included in operating income (1,391) (4,591) 4,811 (5,026) (13,318) 8,958
Acquisition-related amortization and depreciation (10,879) (13,508) (13,030) (30,316) (33,740) (38,330)
Earn-out related charges¹ (883) (4,882) — (4,585) (28,139) (2,391)
Share-based compensation related to investment consideration (1,168) (375) — (3,705) (5,079) (1,047)
Certain impairments (37,582) (9,556) — (40,604) (9,556) —
Restructuring-related charges — (24,790) (2,331) (381) (25,890) (14,686)
Interest expense for Waltham, MA lease 1,975 1,897 1,838 4,326 5,823 5,645
Gain on the purchase or sale of subsidiaries2 — — — — — 48,380
Total income from operations $ (17,531) $ (41,943) $ 16,627 $ 62,163 $ (36,046) $ 135,949
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 six months ended December 31, 2017.
Values may not sum to total due to rounding. Page 28 of 33
ADJUSTED NET OPERATING PROFIT
(Quarterly, in millions except percentages)
Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18
GAAP operating income (loss) ($17.5) $16.0 ($27.8) $33.7 ($41.9) ($9.7) $46.6 $72.7 $16.6
Exclude expense (benefit) impact of:
Acquisition-related amortization and depreciation $10.9 $10.5 $10.2 $10.0 $13.5 $12.7 $12.7 $12.6 $13.0
Earn-out related charges¹ $0.9 $1.8 $16.2 $7.0 $4.9 $12.2 $1.1 $1.3 $—
Share-based compensation related to
investment consideration $1.2 $1.1 $4.1 $0.6 $0.4 $4.6 $— $1.0 $—
Certain impairments² $37.6 $1.2 $— $— $9.6 $— $— $— $—
Restructuring related charges $— $— $— $1.1 $24.8 $0.8 $0.9 $11.5 $2.3
Less: Interest expense associated with Waltham,
MA lease ($2.0) ($2.0) ($2.0) ($2.0) ($1.9) ($1.9) ($1.9) ($1.9) ($1.8)
Less: Gain on the purchase or sale of
subsidiaries3 $— $— $— $— $— $— ($48.4) $— $—
Include: Realized (losses) gains on certain
currency derivatives not included in operating
income
$1.4 $0.8 $1.9 $6.8 $4.6 $3.2 ($0.6) ($3.5) ($4.8)
Adjusted NOP $32.4 $29.6 $2.7 $57.3 $13.9 $21.9 $10.4 $93.7 $25.3
Adjusted NOP as a percent of total revenue 7.4% 6.2% 0.6% 9.9% 2.5% 3.9% 1.8% 12.3% 4.0%
ADJUSTED NET OPERATING PROFIT
(TTM, in millions)
TTM
Q3FY16
TTM
Q4FY16
TTM
Q1FY17
TTM
Q2FY17
TTM
Q3FY17
TTM
Q4FY17
TTM
Q1FY18
TTM
Q2FY18
TTM
Q3FY18
GAAP operating income (loss) $77.4 $78.2 $38.3 $4.4 ($20.0) ($45.7) $28.7 $67.7 $126.3
Exclude expense (benefit) impact of:
Acquisition-related amortization and depreciation $37.7 $40.8 $41.3 $41.6 $44.3 $46.4 $48.9 $51.5 $51.0
Earn-out related charges¹ $5.0 $6.4 $22.3 $25.9 $29.9 $40.4 $25.3 $19.5 $14.6
Share-based compensation related to
investment consideration $4.2 $4.8 $8.1 $7.0 $6.2 $9.6 $5.6 $6.0 $5.6
Certain impairments² $40.6 $41.8 $41.8 $38.8 $10.8 $9.6 $9.6 $9.6 $—
Restructuring related charges $2.9 $0.4 $0.1 $1.1 $25.9 $26.7 $27.6 $38.0 $15.5
Less: Interest expense associated with Waltham,
MA lease ($4.3) ($6.3) ($7.9) ($7.9) ($7.8) ($7.7) ($7.7) ($7.6) ($7.5)
Less: Gain on the purchase or sale of
subsidiaries3 $— $— $— $— $— $— ($48.4) ($48.4) ($48.4)
Include: Realized (losses) gains on certain
currency derivatives not included in operating
income
$6.5 $5.9 $7.4 $11.0 $14.2 $16.5 $14.0 $3.6 ($5.8)
Adjusted NOP $169.9 $172.0 $151.5 $122.0 $103.4 $95.7 $103.5 $139.8 $151.3
1Includes expense recognized for the change in fair value of contingent consideration & compensation expense related to cash-based 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."
3Includes 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 six months ended December 31, 2017.
Values may not sum to total due to rounding. Page 29 of 33
ADJUSTED EBITDA
(Quarterly, in millions)
Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18
GAAP operating income (loss) ($17.5) $16.0 ($27.8) $33.7 ($41.9) ($9.7) $46.6 $72.7 $16.6
Depreciation and amortization $34.6 $35.5 $35.5 $37.0 $44.5 $42.6 $42.4 $41.3 $43.4
Waltham, MA lease depreciation adjustment ($1.0) ($1.0) ($1.0) ($1.0) ($1.0) ($1.0) ($1.0) ($1.0) ($1.0)
Share-based compensation expense1 $5.9 $5.6 $11.6 $11.3 $6.5 $13.0 $6.8 $12.8 $12.8
Proceeds from insurance $— $0.8 $0.7 $— $0.2 $— $— $0.4 $0.3
Interest expense associated with Waltham, MA
lease ($2.0) ($2.0) ($2.0) ($2.0) ($1.9) ($1.9) ($1.9) ($1.9) ($1.8)
Earn-out related charges $0.9 $1.8 $16.2 $7.0 $4.9 $12.2 $1.1 $1.3 $—
Certain impairments $37.6 $1.2 $— $— $9.6 $— $— $— $—
Gain on purchase or sale of subsidiaries $— $— $— $— $— $— ($48.4) $— $—
Restructuring related charges $— $— $— $1.1 $24.8 $0.8 $0.9 $11.5 $2.3
Realized gains (losses) on currency derivatives
not included in operating income $1.4 $0.8 $1.9 $6.8 $4.6 $3.2 ($0.6) ($3.5) ($4.8)
Adjusted EBITDA2,3 $59.8 $58.9 $35.1 $93.9 $50.2 $59.2 $45.8 $133.5 $67.8
ADJUSTED EBITDA
(TTM, in millions)
TTM
Q3FY16
TTM
Q4FY16
TTM
Q1FY17
TTM
Q2FY17
TTM
Q3FY17
TTM
Q4FY17
TTM
Q1FY18
TTM
Q2FY18
TTM
Q3FY18
GAAP operating income (loss) $77.4 $78.2 $38.3 $4.4 ($20.0) ($45.7) $28.7 $67.7 $126.3
Depreciation and amortization $124.4 $132.1 $137.4 $142.6 $152.6 $159.7 $166.5 $170.8 $169.7
Waltham, MA lease depreciation adjustment ($2.4) ($3.4) ($4.1) ($4.1) ($4.1) ($4.1) ($4.1) ($4.1) ($4.1)
Share-based compensation expense1 $23.5 $23.8 $29.2 $34.4 $35.0 $42.4 $37.6 $39.1 $45.4
Proceeds from insurance $3.1 $4.0 $3.0 $1.5 $1.6 $0.8 $0.2 $0.5 $0.7
Interest expense associated with Waltham, MA
lease ($4.3) ($6.3) ($7.9) ($7.9) ($7.8) ($7.7) ($7.7) ($7.6) ($7.5)
Earn-out related charges $5.0 $6.4 $22.3 $25.9 $29.9 $40.4 $25.3 $19.5 $14.6
Certain impairments $40.6 $41.8 $41.8 $38.8 $10.8 $9.6 $9.6 $9.6 $0.0
Gain on purchase or sale of subsidiaries $— $— $— $— $— $— ($48.4) ($48.4) ($48.4)
Restructuring related charges $2.9 $0.4 $0.1 $1.1 $25.9 $26.7 $27.6 $38.0 $15.5
Realized gains (losses) on currency derivatives
not included in operating income $6.5 $5.9 $7.4 $11.0 $14.2 $16.5 $14.0 $3.6 ($5.8)
Adjusted EBITDA2,3 $276.7 $282.8 $267.6 $247.6 $238.0 $238.4 $249.2 $288.7 $306.4
1In Q3FY17, Q4FY17, Q1FY18, Q2FY18 and Q3FY18 the SBC expense listed here excludes the portion included in restructuring-related charges
to avoid double counting.
2This letter uses the definition of Adjusted EBITDA as outlined above and therefore does not include the pro-forma impact of acquisitions; however,
our debt covenants allow for the inclusion of pro-forma impacts to Adjusted EBITDA.
3Adjusted EBITDA includes 100% of the results of our consolidated subsidiaries and therefore does not give effect to Adjusted EBITDA attributable
to non-controlling interests. This is to most closely align to our debt covenant and cash flow reporting.
Values may not sum to total due to rounding. Page 30 of 33
FREE CASH FLOW
(Quarterly, in millions)
Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18
Net cash provided by operating activities $32.9 $52.1 $9.6 $105.1 $9.0 $33.1 $16.4 $160.4 ($32.1)
Purchases of property, plant and equipment ($19.1) ($17.8) ($19.3) ($16.9) ($20.7) ($17.2) ($20.5) ($18.2) ($8.8)
Purchases of intangible assets not related to
acquisitions ($0.1) $— $— ($0.1) $— ($0.1) $— ($0.3) $—
Capitalization of software and website
development costs ($6.1) ($8.1) ($8.3) ($10.8) ($9.6) ($8.6) ($8.9) ($9.2) ($11.4)
Payment of contingent earn-out liabilities $— $8.6 $— $— $— $— $— $— $49.2
Proceeds from insurance related to investing
activities $— $— $— $— $— $— $— $— $—
Free cash flow $7.7 $34.8 ($18.1) $77.3 ($21.3) $7.1 ($13.0) $132.7 ($3.0)
Reference:
Value of capital leases $4.2 $0.3 $2.1 $2.8 $7.2 $2.3 $— $0.1 $0.4
Cash restructuring payments $0.4 $— $— $— $7.5 $7.5 $4.1 $6.8 $4.2
Cash paid during the period for interest $4.9 $14.7 $5.4 $14.8 $7.3 $17.8 $8.4 $17.4 $8.0
Interest expense for Waltham, MA Lease ($2.0) ($2.0) ($2.0) ($2.0) ($1.9) ($1.9) ($1.9) ($1.9) ($1.8)
Cash interest related to borrowing $2.9 $12.8 $3.4 $12.8 $5.4 $15.9 $6.5 $15.5 $6.2
FREE CASH FLOW
(TTM, in millions)
TTM
Q3FY16
TTM
Q4FY16
TTM
Q1FY17
TTM
Q2FY17
TTM
Q3FY17
TTM
Q4FY17
TTM
Q1FY18
TTM
Q2FY18
TTM
Q3FY18
Net cash provided by operating activities $242.1 $247.4 $229.5 $199.7 $175.8 $156.7 $163.5 $218.8 $177.7
Purchases of property, plant and equipment ($88.3) ($80.4) ($75.4) ($73.1) ($74.7) ($74.2) ($75.3) ($76.6) ($64.7)
Purchases of intangible assets not related to
acquisitions ($0.5) ($0.5) ($0.1) ($0.2) ($0.1) ($0.2) ($0.2) ($0.4) ($0.4)
Capitalization of software and website
development costs ($23.0) ($26.3) ($29.7) ($33.3) ($36.8) ($37.3) ($37.9) ($36.3) ($38.1)
Payment of contingent earn-out liabilities $6.8 $8.6 $8.6 $8.6 $8.6 $— $— $— $49.2
Proceeds from insurance related to investing
activities $3.6 $3.6 $1.5 $— $— $— $— $— $—
Free cash flow $140.7 $152.4 $134.5 $101.7 $72.7 $45.1 $50.1 $105.6 $123.8
Reference:
Value of capital leases $11.3 $7.5 $7.2 $9.4 $12.4 $14.4 $12.3 $9.6 $2.9
Cash restructuring payments $3.1 $2.6 $0.4 $0.4 $7.5 $15.0 $19.1 $25.9 $22.6
Cash paid during the period for interest $24.0 $37.6 $40.0 $39.8 $42.2 $45.3 $48.3 $51.0 $51.7
Interest expense for Waltham, MA Lease ($4.3) ($6.3) ($7.9) ($7.9) ($7.8) ($7.7) ($7.7) ($7.6) ($7.5)
Cash interest related to borrowing $19.7 $31.3 $32.1 $31.9 $34.4 $37.5 $40.7 $43.4 $44.2
Values may not sum to total due to rounding. Page 31 of 33
FREE CASH FLOW
(YTD, in millions)
YTD
Q3FY16
YTD
Q3FY17
YTD
Q3FY18
Net cash provided by operating activities $195.2 $123.6 $144.6
Purchases of property, plant and equipment ($62.6) ($56.9) ($47.4)
Purchases of intangible assets not related to acquisitions ($0.5) ($0.1) ($0.3)
Capitalization of software and website development costs ($18.2) ($28.7) ($29.5)
Payment of contingent earn-out liabilities $— $— $49.2
Proceeds from insurance related to investing activities $3.6 $— $—
Free cash flow $117.6 $37.9 $116.6
Reference:
Value of capital leases $7.2 $12.1 $0.5
Cash restructuring payments $2.6 $7.5 $15.1
Cash paid during the period for interest $22.9 $27.4 $33.9
Interest expense for Waltham, MA Lease ($4.3) ($5.8) ($5.6)
Cash interest related to borrowing $18.6 $21.6 $28.2
RETURN ON INVESTED CAPITAL
(TTM, in millions except percentages)
Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18
Total Debt $696.6 $678.5 $682.5 $876.1 $891.5 $876.7 $820.8 $700.5 $812.6
Redeemable Non-Controlling Interest $64.9 $65.3 $64.9 $41.8 $42.6 $45.4 $83.8 $85.5 $87.8
Total Shareholders Equity $151.8 $166.1 $147.5 $99.8 $84.7 $75.2 $84.5 $119.7 $93.6
Excess Cash¹ — — — — — — — — —
Invested Capital² $913.3 $909.9 $895.0 $1,017.8 $1,018.8 $997.3 $989.1 $905.7 $994.0
Average Invested Capital³ $818.4 $847.8 $872.2 $934.0 $960.3 $982.2 $1,005.7 $977.7 $971.5
TTM
Q3FY16
TTM
Q4FY16
TTM
Q1FY17
TTM
Q2FY17
TTM
Q3FY17
TTM
Q4FY17
TTM
Q1FY18
TTM
Q2FY18
TTM
Q3FY18
Adjusted NOP $169.9 $172.0 $151.5 $122.0 $103.4 $95.7 $103.5 $139.8 $151.3
Less: Cash Taxes $14.7 $19.8 $23.6 $29.3 $44.6 $49.3 $46.2 $39.5 $31.3
Adjusted NOPAT $155.2 $152.3 $127.9 $92.6 $58.8 $46.4 $57.3 $100.3 $120.0
Average Invested Capital3 (from above) $818.4 $847.8 $872.2 $934.0 $960.3 $982.2 $1,005.7 $977.7 $971.5
TTM Adjusted ROIC (cash tax) 19% 18% 15% 10% 6% 5% 6% 10% 12%
Adjusted NOPAT (from above) $155.2 $152.3 $127.9 $92.6 $58.8 $46.4 $57.3 $100.3 $120.0
Less: SBC included in Adjusted NOP4 $19.3 $18.9 $21.0 $27.4 $28.8 $32.7 $32.0 $33.2 $39.8
TTM Adjusted NOPAT excluding SBC $174.5 $171.2 $148.9 $120.0 $87.6 $79.1 $89.4 $133.6 $159.9
Average Invested Capital3 (from above) $818.4 $847.8 $872.2 $934.0 $960.3 $982.2 $1,005.7 $977.7 $971.5
TTM Adjusted ROIC excluding SBC
(cash tax) 21% 20% 17% 13% 9% 8% 9% 14% 16%
1Excess cash is cash and equivalents > 5% of last twelve month revenues; if negative, capped at zero.
2,3Average invested capital represents a four quarter average of total debt, redeemable non-controlling interests and total shareholder equity, less
excess cash.
4Adjusted NOP already excludes SBC related to investment consideration and restructuring. Here we remove the remaining SBC, so that the
"Adjusted NOPAT excluding SBC" excludes all SBC.
Values may not sum to total due to rounding. Page 32 of 33
ABOUT CIMPRESS:
Cimpress N.V. (Nasdaq: CMPR) invests in and builds customer-focused, entrepreneurial, mass-customization
businesses for the long term. Mass customization empowers customers who need small individual orders of
uniquely personalized products. Cimpress businesses include Drukwerkdeal, Exaprint, National Pen, Pixartprinting,
Printi, Vistaprint and WIRmachenDRUCK.
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.
CONTACT INFORMATION:
Investor Relations: Media Relations:
Jenna Berg Paul McKinlay
ir@cimpress.com mediarelations@cimpress.com
+1.781.652.6480
SAFE HARBOR STATEMENT:
This earnings commentary 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 businesses,
revenues, and cash flows; our investments in our business, including new products and services and shipping
pricing reductions, and the effects of the investments; the effects of and savings from our restructurings; and our
expectations for future share-based compensation expense and currency exchange rates.
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 document as a result of various important factors, including but not limited to
flaws in the assumptions and judgments upon which our forecasts are based; 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 mass
customization platform to drive the efficiencies and competitive advantage we expect; the failure of our
restructurings to have the effects that we expect; loss of key personnel; our ability to accurately forecast the savings
and charges relating to restructuring activities and share-based compensation; unanticipated changes in our
markets, customers, or business; 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; unexpected
currency fluctuations; changes in the laws and regulations that affect our businesses; our failure to maintain
compliance with the covenants in our senior secured revolving credit facility and senior unsecured notes or to pay
our debts when due; competitive pressures; general economic conditions; and other factors described in our
Form 10-Q for the fiscal quarter ended December 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.
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