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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________________
Form 10-Q
| | | | | | | | |
(Mark One) | |
☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| For the quarterly period ended | March 31, 2022 |
or |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| For the transition period from to |
Commission file number 000-51539
_________________________________
Cimpress plc
(Exact Name of Registrant as Specified in Its Charter)
_________________________________
| | | | | | | | | | | |
Ireland | | 98-0417483 |
(State or Other Jurisdiction of Incorporation or Organization) | | (I.R.S. Employer Identification No.) |
Building D, Xerox Technology Park A91 H9N9,
Dundalk, Co. Louth
Ireland
(Address of Principal Executive Offices)
Registrant’s telephone number, including area code: 353 42 938 8500
Securities Registered Pursuant to Section 12(b) of the Act:
| | | | | | | | | | | | | | |
Title of Each Class | | Trading Symbol(s) | | Name of Exchange on Which Registered |
Ordinary Shares, nominal value of €0.01 per share | | CMPR | | NASDAQ Global Select Market |
______________________________
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
| | | | | | | | | | | | | | | | | |
Large accelerated filer | þ | Accelerated filer | ☐ | Non-accelerated filer | ☐ |
| | Smaller reporting company | ☐ | | |
| | Emerging growth company | ☐ | | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2). Yes ☐ No þ
As of April 25, 2022, there were 26,105,813 Cimpress plc ordinary shares outstanding.
CIMPRESS PLC
QUARTERLY REPORT ON FORM 10-Q
For the Three and Nine Months Ended March 31, 2022
TABLE OF CONTENTS
| | | | | | | | |
| | Page |
PART I FINANCIAL INFORMATION | |
Item 1. Financial Statements (unaudited) | |
Consolidated Balance Sheets as of March 31, 2022 and June 30, 2021 | |
Consolidated Statements of Operations for the three and nine months ended March 31, 2022 and 2021 | |
Consolidated Statements of Comprehensive Income for the three and nine months ended March 31, 2022 and 2021 | |
Consolidated Statements of Shareholders' Deficit for the three and nine months ended March 31, 2022 and 2021 | |
Consolidated Statements of Cash Flows for the nine months ended March 31, 2022 and 2021 | |
Notes to Consolidated Financial Statements | |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3. Quantitative and Qualitative Disclosures About Market Risk | |
Item 4. Controls and Procedures | |
| | |
PART II OTHER INFORMATION | |
Item 1A. Risk Factors | |
Item 6. Exhibits | |
Signatures | |
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
CIMPRESS PLC
CONSOLIDATED BALANCE SHEETS
(unaudited in thousands, except share and per share data)
| | | | | | | | | | | |
| March 31, 2022 | | June 30, 2021 |
Assets | | | |
Current assets: | | | |
Cash and cash equivalents | $ | 161,512 | | | $ | 183,023 | |
Marketable securities | 95,637 | | | 152,248 | |
Accounts receivable, net of allowances of $6,614 and $9,404, respectively | 66,702 | | | 50,679 | |
Inventory | 97,919 | | | 70,044 | |
Prepaid expenses and other current assets | 108,740 | | | 72,504 | |
| | | |
Total current assets | 530,510 | | | 528,498 | |
Property, plant and equipment, net | 298,827 | | | 328,679 | |
Operating lease assets, net | 79,051 | | | 87,626 | |
Software and website development costs, net | 92,266 | | | 87,690 | |
Deferred tax assets | 113,059 | | | 149,618 | |
Goodwill | 787,572 | | | 726,979 | |
Intangible assets, net | 171,813 | | | 186,744 | |
Marketable securities, non-current | 12,116 | | | 50,713 | |
Other assets | 38,296 | | | 35,951 | |
Total assets | $ | 2,123,510 | | | $ | 2,182,498 | |
Liabilities, noncontrolling interests and shareholders’ deficit | | | |
Current liabilities: | | | |
Accounts payable | $ | 229,774 | | | $ | 199,831 | |
Accrued expenses | 262,620 | | | 247,513 | |
Deferred revenue | 59,556 | | | 50,868 | |
Short-term debt | 10,922 | | | 9,895 | |
Operating lease liabilities, current | 28,293 | | | 26,551 | |
Other current liabilities | 27,206 | | | 103,515 | |
| | | |
Total current liabilities | 618,371 | | | 638,173 | |
Deferred tax liabilities | 30,682 | | | 27,433 | |
Long-term debt | 1,699,434 | | | 1,732,511 | |
| | | |
Operating lease liabilities, non-current | 55,888 | | | 66,222 | |
Other liabilities | 62,753 | | | 96,410 | |
Total liabilities | 2,467,128 | | | 2,560,749 | |
Commitments and contingencies (Note 13) | | | |
Redeemable noncontrolling interests | 119,834 | | | 71,120 | |
Shareholders’ deficit: | | | |
Preferred shares, nominal value €0.01 per share, 100,000,000 shares authorized; none issued and outstanding | — | | | — | |
Ordinary shares, nominal value €0.01 per share, 100,000,000 shares authorized; 44,080,627 shares issued; 26,104,993 and 26,035,910 shares outstanding, respectively | 615 | | | 615 | |
Deferred ordinary shares, nominal value €1.00 per share, 25,000 shares authorized, none and 25,000 issued and outstanding, respectively | — | | | 28 | |
Treasury shares, at cost, 17,975,634 and 18,044,717 shares, respectively | (1,363,956) | | | (1,368,595) | |
Additional paid-in capital | 488,149 | | | 459,904 | |
Retained earnings | 461,363 | | | 530,159 | |
Accumulated other comprehensive loss | (49,623) | | | (71,482) | |
| | | |
| | | |
Total shareholders' deficit | (463,452) | | | (449,371) | |
Total liabilities, noncontrolling interests and shareholders’ deficit | $ | 2,123,510 | | | $ | 2,182,498 | |
| | | |
See accompanying notes.
CIMPRESS PLC
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited in thousands, except share and per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, | | Nine Months Ended March 31, | |
| 2022 | | 2021 | | 2022 | | 2021 | | | |
Revenue | $ | 657,412 | | | $ | 573,362 | | | $ | 2,164,727 | | | $ | 1,940,766 | | | | |
Cost of revenue (1) | 347,452 | | | 296,533 | | | 1,110,378 | | | 976,115 | | | | |
Technology and development expense (1) | 75,291 | | | 62,572 | | | 212,835 | | | 186,097 | | | | |
Marketing and selling expense (1) | 194,618 | | | 154,472 | | | 577,931 | | | 474,944 | | | | |
General and administrative expense (1) | 50,888 | | | 62,358 | | | 144,162 | | | 147,149 | | | | |
Amortization of acquired intangible assets | 14,180 | | | 13,506 | | | 41,520 | | | 40,264 | | | | |
Restructuring expense | 3,420 | | | (382) | | | 3,418 | | | 1,714 | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
(Loss) income from operations | (28,437) | | | (15,697) | | | 74,483 | | | 114,483 | | | | |
Other income (expense), net | 12,321 | | | 9,785 | | | 38,330 | | | (16,167) | | | | |
Interest expense, net | (24,247) | | | (29,002) | | | (75,304) | | | (89,659) | | | | |
| | | | | | | | | | |
(Loss) income before income taxes | (40,363) | | | (34,914) | | | 37,509 | | | 8,657 | | | | |
Income tax expense | 29,529 | | | 3,927 | | | 56,208 | | | 23,675 | | | | |
Net loss | (69,892) | | | (38,841) | | | (18,699) | | | (15,018) | | | | |
Add: Net (income) attributable to noncontrolling interest | (1,925) | | | (209) | | | (5,027) | | | (2,500) | | | | |
Net loss attributable to Cimpress plc | $ | (71,817) | | | $ | (39,050) | | | $ | (23,726) | | | $ | (17,518) | | | | |
Basic net loss per share attributable to Cimpress plc | $ | (2.75) | | | $ | (1.50) | | | $ | (0.91) | | | $ | (0.67) | | | | |
Diluted net loss per share attributable to Cimpress plc | $ | (2.75) | | | $ | (1.50) | | | $ | (0.91) | | | $ | (0.67) | | | | |
Weighted average shares outstanding — basic | 26,102,610 | | | 26,003,675 | | | 26,090,460 | | | 25,984,300 | | | | |
Weighted average shares outstanding — diluted | 26,102,610 | | | 26,003,675 | | | 26,090,460 | | | 25,984,300 | | | | |
____________________________________________
(1) Share-based compensation is allocated as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, | | Nine Months Ended March 31, |
| 2022 | | 2021 | | 2022 | | 2021 | | |
Cost of revenue | $ | 137 | | | $ | 99 | | | $ | 380 | | | $ | 233 | | | |
Technology and development expense | 3,397 | | | 2,284 | | | 9,655 | | | 5,690 | | | |
Marketing and selling expense | 2,961 | | | 1,808 | | | 8,436 | | | 4,247 | | | |
General and administrative expense | 6,209 | | | 5,354 | | | 17,744 | | | 12,901 | | | |
| | | | | | | | | |
See accompanying notes.
CIMPRESS PLC
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, | | Nine Months Ended March 31, |
| 2022 | | 2021 | | 2022 | | 2021 | | |
Net loss | $ | (69,892) | | | $ | (38,841) | | | $ | (18,699) | | | $ | (15,018) | | | |
Other comprehensive loss, net of tax: | | | | | | | | | |
Foreign currency translation (losses) gains, net of hedges | (4,281) | | | (14,571) | | | (922) | | | 192 | | | |
Net unrealized gains on derivative instruments designated and qualifying as cash flow hedges | 7,222 | | | 5,809 | | | 2,799 | | | 13,447 | | | |
Amounts reclassified from accumulated other comprehensive loss to net loss on derivative instruments | 4,401 | | | (3,085) | | | 17,715 | | | (8,382) | | | |
| | | | | | | | | |
| | | | | | | | | |
Gain (loss) on pension benefit obligation, net | — | | | — | | | 444 | | | (336) | | | |
Comprehensive (loss) income | (62,550) | | | (50,688) | | | 1,337 | | | (10,097) | | | |
Add: Comprehensive (income) loss attributable to noncontrolling interests | (1,563) | | | 1,260 | | | (3,204) | | | (3,720) | | | |
Total comprehensive loss attributable to Cimpress plc | $ | (64,113) | | | $ | (49,428) | | | $ | (1,867) | | | $ | (13,817) | | | |
See accompanying notes.
CIMPRESS PLC
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' DEFICIT
(unaudited in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ordinary Shares | | Deferred Ordinary Shares | | Treasury Shares | | | | | | | | |
| Number of Shares Issued | | Amount | | Number of Shares Issued | | Amount | | Number of Shares | | Amount | | Additional Paid-in Capital | | Retained Earnings | | Accumulated Other Comprehensive Loss | | Total Shareholders’ Deficit |
Balance at June 30, 2020 | 44,080 | | | $ | 615 | | | 25 | | | $ | 28 | | | (18,195) | | | $ | (1,376,496) | | | $ | 438,616 | | | $ | 618,437 | | | $ | (88,676) | | | $ | (407,476) | |
Restricted share units vested, net of shares withheld for taxes | — | | | — | | | — | | | — | | | 118 | | | 7,773 | | | (13,366) | | | — | | | — | | | (5,593) | |
| | | | | | | | | | | | | | | | | | | |
Share-based compensation expense | — | | | — | | | — | | | — | | | — | | | — | | | 8,577 | | | — | | | — | | | 8,577 | |
Net loss attributable to Cimpress plc | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (10,755) | | | — | | | (10,755) | |
Net unrealized gain on derivative instruments designated and qualifying as cash flow hedges | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 1,765 | | | 1,765 | |
Foreign currency translation, net of hedges | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (609) | | | (609) | |
Unrealized loss on pension benefit obligation, net of tax | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (336) | | | (336) | |
Balance at September 30, 2020 | 44,080 | | | $ | 615 | | | 25 | | | $ | 28 | | | (18,077) | | | $ | (1,368,723) | | | $ | 433,827 | | | $ | 607,682 | | | $ | (87,856) | | | $ | (414,427) | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Share-based compensation expense | — | | | — | | | — | | | — | | | — | | | — | | | 5,036 | | | — | | | — | | | 5,036 | |
Net income attributable to Cimpress plc | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 32,287 | | | — | | | 32,287 | |
Redeemable noncontrolling interest accretion to redemption value | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (1,086) | | | — | | | (1,086) | |
| | | | | | | | | | | | | | | | | | | |
Net unrealized gain on derivative instruments designated and qualifying as cash flow hedges | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 576 | | | 576 | |
Foreign currency translation, net of hedges | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 12,683 | | | 12,683 | |
| | | | | | | | | | | | | | | | | | | |
Balance at December 31, 2020 | 44,080 | | | $ | 615 | | | 25 | | | $ | 28 | | | (18,077) | | | $ | (1,368,723) | | | $ | 438,863 | | | $ | 638,883 | | | $ | (74,597) | | | $ | (364,931) | |
See accompanying notes.
CIMPRESS PLC
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' DEFICIT (CONTINUED)
(unaudited in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ordinary Shares | | Deferred Ordinary Shares | | Treasury Shares | | | | | | | | |
| Number of Shares Issued | | Amount | | Number of Shares Issued | | Amount | | Number of Shares | | Amount | | Additional Paid-in Capital | | Retained Earnings | | Accumulated Other Comprehensive Loss | | Total Shareholders’ Deficit |
Balance at December 31, 2020 | 44,080 | | | $ | 615 | | | 25 | | | $ | 28 | | | (18,077) | | | $ | (1,368,723) | | | $ | 438,863 | | | $ | 638,883 | | | $ | (74,597) | | | $ | (364,931) | |
Restricted share units vested, net of shares withheld for taxes | — | | | — | | | — | | | — | | | — | | | 2 | | | (3) | | | — | | | — | | | (1) | |
| | | | | | | | | | | | | | | | | | | |
Share-based compensation expense | — | | | — | | | — | | | — | | | — | | | — | | | 9,572 | | | — | | | — | | | 9,572 | |
Net loss attributable to Cimpress plc | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (39,050) | | | — | | | (39,050) | |
Net unrealized loss on derivative instruments designated and qualifying as cash flow hedges | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (13,102) | | | (13,102) | |
Foreign currency translation, net of hedges | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 2,724 | | | 2,724 | |
| | | | | | | | | | | | | | | | | | | |
Balance at March 31, 2021 | 44,080 | | | $ | 615 | | | 25 | | | $ | 28 | | | (18,077) | | | $ | (1,368,721) | | | $ | 448,432 | | | $ | 599,833 | | | $ | (84,975) | | | $ | (404,788) | |
See accompanying notes. |
CIMPRESS PLC
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' DEFICIT (CONTINUED)
(unaudited in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ordinary Shares | | Deferred Ordinary Shares | | Treasury Shares | | | | | | | | | | | | | | | | | | | | | | | | |
| Number of Shares Issued | | Amount | | Number of Shares Issued | | Amount | | Number of Shares | | Amount | | Additional Paid-in Capital | | Retained Earnings | | Accumulated Other Comprehensive Loss | | Total Shareholders’ Deficit | | | | | | | | | | | | | | | | |
Balance at June 30, 2021 | 44,080 | | | $ | 615 | | | 25 | | | $ | 28 | | | (18,045) | | | $ | (1,368,595) | | | $ | 459,904 | | | $ | 530,159 | | | $ | (71,482) | | | $ | (449,371) | | | | | | | | | | | | | | | | | |
Restricted share units vested, net of shares withheld for taxes | — | | | — | | | — | | | — | | | 54 | | | 3,516 | | | (6,095) | | | — | | | — | | | (2,579) | | | | | | | | | | | | | | | | | |
Share-based compensation expense | — | | | — | | | — | | | — | | | — | | | — | | | 11,129 | | | — | | | — | | | 11,129 | | | | | | | | | | | | | | | | | |
Net loss attributable to Cimpress plc | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (6,698) | | | — | | | (6,698) | | | | | | | | | | | | | | | | | |
Redeemable noncontrolling interest accretion to redemption value | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (7,592) | | | — | | | (7,592) | | | | | | | | | | | | | | | | | |
Net unrealized gain on derivative instruments designated and qualifying as cash flow hedges | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 3,621 | | | 3,621 | | | | | | | | | | | | | | | | | |
Foreign currency translation, net of hedges | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 674 | | | 674 | | | | | | | | | | | | | | | | | |
Balance at September 30, 2021 | 44,080 | | | $ | 615 | | | 25 | | | $ | 28 | | | (17,991) | | | $ | (1,365,079) | | | $ | 464,938 | | | $ | 515,869 | | | $ | (67,187) | | | $ | (450,816) | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Restricted share units vested, net of shares withheld for taxes | — | | | — | | | — | | | — | | | 11 | | | 743 | | | (1,062) | | | — | | | — | | | (319) | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Share-based compensation expense | — | | | — | | | — | | | — | | | — | | | — | | | 12,398 | | | — | | | — | | | 12,398 | | | | | | | | | | | | | | | | | |
Net income attributable to Cimpress plc | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 54,789 | | | — | | | 54,789 | | | | | | | | | | | | | | | | | |
Redeemable noncontrolling interest accretion to redemption value | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (8,444) | | | — | | | (8,444) | | | | | | | | | | | | | | | | | |
Purchase of noncontrolling interest | — | | | — | | | — | | | — | | | — | | | — | | | (272) | | | — | | | — | | | (272) | | | | | | | | | | | | | | | | | |
Net unrealized gain on derivative instruments designated and qualifying as cash flow hedges | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 5,270 | | | 5,270 | | | | | | | | | | | | | | | | | |
Foreign currency translation, net of hedges | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 4,146 | | | 4,146 | | | | | | | | | | | | | | | | | |
Unrealized gain on pension benefit obligation, net of tax | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 444 | | | 444 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance at December 31, 2021 | 44,080 | | | $ | 615 | | | 25 | | | $ | 28 | | | (17,980) | | | $ | (1,364,336) | | | $ | 476,002 | | | $ | 562,214 | | | $ | (57,327) | | | $ | (382,804) | | | | | | | | | | | | | | | | | |
See accompanying notes.
CIMPRESS PLC
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' DEFICIT (CONTINUED)
(unaudited in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ordinary Shares | | Deferred Ordinary Shares | | Treasury Shares | | | | | | | | | | | | | | | | | | | | | | | | |
| Number of Shares Issued | | Amount | | Number of Shares Issued | | Amount | | Number of Shares | | Amount | | Additional Paid-in Capital | | Retained Earnings | | Accumulated Other Comprehensive Loss | | Total Shareholders’ Deficit | | | | | | | | | | | | | | | | |
Balance at December 31, 2021 | 44,080 | | | $ | 615 | | | 25 | | | $ | 28 | | | (17,980) | | | $ | (1,364,336) | | | $ | 476,002 | | | $ | 562,214 | | | $ | (57,327) | | | $ | (382,804) | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Restricted share units vested, net of shares withheld for taxes | — | | | — | | | — | | | — | | | 4 | | | 380 | | | (580) | | | — | | | — | | | (200) | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Purchase and cancellation of deferred ordinary shares | — | | | — | | | (25) | | | (28) | | | — | | | — | | | — | | | — | | | — | | | (28) | | | | | | | | | | | | | | | | | |
Share-based compensation expense | — | | | — | | | — | | | — | | | — | | | — | | | 12,727 | | | — | | | — | | | 12,727 | | | | | | | | | | | | | | | | | |
Net loss attributable to Cimpress plc | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (71,817) | | | — | | | (71,817) | | | | | | | | | | | | | | | | | |
Redeemable noncontrolling interest accretion to redemption value | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (29,034) | | | — | | | (29,034) | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net unrealized gain on derivative instruments designated and qualifying as cash flow hedges | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 11,623 | | | 11,623 | | | | | | | | | | | | | | | | | |
Foreign currency translation, net of hedges | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (3,919) | | | (3,919) | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance at March 31, 2022 | 44,080 | | | $ | 615 | | | — | | | $ | — | | | (17,976) | | | $ | (1,363,956) | | | $ | 488,149 | | | $ | 461,363 | | | $ | (49,623) | | | $ | (463,452) | | | | | | | | | | | | | | | | | |
See accompanying notes.
CIMPRESS PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited in thousands) | | | | | | | | | | | | | | |
| Nine Months Ended March 31, |
| 2022 | | 2021 | | | |
Operating activities | | | | | | |
Net loss | $ | (18,699) | | | $ | (15,018) | | | | |
Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | |
Depreciation and amortization | 133,397 | | | 128,696 | | | | |
| | | | | | |
Share-based compensation expense | 36,215 | | | 23,071 | | | | |
Impairment of long-lived assets | — | | | 19,882 | | | | |
Deferred taxes | 26,636 | | | 2,513 | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Unrealized (gain) loss on derivatives not designated as hedging instruments included in net loss | (25,639) | | | 18,280 | | | | |
Effect of exchange rate changes on monetary assets and liabilities denominated in non-functional currency | (5,847) | | | 2,537 | | | | |
| | | | | | |
Other non-cash items | (8,204) | | | 2,149 | | | | |
| | | | | | |
Changes in operating assets and liabilities: | | | | | | |
Accounts receivable | (17,764) | | | (9,651) | | | | |
Inventory | (31,964) | | | 4,982 | | | | |
Prepaid expenses and other assets | (18,776) | | | (5,242) | | | | |
Accounts payable | 35,860 | | | 10,590 | | | | |
Accrued expenses and other liabilities | 26,501 | | | 36,159 | | | | |
Net cash provided by operating activities | 131,716 | | | 218,948 | | | | |
Investing activities | | | | | | |
Purchases of property, plant and equipment | (42,142) | | | (22,736) | | | | |
| | | | | | |
Business acquisitions, net of cash acquired | (75,258) | | | (36,395) | | | | |
| | | | | | |
Capitalization of software and website development costs | (49,875) | | | (45,321) | | | | |
| | | | | | |
Proceeds from the sale of assets | 27,466 | | | 3,574 | | | | |
| | | | | | |
Proceeds from maturity of held-to-maturity investments | 93,679 | | | — | | | | |
| | | | | | |
Payments for settlement of derivatives designated as hedging instruments | (1,880) | | | — | | | | |
Other investing activities | (617) | | | (269) | | | | |
Net cash used in investing activities | (48,627) | | | (101,147) | | | | |
Financing activities | | | | | | |
Proceeds from borrowings of debt | — | | | 534,051 | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Payments of debt | (11,149) | | | (639,519) | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Payments of debt issuance costs | (1,440) | | | (2,461) | | | | |
Payments of purchase consideration included in acquisition-date fair value | (43,647) | | | (1,205) | | | | |
Payments of withholding taxes in connection with equity awards | (3,098) | | | (5,593) | | | | |
Payments of finance lease obligations | (35,099) | | | (5,486) | | | | |
Purchase of noncontrolling interests | (324) | | | (5,063) | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Distribution to noncontrolling interest | (3,963) | | | (4,599) | | | | |
Other financing activities | (26) | | | (310) | | | | |
Net cash used in financing activities | (98,746) | | | (130,185) | | | | |
| | | | | | |
| | | | | | |
Effect of exchange rate changes on cash | (5,854) | | | 3,727 | | | | |
| | | | | | |
Net decrease in cash and cash equivalents | (21,511) | | | (8,657) | | | | |
Cash and cash equivalents at beginning of period | 183,023 | | | 45,021 | | | | |
Cash and cash equivalents at end of period | $ | 161,512 | | | $ | 36,364 | | | | |
See accompanying notes.
CIMPRESS PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(unaudited in thousands)
| | | | | | | | | | | | | |
| Nine Months Ended March 31, |
| 2022 | | 2021 | | |
Supplemental disclosures of cash flow information | | | | | |
Cash paid during the period for: | | | | | |
Interest | $ | 63,498 | | | $ | |