Exhibit 99.1
|
Contacts: | |
| Investor Relations: | ||
| Angela White | ||
| ir@vistaprint.com | ||
| +1 (781) 652-6480 | ||
| Media Relations: | ||
| Jason Keith | ||
| publicrelations@vistaprint.com | ||
| +1 (781) 652-6444 |
Vistaprint Reports First Quarter Fiscal Year 2012 Financial Results
First quarter 2012 results were as follows:
| • | Revenue grew 25 percent year over year to $212.4 million | |
| • | Revenue grew 20 percent year over year excluding the impact of currency exchange rate fluctuations | |
| • | GAAP net income per diluted share decreased 21 percent year over year to $0.19 | |
| • | Non-GAAP adjusted net income per diluted share decreased 14 percent year over year to $0.31 |
Venlo, the Netherlands, October 27, 2011 — Vistaprint N.V. (Nasdaq: VPRT), a leading online
provider of professional marketing products and services to micro businesses and the home, today
announced financial results for the three month period ended September 30, 2011, the first quarter
of its 2012 fiscal year.
“First quarter revenue and earnings met our expectations, and our full year is off to a good
start,” said Robert Keane, president and chief executive officer. “This was a quarter of solid
performance against our plan. Four months into our multi-year plan, we remain confident that we
are making the right decisions in funding our long-term strategy for growth and competitive
advantage. This quarter we made disciplined investments
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designed to better position us to capture what we believe to be a large opportunity, and build a
strong company for many years to come.”
Financial Metrics:
| • | Revenue for the first quarter of fiscal year 2012 grew to $212.4 million, a 25 percent increase over revenue of $170.5 million reported in the same quarter a year ago. Excluding the estimated impact from currency exchange rate fluctuations, total revenue grew 20 percent from the same quarter a year ago. | ||
| • | Gross margin (revenue minus the cost of revenue as a percent of total revenue) in the first quarter was 63.2 percent, compared to 63.1 percent in the same quarter a year ago. | ||
| • | Operating income in the first quarter was $9.7 million, or 4.6 percent of revenue, and reflected a 21 percent decrease compared to operating income of $12.3 million, or 7.2 percent of revenue in the same quarter a year ago. | ||
| • | GAAP net income for the first quarter was $8.2 million, or 3.8 percent of revenue, representing a 24 percent decrease compared to $10.8 million, or 6.3 percent of revenue in the same quarter a year ago. | ||
| • | GAAP net income per diluted share for the first quarter was $0.19, versus $0.24 in the same quarter a year ago. | ||
| • | Non-GAAP adjusted net income for the first quarter, which excludes share-based compensation expense and its related tax effect, was $13.0 million, or 6.1 percent of revenue, representing a 20 percent decrease compared to non-GAAP adjusted net income of $16.3 million, or 9.6 percent of revenue, in the same quarter a year ago. | ||
| • | Non-GAAP adjusted net income per diluted share for the first quarter, which excludes share-based compensation expense and its related tax effect, was $0.31, versus $0.36 in the same quarter a year ago. | ||
| • | Capital expenditures in the first quarter were $11.0 million or 5.2 percent of revenue. |
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| • | During the first quarter, the company generated $30.5 million of cash from operations and $17.8 million in free cash flow, defined as cash from operations less purchases of property, plant and equipment, purchases of intangible assets, and capitalization of software and website development costs. | ||
| • | The company had $161.1 million in cash and cash equivalents as of September 30, 2011. | ||
| • | During the first quarter, the company purchased 3.1 million of its ordinary shares for $91.1 million, inclusive of transaction costs, at an average per-share cost of $29.62, as part of the share repurchase program authorized by the Supervisory Board in November 2010. | ||
| • | Subsequent to the end of our first quarter and through October 21, 2011, the company purchased an additional 1.8 million shares for $50.4 million, inclusive of transaction costs, at an average per-share cost of $28.68, pursuant to a new program that our Supervisory Board authorized in August 2011. |
Operating Highlights:
| • | Vistaprint acquired approximately 1.9 million new customers in the first fiscal quarter ended September 30, 2011. | ||
| • | On a trailing twelve month basis, unique active customer count was 11.9 million. Unique active customer count is the number of individual customers who purchased from us in a given period, with no regard to the frequency of purchase. | ||
| • | Total order volume in the first quarter of fiscal 2012 was approximately 5.9 million, reflecting an increase of approximately 18 percent over total orders of approximately 5.0 million in the same quarter a year ago. | ||
| • | Average order value in the first quarter including revenue from shipping and processing was $36.38, compared to $34.69 in the same quarter a year ago. | ||
| • | Advertising and commissions expense in the first quarter was $51.8 million, or 24.4 percent of revenue compared to $36.1 million, or 21.2 percent of revenue in the same quarter a year ago. |
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| • | Revenue from customers in North America was $118.7 million, or 56 percent of total revenue in the first quarter. This represents 17 percent growth year over year in reported terms and in constant currency. | ||
| • | Revenue from customers in Europe was $80.0 million, or 38 percent of total revenue in the first quarter. This represents 31 percent growth year over year in reported terms and 21 percent growth in constant currency. | ||
| • | Revenue from customers in Asia Pacific was $13.7 million, or 6 percent of total revenue in the first quarter. This represents 67 percent growth year over year in reported terms and 45 percent growth in constant currency. |
Other News:
| • | During the quarter, Staples and Vistaprint started working together to bring a full suite of high-quality printed products to Staples customers, allowing them to create unique marketing materials and develop customized business cards and stationery. This new strategic partnership provides the opportunity to extend our reach on staples.com and in approximately 1,600 Staples retail locations across the U.S. | ||
| • | On October 21, 2011, the company entered into a $250.0 million senior unsecured revolving credit facility with a maturity date of October 21, 2016. | ||
| • | On October 24, 2011, Vistaprint entered into a definitive agreement to acquire Albumprinter Holding B.V., a privately held Dutch photo book company for €60.0 million payable at closing and up to an additional €5.0 million subject to a performance based earn-out. |
Ernst Teunissen, executive vice president and chief financial officer, said, “After our first
quarter of fiscal 2012, we remain confident we will deliver against our operational expectations
for the full year. We are updating our guidance for fiscal 2012 to reflect a few non-operational
items. First, currency rates have moved unfavorably since we gave guidance in July 2011, which
primarily impacts our revenue guidance in U.S. dollars. Second, we have repurchased a significant
number of Vistaprint shares since July, which will benefit our earnings per share relative to our prior expectations. And finally, the
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costs associated with our recently announced revolving credit facility are now included in our guidance.”
Financial Guidance as of October 27, 2011:
Vistaprint’s financial guidance is as of October 27, 2011 and does not include estimates for our
pending acquisition of Albumprinter, which has not yet closed. Based on current and anticipated
levels of demand and recent foreign currency rates, the company expects the following financial
results:
Revenue
| • | For the full fiscal year ending June 30, 2012, the company expects revenue of approximately $960 million to $1,010 million, or 18 percent to 24 percent growth year over year in reported terms and approximately 18 percent to 24 percent in constant-currency terms. Constant-currency growth expectations assume a recent 30-day currency exchange rate for all currencies. | ||
| • | For the second fiscal quarter ending December 31, 2011, the company expects revenue of approximately $270 million to $290 million, or 15 percent to 24 percent growth year over year in reported terms and approximately 15 percent to 24 percent in constant-currency terms. |
GAAP Diluted Earnings Per Share
| • | For the full fiscal year ending June 30, 2012, the company expects GAAP diluted earnings per share of approximately $1.19 to $1.29, which assumes 40.8 million weighted average shares outstanding. | ||
| • | For the quarter ending December 31, 2011, the company expects GAAP diluted earnings per share of approximately $0.55 to $0.65, which assumes 40.6 million weighted average shares outstanding. |
Non-GAAP Adjusted Net Income Per Diluted Share
| • | For the full fiscal year ending June 30, 2012, the company expects non-GAAP adjusted net income per diluted share of approximately $1.71 to $1.81, which |
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| excludes expected share-based compensation expense and its related tax effect of approximately $21.7 million, and assumes a non-GAAP diluted weighted average share count of approximately 41.2 million shares. |
| • | For the quarter ending December 31, 2011, the company expects non-GAAP adjusted net income per diluted share of approximately $0.68 to $0.78, which excludes expected share-based compensation expense and its related tax effect of approximately $5.5 million, and assumes a non-GAAP diluted weighted average share count of approximately 41.1 million shares. |
Capital Expenditures
For the full fiscal year ending June 30, 2012, the company expects to make capital expenditures of
approximately $60 million to $75 million. Planned capital investments are designed to support the
planned growth of the business.
The foregoing guidance supersedes any guidance previously issued by the company. All such previous
guidance should no longer be relied upon.
At approximately 4:20 p.m. (EDT) on October 27, 2011, Vistaprint will post, on the Investor
Relations section of www.vistaprint.com, a link to a pre-recorded audio visual end-of-quarter
presentation along with a downloadable transcript of the prepared remarks that accompany that
presentation. At 5:15 p.m. the company will host a live Q&A conference call with management, which
will be available via web cast on the Investor Relations section of www.vistaprint.com and via
dial-in at (866) 362-4666, access code 91715638. A replay of the Q&A session will be available on
the company’s Web site following the call on October 27, 2011.
About non-GAAP financial measures
To supplement Vistaprint’s consolidated financial statements presented in accordance with U.S.
generally accepted accounting principles, or GAAP, Vistaprint has used the following measures
defined as non-GAAP financial measures by Securities and
Exchange Commission, or SEC, rules: non-GAAP adjusted net income, non-GAAP adjusted net income per
diluted share, free cash flow, and constant-currency revenue
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growth. The items excluded from the
non-GAAP adjusted net income measurements are share-based compensation expense and its related tax
effect. Free cash flow is defined as net cash provided by operating activities less purchases of
property, plant and equipment, purchases of intangible assets, and capitalization of software and
website development costs. 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.
The presentation of non-GAAP financial information is not intended to be considered in isolation or
as a substitute for the financial information prepared and presented in accordance with GAAP. For
more information on these non-GAAP financial measures, please see the tables captioned
“Reconciliations of Non-GAAP Financial Measures” included at the end of this release. The tables
have more details on the GAAP financial measures that are most directly comparable to non-GAAP
financial measures and the related reconciliation between these financial measures.
Vistaprint’s management believes that these non-GAAP financial measures provide meaningful
supplemental information in assessing our performance and when forecasting and analyzing future
periods. These non-GAAP financial measures also have facilitated management’s internal comparisons
to Vistaprint’s historical performance and our competitors’ operating results.
Management provides these non-GAAP financial measures as a courtesy to investors. However, to gain
a more complete understanding of the company’s financial performance, management does (and
investors should) rely upon GAAP statements of operations and cash flow.
About Vistaprint
Vistaprint N.V. (Nasdaq:VPRT) empowers more than 11 million micro businesses and
consumers annually with affordable, professional options to make an impression. With a unique
business model supported by proprietary technologies, high-volume production
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facilities, and direct
marketing expertise, Vistaprint offers a wide variety of products and services that micro
businesses can use to expand their business. A global company, Vistaprint employs over 3,100
people, operates 25 localized websites globally and ships to more than 120 countries around the
world. Vistaprint’s broad range of products and services are easy to access online, 24 hours a day
at www.vistaprint.com.
Vistaprint and the Vistaprint logo are trademarks of Vistaprint N.V. or its subsidiaries. All other
brand and product names appearing on this announcement may be trademarks or registered trademarks
of their respective holders.
This press release contains statements about our future expectations, plans and prospects of our
business that constitute forward-looking statements for purposes of the safe harbor provisions
under the Private Securities Litigation Reform Act of 1995, including but not limited to our
financial guidance set forth under the heading “Financial Guidance as of October 27, 2011,” our
planned investments in our business, the anticipated effects of those investments, and the
anticipated closing of our acquisition of Albumprinter Holding B.V. Our actual results may differ
materially from those indicated by these forward-looking statements as a result of various
important factors, including but not limited to flaws in the assumptions and judgments upon which
our forecasts are based; the willingness of purchasers of marketing services and products to shop
online; our failure to acquire new customers and enter new markets, retain our current customers
and sell more products to current and new customers; our failure to promote and strengthen our
brand; the failure of our current and new marketing channels to attract customers; our failure to
manage the growth and complexity of our business and expand our operations; our inability to make
the investments we plan to make because the investments are more costly than we expected or because
we are unable to devote the necessary operational and financial resources; the failure of our
investments to have the effects that we expect; our failure to execute our strategy; currency
fluctuations that affect our revenues and costs; unanticipated changes in our market, customers or
business; competitive pressures; interruptions in or failures of our websites, network infrastructure or manufacturing operations;
costs and judgments resulting from litigation; changes in the laws and
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regulations or in the interpretations of laws or regulations to which we are subject, including tax laws, or the
institution of new laws or regulations that affect our business; costs and disruptions caused by
acquisitions; general economic conditions; and other factors described in our Form 10-K for the
fiscal year ended June 30, 2011 and the other documents we periodically file with the U.S.
Securities and Exchange Commission. In addition, if either Vistaprint or Albumprinter fails to
satisfy the conditions to the closing of the acquisition, then the acquisition may be delayed or
may not close at all.
In addition, the statements and projections in this press release represent our expectations and
beliefs as of the date of this press release. We anticipate that 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.
Financial Tables to Follow
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VISTAPRINT N.V.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited in thousands, except share and per share data)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited in thousands, except share and per share data)
| September 30, | June 30, | |||||||
| 2011 | 2011 | |||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 161,092 | $ | 236,552 | ||||
Marketable securities |
— | 529 | ||||||
Accounts receivable, net of allowances of $183 and $243, respectively |
12,714 | 13,389 | ||||||
Inventory |
8,462 | 8,377 | ||||||
Prepaid expenses and other current assets |
11,704 | 13,444 | ||||||
Total current assets |
193,972 | 272,291 | ||||||
Property, plant and equipment, net |
253,611 | 262,104 | ||||||
Software and website development costs, net |
6,135 | 6,046 | ||||||
Deferred tax assets |
6,438 | 6,522 | ||||||
Other assets |
8,822 | 8,937 | ||||||
Total assets |
$ | 468,978 | $ | 555,900 | ||||
Liabilities and shareholders’ equity |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 14,465 | $ | 15,998 | ||||
Accrued expenses |
73,246 | 68,989 | ||||||
Deferred revenue |
9,346 | 8,819 | ||||||
Total current liabilities |
97,057 | 93,806 | ||||||
Deferred tax liabilities |
3,530 | 3,794 | ||||||
Other liabilities |
8,214 | 8,207 | ||||||
Total liabilities |
108,801 | 105,807 | ||||||
Shareholders’ equity: |
||||||||
Preferred shares, par value €0.01 per share, 120,000,000 shares authorized;
none issued and outstanding |
— | — | ||||||
Ordinary shares, par value €0.01 per share, 120,000,000 shares authorized; 49,950,289 and 49,950,289 shares issued
and 40,151,267
and 43,144,718 outstanding, respectively |
699 | 699 | ||||||
Treasury shares, at cost, 9,799,022 and 6,805,571 shares, respectively |
(176,019 | ) | (85,377 | ) | ||||
Additional paid-in capital |
276,617 | 273,260 | ||||||
Retained earnings |
256,806 | 248,634 | ||||||
Accumulated other comprehensive income |
2,074 | 12,877 | ||||||
Total shareholders’ equity |
360,177 | 450,093 | ||||||
Total liabilities and shareholders’ equity |
$ | 468,978 | $ | 555,900 | ||||
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VISTAPRINT N.V.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited in thousands, except share and per share data)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited in thousands, except share and per share data)
| Three Months Ended September 30, | ||||||||
| 2011 | 2010 | |||||||
Revenue |
$ | 212,360 | $ | 170,487 | ||||
Cost of revenue (1) |
78,064 | 62,833 | ||||||
Technology and development expense (1) |
26,674 | 23,207 | ||||||
Marketing and selling expense (1) |
76,344 | 57,533 | ||||||
General and administrative expense (1) |
21,532 | 14,581 | ||||||
Income from operations |
9,746 | 12,333 | ||||||
Interest income |
83 | 99 | ||||||
Other income (expense), net |
450 | (252 | ) | |||||
Interest expense |
— | 107 | ||||||
Income before income taxes |
10,279 | 12,073 | ||||||
Income tax provision |
2,107 | 1,292 | ||||||
Net income |
$ | 8,172 | $ | 10,781 | ||||
Basic net income per share |
$ | 0.20 | $ | 0.25 | ||||
Diluted net income per share |
$ | 0.19 | $ | 0.24 | ||||
Weighted average shares outstanding — basic |
41,256,341 | 43,895,913 | ||||||
Weighted average shares outstanding — diluted |
42,309,506 | 45,231,388 | ||||||
| (1) | Share-based compensation expense is allocated as follows: |
| Three Months Ended September 30, | ||||||||
| 2011 | 2010 | |||||||
Cost of revenue |
$ | 94 | $ | 203 | ||||
Technology and development expense |
859 | 1,132 | ||||||
Marketing and selling expense |
555 | 1,049 | ||||||
General and administrative expense |
3,215 | 2,987 | ||||||
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VISTAPRINT N.V.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited in thousands)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited in thousands)
| Three Months Ended | ||||||||
| September 30, | ||||||||
| 2011 | 2010 | |||||||
Operating activities |
||||||||
Net income |
$ | 8,172 | $ | 10,781 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
13,107 | 12,128 | ||||||
Loss on sale, disposal, or impairment of long-lived assets |
26 | 11 | ||||||
Amortization of premiums and discounts on short-term investments |
— | 83 | ||||||
Share-based compensation expense |
4,723 | 5,371 | ||||||
Excess tax benefits derived from share-based compensation awards |
(134 | ) | (149 | ) | ||||
Deferred income taxes |
(253 | ) | (70 | ) | ||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
309 | (1,376 | ) | |||||
Inventory |
(442 | ) | (498 | ) | ||||
Prepaid expenses and other assets |
(1,221 | ) | (894 | ) | ||||
Accounts payable |
(1,951 | ) | (5,106 | ) | ||||
Accrued expenses and other liabilities |
8,205 | (1,479 | ) | |||||
Net cash provided by operating activities |
30,541 | 18,802 | ||||||
Investing activities |
||||||||
Purchases of property, plant and equipment |
(10,998 | ) | (14,147 | ) | ||||
Maturities and redemptions of marketable securities |
529 | 1,900 | ||||||
Purchases of intangible assets |
(89 | ) | — | |||||
Capitalization of software and website development costs |
(1,682 | ) | (1,791 | ) | ||||
Net cash used in investing activities |
(12,240 | ) | (14,038 | ) | ||||
Financing activities |
||||||||
Repayments of long-term debt |
— | (333 | ) | |||||
Payments of withholding taxes in connection with vesting of restricted share units |
(1,075 | ) | (1,287 | ) | ||||
Repurchases of ordinary shares |
(91,088 | ) | — | |||||
Excess tax benefits derived from share-based compensation awards |
134 | 149 | ||||||
Proceeds from issuance of shares |
69 | 661 | ||||||
Net cash used in financing activities |
(91,960 | ) | (810 | ) | ||||
Effect of exchange rate changes on cash |
(1,801 | ) | 2,301 | |||||
Net (decrease) increase in cash and cash
equivalents |
(75,460 | ) | 6,255 | |||||
Cash and cash equivalents at beginning of period |
236,552 | 162,727 | ||||||
Cash and cash equivalents at end of period |
$ | 161,092 | $ | 168,982 | ||||
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VISTAPRINT N.V.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
(Unaudited in thousands, except share and per share data)
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
(Unaudited in thousands, except share and per share data)
| Three Months Ended | ||||||||
| September 30, | ||||||||
| 2011 | 2010 | |||||||
Non-GAAP adjusted net income reconciliation: |
||||||||
Net income |
$ | 8,172 | $ | 10,781 | ||||
Add back: |
||||||||
Share-based compensation
expense, inclusive of income
tax effects |
4,876 | (a) | 5,550 | (b) | ||||
Non-GAAP adjusted net income |
$ | 13,048 | $ | 16,331 | ||||
Non-GAAP adjusted net income per diluted share reconciliation: |
||||||||
Net income per diluted share |
$ | 0.19 | $ | 0.24 | ||||
Add back: |
||||||||
Share-based compensation
expense, inclusive of income
tax effects |
0.12 | 0.12 | ||||||
Non-GAAP adjusted net income per diluted share |
$ | 0.31 | $ | 0.36 | ||||
Non-GAAP weighted average shares outstanding — diluted |
42,569,076 | 45,704,497 | ||||||
| (a) | Includes share-based compensation charges of $4,723 and the income tax effects related to those charges of $153 | |
| (b) | Includes share-based compensation charges of $5,371 and the income tax effects related to those charges of $179 |
| Three Months Ended | ||||||||
| September 30, | ||||||||
| 2011 | 2010 | |||||||
Free cash flow reconciliation: |
||||||||
Net cash provided by operating activities |
$ | 30,541 | $ | 18,802 | ||||
Purchases of property, plant and equipment |
(10,998 | ) | (14,147 | ) | ||||
Purchases of intangible assets |
(89 | ) | — | |||||
Capitalization of software and website development costs |
(1,682 | ) | (1,791 | ) | ||||
Free cash flow |
$ | 17,772 | $ | 2,864 | ||||
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VISTAPRINT N.V.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (CONTINUED)
(Unaudited in thousands, except share and per share data)
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (CONTINUED)
(Unaudited in thousands, except share and per share data)
| GAAP Revenue | Currency | Constant- | ||||||||||||||||||
| Three Months Ended | Impact: | Currency | ||||||||||||||||||
| September 30, | (Favorable)/ | Revenue | ||||||||||||||||||
| 2011 | 2010 | % Change | Unfavorable | Growth | ||||||||||||||||
| Constant-currency revenue growth reconciliation by segment: | ||||||||||||||||||||
North America |
$ | 118,691 | $ | 101,312 | 17 | % | — | % | 17 | % | ||||||||||
Europe |
79,979 | 60,989 | 31 | % | (10 | )% | 21 | % | ||||||||||||
Asia-Pacific |
13,690 | 8,186 | 67 | % | (22 | )% | 45 | % | ||||||||||||
Total revenue |
$ | 212,360 | $ | 170,487 | 25 | % | (5 | )% | 20 | % | ||||||||||
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