EX-99.1 2 d577707dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO   
  
  

 

Contacts:

  

 

Investor Relations:

  

 

Angela White

  

 

ir@vistaprint.com

  

 

+1 (781) 652-6480

  

 

Media Relations:

  

 

Kaitlin Ambrogio

  

 

publicrelations@vistaprint.com

  

 

+1 (781) 652-6444

Vistaprint Reports Fourth Quarter and Fiscal Year 2013 Financial Results

 

•  

Fourth quarter 2013 results:

 

  •  

Revenue grew 12 percent year over year to $280.1 million

 

  •  

Revenue grew 12 percent year over year excluding the impact of currency exchange rate fluctuations

 

  •  

Revenue grew 11 percent year over year excluding the impact of currency exchange fluctuations and revenue from acquisitions

 

  •  

GAAP net income per diluted share decreased 30 percent year over year to $0.07

 

  •  

Non-GAAP adjusted net income per diluted share increased 2 percent year over year to $0.41

 

•  

Fiscal year 2013 results:

 

  •  

Revenue grew 14 percent year over year to $1,167.5 million

 

  •  

Revenue grew 16 percent year over year excluding the impact of currency exchange rate fluctuations

 

  •  

Revenue grew 12 percent year over year excluding the impact of currency exchange rate fluctuations and revenue from acquisitions

 

  •  

GAAP net income per diluted share decreased 25 percent year over year to $0.85

 

  •  

Non-GAAP adjusted net income per diluted share increased 10 percent year over year to $2.15

 

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Venlo, the Netherlands, August 1, 2013 — 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 fourth quarter and fiscal year ended June 30, 2013.

“Fiscal year 2013 was a year with mixed financial results,” said Robert Keane, president and chief executive officer. “Our total revenue performance was disappointing relative to our expectations twelve months ago. Though our revenue growth in North America was strong with good execution of our strategic and financial objectives, our growth in Europe and Australia was weaker than expected. Moving to earnings, we were pleased with our higher than anticipated bottom-line performance for the year. This was due in part to actions we took throughout the year to improve advertising efficiency and moderate our expense growth in reaction to our lower revenue growth, reflecting our commitment to achieving our annual earnings target.”

Keane continued, “Our progress against the strategic initiatives set forth two years ago is also mixed. We are executing well in manufacturing globally, as well as advertising and customer value proposition improvements in North America. In Europe and Australia, our revenue growth has been weak, although we are encouraged by recent signs of stabilization. Finally, we are making good progress with our investments in longer-term growth initiatives including new markets in Asia as well as with Webs and Albumprinter, and we continue to be enthusiastic about the potential long-term value of these initiatives.”

Financial Metrics (include Albumprinter and Webs results unless otherwise stated):

 

  •  

Revenue for the fourth quarter of fiscal year 2013 grew to $280.1 million, a 12 percent increase over revenue of $250.4 million reported in the same quarter a year ago. Excluding Albumprinter and Webs combined revenue of $18.6 million, total fourth quarter revenue was $261.5 million. For the full fiscal year, revenue grew to $1,167.5 million, a 14 percent increase over revenue of $1,020.3 million in fiscal year 2012. Excluding the estimated impact from currency exchange rate fluctuations and revenue from acquired businesses, total revenue grew 11 percent year over year in the fourth quarter and 12 percent for the full year.

 

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  •  

Gross margin (revenue minus the cost of revenue as a percent of total revenue) in the fourth quarter was 64.6 percent, flat versus the same quarter a year ago. For the full fiscal year, gross margin was 65.7 percent, compared to 65.2 percent in fiscal year 2012.

 

  •  

Operating income in the fourth quarter was $3.1 million, or 1.1 percent of revenue, and reflected a 39 percent decrease compared to operating income of $5.1 million, or 2.0 percent of revenue, in the same quarter a year ago. For the full fiscal year, operating income was $46.1 million, or 4.0 percent of revenue, a 16 percent decrease compared to operating income of $55.2 million, or 5.4 percent of revenue, in the prior fiscal year.

 

  •  

GAAP net income for the fourth quarter was $2.3 million, or 0.8 percent of revenue, representing a 41 percent decrease compared to $3.9 million, or 1.5 percent of revenue in the same quarter a year ago. For the full fiscal year, GAAP net income was $29.4 million, or 2.5 percent of revenue, a 33 percent decrease compared to GAAP net income of $44.0 million, or 4.3 percent of revenue, in the prior fiscal year.

 

  •  

GAAP net income per diluted share for the fourth quarter was $0.07, versus $0.10 in the same quarter a year ago. For the full fiscal year, GAAP net income per diluted share was $0.85, versus $1.13 in the prior full fiscal year. This decline in earnings was influenced by a mix of our planned strategic investments, dilutive acquisitions made during fiscal 2012, our fiscal 2013 minority investment in China, and higher share-based compensation expense for our named executive officers due to our recent move to more performance-based stock option grants. These effects were partially offset by lower share count as a result of recent purchases of our ordinary shares.

 

  •  

Non-GAAP adjusted net income for the fourth quarter, which excludes amortization expense for acquisition-related intangible assets, tax charges related to the alignment of acquisition-related intellectual property with global operations, and share-based compensation expense and its related tax effect, was $14.1 million, or 5.0 percent of revenue, representing a 5 percent decrease compared to non-GAAP adjusted net income of $14.9 million, or 5.9 percent of revenue, in the same quarter a year ago. For the full fiscal year, non-GAAP adjusted net income was $75.8 million, or 6.5 percent of revenue, a 1 percent decrease compared to non-GAAP adjusted net income of $77.0 million, or 7.6 percent of revenue, in the prior fiscal year.

 

  •  

Non-GAAP adjusted net income per diluted share for the fourth quarter, as defined above, was $0.41, versus $0.40 in the same quarter a year ago. For the 2013 full fiscal year, non-GAAP adjusted net income per diluted share was $2.15, versus $1.95 in the prior fiscal year.

 

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  •  

Capital expenditures in the fourth quarter were $12.5 million or 4.5 percent of revenue. During the full fiscal year capital expenditures were $79.0 million or 6.8 percent of revenue.

 

  •  

During the fourth quarter, the company generated $37.0 million of cash from operations and $21.8 million in free cash flow, defined as cash from operations less purchases of property, plant and equipment, purchases of intangible assets not related to acquisitions, and capitalization of software and website development costs. During the full fiscal year, the company generated $140.0 million of cash from operations and $52.6 million in free cash flow.

 

  •  

As of June 30, 2013, the company had $50.1 million in cash and cash equivalents and $238.8 million in short-term and long-term debt. After considering debt covenant limitations, the company had $228.6 million available for borrowing under its credit facility as of June 30, 2013.

 

  •  

During the fourth quarter, the company purchased 613,000 of its ordinary shares for $23.4 million, inclusive of transaction costs, at an average per-share cost of $38.12, as part of the share repurchase program authorized by the Supervisory Board in February 2013.

Operating metrics are now provided as a table-based supplement to this press release.

Fiscal 2014 Outlook as of August 1, 2013:

Ernst Teunissen, executive vice president and chief financial officer, said, “Two years ago, we presented a plan that anticipated a ramp in the profitability of our organic business in fiscal 2014 after two significant years of investment in fiscal 2012 and 2013. We believe we are on track to deliver this in fiscal 2014, notwithstanding our more modest revenue growth expectations. We also expect to deliver improved profitability on a consolidated basis, including the combined negative impact of our acquisitions of Webs and Albumprinter, our investments in Asia, and the incremental accounting impact driven by our move to more performance-based executive stock option grants in 2012. We expect to deliver fiscal 2014 margin leverage via multiple income statement line items as a percent of revenue, including gross profit, advertising expense and general and administrative expenses, consistent with our plan presented two years ago.”

 

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Teunissen continued, “Moving to revenue expectations, the fiscal 2014 guidance we are introducing today includes a range of constant-currency revenue growth of 7 percent to 11 percent. We have made important changes to our marketing organization and processes in Europe, but expect flat growth there from fiscal 2013 to fiscal 2014. This is a strategic choice to improve the marketing foundations, customer value proposition and customer economics in our top European markets before resuming more substantial advertising spend.”

Financial Guidance as of August 1, 2013:

As previously stated, beginning with fiscal year 2014, the company is providing revenue and earnings guidance on an annual basis. Based on current and anticipated levels of demand, the company expects the following financial results:

Fiscal Year 2014 Revenue

 

  •  

For the full fiscal year ending June 30, 2014, the company expects revenue of approximately $1,235 million to $1,285 million, or 6 percent to 10 percent growth year over year in reported terms. Excluding currency movements, we expect constant-currency growth of approximately 7 percent to 11 percent. Constant-currency growth expectations assume a recent 30-day currency exchange rate for all currencies.

Fiscal Year 2014 GAAP Net Income Per Diluted Share

 

  •  

For the full fiscal year ending June 30, 2014, the company expects GAAP net income per diluted share of approximately $1.35 to $1.70, which assumes 34.4 million weighted average diluted shares outstanding.

Fiscal Year 2014 Non-GAAP Adjusted Net Income Per Diluted Share

 

  •  

For the full fiscal year ending June 30, 2014, the company expects non-GAAP adjusted net income per diluted share of approximately $2.49 to $2.83, which excludes expected acquisition-related amortization of intangible assets of approximately $8.7 million or

 

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approximately $0.25 per diluted share, share-based compensation expense and its related tax effect of approximately $29.5 million or approximately $0.84 per diluted share, and tax charges related to the alignment of acquisition-related intellectual property with global operations of approximately $2.3 million, or $0.07 per diluted share. This guidance assumes a non-GAAP weighted average diluted share count of approximately 35.0 million shares.

Fiscal Year 2014 Capital Expenditures

For the full fiscal year ending June 30, 2014, the company expects to make capital expenditures of approximately $85 million to $100 million. Planned capital investments are designed to support the planned growth of the business and will include various investments in new manufacturing capabilities.

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 August 1, 2013, 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) 510-0712, access code 41507525. A replay of the Q&A session will be available on the company’s Web site following the call on August 1, 2013.

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, constant-currency revenue growth, and constant-currency organic revenue growth. The items excluded from the non-GAAP adjusted net income measurements are share-based

 

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compensation expense and its related tax effect, amortization of acquisition-related intangibles, and tax charges related to the alignment of acquisition-related intellectual property with global operations. 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. 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 and excludes the impact of gains and losses on effective currency hedges recognized in revenue. Constant-currency organic revenue growth excludes the impact of currency as defined above and revenue from acquired companies.

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 15 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 facilities, and

 

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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 4,100 people, operates more than 25 localized websites globally and ships to more than 130 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 expectations for the growth, development, and profitability of our business and our financial outlook and guidance set forth under the headings “Fiscal 2014 Outlook as of August 1, 2013” and “Financial Guidance as of August 1, 2013.” Forward-looking projections and expectations are inherently uncertain, are based on assumptions and judgments by management, and may turn out to be wrong. Our actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including but not limited to 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 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 acquire new customers and enter new markets, retain our current customers and sell more products to current and new customers; our failure to identify and address the causes of our revenue weakness in Europe; the willingness of purchasers of marketing services and products to shop online; our failure to promote and strengthen our brand; the failure of our current and new marketing channels to attract customers; our failure to manage growth and changes in our organization and senior management; our failure to manage the complexity of our business and expand our operations; currency fluctuations that affect our revenues and costs; costs and disruptions caused by acquisitions; the failure of our acquired businesses to perform as

 

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expected; difficulties or higher than anticipated costs in integrating the systems and operations of our acquired businesses into our systems and operations; unanticipated changes in our market, customers or business; competitive pressures; interruptions in or failures of our websites, network infrastructure or manufacturing operations; our failure to retain key employees of Vistaprint or of our acquired businesses; our failure to maintain compliance with the financial covenants in our revolving credit facility or to pay our debts when due; costs and judgments resulting from litigation; changes in the laws and 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; general economic conditions; and other factors described in our Form 10-Q for the fiscal quarter ended March 31, 2013 and the other documents we periodically file with the U.S. Securities and Exchange Commission.

In addition, the statements and projections in this press release represent our expectations and beliefs as of the date of this press release, and subsequent events and developments may cause these expectations, beliefs, and projections to change. We specifically disclaim any obligation to update any forward-looking statements. These forward-looking statements should not be relied upon as representing our expectations or beliefs as of any date subsequent to the date of this press release.

Operational Metrics & Financial Tables to Follow

 

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VISTAPRINT N.V.

CONSOLIDATED BALANCE SHEETS

(Unaudited in thousands, except share and per share data)

 

     June 30,
2013		     June 30,
2012		  

Assets

     

Current assets:

     

Cash and cash equivalents

    $ 50,065      $ 62,203   

Accounts receivable, net of allowances of $104 and $189, respectively

      22,026        20,125   

Inventory

      7,620        7,168   

Prepaid expenses and other current assets

      20,520        26,102   
  

 

 

    

 

 

  

Total current assets

      100,231        115,598   

Property, plant and equipment, net

      280,022        261,228   

Software and web site development costs, net

      9,071        5,186   

Deferred tax assets

      581        327   

Goodwill

      140,893        140,429   

Intangible assets, net

      30,337        40,271   

Other assets

      29,184        29,390   

Investment in equity interests

      11,248        —     
  

 

 

    

 

 

  

Total assets

    $ 601,567      $ 592,429   
  

 

 

    

 

 

  

Liabilities and shareholders’ equity

     

Current liabilities:

     

Accounts payable

    $ 22,597      $ 25,931   

Accrued expenses

      103,338        98,402   

Deferred revenue

      18,668        15,978   

Deferred tax liabilities

      1,466        1,668   

Current portion of long-term debt

      8,750        —     

Other current liabilities

      207        —     
  

 

 

    

 

 

  

Total current liabilities

      155,026        141,979   

Deferred tax liabilities

      12,246        18,359   

Other liabilities

      14,734        13,804   

Long-term debt

      230,000        229,000   
  

 

 

    

 

 

  

Total liabilities

      412,006        403,142   
  

 

 

    

 

 

  

Shareholders’ equity:

     

Preferred shares, par value €0.01 per share, 100,000,000 and 120,000,000 shares authorized, respectively; none issued and outstanding

      —          —     

Ordinary shares, par value €0.01 per share, 100,000,000 and 120,000,000 shares authorized, respectively; 44,080,627 and 49,950,289 shares issued, respectively; and 32,791,338 and 34,119,637 shares outstanding, respectively

      615        699   

Treasury shares, at cost, 11,289,289 and 15,830,652 shares, respectively

      (398,301 )      (378,941 ) 

Additional paid-in capital

      299,659        285,633   

Retained earnings

      299,144        292,628   

Accumulated other comprehensive loss

      (11,556 )      (10,732 ) 
  

 

 

    

 

 

  

Total shareholders’ equity

      189,561        189,287   
  

 

 

    

 

 

  

Total liabilities and shareholders’ equity

    $ 601,567      $ 592,429   
  

 

 

    

 

 

  

 

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VISTAPRINT N.V.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited in thousands, except share and per share data)

 

     Three Months Ended
June  30,		      Year Ended
June  30,		  
     2013     2012      2013     2012  

Revenue

    $ 280,066      $ 250,413       $ 1,167,478      $ 1,020,269   

Cost of revenue (1)

      99,009        88,672         400,293        355,205   

Technology and development expense (1)

      44,153        37,000         164,859        129,162   

Marketing and selling expense (1)

      101,789        90,928         446,116        375,538   

General and administrative expense (1)

      31,999        28,711         110,086        105,190   
  

 

 

    

 

 

     

 

 

    

 

 

  

Income from operations

      3,116        5,102         46,124        55,174   

Other income (expense), net

      496        141         (63 )      2,350   

Interest (expense) income, net

      (1,620 )      10         (5,329 )      (1,679 ) 
  

 

 

    

 

 

     

 

 

    

 

 

  

Income before income taxes and loss in equity interests

      1,992        5,253         40,732        55,845   

Income tax (benefit) provision

      (1,200 )      1,402         9,387        11,851   

Loss in equity interests

      887        —           1,910        —     
  

 

 

    

 

 

     

 

 

    

 

 

  

Net income

    $ 2,305      $ 3,851       $ 29,435      $ 43,994   
  

 

 

    

 

 

     

 

 

    

 

 

  

Basic net income per share

    $ 0.07      $ 0.11       $ 0.89      $ 1.16   
  

 

 

    

 

 

     

 

 

    

 

 

  

Diluted net income per share

    $ 0.07      $ 0.10       $ 0.85      $ 1.13   
  

 

 

    

 

 

     

 

 

    

 

 

  

Weighted average shares outstanding — basic

      32,511,960        35,808,786         33,209,172        37,813,504   
  

 

 

    

 

 

     

 

 

    

 

 

  

Weighted average shares outstanding — diluted

      33,978,085        37,043,351         34,472,004        38,953,179   
  

 

 

    

 

 

     

 

 

    

 

 

  

 

(1) Share-based compensation is allocated as follows:

 

     Three Months Ended
June 30,		      Year Ended
June  30,		  
     2013      2012      2013      2012  

Cost of revenue

    $ 89       $ 84       $ 398       $ 329   

Technology and development expense

      2,306         2,084         9,209         5,171   

Marketing and selling expense

      1,621         1,165         6,354         2,692   

General and administrative expense

      4,125         5,078         16,967         17,221   

 

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VISTAPRINT N.V.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited in thousands)

 

     Three Months Ended
June 30,		     Year Ended
June  30,		  
     2013     2012     2013     2012  

Operating activities

         

Net income

    $ 2,305      $ 3,851      $ 29,435      $ 43,994   

Adjustments to reconcile net income to net cash provided by operating activities:

         

Depreciation and amortization

      17,332        16,062        64,325        59,427   

Share-based compensation expense

      8,141        8,411        32,928        25,413   

Excess tax benefits from share-based awards

      (3,604 )      (6,037 )      (1,796 )      (6,108 ) 

Deferred taxes

      (4,496 )      371        (8,626 )      (1,810 ) 

Loss in equity interest

      887        —          1,910        —     

Non-cash gain on equipment

      —          —          (1,414 )      —     

Abandonment of long-lived assets

      552        —          1,529        —     

Other non-cash items

      616        172        741        361   

Changes in operating assets and liabilities excluding the effect of business acquisitions:

         

Accounts receivable

      (367 )      1,023        (1,520 )      (1,405 ) 

Inventory

      618        462        (525 )      1,150   

Prepaid expenses and other assets

      3,532        (3,722 )      10,802        (5,768 ) 

Accounts payable

      3,791        3,701        511        5,667   

Accrued expenses and other liabilities

      7,387        (4,953 )      11,712        19,720   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by operating activities

      36,694        19,341        140,012        140,641   
  

 

 

    

 

 

    

 

 

    

 

 

  

Investing activities

         

Purchases of property, plant and equipment

      (12,476 )      (13,482 )      (78,999 )      (46,420 ) 

Business acquisitions, net of cash acquired

      —          —          —          (180,675 ) 

Proceeds from sale of intangible assets

      —          —          1,750        —     

Purchases of intangible assets

      (298 )      (67 )      (750 )      (239 ) 

Maturities and redemptions of marketable securities

      —          —          —          529   

Capitalization of software and website development costs

      (2,088 )      (1,161 )      (7,667 )      (5,463 ) 

Investment in equity interests

      —          —          (12,753 )      —     

Issuance of note receivable

      —          —          (512 )      —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Net cash used in investing activities

      (14,862 )      (14,710 )      (98,931 )      (232,268 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Financing activities

         

Proceeds from borrowings of long-term debt

      34,000        189,000        113,712        408,500   

Payments of long-term debt and debt issuance costs

      (33,947 )      (87,098 )      (105,661 )      (181,319 ) 

Payments of withholding taxes in connection with vesting of restricted share units

      (1,096 )      (1,420 )      (3,556 )      (4,149 ) 

Purchases of ordinary shares

      (28,061 )      (100,056 )      (64,351 )      (309,701 ) 

Excess tax benefits from share-based awards

      3,604        6,037        1,796        6,108   

Proceeds from issuance of shares

      2,781        436        4,805        1,394   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by (used in) financing activities

      (22,719 )      6,899        (53,255 )      (79,167 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Effect of exchange rate changes on cash

      (354 )      (1,464 )      36        (3,555 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in cash and cash equivalents

      (1,241 )      10,066        (12,138 )      (174,349 ) 

Cash and cash equivalents at beginning of period

      51,306        52,137        62,203        236,552   
  

 

 

    

 

 

    

 

 

    

 

 

  

Cash and cash equivalents at end of period

    $ 50,065      $ 62,203      $ 50,065      $ 62,203   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

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VISTAPRINT N.V.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

(Unaudited in thousands, except share and per share data)

 

     Three Months Ended
June  30,		     Year Ended
June  30,		  
     2013     2012     2013     2012  

Non-GAAP adjusted net income reconciliation:

         

Net income

    $ 2,305      $ 3,851      $ 29,435      $ 43,994   

Add back:

         

Share-based compensation expense, inclusive of income tax effects

      8,324 (a)      8,596 (b)      33,662 (c)      26,060 (d) 

Amortization of acquisition-related intangible assets

      3,665        2,225        10,361        5,754   

Tax cost (benefit) of transfer of intellectual property

      (208 )      218        2,387        1,235   
  

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP adjusted net income

    $ 14,086      $ 14,890      $ 75,845      $ 77,043   
  

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP adjusted net income per diluted share reconciliation:

         

Net income per diluted share

    $ 0.07      $ 0.10      $ 0.85      $ 1.13   

Add back:

         

Share-based compensation expense, inclusive of income tax effects

      0.24        0.23        0.95        0.65   

Amortization of acquisition-related intangible assets

      0.11        0.06        0.29        0.14   

Tax cost (benefit) of transfer of intellectual property

      (0.01 )      0.01        0.06        0.03   
  

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP adjusted net income per diluted share

    $ 0.41      $ 0.40      $ 2.15      $ 1.95   
  

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP adjusted weighted average shares reconciliation:

         

GAAP weighted average shares outstanding — diluted

      33,978,085        37,043,351        34,472,004        38,953,179   

Add:

         

Additional shares due to unamortized share-based compensation

      654,959        576,840        729,460        472,741   
  

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP adjusted weighted average shares outstanding — diluted

      34,633,044        37,620,191        35,201,464        39,425,920   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) Includes share-based compensation charges of $8,141 and the income tax effects related to those charges of $183.
(b) Includes share-based compensation charges of $8,411 and the income tax effects related to those charges of $185.
(c) Includes share-based compensation charges of $32,928 and the income tax effects related to those charges of $734.
(d) Includes share-based compensation charges of $25,413 and the income tax effects related to those charges of $647.

 

     Three Months Ended
June  30,		     Year Ended
June  30,		  
     2013     2012     2013     2012  

Free cash flow reconciliation:

         

Net cash provided by operating activities

    $ 36,694      $ 19,341      $ 140,012      $ 140,641   

Purchases of property, plant and equipment

      (12,476 )      (13,482 )      (78,999 )      (46,420 ) 

Purchases of intangible assets not related to acquisitions

      (298 )      (67 )      (750 )      (239 ) 

Capitalization of software and website development costs

      (2,088 )      (1,161 )      (7,667 )      (5,463 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Free cash flow

    $ 21,832      $ 4,631      $ 52,596      $ 88,519   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

Page 13 of 15

VISTAPRINT N.V.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (CONTINUED)

(Unaudited in thousands, except share and per share data)

 

     GAAP Revenue      % Change     Currency
Impact:
(Favorable)/
Unfavorable		     Constant-
Currency
Revenue
Growth		     Impact  of
Acquisitions:
(Favorable)/
Unfavorable		     Constant-
Currency
Organic
Revenue
Growth		  
   Three Months Ended
June 30,		             
   2013      2012             

Revenue growth reconciliation by segment:

                 

North America

    $ 169,549       $ 143,394         18 %      —   %      18 %      (1 )%      17 % 

Europe

      94,894         91,958         3 %      (1 )%      2 %      —   %      2 % 

Most of World*

      15,623         15,061         4 %      4 %      8 %      —   %      8 % 
  

 

 

     

 

 

             

Total revenue

    $ 280,066       $ 250,413         12 %      —   %      12 %      (1 )%      11 % 
  

 

 

     

 

 

             

 

     GAAP Revenue      % Change     Currency
Impact:
(Favorable)/
Unfavorable		     Constant-
Currency
Revenue
Growth		     Impact of
Acquisitions:
(Favorable)/
Unfavorable		     Constant-
Currency
Organic
Revenue
Growth		  
   Year Ended
June 30,		             
   2013      2012             

Revenue growth reconciliation by segment:

                 

North America

    $ 644,326       $ 543,860         18 %      —   %      18 %      (1 )%      17 % 

Europe

      452,202         415,213         9 %      2 %      11 %      (6 )%      5 % 

Most of World*

      70,950         61,196         16 %      1 %      17 %      —   %      17 % 
  

 

 

     

 

 

             

Total revenue

    $ 1,167,478       $ 1,020,269         14 %      2 %      16 %      (4 )%      12 % 
  

 

 

     

 

 

             

 

* The Most of World segment is equivalent to the Asia Pacific region for purposes of this presentation.

 

Page 14 of 15

VISTAPRINT N.V.

Supplemental Financial Information and Operating Metrics

 

         Q4
FY2012		     FY2012     Q1
FY2013		     Q2
FY2013		     Q3
FY2013		     Q4
FY2013		     FY2013  
1   

New Customer Orders (millions)—Organic

     2.2        9.4        2.2        3.2        2.5        2.2        10.1   
  

y/y growth

     22 %      27 %      16 %      10 %      4 %      0 %      7 % 
2   

Total Order Volume (millions)—Organic

     6.4        27.6        6.5        9.0        7.2        6.5        29.1   
  

y/y growth

     14 %      21 %      10 %      8 %      3 %      2 %      6 % 
3   

Average Order Value—Organic ($USD)

   $ 36.73      $ 35.78      $ 36.78      $ 36.25      $ 38.43      $ 40.40      $ 37.83   
  

y/y growth

     -3 %      -1 %      1 %      5 %      9 %      10 %      6 % 
4   

TTM Unique Active Customer Count—Organic (millions)

     14.4          14.9        15.4        15.7        15.8     
  

y/y growth

     26 %        25 %      19 %      14 %      10 %   
  

TTM new customer count (millions)

     9.4          9.7        10.0        10.1        10.1     
  

TTM repeat customer count (millions)

     5.0          5.2        5.4        5.6        5.7     
5   

TTM Average Bookings per Unique Active Customer—Organic

   $ 68        $ 67      $ 67      $ 68      $ 69     
  

y/y growth

     -6 %        -8 %      -6 %      -2 %      1 %   
  

TTM average bookings per new customer (approx.)

   $ 51        $ 50      $ 50      $ 50      $ 51     
  

TTM average bookings per repeat customer (approx.)

   $ 99        $ 99      $ 97      $ 98      $ 98     
6   

Advertising & Commissions Expense—Consolidated (millions)

   $ 57.7      $ 252.8      $ 65.2      $ 93.9      $ 69.0      $ 59.0      $ 287.2   
  

as % of revenue

     23.0 %      24.8 %      25.9 %      27.0 %      24.0 %      21.1 %      24.6 % 
  

Revenue—Consolidated as Reported ($ millions)

   $ 250.4      $ 1,020.3      $ 251.4      $ 348.3      $ 287.7      $ 280.1      $ 1,167.5   
  

y/y growth

     20 %      25 %      18 %      16 %      12 %      12 %      14 % 
  

y/y growth in constant currency

     25 %      26 %      23 %      17 %      12 %      12 %      16 % 
    

North America ($ millions)

   $ 143.4      $ 543.9      $ 144.2      $ 167.5      $ 163.1      $ 169.5      $ 644.3   
  

y/y growth

     20 %      20 %      22 %      20 %      15 %      18 %      18 % 
  

y/y growth in constant currency

     21 %      20 %      22 %      20 %      15 %      18 %      18 % 
  

as % of revenue

     57 %      53 %      57 %      48 %      57 %      61 %      55 % 
    

Europe ($ millions)

   $ 92.0      $ 415.2      $ 89.7      $ 159.3      $ 108.3      $ 94.9      $ 452.2   
  

y/y growth

     18 %      29 %      12 %      11 %      8 %      3 %      9 % 
  

y/y growth in constant currency

     30 %      31 %      23 %      14 %      8 %      2 %      11 % 
  

as % of revenue

     37 %      41 %      36 %      46 %      37 %      34 %      39 % 
    

Asia Pacific ($ millions)

   $ 15.1      $ 61.2      $ 17.5      $ 21.5      $ 16.4      $ 15.6      $ 71.0   
  

y/y growth

     28 %      44 %      28 %      26 %      6 %      4 %      16 % 
  

y/y growth in constant currency

     33 %      38 %      29 %      24 %      10 %      8 %      17 % 
  

as % of revenue

     6 %      6 %      7 %      6 %      6 %      6 %      6 % 
7   

Revenue—Organic ($ millions)

   $ 235.0      $ 975.1      $ 233.4      $ 322.7      $ 269.7      $ 261.5      $ 1,087.3   
  

y/y growth

     13 %      19 %      10 %      14 %      11 %      11 %      11 % 
  

y/y growth in constant currency

     17 %      20 %      13 %      14 %      11 %      11 %      12 % 
    

North America—Organic ($ millions)

   $ 140.9      $ 539.1      $ 141.6      $ 164.7      $ 160.2      $ 164.8      $ 631.2   
  

y/y growth

     18 %      19 %      19 %      18 %      15 %      17 %      17 % 
  

y/y growth in constant currency

     18 %      19 %      19 %      18 %      15 %      17 %      17 % 
  

as % of revenue

     60 %      55 %      61 %      51 %      59 %      63 %      58 % 
    

Europe—Organic ($ millions)

   $ 79.1      $ 374.8      $ 74.3      $ 136.5      $ 93.2      $ 81.1      $ 385.1   
  

y/y growth

     2 %      17 %      -7 %      7 %      5 %      3 %      3 % 
  

y/y growth in constant currency

     11 %      18 %      1 %      9 %      5 %      2 %      5 % 
  

as % of revenue

     34 %      38 %      32 %      42 %      35 %      31 %      35 % 
    

Asia Pacific—Organic ($ millions)

   $ 15.1      $ 61.2      $ 17.5      $ 21.5      $ 16.4      $ 15.6      $ 71.0   
  

y/y growth

     28 %      44 %      28 %      26 %      6 %      4 %      16 % 
  

y/y growth in constant currency

     33 %      38 %      29 %      24 %      10 %      8 %      17 % 
  

as % of revenue

     6 %      6 %      7 %      7 %      6 %      6 %      7 % 
  

Other metrics

              
8   

Unique digital paying subscribers at end of period (approximate)

     351,000          353,000        357,000        356,000        365,000     
  

Headcount at end of period

     3,789          4,101        4,418        4,139        4,151     
  

Full-time employees

     3,543          3,798        3,936        3,952        3,996     
  

Temporary employees

     246          303        482        187        155     

 

Notes: Some numbers may not add due to rounding
     Metrics are unaudited and where noted, approximate

 

1 

Orders from first-time customers in period

2 

Total order volume in period

3 

Total bookings, including shipping and processing, divided by total orders

4 

Number of individual customers who purchased from us in a given period, with no regard to frequency of purchase

5 

Total bookings for a trailing twelve month period, including shipping and processing, divided by number of unique customers in the same period

6 

External advertising and commissions expense for the consolidated business

7 

Organic revenue excludes revenue from acquired companies Webs and Albumprinter

8 

Organic—digital subscribers exclude Webs customers

 

Page 15 of 15