Vistaprint Reports Second Quarter Fiscal Year 2013 Financial Results
Second quarter 2013 results:
Revenue grew 16 percent year over year to $348.3 million
Revenue grew 17 percent year over year excluding the impact of
currency exchange rate fluctuations
Revenue grew 14 percent year over year excluding the impact of
currency exchange rate fluctuations and revenue from acquisitions
GAAP net income per diluted share decreased 20 percent year over year
to $0.66
Non-GAAP adjusted net income per diluted share increased 5 percent
year over year to $1.02
VENLO, Netherlands--(BUSINESS WIRE)--
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
December 31, 2012, the second quarter of its 2013 fiscal year.
“Our second quarter results were solid,” said Robert Keane, president
and chief executive officer. “We delivered good results for our consumer
and holiday business around the world. We continued to execute well in
North America. Though our European growth rate improved versus our
disappointing first quarter results, we believe this was primarily due
to the seasonal strength of our holiday-related business in Europe, and
we continue to expect our European marketing execution turn-around to
take time and significant effort. Turning to profit, our gross margins
continued to expand, despite incurring incremental costs associated with
product quality improvements and new product launches. We believe a
significant portion of this success is due to our strategic commitment
to invest in world-class manufacturing capabilities. Our quarterly
earnings per share were above our expectations, due in part to our
strong gross margins and one-time favorability in our tax rate.”
Financial Metrics (including Albumprinter and
Webs results unless otherwise stated):
Revenue for the second quarter of fiscal year 2013 grew to $348.3
million, a 16 percent increase over revenue of $299.9 million reported
in the same quarter a year ago. Excluding Albumprinter and Webs
combined revenue of $25.6 million, total second quarter revenue was
$322.7 million. Excluding the estimated impact from currency exchange
rate fluctuations and revenue from acquired businesses, total revenue
grew 14 percent year over year in the second quarter.
Gross margin (revenue minus the cost of revenue as a percent of total
revenue) in the second quarter was 67.2 percent, compared to 66.8
percent in the same quarter a year ago.
Operating income in the second quarter was $33.0 million, or 9.5
percent of revenue, and reflected a slight increase compared to
operating income of $32.5 million, or 10.9 percent of revenue, in the
same quarter a year ago.
GAAP net income for the second quarter was $23.0 million, or 6.6
percent of revenue, representing a 28 percent decrease compared to
$31.7 million, or 10.6 percent of revenue in the same quarter a year
ago. Despite improved operating income year over year, our GAAP net
income declined due to several year-over-year differences in
below-the-line items, including interest expense, other income, our
tax provision, and the effect of our new indirect minority equity
interest in China.
GAAP net income per diluted share for the second quarter was $0.66,
versus $0.82 in the same quarter a year ago.
Non-GAAP adjusted net income for the second 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 $35.9 million, or 10.3 percent of
revenue, representing a 5 percent decrease compared to non-GAAP
adjusted net income of $37.9 million, or 12.6 percent of revenue, in
the same quarter a year ago.
Non-GAAP adjusted net income per diluted share for the second quarter,
as defined above, was $1.02, versus $0.97 in the same quarter a year
ago.
Capital expenditures in the second quarter were $27.6 million, or 7.9
percent of revenue.
During the second quarter, the company generated $88.5 million of cash
from operations and $58.7 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.
As of December 31, 2012, the company had $64.7 million in cash and
cash equivalents and $230.5 million in long-term debt, with $157.0
million remaining under its credit facility.
During the second quarter, the company purchased 827,346 of its
ordinary shares for $24.8 million, inclusive of transaction costs, at
an average per-share cost of $29.94, as part of the share repurchase
program authorized by the Supervisory Board in February 2012.
Operating metrics are now provided as a table-based supplement to this
press release.
Fiscal 2013 Outlook as of January 31, 2013:
Ernst Teunissen, executive vice president and chief financial officer,
said, “Looking ahead to the second half of the fiscal year, we expect to
continue to benefit from solid execution in North America and strong
manufacturing results around the world. We continue to believe that our
European marketing execution turn-around will take time, and our revenue
weakness there will persist through at least the remainder of fiscal
2013. Given our continuing challenges in Europe, we expect that the
shift from a strong seasonal consumer focus in our second fiscal quarter
to small-business-oriented campaigns for the second half of the fiscal
year will be more difficult than it has been in past years. Despite
continued revenue weakness, we remain confident in our earnings per
share outlook for the remainder of the year. Our guidance today reflects
these factors. We are lowering and narrowing our revenue guidance range
for the fiscal year, but narrowing our earnings per share guidance range
to the upper part of the prior guidance range due to our strong earnings
performance through the first half of the year.”
Financial Guidance as of January 31, 2013:
As previously stated, beginning with fiscal year 2013, the company is
providing revenue guidance on an annual and quarterly basis, and
earnings guidance on an annual basis. Based on current and anticipated
levels of demand, the company expects the following financial results:
Fiscal Year and Third Quarter 2013 Revenue
For the full fiscal year ending June 30, 2013, the company expects
revenue of approximately $1,145 million to $1,175 million, or 12
percent to 15 percent growth year over year in reported terms.
Excluding currency movements and acquired revenue, we expect
constant-currency organic growth of approximately 10 percent to 13
percent. Reported (USD) growth expectations assume a recent 30-day
currency exchange rate for all currencies. Constant-currency growth is
estimated by applying the respective prior year quarterly average
exchange rates to all estimated non-U.S. dollar denominated revenue
expected for future periods.
For the third quarter of fiscal year 2013, ending March 31, 2013, the
company expects revenue of approximately $275 million to $290 million,
or 7 percent to 13 percent growth year over year in reported terms. We
expect constant-currency organic growth of approximately 5 percent to
11 percent.
Fiscal Year 2013 GAAP Net Income Per Diluted
Share
For the full fiscal year ending June 30, 2013, the company expects
GAAP net income per diluted share of approximately $0.50 to $0.70,
which assumes 34.6 million weighted average diluted shares outstanding.
Fiscal Year 2013 Non-GAAP Adjusted Net Income
Per Diluted Share
For the full fiscal year ending June 30, 2013, the company expects
non-GAAP adjusted net income per diluted share of approximately $1.79
to $1.99, which excludes expected acquisition-related amortization of
intangible assets of approximately $8.4 million or approximately $0.24
per diluted share, share-based compensation expense and its related
tax effect of approximately $34.6 million or approximately $0.98 per
diluted share, and tax charges related to the alignment of
acquisition-related intellectual property with global operations of
approximately $2.4 million, or $0.07 per diluted share. This guidance
assumes a non-GAAP weighted average diluted share count of
approximately 35.2 million shares.
Fiscal Year 2013 Capital Expenditures
For the full fiscal year ending June 30, 2013, the company expects to
make capital expenditures of approximately $85 million to $95 million.
Planned capital investments are designed to support the planned growth
of the business and are expected to include the expansion of our
European production capacity in our Dutch (Venlo) facility and other
investments.
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. (EST) on January 31, 2013, Vistaprint will
post, on the Investor Relations section of www.vistaprint.com,
an 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 (800) 599-9816, access code 94030400. A replay of the
Q&A session will be available on the company’s Web site following the
call on January 31, 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 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 foreign 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 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 4,400 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 and development of our business,
especially in Europe, and our financial outlook and guidance set forth
under the headings “Fiscal 2013 Outlook as of January 31, 2013” and
“Financial Guidance as of January 31, 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 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
September 30, 2012 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
VISTAPRINT N.V.
CONSOLIDATED BALANCE SHEETS
(Unaudited in thousands, except share and per share data)
December 31, 2012
June 30, 2012
Assets
Current assets:
Cash and cash equivalents
$
64,728
$
62,203
Accounts receivable, net of allowances of $349 and $189, respectively
23,467
20,125
Inventory
10,215
7,168
Prepaid expenses and other current assets
33,935
26,102
Total current assets
132,345
115,598
Property, plant and equipment, net
293,295
261,228
Software and web site development costs, net
6,965
5,186
Deferred tax assets
333
327
Goodwill
142,193
140,429
Intangible assets, net
37,050
40,271
Other assets
28,310
29,390
Investment in equity interests
13,169
—
Total assets
$
653,660
$
592,429
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable
$
31,641
$
25,931
Accrued expenses
130,248
98,402
Deferred revenue
18,214
15,978
Deferred tax liabilities
1,686
1,668
Other current liabilities
621
—
Total current liabilities
182,410
141,979
Deferred tax liabilities
16,128
18,359
Other liabilities
14,727
13,804
Long-term debt
230,500
229,000
Total liabilities
443,765
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; 49,950,289 shares
issued and 33,525,856 and 34,119,637 shares outstanding, respectively
699
699
Treasury shares, at cost, 16,424,433 and 15,830,652 shares,
respectively
(398,617
)
(378,941
)
Additional paid-in capital
296,942
285,633
Retained earnings
313,892
292,628
Accumulated other comprehensive loss
(3,021
)
(10,732
)
Total shareholders’ equity
209,895
189,287
Total liabilities and shareholders’ equity
$
653,660
$
592,429
VISTAPRINT N.V.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited in thousands, except share and per share data)
Three Months Ended December 31,
Six Months Ended December 31,
2012
2011
2012
2011
Revenue
$
348,312
$
299,862
$
599,728
$
512,222
Cost of revenue (1)
114,150
99,661
202,177
177,725
Technology and development expense (1)
40,045
29,792
77,702
56,466
Marketing and selling expense (1)
134,364
110,644
234,361
186,988
General and administrative expense (1)
26,712
27,223
52,213
48,755
Income from operations
33,041
32,542
33,275
42,288
Other (expense) income, net
(310
)
2,448
(819
)
2,898
Interest expense, net
(1,264
)
(422
)
(2,426
)
(339
)
Income before income taxes and loss in equity interests
31,467
34,568
30,030
44,847
Income tax provision
8,189
2,871
8,323
4,978
Loss in equity interests
(318
)
—
(443
)
—
Net income
$
22,960
$
31,697
$
21,264
$
39,869
Basic net income per share
$
0.69
$
0.84
$
0.63
$
1.01
Diluted net income per share
$
0.66
$
0.82
$
0.61
$
0.99
Weighted average shares outstanding — basic
33,377,045
37,638,224
33,525,669
39,439,181
Weighted average shares outstanding — diluted
34,544,965
38,654,740
34,754,574
40,474,021
____________________________________________
(1) Share-based compensation is allocated as follows:
Three Months Ended December 31,
Six Months Ended December 31,
2012
2011
2012
2011
Cost of revenue
$
107
$
77
$
205
$
171
Technology and development expense
2,366
834
4,606
1,693
Marketing and selling expense
1,590
498
3,139
1,053
General and administrative expense
4,287
3,454
8,667
6,669
VISTAPRINT N.V.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited in thousands)
Three Months Ended December 31,
Six Months Ended December 31,
2012
2011
2012
2011
Operating activities
Net income
$
22,960
$
31,697
$
21,264
$
39,869
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization
16,166
14,169
30,824
27,276
Share-based compensation expense
8,350
4,863
16,617
9,586
Excess tax benefits from share-based awards
22
123
201
(11
)
Deferred taxes
(2,804
)
(2,748
)
(3,859
)
(3,001
)
Other non-cash items
61
81
(31
)
107
Loss in equity interest
318
—
443
—
Non-cash gain on equipment
(135
)
—
(1,414
)
—
Changes in operating assets and liabilities excluding the effect
of business acquisitions:
Accounts receivable
(2,421
)
(2,885
)
(2,754
)
(2,576
)
Inventory
(2,027
)
(45
)
(2,890
)
(487
)
Prepaid expenses and other assets
(4,391
)
(6,273
)
(4,391
)
(7,494
)
Accounts payable
12,141
5,074
8,603
3,123
Accrued expenses and other liabilities
40,293
37,083
32,570
45,288
Net cash provided by operating activities
88,533
81,139
95,183
111,680
Investing activities
Purchases of property, plant and equipment
(27,609
)
(13,447
)
(55,368
)
(24,445
)
Business acquisitions, net of cash acquired
—
(184,822
)
—
(184,822
)
Proceeds from sale of intangible assets
—
—
1,750
—
Purchases of intangible assets
(361
)
(42
)
(370
)
(131
)
Maturities and redemptions of marketable securities
—
—
—
529
Capitalization of software and website development costs
(1,839
)
(1,209
)
(3,140
)
(2,891
)
Investment in equity interests
(100
)
—
(12,753
)
—
Issuance of note receivable
(512
)
—
(512
)
—
Net cash used in investing activities
(30,421
)
(199,520
)
(70,393
)
(211,760
)
Financing activities
Proceeds from borrowings of long-term debt
16,000
161,500
55,212
161,500
Payments of long-term debt and debt issuance costs
(44,887
)
(16,145
)
(53,895
)
(16,145
)
Payments of withholding taxes in connection with vesting of
restricted share units
(624
)
(880
)
(1,790
)
(1,955
)
Purchases of ordinary shares
(24,775
)
(118,557
)
(24,775
)
(209,645
)
Excess tax benefits from share-based awards
(22
)
(123
)
(201
)
11
Proceeds from issuance of shares
867
70
1,758
139
Net cash used in financing activities
(53,441
)
25,865
(23,691
)
(66,095
)
Effect of exchange rate changes on cash
738
(1,106
)
1,426
(2,907
)
Net increase (decrease) in cash and cash equivalents
5,409
(93,622
)
2,525
(169,082
)
Cash and cash equivalents at beginning of period
59,319
161,092
62,203
236,552
Cash and cash equivalents at end of period
$
64,728
$
67,470
$
64,728
$
67,470
VISTAPRINT N.V.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
(Unaudited in thousands, except share and per share data)
Three Months Ended December 31,
Six Months Ended December 31,
2012
2011
2012
2011
Non-GAAP adjusted net income reconciliation:
Net income
$
22,960
$
31,697
$
21,264
$
39,869
Add back:
Share-based compensation expense, inclusive of income tax effects
8,540
(a)
5,021
(b)
16,985
(c)
9,897
(d)
Amortization of acquisition-related intangible assets
2,243
1,148
4,421
1,148
Tax cost of transfer of intellectual property
2,164
—
2,164
—
Non-GAAP adjusted net income
$
35,907
$
37,866
$
44,834
$
50,914
Non-GAAP adjusted net income per diluted share reconciliation:
Net income per diluted share
$
0.66
$
0.82
$
0.61
$
0.99
Add back:
Share-based compensation expense, inclusive of income tax effects
0.24
0.12
0.47
0.23
Amortization of acquisition-related intangible assets
0.06
0.03
0.12
0.03
Tax cost of transfer of intellectual property
0.06
—
0.06
—
Non-GAAP adjusted net income per diluted share
$
1.02
$
0.97
$
1.26
$
1.25
Non-GAAP adjusted weighted average shares reconciliation:
GAAP weighted average shares outstanding - diluted
34,544,965
38,654,740
34,754,574
40,474,021
Add:
Additional shares due to unamortized share-based compensation
611,007
385,882
719,986
161,363
Non-GAAP adjusted weighted average shares outstanding - diluted
35,155,972
39,040,622
35,474,560
40,635,384
(a) Includes share-based compensation charges of $8,350 and the income
tax effects related to those charges of $190.
(b) Includes share-based compensation charges of $4,863 and the income
tax effects related to those charges of $158.
(c) Includes share-based compensation charges of $16,617 and the income
tax effects related to those charges of $368.
(d) Includes share-based compensation charges of $9,586 and the income
tax effects related to those charges of $311.
Three Months Ended December 31,
Six Months Ended December 31,
2012
2011
2012
2011
Free cash flow reconciliation:
Net cash provided by operating activities
$
88,533
$
81,139
$
95,183
$
111,680
Purchases of property, plant and equipment
(27,609
)
(13,447
)
(55,368
)
(24,445
)
Purchases of intangible assets not related to acquisitions
(361
)
(42
)
(370
)
(131
)
Capitalization of software and website development costs
(1,839
)
(1,209
)
(3,140
)
(2,891
)
Free cash flow
$
58,724
$
66,441
$
36,305
$
84,213
GAAP Revenue
Three Months Ended December 31,
Currency Impact:
Constant- Currency
Impact of Acquisitions:
Constant- Currency Organic
2012
2011
% Change
(Favorable)/ Unfavorable
Revenue Growth
(Favorable)/ Unfavorable
Revenue Growth
Revenue growth reconciliation by segment:
North America
$
167,511
$
139,807
20%
—%
20%
(2)%
18%
Europe
159,339
143,048
11%
3%
14%
(5)%
9%
Most of World
21,462
17,007
26%
(2)%
24%
—%
24%
Total revenue
$
348,312
$
299,862
16%
1%
17%
(3)%
14%
GAAP Revenue
Six Months Ended December 31,
Currency Impact:
Constant- Currency
Impact of Acquisitions:
Constant- Currency Organic
2012
2011
% Change
(Favorable)/ Unfavorable
Revenue Growth
(Favorable)/ Unfavorable
Revenue Growth
Revenue growth reconciliation by segment:
North America
$
311,749
$
258,498
21%
—%
21%
(3)%
18%
Europe
249,052
223,027
12%
5%
17%
(11)%
6%
Most of World
38,927
30,697
27%
(1)%
26%
—%
26%
Total revenue
$
599,728
$
512,222
17%
2%
19%
(5)%
14%
VISTAPRINT N.V.
Supplemental Financial Information and Operating Metrics
Press Release $VPRT Vistaprint N.V.
Second quarter 2013 results:
VENLO, Netherlands--(BUSINESS WIRE)-- 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 December 31, 2012, the second quarter of its 2013 fiscal year.
“Our second quarter results were solid,” said Robert Keane, president and chief executive officer. “We delivered good results for our consumer and holiday business around the world. We continued to execute well in North America. Though our European growth rate improved versus our disappointing first quarter results, we believe this was primarily due to the seasonal strength of our holiday-related business in Europe, and we continue to expect our European marketing execution turn-around to take time and significant effort. Turning to profit, our gross margins continued to expand, despite incurring incremental costs associated with product quality improvements and new product launches. We believe a significant portion of this success is due to our strategic commitment to invest in world-class manufacturing capabilities. Our quarterly earnings per share were above our expectations, due in part to our strong gross margins and one-time favorability in our tax rate.”
Financial Metrics (including Albumprinter and Webs results unless otherwise stated):
Operating metrics are now provided as a table-based supplement to this press release.
Fiscal 2013 Outlook as of January 31, 2013:
Ernst Teunissen, executive vice president and chief financial officer, said, “Looking ahead to the second half of the fiscal year, we expect to continue to benefit from solid execution in North America and strong manufacturing results around the world. We continue to believe that our European marketing execution turn-around will take time, and our revenue weakness there will persist through at least the remainder of fiscal 2013. Given our continuing challenges in Europe, we expect that the shift from a strong seasonal consumer focus in our second fiscal quarter to small-business-oriented campaigns for the second half of the fiscal year will be more difficult than it has been in past years. Despite continued revenue weakness, we remain confident in our earnings per share outlook for the remainder of the year. Our guidance today reflects these factors. We are lowering and narrowing our revenue guidance range for the fiscal year, but narrowing our earnings per share guidance range to the upper part of the prior guidance range due to our strong earnings performance through the first half of the year.”
Financial Guidance as of January 31, 2013:
As previously stated, beginning with fiscal year 2013, the company is providing revenue guidance on an annual and quarterly basis, and earnings guidance on an annual basis. Based on current and anticipated levels of demand, the company expects the following financial results:
Fiscal Year and Third Quarter 2013 Revenue
Fiscal Year 2013 GAAP Net Income Per Diluted Share
Fiscal Year 2013 Non-GAAP Adjusted Net Income Per Diluted Share
Fiscal Year 2013 Capital Expenditures
For the full fiscal year ending June 30, 2013, the company expects to make capital expenditures of approximately $85 million to $95 million. Planned capital investments are designed to support the planned growth of the business and are expected to include the expansion of our European production capacity in our Dutch (Venlo) facility and other investments.
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. (EST) on January 31, 2013, Vistaprint will post, on the Investor Relations section of www.vistaprint.com, an 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 (800) 599-9816, access code 94030400. A replay of the Q&A session will be available on the company’s Web site following the call on January 31, 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 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 foreign 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 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 4,400 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 and development of our business, especially in Europe, and our financial outlook and guidance set forth under the headings “Fiscal 2013 Outlook as of January 31, 2013” and “Financial Guidance as of January 31, 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 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 September 30, 2012 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
VISTAPRINT N.V.
CONSOLIDATED BALANCE SHEETS
(Unaudited in thousands, except share and per share data)
December 31,
2012
June 30,
2012
VISTAPRINT N.V.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited in thousands, except share and per share data)
Three Months Ended
December 31,
Six Months Ended
December 31,
____________________________________________
(1) Share-based compensation is allocated as follows:
Three Months Ended
December 31,
Six Months Ended
December 31,
VISTAPRINT N.V.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited in thousands)
Three Months Ended
December 31,
Six Months Ended
December 31,
Changes in operating assets and liabilities excluding the effect of business acquisitions:
VISTAPRINT N.V.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
(Unaudited in thousands, except share and per share data)
Three Months Ended
December 31,
Six Months Ended
December 31,
(a) Includes share-based compensation charges of $8,350 and the income tax effects related to those charges of $190.
(b) Includes share-based compensation charges of $4,863 and the income tax effects related to those charges of $158.
(c) Includes share-based compensation charges of $16,617 and the income tax effects related to those charges of $368.
(d) Includes share-based compensation charges of $9,586 and the income tax effects related to those charges of $311.
Three Months Ended
December 31,
Six Months Ended
December 31,
Three Months Ended
December 31,
Currency
Impact:
Constant-
Currency
Impact of
Acquisitions:
Constant-
Currency
Organic
(Favorable)/
Unfavorable
Revenue
Growth
(Favorable)/
Unfavorable
Revenue
Growth
Six Months Ended
December 31,
Currency
Impact:
Constant-
Currency
Impact of
Acquisitions:
Constant-
Currency
Organic
(Favorable)/
Unfavorable
Revenue
Growth
(Favorable)/
Unfavorable
Revenue
Growth
1
2
3
4
5
6
7
8
1
2
3
4
5
6
7
8
Vistaprint N.V.
Investor Relations:
Angela White, +1 781-652-6480
ir@vistaprint.com
or
Media Relations:
Kaitlin Ambrogio, +1 781-652-6444
publicrelations@vistaprint.com
Source: Vistaprint N.V.